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 to a claimant or plaintiff and attorney 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, EDUC. CODE, and other statutes, where attorney's fees cannot be determined because they are included with payment to a claimant or plaintiff. Payments under this code may be paid directly to the attorney or law firm identified in the settlement or judgment. Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (7241).

Expenditure code 7229 includes, but is NOT limited to:

  • Judgments, Claimant and Attorney
  • Settlements, Claimant and Attorney

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 of identifiable fees to an attorney (7225)
  • Payment to a claimant (7226)

USAS Values

Appropriation Year 20
USAS Title JUDGMTS SETTLEMTS CLAIMANT AND ATTY
Object Group 10 – Expenditures
USAS Status A
Rev/Exp Category 17 – CLAIMS AND JUDGMENTS