The Peru Gazette

Late Payment Fees up 38 Percent in Fiscal Year 2011-12

New York State paid more than $1.9 million in interest for late payments to vendors during fiscal year 2011-12, according to State Comptroller Thomas P. DiNapoli, an increase of 38 percent over fiscal year 2010-11. The Department of Health topped the list with interest payments of $1.3 million, up 130% over the last fiscal year.

“State agencies should not waste taxpayer dollars making avoidable interest payments,” DiNapoli said.

In all, interest payments statewide rose $526,400 over fiscal year 2010-11. DiNapoli’s auditors were able to save the state $727,000 by accelerating agency payment requests. State Finance Law requires agencies to pay vendors doing business with the state within 30 days of invoice for goods and services. Contractors are owed interest when payments are more than 30 days late.

The Department of Health paid the most interest, at $1,322,991, followed by the State University of New York, which paid $109,533, an increase of 35 percent. Other agencies paying high levels of interest for late payments in fiscal year 2011-12 include:

Department of Transportation                                                   $86,995
Office of Mental Health                                                            $57,770
Department of Education                                                         $53,656
Department of Corrections and Community Supervision              $41,917