Effective: March 3, 2018
Applicable FAM Policies: 725 Interest on Late Payments to Vendors
Applicability: GNWT Departments and Public Agencies

INTERPRETATION

Interest on money owed by the Government does not start to accumulate until 61 days after the invoice is received or until 61 days after the goods or services are received, whichever date is latest.

For parties specifically qualified under the Business Incentive Policy, interest starts to accumulate 51 days after the invoice is received or 51 days after the goods or services are received, whichever date is latest.

Recording paid interest

Paid interest must be charged as an expenditure against the budget appropriation of the responsible department and identified with the applicable program.