To record, for financial reporting purposes only, the expenditure from local funds for the purpose of paying a miscellaneous claim, judgment or settlement that is to be recorded as an operating expense on an agency's Annual Financial Report. This code is to be used only to report non-cash activity into USAS. For proprietary funds, the object code is reported as operating expenses on the operating statement.

Some payments for judgments or settlements may have been subject to federal income reporting requirements at the time of original payment. To determine if you have federal reporting obligations, please refer to IRS Instructions for Form 1099-MISC or 1099-INT.