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B-201384 1 (1981-12-29)

handle is hein.gao/gaobadjza0001 and id is 1 raw text is: 7/77 / (6 DECISION FILE; B-201384 THU COMPTROLLER GENERAL 0F THE UNITED UTATEU WASHINGTO1N, D(,p 2120 48 DATE; December 29, 1981 MATTER OF: Effective date of payment in determining liability of UqS. Government for late payment charges DIGEST: 1. The date of issuance of a Qe)lnment check does not constitute the date of payment for late payment and prompt payment discount purposes. We confirm that B-107826, July 29, 1954, overruled 31 Comp, Gen, 260 (1952) and 18 Corp. Gen, 155 (193B), Government has an obligation to at least issue and mail its checks sufficiently in advance to assure their receipt by the vendor, in the regular course of the mails, on or before the delinquency date or the final discount date, respectively, to avoid liability for properly authorized late payment charges or to obtain the benefit of the vendor's discount, unless a Federal statute or the parties by contract provide otherwise. The parties should establish in the contract w-,hat constitutes the effective date of payment. 2. For purposes of, determining the effective date of payent, late payment cases should be treated the same as prompt payment discount cases since the forger is assessed and the latcer offered because of the time value of the money to vendors. 3. Veterans Administration (VA) is obliged to pay th:j Gas Service Company late payment charges on the in- voices submitted, since (1) the contract between VA and Gas Service incorporates by reference Gas Ser- vice's rules and regulations on file with the Kansas Corporation Commission; (2) these regulations provide for the assessment of late payment charges when pay- ment is not received by the company by the delinquency date; and (3) although the Government's checks were issued and mailed before the delinquency dates, they were not received by Gas Service until after such dates. The Veterans Administration (VA) asks whether the Gas Service Q)mpany, Topeka, Kansas, is entitled to aggregate late payment charges of $598.12 on bills paid by Government checks, which were issued and mailed before, but not received by Gas Service until after, the delin- qtiuicy date for payment. Several other vouchers have been sulnitted by the VA Illustrating similar payment problems with other vendors. . . . - 4 # -,, 0 11 . 0Wa S0, 9W4I'.*- rO9 ..1 01.. ,. . , - . - I - - . . -

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