DoD-Wide Review of Prompt Payment Act Procedures
Abstract
The Prompt Payment Act of 1982 and its 1988 Amendment direct Federal agencies to pay commercial vendor bills on time, take discounts when economically justified, and pay interest when payments are late. The Act also requires Federal agencies to prepare an annual report on compliance with Prompt Payment Act provisions. In support of these requirements, Air Force accounting and finance offices (AFOs) have established procedures for prompt payment of bills and reporting Prompt Payment Act data quarterly for subsequent consolidation by major commands and higher management levels. In Fiscal Year 1990, the Air Force paid over 3.7 million vouchers for bills subject to the Prompt Payment Act. These payments were for $22.7 billion of goods and services. This audit was part of a DoD-wide Prompt Payment Act review requested by the DoD Comptroller. Our overall objective was to evaluate the effectiveness of Air Force implementation of the Prompt Payment Act. Specifically, we determined whether vendor bills were paid in accordance with the Act and Prompt Payment Act reports were accurate.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 27, 1991
- Accession Number
- ADA377082
Entities
People
- Nancy L. Hendricks
- Raymond D. Kidd
- Richard A. Levine
- Sheela M. Javeri
- Yung K. Chen