How often must state agencies review their contracts for compliance?

State agencies are required to review their contracts for compliance at least annually as part of maintaining oversight and ensuring adherence to legal and regulatory standards. This annual review helps agencies identify any discrepancies or issues that may have arisen during the execution of the contract, allowing for timely remediation and adjustments. Conducting reviews on an annual basis provides a structured opportunity to assess performance, adherence to terms, and alignment with the agency's goals and objectives.

Choosing an interval such as monthly or biannually may suggest a level of scrutiny that might not be practical or necessary for every contract, while reviewing every five years likely does not allow for sufficient oversight to catch issues or non-compliance in a timely manner. Regular annual reviews strike a balance between oversight and practicality, which is essential for effective contract management within state agencies.