Indiana Code Title 5. State and Local Administration § 5-17-5-3

Sec. 3. (a) The state comptroller shall pay a late payment penalty on behalf of any state agency required to pay late payment penalties under this chapter.  The state comptroller shall pay the penalties from funds designated for administrative costs of the agency receiving the public works, personal services, goods and services, equipment, or travel.  The penalties may not be paid from other funds of the state.

(b) Any late payment penalty that remains unpaid at the end of any thirty (30) day period shall be added to the principal amount of the debt and, thereafter, penalties shall accrue on that amount.

(c) In instances where a claim is filled out incorrectly, or where there is any defect or impropriety in a claim submitted, the state comptroller, any division of the Indiana department of administration that accepts claims for payment, or a political subdivision, as appropriate, shall contact the vendor within ten (10) days.  An error on the vendor's claim, if corrected within five (5) business days of being so contacted, may not result in the vendor being paid late.