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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Change in Recording Administrative and Civil Penalties

Issued: Aug. 1, 2014

FPP Q.016

Overview

Applicable to

State agencies that assess administrative and/or civil penalties.

Policy

Agencies are required to implement the changes detailed in this Fiscal Policy and Procedure (FPP) beginning Sept. 1, 2014.

The Texas Comptroller of Public Accounts requires state agencies to record the deposit of:

  • Administrative penalties under Revenue Object 3770
  • Civil penalties under Revenue Object 3717

The current practice of depositing these penalties under the object code for which the penalty was assessed overstates the fee revenue. This new policy will ensure proper tracking of administrative and civil penalties and provide transparency regarding revenue collections.

The Texas Comptroller Manual of Accounts has been updated to reflect the current policy, which applies to all fee-type revenue codes.

Legal cite

Texas Government Code, Section 403.011.

Summary

Currently, not all administrative or civil penalties are recorded using the 3770 and 3717 object codes. Previously, it was permissible to record some of these penalties using the object code for which the penalty was assessed, such as 3175 – Professional Fees. This has led to inconsistencies in the accounting and reporting of both professional fees and penalties.

Beginning Sept. 1, 2014, agencies must deposit administrative or civil penalties using the appropriate comptroller object code.

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