Office of Finance

FY 2004 Prompt Pay (as reported in HHS' FY 2004 Performance and Accountability Report)

The Prompt Pay Act requires Federal agencies to make timely vendor payments and to pay interest penalties when payments are late. HHS increased its rate of on-time payments through FY 2002 when it reached a Department-wide record by making over 98 percent of payments on time. During the last two fiscal years, the on-time percentage decreased slightly but remained at 97 percent or higher.