Actions To Improve Timeliness of Bill Paying by the Federal Government Could Save Hundreds of Millions of Dollars
AFMD-82-1
Published: Oct 08, 1981. Publicly Released: Oct 08, 1981.
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Highlights
GAO assessed proposed legislation which would require that Federal agencies pay interest on overdue payments made to private contractors and determined if previous GAO recommendations for monitoring the Government's bill payment performance, for developing payment due-date standards, and for including specific payment terms in contracts and purchase orders have been implemented.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | The Secretary of the Treasury should revise cash management regulations to require each agency to submit, as part of the already mandated annual report on cash management practices, information on: (1) actions completed, underway, or planned to strengthen bill payment procedures; (2) the number and dollar total of bills paid on time, bills paid late, and bills paid early; (3) the range of time for payments made early and late; and (4) the reasons for early and late payments. The Secretary should establish and implement monitoring and evaluating procedures to ensure that agencies comply with the above annual reporting and that agencies not paying bills when due are identified continually. As part of its monitoring effort, Treasury should facilitate the exchange of information among Federal payment centers to promote efficient payment procedures and techniques. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Office of Management and Budget | The Director of the Office of Management and Budget (OMB) should direct the Administrator of the Office of Federal Procurement Policy to: (1) develop payment due-date standards for the major types of goods and services procured by Federal agencies; (2) incorporate these payment due-date standards in the Federal Acquisition Regulation that is currently being developed; and (3) include in the Federal Acquisition Regulation a provision requiring agencies to specify, when possible, in each contract and purchase order the date when payment is due. If implementation of the Federal Acquisition Regulation is delayed, the Director of OMB should ensure that, in the interim, the applicable Defense Acquisition Regulation and the Federal Procurement Regulations are revised accordingly. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Contract administrationCost controlFederal agency accounting systemsFinancial managementInterest ratesLate paymentsMonitoringProcurement practicesPrompt payment discountsProposed legislation