[Request for Opinion on Propriety of Paying Interest on Account Due]

A Department of Agriculture certifying officer requested an opinion on the propriety of paying interest on an account due to a contractor where the original check was lost and payment had to be reissued. The contractor contended that it should be paid interest because the late payment was the fault of the federal pay system. The Prompt Payment Act requires the government to pay interest on amounts owed to contractors for the acquisition of property or services when an agency fails to pay within 30 days from receipt of a proper invoice. GAO found that: (1) since the agency made payment by issuing a check within 30 days after the contracting agency received a proper invoice, the contractor was not entitled to payment of interest under the act; and (2) the failure of the contractor to receive the initial check was outside the control of the government. Accordingly, the payment of interest may not be authorized.