Authority/Reference(s) OMB Circular A-110; OMB Circular A-133
Revision Date January 14, 2013

Policy

DFPS has the duty to effectively manage all contracts. The effective management of DFPS contracts will promote public trust with the accountability and transparency of taxpayer dollar expenditures. Contract staff are responsible for clarifying and resolving all questioned costs. When costs are in question during the normal routine of contract management, contract staff should coordinate with contractors to ensure that only allowable and approved costs are billed to the DFPS contract.

Questioned costs can potentially be improper costs or payments. Improper costs are usually identified prior to payment being issued to the contractor. Identification of improper costs could occur during the review and processing of invoices or in conjunction with a monitoring visit where the monitoring results support a potential improper cost. Improper payments are identified after payment has been issued to the contractor, usually during post payment billing reviews, monitoring, or closeout procedures.