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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Settlement and Judgment Processing Guidelines

FPP E.041

Settlement and Judgment Object Codes

Expenditure Code 7221 — Settlements and Judgments — Texas Tort/Pre-Litigation and Related Claims — No Attorney General Approval Required

Use this object code to pay pre-litigation claims under Civil Practice and Remedies Code, Chapter 101, 104 or 105; or an eligible medical malpractice claim under Education Code, Chapter 59; or a claim made pursuant to Transportation Code, Section 201.106.

Note: Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (See Expenditure Code 7241 in the Comptroller Manual of Accounts).

Expenditure Code 7225 — Settlements and Judgments for Attorney’s Fees

Use this object code to record the payment of identifiable attorney’s fees for settlements and judgments recovered against the state under Texas Civil Practice and Remedies Code Annotated, Section 104.003, Federal Court Judgments, medical malpractice claims under Chapter 59, Texas Education Code and other statutes.

Note: Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (See Expenditure Code 7241 in the Comptroller Manual of Accounts).

Expenditure Code 7226 — Settlements and Judgments for Claimant/Plaintiff or Other Legal Expenses

Use this object code to record the payment to a claimant or plaintiff for settlements and judgments, or to record payment for other legal expenses (excluding attorney’s fees) that are recovered against the state under Texas Civil Practice and Remedies Code Annotated, Sections 101.023 and 104.003, Federal Court Judgments, medical malpractice claims under Chapter 59, Texas Education Code and other statutes.

Note: Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (See Expenditure Code 7241 in the Comptroller Manual of Accounts).

Expenditure Code 7229 — Settlements and Judgments for Claimant/Plaintiff and Attorney

Use this object code to record the payment to a claimant or plaintiff and attorney for settlements and judgments recovered against the state under Texas Civil Practice and Remedies Code Annotated, Section 104.003, Federal Court Judgments, medical malpractice claims under Chapter 59, Texas Education 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.

Note: Interest associated with settlements and judgments is coded separately to ensure proper financial reporting of interest expenses (See Expenditure Code 7241 in the Comptroller Manual of Accounts).

Expenditure Code 7241 — Settlement and Judgment Interest

Use this code to record the payment of interest due on long-term debt using governmental or fiduciary funds and to record the payment of other interest expense.

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