Income Contract

 

Income contracts bring money into state agency accounts rather than expend money from those accounts. However, they are and should be processed as contracts to protect the agency and the state from liability and to clearly define each parties’ responsibility under the contract. These contracts have all kinds of names: use permits, leases, rental agreements, etc.; however, they are really contracts.

 

You need to ensure that your agency has the authority to accept payment for services it provides and that your accounting office has provided you the instructions necessary to get the funds into the proper account. If you have never done it before, this can be a complex experience. As with interagency agreements, the actual form used is not as important as what is included in it. Some agencies have specific existing guidance and forms that they use--this guidance and those forms should be used. OSP has provided an Income Contract template that you can use; however, that template may need to be modified to meet your specific needs and approved by your assistant attorney general and agency contract coordinator before you proceed to use it.

 

Pre-Contract Processes

 

Negotiation and Contract Drafting

 

Contract Execution