Effective Date: April 1, 2016

Applicable FAM Policies: 720 - Timing of Payments

Applicability: GNWT Departments and Public Agencies

The timing of payments issued by the Government/Public Agencies for goods, services, contributions, block funding, and transfers, construction contracts, licenses and permits procured for direct use or consumption by departments and/or public agencies.

INTERPRETATION

Special Payment Terms

• Major payments must not be made in advance of cash flow needs.
• If an early payment under a transfer agreement or an advance on a procurement contract is absolutely necessary, the transfer or advance payment must be set by an expenditure officer with financial signing authority for that purpose.
• Payments to employees who also operate as independent contractors are subject to the same rules as payments to contractors who are not Government/Public Agency employees.

Exclusions and Exceptions to the Standard Timing of Payments

The following payments are excluded from the standard due dates and may be made as soon as practicable upon receipt of the invoice, goods or services, whichever date is the latest.

1. If legally obligated under contract terms;
2. Language translators/interpreters, justices of the peace, coroners, or sheriffs' bailiff services;
3. Purchases permitted under the Corporate Credit Card Program;
4. To fulfill program obligations as approved by the Comptroller General;
5. Fees for licenses, permits or similar fees.

Overriding timing of payment

The standard timing of payments for goods or services that have already been received and invoiced may be overridden, without an advance payment fee or early payment discount (2%), for emergencies or other reasons deemed appropriate by the Minister, Deputy Minister, or Director of Finance (or equivalent) of a paying department or agency. Early release for another reason must have the discount applied (such as vendor convenience).

Public Officer Responsibilities

Every public officer who initiates a payment is responsible for ensuring, before initiating payment, that payment will be timed in accordance with the timing of payment policy or the terms of the agreement or contract.