Reporting obligations for buyers

Know your reporting obligations once a contract is signed.
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What you need to know
  1. After engaging a supplier, you must report regularly on some aspects of your relationship and their behaviour.
  2. This includes reporting on your agency’s record for paying on time.
  3. You must also report on areas such as Aboriginal participation, resource efficiency and SME and sustainability commitments.
  4. Construction contracts come with extra reporting obligations, such as apprentices, training and financial assessments.

It pays to pay on time

Not only is it good business practice to pay your suppliers on time, but there are government requirements around payment terms. You will be asked to report on your payment history in your annual report.

You should always pay suppliers on time, especially small businesses (that employ fewer than 20 people).

The Office of the Small Business Commissioner monitors and reports on agency payment performance to small businesses. This process has been automated using the NSW Procurement Spend Cube to develop a small business reporting dashboard.

For invoices under $10,000, you should pay as soon as possible using a PCard or electronic funds transfer.

You must pay invoices over $10,000 and under $1 million from registered small businesses (less than 20 employees) within 5 business days of receiving a correctly rendered invoice, unless an existing contract or standing offer says something different.

For construction contracts, you must:

On-time payment and your annual report

Your agency needs to report on its record of on-time paying in your annual report. This includes:

  • details of any actions you've taken to improve the way you pay invoices
  • an outline of overdue payments that have attracted interest, with an explanation for why they were overdue.

Read more in the Annual Reports Department Regulation 2015.

Aboriginal participation in contracts valued at $7.5 million or more

Under the Aboriginal Procurement Policy 2021 (APP 2021), you must monitor suppliers’ progress in implementing their Aboriginal participation plans DOCX, 29.4 KB and allocating spend.

Suppliers must provide progress reports to the contracting agency quarterly. NSW Treasury will then collect this data from agencies 30 days after the end of a quarter.

If the contract commenced before 1 January 2021, it is subject to the requirements of the APP 2018 PDF, 107.5 KB or the APIC policy 2018 PDF, 136.67 KB.

End-of-contract reporting

Suppliers must distribute the full allocation of funds for Aboriginal participation in line with what they committed to in their Aboriginal participation plans DOCX, 29.4 KB.

If there are leftover funds that couldn’t be allocated, the agency must transfer the unallocated Aboriginal participation amount to the Aboriginal Participation Fund managed by Training Services NSW.

Resource efficiency

Each year, you must provide a report to the NSW Department of Planning, Industry and Environment. This must outline how your agency performed against policy initiatives outlined in the Government Resource Efficiency Policy (GERP).

The reporting deadline is the last working day in November.

Complying with the GREP and reporting is voluntary if your agency has fewer than 100 employees.

SME and sustainability commitments

For contracts over $3 million, you must monitor whether your suppliers are delivering their SME and Sustainability Criteria commitments. Suppliers must report on these commitments, including providing monthly reports on SMEs involved in delivering the contract.

Human services

If you engage a non-government organisation (NGO) suppliers to deliver human services, you must require them to report on:

  • the location of where their services are delivered
  • the local government authority where the service user resides.

You can seek an exemption from reporting on NGO engagement from the Procurement Leadership Group.

Apprenticeships and trainees

For construction projects over $7.5 million, you must ask contractors to report at least every quarter on:

  • their plans for engaging apprentices and trainees on your projects
  • how they’re progressing on their project targets.

You must report each quarter to Training Services NSW in the Department of Education on the number of apprentices and trainees your contractors employ.

Financial assessments for construction contracts

Financial assessments for construction contracts

You must regularly analyse the financial status of contractors over the life of construction contracts over $ 1million. At a minimum, this includes conducting a financial assessment of the preferred contractor before a construction contract is awarded and then:

  • every 6 months for contracts over $1 million
  • every 3 months for contracts over $7.5 million.

You must source financial assessment reports on contractors through the Financial Assessments Prequalification Scheme. Financial assessments sourced through the scheme are stored in a central repository.

You can source a financial assessment from the central repository if:

  • it’s less than 6 months old for contracts over $1 million
  • it’s less than 3 months old for contracts over $10 million.

You must address any risks and recommendations identified in a financial assessment report throughout the life of the contract.