Subject:
Claims, Awards, Judgments, and Settlement Agreements
Policy:
The purpose of this advisory is to inform Business Units of:
- the account codes for claims, awards, judgments and settlement agreements, and
- the procedures for making payments pursuant to awards and non-judicial settlement agreements.
To account for payments to recipients of claims, awards, judgments or settlement agreements, Business Units must charge the appropriate account code listed in the General State Charges – Claims, Awards, Judgments and Settlements category in the Guide to Financial Operations (GFO). As of January 1, 2014, account code 60200 was created for interest related to claims, awards, judgments, and settlements. Business Units should see the Guide to Financial Operations, Chapter IV, Section 4.C for detailed descriptions of the payments appropriate to each account code in this category, including the new interest account code. Please note that these account codes are retroactive to April 1, 2013.
Business Units are advised that any transactions posted in the SFS since April 1, 2013 involving a Claim, Award, Judgment or Settlement (excluding those payments made through PayServ and interest payments prior to January 1, 2014) must be reviewed, and if appropriate, reclassed to the proper account code as described in the Guide to Financial Operations, Chapter IV, Section 4.C.
Depending on the nature of the legal dispute resolved by an award or a non-judicial settlement agreement, payments could be made through the State Payroll System, through the SFS, or both. For payments made through the State Payroll System, Business Units should consult the OSC Payroll Bulletin No. 1217.
For payments made through the SFS, Business Units are advised of new procedures required when submitting a request for payment based on an award or a non-judicial settlement agreement. For the detailed procedures for making payments pursuant to awards and non-judicial settlement agreements, as well as tax and withholding guidance, please see the Guide to Financial Operations, Chapter XII, Section 6.U.
Business Units should notify their legal counsel of these new procedures.