Comptroller Fiscal Year Memo Letter Head

To:       Chief Fiscal Officers

From:   Martin J. Benison, Comptroller

Date:   July 29, 2013

Re:       Late Penalty Interest Rate

Comptroller Memo FY#2014-05

Executive Summary

The purpose of this memo is to advise departments as to the late penalty interest rate for July 1, 2013 – December 31, 2013.

The late penalty interest rate effective for July 1, 2013 – December 31, 2013 is 0.75%.  This rate is applicable to invoices which are not paid on time in accordance with the Commonwealth’s Bill Paying Policy – and General Payment Policies and Comptroller Regulations 815 CMR 4.00.  Interest for late payments is available to all vendors of the Commonwealth.  Interest on late payments is not available to employees, contract employees, recipients of public assistance, cities and towns and other public instrumentalities designated as public agencies on the Commonwealth's vendor file.

See attached table for history of rates and instructions for late penalty interest calculations, and Federal Reserve Discount Window  for current interest rates.

MMARS Liaisons
Payroll Directors
General Counsels