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Fund Reconciliation

The reconciliation of accounting data to budgetary data is required under Government Code (GC) sections 12460 and 13344. GC 12460 requires information in the State Controllerís Budgetary/Legal Basis Annual Report to account for funds on the same basis as that of the applicable Governorís Budget. GC 13344 requires departments to prepare and maintain financial and accounting data for the Governorís Budget and related documents, and the Budgetary/Legal Basis Annual Report described in GC 12460, according to the methods and bases provided in regulations, budget letters, and other directives of Department of Finance (Finance). By law, year-end financial reports must be prepared consistent with the applicable budget. Information provided to Finance for the Governorís Budget must be consistent with information provided to the State Controllerís Office (SCO) for the Budgetary/Legal Basis Annual Report.

The following instructions will assist departmental accounting and budget staff to reconcile year-end financial reports to budget schedules in accordance with government code and state policy.

Special Funds and certain Non-Governmental Cost Funds with a Fund Condition Statement

Departments will submit a fund reconciliation packet to Finance for all funds with a Fund Condition Statement (FCS) in the FY 2015-16 Governor’s Budget.  The fund reconciliation packet includes a Detailed Fund Balance Report (Form DF-303 or DFB) for state departments to reconcile accounting data to budgetary data for the past year.     

The instructions have been updated!  A new Fund Reconciliation Guide provides detailed instructions and examples for the annual reconciliation of fund balances.  The following is a summary of new and updated information in the Fund Reconciliation Guide:

  • Fund administrator and fund user authority and responsibilities.
  • Accounting and budgeting staff responsibilities.
  • Important dates and submission requirements.
  • Updated DFB template includes a validation matrix to reconcile the ending fund balance on the DFB report to the supporting year-end financial reports.
  • Updated guidance on multi-year appropriations.
  • Detailed instructions for the DFB Consolidated Worksheet to be submitted by fund administrators of shared funds.
  • Updated DFB Consolidated Worksheet includes a validation matrix to reconcile the ending fund balance for shared funds to the supporting year-end financial reports of fund users.
  • Example of a shared fund reconciliation.  The example provides DFB reports of fund users, the DFB Consolidated Worksheet, and supporting year-end financial reports.
  • Updated DF-117, Certification of Past and Prior Year Information.
  • Frequently Asked Questions and Answers.

Fund Reconciliation Guide

Forms and Templates

Preliminary List of Funds Subject to the DFB report process as of April 2014

Due Dates:

September 8, 2014:

     (1) Non-shared fund administrators submit DFB packets to Finance 
     (2) Shared fund users submit DFB packets to fund administrators

September 16, 2014

Shared fund administrators submit DFB packets to Finance

 

Non-Governmental Cost Funds without a Fund Condition Statement

New this year, the Non-Governmental Cost Fund (NGCF) Past Year Expenditure Reconciliation (Form DF-304), will be used by state departments to reconcile accounting data to budgetary data for the past year. A DF-304 must be submitted to Finance for all NGCFs that will not have a FCS in the 2015-16 Governorís Budget. NGCFs with a FCS are required to submit a DF-303.

DF-304 Instructions

Forms and Templates

Due Date

Late August 2014 - Submit DF-304 and DF-117 and with past year Schedule 10s to Finance.