following questions are
If you have other questions or issues within the area of responsibility of the FSCU, Department of Finance, please call the FSCU Hotline at 324-0385 or e-mail FSCUHotline@dof.ca.gov. If your question(s) requires a detailed analysis, forward a letter to, FSCU, Department of Finance, 915 L Street, Sacramento, CA 95814, IMMS A-15.
ANSWERS TO FREQUENTLY ASKED FSCU QUESTIONS
The California Constitution Article XVI, Sec. 3 and Sec. 6, prohibits gifts/donations of public funds. Since the State has received no benefit and the subsequent receipt of goods/services cannot be guaranteed, a prepayment is considered a gift of public funds.
The State Controllerís Office requires claims presented for payment to include a penalty of perjury certification that the services were rendered and the supplies were delivered. (See Claim Schedule, STD. 218 Cont., 218DD, and 218ET.)
Advance payments must be specifically authorized by statute (State Contracting Manual Section 7.32). The following advance payments are permissible:
2. Can departments pay claims against reverted appropriations from current appropriations? Does Department of Finance (Finance) need to approve reverted year claims?
Departments may pay claims against reverted appropriations from any current appropriation available for the same purpose, e.g., a claim against a reverted support appropriation may be paid from a current support appropriation (GC Section 16304.1; SAM Section 8422.7).
Finance approval is not required for such claims.
3. Can departments use current year appropriations to pay for services and/or goods to be delivered in the next fiscal year?
Expenditures/encumbrances are charged to the fiscal year that the goods/services are delivered when the purchase agreement stipulates that delivery be delayed until requested or delayed until on or after a specific date.
Expenditures/encumbrances are charged to the fiscal year that the purchase agreement is issued when the delivery date is construed to mean as soon as possible. As soon as possible includes a delivery date that is:
An agreement is issued as of the date it is "made and entered into". Any required control agency approvals are retroactive to that date.
Agreements which cross fiscal years may be charged totally to the first year of appropriation or more than one fiscal year, depending on the:
4. What laws and/or rules regulate acceptance of gifts?
The statutory and regulatory provisions are in GC Sections 8647, 11005-05.1, 16302; and the SAM Sections 1323.12, 8634. Gifts may be either real property or personal property such as cash or equipment. A gift of real property must be approved by Finance after review by the Department of General Services. (GC Sections 11005-05.1; SAM Sections 1323.12, 8634) A gift of personal property must be approved by Finance, except:
See additional information, including a form for departments to request Finance approval to accept a gift.
How are late payment penalties calculated?
The invoice amount less taxes is multiplied by the daily penalty rate to arrive at the daily penalty amount. The daily penalty amount is then multiplied by the number of days the payment is late to calculate the total penalty amount. The number of days the payment is late is the number of calendar days between the payment due date and the date payment is issued. The payment due date and penalty rate is determined as follows:
The penalty payment is charged to the fiscal year based on the payment due date.
6. What is the definition of equipment? What costs are recorded in the property register?
Equipment is defined in the Property Accounting section of the SAM as all tangible and intangible personal property that meets the capitalization criteria set forth in the SAM section 8602.
The acquisition cost of all property, capitalized and non-capitalized, is included in the property register. All costs to acquire, install, and prepare property for its intended use are included in the acquisition cost. This amount is used to determine if the property meets the capitalization criteria. See SAM sections 8615 and 8635 for further criteria on intangible and internally generated intangible assets. The capitalized segment of the property register also serves as the subsidiary ledger to the Capital Assets Group of Accounts (SAM section 8600 et seq.).
7. What is a Payee Data Record (STD. 204) and why must the payee complete it before the state can make a disbursement?
The purpose of the Payee Data Record (STD. 204) form is to obtain payee data for information reporting and to ensure tax compliance with the Internal Revenue Service (IRS) and/or the Franchise Tax Board (FTB). Therefore, a completed STD. 204 must be on file with the state before payments are disbursed. A STD. 204 is required for any non-governmental entity or individual entering into a business transaction that may lead to a payment from the state. Note: Non-state employees authorized to receive travel expense reimbursements directly from departments must also complete a STD. 204. If a payment is reportable to the IRS and/or the FTB, the state prepares an information return for the Taxpayer Identification Number (TIN) provided by the payee on the STD. 204. The TIN for an individual or a sole proprietor is his/her Social Security Number. (Internal Revenue Code section 6109(a); Revenue and Taxation Code section 18646; SAM section 8422.19 et seq.)
8. Why is the State exempt from the Utility Users Tax assessed by local governmental entities?
Cities and counties possess the power to levy utility users taxes; however, that power is limited in application to the State. As a general principle, it has long been declared that the State is ordinarily regarded as exempt from taxes imposed by a local entity. Therefore, the Legislature must expressly limit or waive the Stateís immunity for the State to be subject to local taxation.
9. Is there a glossary or a definition for each expenditure object code listed in the Uniform Codes Manual (UCM)?
No, there is no glossary or definition for the object codes. The State accounts and reports on a budgetary basis. As such, departmental budget staff establish allotments for object codes and the expenditures should be consistent with the budgetary allotments. In addition, comparability should be maintained from year-to-year.
10. Can departments issue agency checks when the current year Budget has not been passed?
Yes, departments can disburse general cash to:
Departments can disburse revolving fund cash for:
11. How should CAL-Card rebates be recorded?
The CAL-Card rebate is a performance bonus that is distributed by the credit card company to departments for timely payment of invoices. Because the rebate cannot be identified to a specific invoice or vendor, the bonus will be classified as Miscellaneous Revenue for those departments whose primary funding source is a governmental cost fund. Departments whose primary funding source is a nongovernmental cost fund will use Operating Revenue, Other.
Additional rebate information is available at the Department of General Services CAL-Card website, see FAQ question #4 at: Cal-Card Frequently Asked Questions.
12. How do departments obtain FSCU approval, as required by some sections of the State Administrative Manual (SAM), or fiscal policy clarification/assistance? How long does the process take?
The Accounting Officer must submit a written request on departmental letterhead to:
The request must include all pertinent information necessary to review the request such as:
Please include the e-mail address and telephone number of a contact person so that we can acknowledge the receipt of your request. The request will be assigned to an analyst for review. A written response will be provided in approximately 3 to 4 weeks.
13. Is FSCU responsible for the content in all sections of the State Administrative Manual (SAM)?
No, FSCU is only responsible for specific sections of SAM. The responsible department and contact person for all SAM sections are listed in SAM Section 0030.
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