Settlement and Judgment Processing Guidelines
Processing Instructions for the Payment of Settlements and Judgments – Pre-Litigation Settlements
A paying agency’s legal counsel may settle a dispute before a lawsuit is filed; this is known as pre-litigation. All statutory or GAA references apply to these claims with the exception that they do not require attorney general review or the governor’s signature. The following steps are required for pre-litigation claims:
|1||Pre-litigation claims can be paid with comptroller object 7221 and do not require settlement by the OAG or the governor’s signature. Pre-litigation claims are settlements for which a lawsuit has not been filed in any court.|
The paying agency enters the payment in USAS using Document Type 9:
Note: Agencies are responsible for determining how the payment will be reported to the IRS.
|3||The paying agency submits the following to the Comptroller’s office after an agreement has been reached:
When a pre-litigation settlement includes compensation that is wage-related (i.e. back wages, etc.), the agency must process a payroll document and complete the Settlement and Judgment Payroll Processing form (74-232). The deductions should also be entered in the
The Comptroller’s office reviews submitted documentation. If approved, the Comptroller’s office enters action code 550 (Approved by Audit) into USAS for payment.
The paying agency can review the USAS Document Tracking (S037) screen to verify when the document was approved.
Warrants are available for pickup by the paying agency at the Comptroller’s office the next business day following the day of the Comptroller’s office approval.
The purchase voucher and settlement documents are filed with the Comptroller’s office until the required retention period expires.