Issue Date: 1999-01-01
Revised Date: 2005-09-01

Object Type

Cash — Claims and Judgments

Reference

Please see Fiscal Policies and Procedures (FPP) E.041 Settlement and Judgment Processing Guidelines for a detailed explanation of settlement and judgment processing requirements.

Description

To record the payment of identifiable attorney's fees for settlements and judgments recovered against the state under TEX. CIV. PRAC. & REM. CODE ANN. § 104.003, Federal Court Judgments, medical malpractice claims under Chapter 59, EDUCATION CODE, and other statutes. Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (7241).

Expenditure code 7225 includes, but is NOT limited to:

  • Judgments, Attorney Fees
  • Settlements, Attorney Fees

Note

Settlements and judgments are processed with required pre-payment review of the governor and the attorney general. They require pre-payment audit approval by the comptroller to ensure that all requirements are met and all reviews have been performed. For tracking purposes, the claims must be coded exactly in accordance with comptroller instructions. Additionally, agencies must be mindful about the circumstances under which these payments are to be reported to the IRS.

This code does NOT include:

  • Payment to a claimant (7226)
  • Payment to a claimant and attorney where attorney's fees cannot be determined because they are commingled with payment to the claimant (7229)

USAS Values

Appropriation Year 25
USAS Title JUDGMTS & SETTLEMTS-ATTY FEES
Object Group 10 – Expenditures
USAS Status A
Rev/Exp Category 17 – CLAIMS AND JUDGMENTS