June 15, 1993
COMPTROLLER'S MEMORANDUM NO. 14 (1992-93)
SUBJECT: CONTRACT PAYMENTS
In an attempt to simplify the process
of vouchering through the Contract System and to use the resources
of our office to the best advantage of the State, we are making
some changes in the use of the Contract System. We encourage
the implementation of these changes effective July 1, 1993. However,
recognizing that agencies may need more time to fully implement,
full implementation will not be required until August 1, 1993.
Effective August 1, 1993, only payments
on contracts or purchase orders for which the total contract or
purchase order exceeds $60,000 will be processed through the Contract
System. These payments will be processed in the same manner as
contracts currently processed through the Contract System. This
will include all purchases, including commodity purchases, made
pursuant to Chapters 253, 255, 283, and 287, Florida Statutes
(F. S.), and similar items purchased by the Legislative and Judicial
branches of State government. It also includes one-time payments
if the contract/purchase order amount exceeds $60,000 and any
contract/purchase order which does not specify a total amount
to be paid. Building construction contracts under Chapter 255,
F. S., and road construction and maintenance contracts under Chapter
337, F. S., are not to be processed through the Contract System.
Other purchases which are exempt from Chapter 287, F. S., are
to be included.
Payments on grant agreements entered
into pursuant to specific statutory authority should not be vouchered
through the Contract System. Vouchers for payment on such agreements
must contain a reference to the statute or rule which authorizes
the agency to enter into the agreement.
In implementing the new process, agencies
should discontinue processing through the Contract System all
contracts currently processed through the system for which the
total amount to be paid is $60,000 or less.
Each voucher for payment on contracts
which are subject to competitive procurement, but are not over
$60,000, must contain documentation indicating the total amount
of the contract, the DMS Catalog Number, the payment criteria,
and a copy of the bid tab, single source approval, or emergency
certification. Additionally, Comptroller's
Memoranda Nos. 1 and 2 (1992-93) relative to documenting quotations
are rescinded effective July 1, 1993. Agencies will not be required
to routinely submit with the voucher, documentation applicable
to quotes and informal bids for purchases in the amount of or
below Category Two (currently $10,000). Such documentation shall
be maintained by the agency and furnished upon request.
Contracts for which payment is vouchered
through the Contract System, should have a copy of the contract,
bid tab, DMS catalog number, and any required approvals included
in the first voucher only. These documents will be maintained
on file in the Bureau of Auditing for future reference.
Payments on contracts in excess of
$60,000, for which payments have been made outside the Contract
System prior to August 1, 1993, but the contracts are not completed,
should be processed through the Contract System beginning August
1, 1993. Also, if a contract / purchase order is initially issued
for an amount of $60,000 or less but is subsequently amended to
an amount in excess of $60,000 it should then be included in the
Contract System. Both of these situations will require that the
agency provide us with the payment history so that it can be manually
entered into our contract payment history file.
To assist agencies in providing the
information necessary for us to determine if contracts/purchase
orders are being processed properly under our new method, a Summary
of Contract or Purchase Order under $60,000 sheet is attached.
Use of this summary sheet is not required; however, use of the
summary will provide much of the information needed to preaudit
payments on contracts/purchase orders under $60,000.
Please contact the Bureau of Auditing at 410-9194, Suncom 210-9194 if you have questions.
THIS MEMORANDUM INCLUDED AN ATTACHMENT WHICH CANNOT BE TRANSMITTED. IF YOU WOULD LIKE TO OBTAIN THIS DOCUMENT, PLEASE CALL THE BUREAU OF AUDITING AT 488-4094.
