GEARS: How Payments Work

The payment process starts with signed contracts

The GEARS Unit processes information on grant agreement contracts totaling almost $1.2 billion to more than 500 providers annually. The GEARS payment process must begin with a signed contract. Most of these contracts are calendar year contracts.

DHS program units prepare, negotiate, and eventually sign contracts with providers or local governments for services via DocuSign. The Bureau of Procurement and Contracting (BPC) staff route the fully executed contracts to the GEARS Unit, where the contracts are reviewed and entered into the GEARS system for activation at least one month before the first payment to a provider.

Expenditure reports trigger reimbursements

Providers submit the monthly expenditure information to the GEARS Unit for reimbursement. Expenditure Reports are normally due one month after the end of the month for which the report is being submitted. The GEARS Payment Processing Schedule shows the due dates for reports and is regularly updated to show payment dates. The GEARS Unit reviews, keys and proofs the expenditure information, as well as then monitors the monthly payment processing jobs. After the payment processing jobs are complete and have been vetted for accuracy, the GEARS Unit transmits STAR voucher data files to DOA to process payments through STAR.

The monthly DES-GEARS 603 reports provide detailed information on what is being paid on a particular voucher.

Reconciliation of payments and reported expenditures

Providers should reconcile costs recorded on their books to the expenditure reports at least quarterly, but monthly is recommended. The amount due will be collected against subsequent expenditure reimbursements. When payments and expenditures have been reconciled and all amounts due are collected, the contract is closed on the CARS system.