Case State Treasury: Development partnership will boost digitalization and productivity growth in government sector
The State Treasury, which produces internal services for central government, is developing the financial and personnel administration processes of Finnish government agencies in collaboration with OpusCapita.
“Efficient and sound practices will help to reduce the pressure on central government finances and support improvements in productivity in government agencies and departments. The digital transformation of our financial administration will play a major role in the digitalization of Finland’s public administration in general, as the effects will extend to the agencies’ own service processes,” says Mikko Kangaspunta, Head of Division at the State Treasury’s Financial and Personnel Administration.
Firm understanding of development needs
OpusCapita has acted as partner to the State Treasury for well over ten years in building electronic invoicing processes, and it now transmits the purchase and sales invoices of the government’s agencies and departments. The collaboration with OpusCapita has broadened from an invoice transmission service to a development partnership. During the present contract period the focus has been especially on improving efficiency in the purchase-to-payment process. In addition to this, OpusCapita produces other services for government agencies, such as document digitization services.
“A long-term contract gives us the opportunity to develop processes as a whole. OpusCapita is an active and broad-based partner for us. It knows how to collaborate successfully and its approach represents the leading edge in this sector,” says Kangaspunta.
Automation for purchase invoice processing
In 2014, Finnish government agencies and departments received a total of 1.2 million purchase invoices. Almost 90% of these were e-invoices. OpusCapita forwards all incoming invoices in electronic form for processing in the government’s Kieku information system. The system is used by the Finnish Government Shared Services Centre for Finance and HR and by the government agencies.
“Together we have developed a purchase invoice handling process that includes automated posting and automatic reconciliation of invoices with orders and procurement contracts. New practices are being introduced in the agencies, and the aim is that in just a few years 90% of all invoices received will be processed automatically,” explains Kangaspunta.
Infrastructure for digital transformation of society
Government agencies send out about 9 million sales invoices each year. E-invoices currently account for 15% of these. The State Treasury is monitoring this percentage closely with the aid of OpusCapita’s reports. In the Finnish Tax Administration, for example, electronic invoicing of real estate taxes has proceeded well, says Kangaspunta, and the aim is to launch activation campaigns in other agencies too to encourage invoice recipients to switch to e-invoices.