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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting of State Debts and Hold Offset Procedures (APS 028)

FPP E.037

Agency Responsibilities

Compliance with Comptroller’s office hold procedures

Agencies must follow the procedures described under Warrant Hold in TexPayment Resource to ensure compliance with the warrant hold statutes, including these requirements:

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Accounting for offsets and overages

Comptroller’s office and agency offset instructions with required coding blocks are included in the Offset Process section of TexPayment Resource.

The hold source agency must transfer funds from the warrant hold offset account to the correct appropriation and fund within 15 business days from the date the offset deposit is received. Hold source agencies must then update their internal systems to ensure that the debtor is immediately credited with the offset funds.

If the original payment was issued in error or out of federal funds, the paying agency must contact the hold source agency after the offset is made to recoup the payment. After the hold source agency returns the funds to the paying agency, the hold source agency must reestablish the TINS hold record if released or adjust the liability amount if the debt amount had been reduced by the offset.

If an overage payment is issued to an entity as a result of an offset on a warrant that was later found to have been issued in error, the agency that issued the warrant must recoup the amount of the overage payment directly from the entity. If the entity does not return the funds, the entity becomes indebted to the agency that issued the original warrant. That agency must report the entity’s indebtedness to the Comptroller's office in accordance with Government Code, Section 403.055 (g).

If the liability amount on a hold record in TINS is overstated, an overpayment to the hold source agency may result during the offset process. Should such an overpayment occur, the hold source agency must refund the overpayment to the entity using that entity’s TIN if processed through the Comptroller’s office. If the refund is issued from local funds, the agency must verify the entity’s hold status in TINS to ensure that no additional state debts have been reported on that entity.

The warrant hold statutes — Government Code, Sections 403.055(k) and 2107.008(k) — allow for the Comptroller’s office or a state agency to make a payment to a person on hold if the hold source agency consents to the payment and the release of that payment. Agencies must retain documentation of the hold source agencies’ consent to issue and release the payment; documentation must be made available to the Comptroller’s office or the State Auditor’s Office upon request.

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Maintaining accurate hold information

The Comptroller’s office must rely on the information in TINS when processing offsets and adjusting liabilities; therefore, it is critical that the liability amounts be as accurate as possible.

Each agency must keep the hold records current in TINS to prevent unlawful warrant holds and offsets. When a debt has been satisfied, the agency must release the entity’s hold record.

Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov
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