Department of Health

Voucher Payment Process

The Department of Health processes more than 100,000 vouchers annually. According to State law, if a vendor is not paid within 30 days, the vendor receives interest on the unpaid balance. For the year ended March 31, 1996, the Department incurred about $178,000 in interest expense for late payments to vendors. We examined the Department's procedures for processing vouchers during this year and the following year, and found that the procedures had been improved and the interest expense significantly reduced. We determined that if additional improvements were made, the interest expense could be reduced even further.

For a complete copy of Report 96-S-93 click here.
For a copy of the 90-day response click here.