October 15, 1987
COMPTROLLER'S MEMORANDUM NO. 04 (1987-88)
SUBJECT: SETTLEMENT OF CLAIMS AGAINST THE STATE
Section 17.03, Florida Statutes, charges
the Comptroller with the responsibility to examine, audit, and
settle all accounts, claims, and demands, whatsoever, against
the State, and issue a warrant in an amount allowed by the Comptroller
thereon. Therefore, unless an agency is exercising its independent
statutory authority to settle accounts, claims, or demands against
the State, an agency must submit any proposed settlement agreement
to the Office of the Comptroller for approval prior to execution,
or in the alternative, an agency may execute a provisional settlement
agreement which under its terms will become effective only upon
the Comptroller's subsequent approval.
In submitting proposed or provisional
agreements, an agency must also submit the following information:
- A description, with appropriate supporting
documentation of the transactions or
events that created the claim against the agency;
- A brief explanation of why the settlement
is in the State's best interest under the circumstances;
- Copies of the notices required to be
given the President of the Senate and the Speaker of the
House of Representatives pursuant to Section 45.062, Florida Statutes;
- A certification from the agency's
chief financial officer that the proposed expenditure
is provided for by an existing appropriation or program established by law as required by Section 45.062,
Florida Statutes; and
- Any other information that the Office
of the Comptroller may request in order to properly
perform its duties pursuant to Section 17.03, Florida Statutes.
For the purpose of this memorandum:
- Settlement is defined as an agreement obligating the State or agency to expend State
funds to discharge a debt due a person, entity, or group of persons when the amount owed pursuant to a contract, purchase order, or other form of indebtedness is in dispute.
- A settlement expenditure is provided
for by an existing appropriation or program established
by law when:
- the existing appropriation would have
been the source of payment for the goods or services in question
if there had not been a dispute; or
- the existing program was established
for the purpose of administering claims against the State, such as settlement
payments made from the Florida Casualty Insurance Risk Management
Trust Fund pursuant to Section 284.30, Florida Statutes.
Proposed and provisional settlement
agreements should be submitted to Dan McCall, Chief, Bureau of
Auditing, 1101 The Capitol, Tallahassee, Florida, 32399-0350.
The Bureau of Auditing will review information submitted with
the proposed or provisional settlement agreement and determine
the appropriate action to be taken on such settlement.
Effective November 1, 1987, no settlement
agreement payment voucher will be approved for payment by the
Bureau of Auditing without the Comptroller's
approval being included in the voucher. If a settlement voucher
is submitted for payment without the required prior approval,
a delay in payment may be required in order to review the settlement
agreement and determine the appropriate action.
Please contact the Bureau of Auditing at 410-9194, Suncom 210-9194, if you have questions concerning