(1) The office of financial management shall adopt uniform guidelines for the effective and efficient management of personal service contracts and client service contracts by all state agencies. The guidelines must, at a minimum, include:
(a) Accounting methods, systems, measures, and principles to be used by agencies and contractors;
(b) Precontract procedures for selecting potential contractors based on their qualifications and ability to perform;
(c) Incorporation of performance measures and measurable benchmarks in contracts, and the use of performance audits;
(d) Uniform contract terms to ensure contract performance and compliance with state and federal standards;
(e) Proper payment and reimbursement methods to ensure that the state receives full value for taxpayer moneys, including cost settlements and cost allowance;
(f) Postcontract procedures, including methods for recovering improperly spent or overspent moneys for disallowance and adjustment;
(g) Adequate contract remedies and sanctions to ensure compliance;
(h) Monitoring, fund tracking, risk assessment, and auditing procedures and requirements;
(i) Financial reporting, record retention, and record access procedures and requirements;
(j) Procedures and criteria for terminating contracts for cause or otherwise; and
(k) Any other subject related to effective and efficient contract management.
(2) The office of financial management shall submit the guidelines required by subsection (1) of this section to the governor and the appropriate standing committees of the legislature no later than December 1, 2002.
(3) The office of financial management shall publish a guidebook for use by state agencies containing the guidelines required by subsection (1) of this section.
[2002 c 260 § 7.]
Notes: Effective date -- 2002 c 260 § 7: "Section 7 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [March 29, 2002]." [2002 c 260 § 12.]