Unpaid bills to Island companies (FOI)

​​​Request

In March 2023, Treasury Minister Ian Gorst confirmed that the Government of Jersey was trying to clear £6m of unpaid bills owed to island companies from before 2022 and that a new payment system had caused problems in settling invoices.

He stated that the department had brought in 14 extra staff to clear the backlog.

A

Has that backlog has now been cleared?  How much money in unpaid bills does the Govenment of Jersey currently owe island companies?

B

What is the average and median waiting time between a company submitting an invoice and that invoice being paid? 

C

What was the average and median waiting time between a company submitting an invoice and that invoice being paid before the introduction of the Government of Jersey new payment system? 

Response

A

All outstanding invoices from 2022 and before, that have been approved by budget holders, have been paid.  

In 2023 the Government of Jersey paid 177,000 invoices totalling £660 million. Prior to payment invoices must go through the necessary due diligence including budget holder approval. Invoices over 30 days for island companies totalling £2 million are going through the due diligence approval process prior to payment.   

B

The Government of Jersey has 30-day payment terms. In 2023, 81% of supplier invoices were paid within 30 days of the invoice date. Invoices were paid on average 24 days after the invoice date in 2023. The median invoice was paid 13 days from invoice date.

C

In 2022, before the introduction of the new payment system, 80% of supplier invoices were paid within 30 days of the invoice date. Invoices were paid on average 25 days after the invoice date in 2022. The median invoice was paid 14 days from invoice date.​