US embassy cable - 05GENEVA1866

UNCLAS GENEVA 001866 
 
SIPDIS 
 
RM/GFS/FOC, MELVYN ACEVEDO 
 
E.O. 12958: N/A 
TAGS: AFIN, AMGT, FY2005 
SUBJECT: FY 05 PROMPT PAYMENT ACT REPORT, 01OCT04- 
30JUNE05 
 
REF: SECSSTATE 00124843 
 
1. As requested in reference cable no.124843, post 
provides the following information regarding payments 
made to vendors during the period October 1, 2004 and 
June 30, 2005. 
 
Invoices subject to the prompt payment Act 
 (a)  dollar amount $8,574,256 
(b)  total number of invoices 1409 
 
Invoices paid early 
 (a)  dollar amount $0 
(b)  total number of invoices 0 
 
Invoices paid late 
 (a)  dollar amount $551,422.71 
(b)  total number of invoices 39 
 
Late payment interest penalties paid 
 (a)  dollar amount $1,560.47 
(b)  total number of invoices 41 
 
Additional penalties paid 
 (a)  dollar amount $0 
(b)  total number of invoices 0 
 
Interest or other late payment penalties, which were 
due, but not paid 
 (a)  interest less than $1.00 
 
      a. interest amount in dollars $ 0.84 
      b. total number of invoices 1 
 (b)for other reasons 
      a. interest amount in $0 
      b. total number of invoices 0 
 
Discounts 
 (a)  dollar amount/number discounts available $107.80 
(b)  dollar amount/number discounts taken $107.80 
 
2. Reason why interest penalties were incurred (ranked 
from highest to lowest in order of frequency of 
occurrence) 
 
      -    The largest penalty was for an invoice in the 
        amount of $ 238,023.24.  This was paid late because the 
        invoice was mistakenly overlooked when stapled to 
        another invoice from the same vendor. 
-    Delay or error by paying office in routing of 
invoice to meet the payment terms 
-    Delay or error in notifying contractor of 
defective invoice 
-    Delay or error in verifying proper invoice 
-    Delay or error in computer or other systems 
processing. 
 
MOLEY