SECTIONS 13290-13312 - California Statutes

GOVERNMENT CODE

SECTION 13290-13312

13290. The fiscal year shall commence on the first day of July.

13291. The department may require financial and statistical
reports, duly verified and covering the period of each fiscal year,
from all agencies of the state included within the provisions of
Section 13300.
Such reports shall be made upon blank forms prescribed and
furnished by the department, and mailed to each such agency not less
than 60 days before the time the reports are required to be filed
with the department.

13292. When necessary, the department may require special reports
from any such State or public agency. These special reports shall be
filed with the department without delay.

13293. The department may examine all records, files, documents,
accounts and all financial affairs of every agency mentioned in
Section 13300. It may enter any public office or institution in this
state and examine any records, files, books, papers or documents
contained therein or belonging thereto for the purpose of making such
examination, and shall have access, in the presence of the custodian
or his deputy, to the cash drawers and cash in the custody of such
agency.
During business hours the department may examine the public
accounts in any depository which has public funds in its custody.

13294. The Department of Finance shall examine the books of the
several state agencies as often as the director deems necessary,
taking into consideration the work done by other auditors, including
the internal auditors of the various state agencies, so that
duplication of auditing effort may be minimized.

13295. Every State agency shall permit such examination and
experting and upon demand shall produce without unnecessary delay all
books, contracts, and papers in its offices, and furnish information
touching books, papers, contracts, and other matters pertaining to
the agency.

13296. The director shall supply to the Controller a certified copy
of each periodical audit of the accounts of any state agency.
Additionally, if the audit includes a review of federal funds, the
director shall also report the results of the audit simultaneously to
the Legislature and the affected state agency.

13297. The money in the Treasury shall be counted by the State
Auditor at least twice each year, without giving the Treasurer any
previous notice of the day or hour of counting.
At any counting the State Auditor may place any sum in bags or
boxes and mark and seal them with a seal adopted and kept by him or
her. At any subsequent counting he or she may count each sealed bag
or box separately and credit at the value stamped thereon the
contents of the bags or boxes as part of the money counted without
making a detailed count of the contents.

13298. The State Auditor shall count as cash all evidence of money
belonging to the state upon deposit outside the treasury that may be
held by the Treasurer in accordance with law and shall determine for
himself or herself whether that evidence is sufficient according to
law.

13299. After each count of money the State Auditor shall make and
file with the Secretary of State and cause to be published in some
newspaper in the City of Sacramento, an affidavit showing:
(a) The amount of money or credit that should be in the treasury.
(b) The amount and kind of money or credit actually in the
treasury.

13299.1. Securities held in the treasury or other depositories for
safekeeping purposes shall be counted or confirmed, at least
annually, by the State Auditor. After each count or confirmation of
securities, the State Auditor shall issue his or her report on the
accountability of securities.

13300. (a) The department shall devise, install, supervise, and, at
its discretion, revise and modify, a modern and complete accounting
system and policies for each agency of the state permitted or charged
by law with the handling of public money or its equivalent, to the
end that all revenues, expenditures, receipts, disbursements,
resources, obligations, and property of the state be properly,
accurately, and systematically accounted for and that there shall be
obtained accurate and comparable records, reports, and statements of
all the financial affairs of the state.
(b) This system shall permit a comparison of budgeted
expenditures, actual expenditures, encumbrances and payables, and
estimated revenue to actual revenue that is compatible with a budget
coding system developed by the department. In addition, the system
shall provide for a federal revenue accounting system with
cross-references of federal fund sources to state activities.
(c) This system shall include a cost accounting system that
accounts for expenditures by line item, governmental unit, and fund
source. The system shall also be capable of performing program cost
accounting as required. The system and the accounts maintained by all
state departments and agencies shall be coordinated with the central
accounts maintained by the Controller, and shall provide the
Controller with all information necessary to the maintenance by the
Controller of a comprehensive system of central accounts for the
entire state government.
(d) Beginning with the 2008-09 fiscal year, the Department of
Finance, the Controller, the Treasurer, and the Department of General
Services shall partner to design, develop, and implement the
Financial Information System for California Project to meet the
requirements of subdivisions (a), (b), and (c), and the FISCal
Project documents, as established in the FISCal Special Project
Report dated October 30, 2006, as revised on December 14, 2006, as
amended by the FISCal Special Project Report dated November 9, 2007,
as revised on December 19, 2007, and as amended, augmented, or
changed by any subsequent approved Special Project Report.

