Payments Management

FY 2003 Performance and Accountability Report
Bureau of Resource Management
December 2003
Report

PROMPT PAYMENT ACT

Timeliness of Payments

The Prompt Payment Act (PPA) requires Federal agencies to pay their bills on time or an interest penalty must be paid to vendors. During FY 2003, 92% of invoices were paid on time. Presented below is a chart that reflects the timeliness of the Department's payments from FY 2001 through FY 2003.

Timeliness of Department of State Payments
FY 2001 - FY 2003
  FY 2001 FY 2002 FY 2003
Percentage of Payments Made On Time 96% 96% 92%
Percentage of Payments Made Late  4%  4%  8%


During FY 2003, 3% of invoices required interest penalties compared to 2% for FY 2002.

Selected Payment Data for Invoices requiring Interest Penalties
for Fiscal Years 2003, 2002 and 2001
  2003 2002 2001
Interest Paid ($000)     396    443    774
Interest Under $1 Not Due ($000)       —      4      8
Interest Due But Not Paid ($000)       —      —      —

Number of Procurement Card Transactions

Domestic

 57,312 53,379 47,032

Overseas

112,766 46,297 38,298


ELECTRONIC PAYMENTS

The Department successfully increased the number and percentage of payments it makes electronically. In 2003, 79% of all payments were made by electronic funds transfer (EFT). Domestically, 96% of payments were made electronically. The Department processed 65% of its 2003 overseas payments by EFT, a 5% increase from 2002.

EFT and Check Payment Volumes
for Fiscal Years 2003, 2002 and 2001
Payment Type 2003 2002 2001
Number Percent Number Percent Number Percent

EFT:

Domestic

1,248,335   1,210,054   1,137,510  

Overseas

  988,329
single underline
    841,050
single underline
    780,418
single underline
 

EFT Subtotal

2,236,664
single underline
 79
single underline
2,051,104
single underline
 77
single underline
1,917,928
single underline
 74
single underline

Checks:

Domestic

   47,043      56,668      74,811  

Overseas

  531,046
single underline

  560,026
single underline
    606,128
single underline
 

Checks Subtotal

  578,089
single underline
 21
single underline
  616,694
single underline
 23
single underline
  680,939
single underline
 26
single underline
 

Total Payments

2,814,753
double underline
100
double underline
2,667,798
double underline
100
double underline
2,598,867
double underline
100
double underline