During fiscal years 2010 and 2011 audits of Department of Homeland Security (DHS) financial statements, independent auditors noted concerns with recorded obligations for some Enforcement and Removal Operations contracts. Since the scope of the financial statements audit does not necessarily include an in-depth review of matters that are not material to the audit, we conducted a performance audit of the processes. Our audit objective was to determine whether ICE is appropriately managing its contract funding and payment processes.