The Treasury Department is mandating that all bureaus switch to an electronic invoicing system by the end of next fiscal year as part of President Obama’s “Campaign to Cut Waste.”
The move could save taxpayers as much as $450 million annually if adopted government-wide, the agency said, and will save the agency at least $7 million per year and cut invoicing costs by 50 percent.
“Electronic invoicing will mean lower costs for taxpayers and faster payments for private sector companies doing business with the federal government,” said Deputy Secretary of the Treasury Neal Wolin. “Treasury is continuing to move forward to identify innovative ways to use technology to cut waste and improve efficiency.”
Additionally, Treasury will require that its commercial vendors submit their invoices using the same electronic system (called the Internet Payment Platform or IPP) by fiscal 2013. The move is expected to save taxpayer money and help vendors get paid faster.
The Treasury bureaus adopting IPP include the Alcohol and Tobacco Tax and Trade Bureau, Bureau of Engraving and Printing, Bureau of Public Debt, Financial Crimes Enforcement Network, Financial Management Service, Inspector General, Treasury Inspector General for Tax Administration, Internal Revenue Service, Office of the Comptroller of the Currency, Office of Thrift Supervision, U.S. Mint and Departmental Offices.
From Senator Tom Carper, Chairman of the Subcommittee on Federal Financial Management.
“The U.S. Treasury’s announcement today is another positive step as we work toward improved government efficiency and transparency, and overall better governance. As we work to rein in our massive federal debt and deficit we have to look in every nook and cranny of the federal government to find ways to save taxpayer money while still delivering the services that Americans need and expect from the government. The Internet Payment Platform is a common-sense solution that utilizes technology to process, track and save money in the federal budget, benefiting the American taxpayer’s wallet and the federal government’s bottom line. I am encouraged that agencies are making the smart administrative and financial management decisions that put us on a path toward a culture of thrift within the federal government. While there is no silver bullet to solve all of our nation’s fiscal woes, this action is just one of many silver darts that we can use to better manage scarce taxpayer dollars.”