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Last updated on Friday, October 31, 2014
(INDIANAPOLIS) - The Indiana Department of Child Services racked up $627,168 in late payment penalties to vendors according to Call 6 Investigator Kara Kenney.
The penalties include the fiscal years 2011, 2012 and 2013, and the controversial agency racked up the late fees as a result of untimely payment of claims.
In a written response to the State Board of Accounts, DCS Chief Financial Officer Rick Peterson acknowledged a past history of late fee and interested payments.
Peterson says DCS had instituted several measures to address the problem, including a vendor portal where invoices are being entered and pre-audited at the point of submission.
"We have already seen a reduction in late payment interested from $181,329 in State Fiscal Year (SFY) 2013 to $65,886 in SFY 2014," read the DCS response.
Indiana law says state agencies are required to pay a 1 percent per month penalty when they fail to pay for personal services, goods, equipment and travel.
The embattled agency has struggled with lack of resources in recent years .
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