A-5361, DECEMBER 13, 1924, 4 COMP. GEN. 534

A-5361: Dec 13, 1924

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

PAYMENTS - DISCOUNTS WHERE A CONTRACT FOR THE FURNISHING OF SUPPLIES PROVIDED THAT IF PAYMENT WERE MADE WITHIN 10 DAYS AFTER RECEIPT OF THE MATERIAL A DISCOUNT OF 2 PERCENT OF THE PURCHASE PRICE WOULD BE ALLOWED. THE UNITED STATES IS NOT ENTITLED TO SUCH DISCOUNT WHERE PAYMENT WAS NOT MADE WITHIN THE 10-DAY PERIOD. AS FOLLOWS: WHEN DISCOUNTS ARE QUOTED FOR PAYMENT WITHIN A SPECIFIED TIME. IT IS UNDERSTOOD AND AGREED THAT THE DISCOUNT PERIOD SHALL BEGIN WITH THE DATE OF RECEIPT OF MATERIAL. THE CONTRACT FURTHER PROVIDES THAT DISCOUNTS OF 2 PERCENT WILL BE ALLOWED IF PAYMENT IS MADE WITHIN 10 DAYS AFTER RECEIPT OF MATERIAL. IT APPEARS THAT DELIVERY OF THE MATERIAL PURCHASED WAS COMPLETED ON AUGUST 27.

A-5361, DECEMBER 13, 1924, 4 COMP. GEN. 534

PAYMENTS - DISCOUNTS WHERE A CONTRACT FOR THE FURNISHING OF SUPPLIES PROVIDED THAT IF PAYMENT WERE MADE WITHIN 10 DAYS AFTER RECEIPT OF THE MATERIAL A DISCOUNT OF 2 PERCENT OF THE PURCHASE PRICE WOULD BE ALLOWED, THE UNITED STATES IS NOT ENTITLED TO SUCH DISCOUNT WHERE PAYMENT WAS NOT MADE WITHIN THE 10-DAY PERIOD, THE FAILURE OF THE VENDOR TO SUBMIT A VOUCHER FOR PAYMENT UNTIL OVER THREE MONTHS AFTER DELIVERY NOT BEING MATERIAL.

DECISION BY COMPTROLLER GENERAL MCCARL, DECEMBER 13, 1924:

THE NATIONAL ELECTRICAL SUPPLY CO. REQUESTED REVIEW OF SETTLEMENT NO. 02128-/5), SEPTEMBER 3, 1924, DISALLOWING ITS CLAIM FOR $1.71 DEDUCTED FROM VOUCHER NO. 17746 FOR $85.34 AND PAID BY THE UNITED STATES VETERANS' BUREAU IN THE SUM OF $83.63, $1.71 HAVING BEEN DEDUCTED AS 2 PERCENT DISCOUNT.

THE CONTRACT UNDER WHICH THE COMPANY AGREED TO FURNISH THE SUPPLIES PROVIDES IN FORM A, PARAGRAPH 27, AS FOLLOWS:

WHEN DISCOUNTS ARE QUOTED FOR PAYMENT WITHIN A SPECIFIED TIME, IT IS UNDERSTOOD AND AGREED THAT THE DISCOUNT PERIOD SHALL BEGIN WITH THE DATE OF RECEIPT OF MATERIAL.

THE CONTRACT FURTHER PROVIDES THAT DISCOUNTS OF 2 PERCENT WILL BE ALLOWED IF PAYMENT IS MADE WITHIN 10 DAYS AFTER RECEIPT OF MATERIAL.

IT APPEARS THAT DELIVERY OF THE MATERIAL PURCHASED WAS COMPLETED ON AUGUST 27, 1923, BUT THAT THE VOUCHER THEREFOR, SUBMITTED DECEMBER 22, 1923, WAS NOT PAID UNTIL JANUARY 29, 1924, ON WHICH DATE CHECK NO. 3,563,274 OF W. H. HOLMES, DISBURSING CLERK, UNITED STATES VETERANS' BUREAU, WAS MAILED TO CLAIMANT.

INASMUCH AS MORE THAN 10 DAYS ELAPSED BETWEEN THE DATE OF DELIVERY OF THE MATERIAL AND THE DATE UPON WHICH PAYMENT WAS MADE THE GOVERNMENT IS NOT ENTITLED TO THE 2 PERCENT DISCOUNT IN QUESTION.