Guidelines for the Disbursement of Funds

Prompt Payment

The State of Texas Prompt Payment Law requires that a state agency's payment is due by the 30th calendar day after the receipt of goods, completion of service, or receipt of invoice, whichever date is the latest. If paid (check issued) after this date, prompt payment interest will begin accruing. Interest will automatically be included on the payment to the vendor. On local accounts, interest will not be paid unless it is greater than $5.00.

In the event there is a dispute of the prompt payment charged, the departments have 90 days from the month end closing where prompt payment interest appeared on their account to send a request to FMO to review the prompt payment charge.