13301. For the purpose of administering Section 13300 of this code
the director may appoint and prescribe the duties and fix the
salaries of such number of skillful accountants or assistants as he
deems necessary. Each such appointee is a civil executive officer.
Before entering upon the discharge of the duties of his office
each such appointee shall execute to the state an official bond
conditioned upon the faithful performance of his duties in such penal
sum as the director prescribes, but not less than five thousand
dollars ($5,000).

13302. The accounting system devised as provided in Section 13300
shall provide, with respect to the General Fund and other
governmental funds, for all of the following:
(a) The accrual of expenditures as of the end of each fiscal year
on the basis of payables incurred, excluding accrued interest on
general obligation bonded indebtedness.
(b) (1) The accrual of revenues at the end of the fiscal year if
the underlying transaction has occurred as of the last day of the
fiscal year, the amount is measurable, and the actual collection will
occur either during the current period or after the end of the
current period but in time to pay current yearend liabilities.
(2) Cash in agency trust accounts within the centralized State
Treasury system that is in transit to the State Treasury, accrued
interest receivable, and accounts receivable shall be accrued as of
the end of each fiscal year.
(c) For the purposes of financial reporting, both of the following
shall apply:
(1) A payable exists when goods or services have been delivered
and the state is required to pay for those goods or services, and an
encumbrance exists when a valid obligation against an appropriation
has been created.
(2) All funds appropriated shall be identified as either expended,
payable, encumbered (exclusive of payables), or unencumbered, as
further defined by the California Fiscal Advisory Board, and the
total of these shall equal the total appropriation.
(d) (1) Notwithstanding any other law, and except as provided in
paragraph (2), payments to employees made through the Uniform State
Payroll System as described in Section 12472.5 with an issue date
each year of July 1 shall be considered payables incurred in the
fiscal year in which the payment is issue dated.
(2) Notwithstanding paragraph (1), for purposes of calculating
maintenance of effort expenditures under Section 8 of Article XVI of
the California Constitution, or for purposes of calculating funds
used by a program during the fiscal year, payments made on July 1 may
be counted towards the prior fiscal year.

13303. Notwithstanding any other provision of law, all accounts,
special accounts and funds established by statute in the General Fund
to reserve specific revenues for a particular department, activity,
purpose, or program for an indefinite period of time shall, for
accounting and budgeting purposes, on and after July 1, 1978, be
excluded in determining, estimating or reporting revenues and
transfers, expenditures, receipts, disbursements, assets,
liabilities, surplus, or reserves in any balance sheet, budget, or
other statement of the financial operations or condition of the
General Fund.

13304. (a) Beginning on December 15, 1993, and annually thereafter,
the Department of Finance shall submit to the Chairperson of the
Joint Legislative Budget Committee and to the chairperson of the
committee in each house that considers appropriations a report
listing all capital outlay or support funds appropriated by the
annual Budget Act or any other act for cogeneration facilities. The
report for each project shall include, at a minimum, all of the
following information:
(1) The economic feasibilities of the alternative cogeneration
equipment configuration capable of being installed at the subject
facility.
(2) An engineering evaluation of proposed and alternative
cogeneration equipment configurations.
(3) An engineering evaluation of potential energy conservation
measures which could be implemented at the subject site and the
impact of these measures on the cogeneration system.
(4) A proposed plan for implementing conservation measures
identified in the engineering evaluation.
(5) A financial analysis of potential cost savings or revenue
produced by the installation based on completed negotiation with any
persons who may participate in the installation through selling fuel
for or purchasing thermal or electrical power generated by the
cogeneration system.
(6) The budgetary impact of the cogeneration proposal with respect
to reduced utility requirements, or increased revenue due to sale of
electrical or thermal energy, or both.
(7) An analysis of the alternative financing mechanisms available
to fund the proposed project, and the cost-benefit of each such
mechanism, including state capital outlay appropriations, revenue
bonds, and loans authorized by Chapter 2.7 (commencing with Section
15814.10) of Part 10b of Division 3 of Title 2 of the Government
Code, as added by Chapter 1523 of the Statutes of 1982.
(b) Beginning on December 15, 1993, and annually thereafter, the
Department of Finance shall submit to the Chairperson of the Joint
Legislative Budget Committee and to the chairperson of the committee
in each house that considers appropriations, a report for all energy
service contracts or third-party agreements for the construction of
any alternative energy systems, cogeneration systems, or energy
conservation measures made in the previous fiscal year. The report
shall list the terms of all agreements, the benefit sharing
arrangements, and the potential cost savings to the state.
(c) Subdivisions (a) and (b) shall not apply to the allocation of
funds appropriated for preparation of preliminary plans.
(d) Within one year after completion of any cogeneration project
funded under the annual Budget Act or any other act, the Department
of Finance shall submit a report that compares energy and cost
savings achieved with those savings estimated pursuant to subdivision
(a) to the Chairperson of the Joint Legislative Budget Committee and
the chairperson of the committee in each house that considers
appropriations.

