Only the Office of the State Comptroller (OSC) can close a contract in the Statewide Financial System (SFS), regardless of whether the contract was subject to OSC prior approval. A contract is eligible to be closed if it meets all the following criteria:

1. A minimum of one year has passed since the Expire Date of the contract and there has been no activity (SFS amendment transactions or payments) for one year.
2. No open purchase orders (encumbrances) are associated with the contract. All purchase orders are in either “Cancelled” or “Complete” status.
3. No retainage is remaining on the contract.

Periodically, OSC will close eligible contracts. It is considered a best practice for State agencies to close purchase orders associated with contracts in a timely fashion by disencumbering excess funds and processing retainage, if applicable (see Section 11.E - Retainage of this Chapter, for additional information). In addition, State agencies may free up remaining pre-encumbered funds, prior to OSC closing the contract, by reducing contract lines to the expended amount. Otherwise the pre-encumbrances will be freed up upon contract closure. Once OSC has closed a contract, the contract header status on SFS will be “Closed.” No further transactions can be processed against a contract in the “Closed” status.

Guide to Financial Operations

REV. 06/18/2015