DATE: June 25, 2007

TO: AGENCY FINANCE OFFICERS

FROM: Tony Hutchison, Director

SUBJECT: Late Payment to Vendors – New Interest Rate for FY-2008

The FY-2008 interest rate applicable to late payments to vendors has been set at 5.23% per annum, computed on a 360 day calendar, or $0.0145 per $100 per day, which will be in effect July 1, 2007 through June 30, 2008.

This interest rate is provided by the State Treasurer based on the average interest rate for thirty day time deposits of State funds during the last calendar quarter of the last preceding fiscal year. (Titles 62, § 41.4a & 4b and 74, § 840.14; and the OSF Prompt Payment Rules/Regulations)

Prompt Payment Rules, pdf