Lesson 1: The Basics

Application to Report Indebtedness

Overview

To participate in the Warrant Hold Program and be designated a hold source agency, an agency must first complete and submit an Application to Report Indebtedness form (74-188) to the Comptroller’s Fiscal Management Division.

Citing appropriate Texas statute on the application

The agency must cite on the application the Texas statute that supports the debt as determined by the agency's legal counsel.

Agencies must not use as their legal citation Texas Government Code, Section 403.055 or 403.0551. These statutes were established to create the warrant hold program and the offset process, respectively. Hold source agencies cannot use these citations as they are not specific to a state agency's state debt.

One application per debt type / hold reason code

The Application to Report Indebtedness form (74-188) must be submitted for each type of debt the agency reports. Comptroller's office legal staff reviews each application and, if approved, Fiscal Management Division staff assigns the three-digit hold reason code to the application and adds the reason code to TINS.

In TINS, the hold reason code is used for:

• Identifying the particular debt
• Reporting holds
• Inquiry
• Audit
• Historical purposes

Disapproved applications

If the application is disapproved by the Comptroller’s office, the application is returned to the agency with the reason for the disapproval. The agency may revise the application and resubmit it to the Comptroller's office.

Application to Report Indebtedness form (74-188)

Next: Learning Check