Financial Administration Manual

720- Timing of Payments

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Effective: April 1, 2016
Section: Purchasing Cycle
Administrator: Office of the Comptroller General
Applicability: GNWT Departments and Public Agencies

POLICY            

All payments:

  • To vendors registered under the Business Incentive Policy (BIP), where BIP applies, are due 20 days after the later of receipt of invoice, goods, service, completion of construction, or in accordance with contract terms where an exclusion or exemption to standard timing of payments has been permitted;
  • To all other vendors are due 30 days after the later of receipt of invoice, goods, service, completion of construction or in accordance with contract terms where an exclusion or exemption to standard timing of payments has been permitted;
  • To public officers and members of the Legislative Assembly are due immediately, other than compensation and benefits payments;
  • To vendors that offer an early payment discount should be processed in order to take advantage of the discount, when appropriate;
  • Released early for extraordinary circumstances must be deemed appropriate by the responsible Minister, Deputy Head or Director of Finance (or equivalent);
  • Released early at the request of a vendor must be reduced by applying a 2% discount.

 PURPOSE

To establish the payment terms that can be relied upon by vendors, members of the Legislative Assembly, public officers and the general public.

SCOPE

Applies to all payments made in respect of an obligation where the requisite verification has occurred. This policy does not apply to the Northwest Territories Hydro Corporation or the Northwest Territories Power Corporation.

RESPONSIBILITIES

Deputy Head

Require sufficient internal controls to ensure that payments are processed within the timelines established in this policy, and where an exception has been authorized, sufficient documentation is retained to support the action; ongoing payment terms that do not align with the standard payment terms must be reported on the applicable form.

Comptroller General

May approve Interpretation Bulletins associated with this policy.

Financial Management Board

May issue a directive respecting the financial management or financial administration of a Public Agency.

AUTHORITIES and REFERENCES

  • Financial Administration Act (FAA)
    • s. 10 – Board directives

INTERPRETATION BULLETINS