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June 15, 2011


DiNapoli: State Penalized $1.4 Million in Late Payment Fees

Up $487,000 From Prior Year

New York State paid nearly $1.4 million in interest for late payments to vendors during fiscal year 2010, according to State Comptroller Thomas P. DiNapoli.  This represents an increase of 53 percent, approximately $487,000 more than fiscal year 2009.

“Taxpayers can’t afford to pay for state agencies’ delinquency,” DiNapoli said. “This is money that could be used for public safety or health care or schools, or to pay down state debt.  And vendors who do business with the state shouldn’t be stuck waiting to be paid.”
DiNapoli’s auditors saved the state $562,000 by accelerating agency payment requests. Under state law, contractors are owed interest when payments are more than 30 days late.

State Finance Law requires agencies to pay vendors doing business with the state within 30 days of invoice for goods and services provided to the state.

The Department of Health paid the most interest, at $577,613, followed by the Department of Transportation at $131,509. Other agencies paying high levels of interest for late payments in fiscal year 2010 include:

Office of Mental Health                                  $91,412
Department of Correctional Services               $81,330
State University of New York                          $81,001
Department of Education                               $67,771


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