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

POLICY 

Interest as a result of a late payment shall only be paid by GNWT Departments and Public Agencies when a contract is in place that specifically provides for payment of interest, or a payment has been unreasonably delayed in excess of 61 days after the invoice date.

PURPOSE

To clarify the terms under which GNWT Departments and Public Agencies will pay interest as a result of a delay in the timing of payments.

SCOPE

Applies to all agreements where the responsible contracting authority has committed to pay interest when payments are not made in accordance with the contract terms.

RESPONSIBILITIES

Deputy Head

Ensure that contract terms are in accordance with established standards and with no obligation for payment of interest, whenever possible; ensure that internal controls are in place to ensure timely approval of vouchers.

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
  • s. 100 – Interest on Advances

INTERPRETATION BULLETINS