OVERVIEW

It is the State agency's responsibility to properly plan its procurements so that needed approvals can be obtained timely. Sufficient time must be incorporated to allow for review of contract transactions submitted to the Office of the State Comptroller (OSC).

RISKS IN PROVIDING GOODS OR SERVICES WITHOUT OSC CONTRACT APPROVAL

A contractor providing goods or services prior to OSC approval of a contract assumes a risk of non-payment or reduced payment if approval of the contract is subsequently withheld. It is the agency's responsibility to advise contractors of this risk.

CONTRACTS WITH NOT-FOR-PROFIT (NFP) PROVIDERS

Late submissions of grant contracts with NFP providers impose additional burdens upon both the NFP and the State. For the NFP, financial strain is placed on their limited resources. For the State, there are penalties imposed by Article XI-B of the State Finance Law that provides for prompt contracting and interest payments for NFP corporations. Significant interest penalties accrue when these contracts are submitted after the start date and result in late payments to the NFP. Agencies are strongly encouraged to review and comply with these provisions in order to avoid interest penalties.

AGENCY ACTION

Agency heads are strongly encouraged to review the processes and controls over their agency's internal procurement and contract award procedures, and to implement the actions necessary to improve planning and creation timeframes for contract transactions.

Guide to Financial Operations

REV. 12/03/2014