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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 Controller’s Budgetary/Legal Basis Annual Report to account for funds on the same basis as that of the applicable Governor’s Budget. GC 13344 requires departments to prepare and maintain financial and accounting data for the Governor’s 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 Governor’s Budget must be consistent with information provided to the State Controller’s 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 2017-18 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 past year budgetary data.

Fund Reconciliation Guide

Forms and Templates

Preliminary List of Funds Subject to the DFB report process as of May 2016

Due Dates will be updated in August 2016

Mid-September:

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

Late September:

Fund administrators submit DFB packets to Finance

Non-Governmental Cost Funds without a Fund Condition Statement

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 2017-18 Governor’s Budget.  NGCFs with a FCS are required to submit a DF-303.

DF-304 Instructions

Forms and Templates

Due Date will be updated in August 2016

Mid-September - Submit DF-304 and DF-117 with past year budget documents to Finance.