jump to main menu jump to subject menu jump to content jump to footer
go image

Division Director

Christina Smith

Assistant Director

Rick Sweet


Accounting and Auditing
200 East Gaines Street
Tallahassee, FL 32399-0318

(850) 413-5510
design placeholder only
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.