13305. (a) The department shall provide an annual report to the
Legislature on tax expenditures by no later than September 15 of each
year. The report shall include each of the following:
(1) A comprehensive list of tax expenditures exceeding five
million dollars ($5,000,000) in annual cost.
(2) The statutory authority for each credit, deduction, exclusion,
exemption, or any other tax benefit as provided by state law.
(3) A description of the legislative intent for each tax
expenditure, if the act adding or amending the expenditure contains
legislative findings and declarations of that intent, or that
legislative intent is otherwise expressed or specified by that act.
(4) The sunset date of each credit, deduction, exclusion,
exemption, or any other tax benefit as provided by state law, if
applicable.
(5) A brief description of the beneficiaries of the credit,
deduction, exclusion, exemption, or other tax benefit as provided by
state law.
(6) An estimate or range of estimates for the state and local
revenue loss for the current fiscal year and the two subsequent
fiscal years. For sales and use tax expenditures, this would include
partial year exemptions and all other tax expenditures when the State
Board of Equalization has obtained that information.
(7) For personal income tax expenditures, the number of taxpayers
affected and returns filed, as applicable, for the most recent tax
year for which full year data is available.
(8) For corporation tax and sales and use tax expenditures, the
number of returns filed or business entities affected, as applicable,
for the most recent tax year for which full year data is available.
(9) A listing of any comparable federal tax benefit, if any.
(10) A description of any tax expenditure evaluation or
compilation of information completed by any state agency since the
last report made under this section.
(b) For purposes of this section, "tax expenditure" means a
credit, deduction, exclusion, exemption, or any other tax benefit as
provided for by the state.
(c) This section shall become operative on January 1, 2007.

13306. (a) The Department of Finance, with the concurrence of the
Controller, may establish additional funds as are necessary to
properly manage and account for the financial activities and
resources of the state, provided that only the minimum number of
funds necessary to comply with legal requirements, "Generally
Accepted Accounting Principles," and effective financial
administration shall be established. The department may abolish funds
established under the authority of this subdivision.
(b) The Department of Finance, with the concurrence of the
Controller, may abolish funds established by statute that have been
inactive for a period of four years upon notification in writing to
the Joint Legislative Budget Committee. Abolition of funds
established by statute shall become effective no earlier than 30 days
after the date of this notification. If these funds are abolished
and subsequently are found to be needed, the department, with the
concurrence of the Controller, may reestablish these funds.
(c) Because complete conformance to "Generally Accepted Accounting
Principles" may be impractical or not authorized, the Department of
Finance is authorized to deviate from them if conformance would not
be in the best interests of the state, and if the department notifies
the Controller of additional major deviations and the Controller
agrees with the deviations prior to implementation.
(d) The Department of Finance shall notify the Joint Legislative
Budget Committee when major changes are proposed to the accounting
system to bring it into conformance to "Generally Accepted Accounting
Principles." The notification shall include an estimate of the
fiscal effect of the major changes being proposed.

13307. In determining whether the General Fund budget, in any given
fiscal year, is in a surplus or deficit condition, the controlling
factor shall be the fund balance which is the difference between
total resources and total expenditures. In determining the fund
balance, the following principles shall be applied:
(a) Encumbrances, which are any valid obligation for the delivery
of goods or services, should not be counted as a budgetary
expenditure until the delivery of the goods or services.
(b) The unencumbered balances of appropriations, which exist when
no commitment for an expenditure is made, should be an item of
disclosure, but the amount should not be deducted from the fund
balance.
(c) Changes affecting a budget subsequent to publication of
financial statements, such as actions to disencumber funds, should be
reflected in budget documents after documentation is provided.

13308. (a) The Director of Finance shall provide to the
Legislature, on or before February 1 of each year, all proposed
statutory changes, as prepared by the Legislative Counsel, that are
necessary to implement the Governor's Budget, as described in
subdivision (a) of Section 13337.
(b) The Director of Finance shall provide to the Legislature, on
or before April 1 of each year, all proposed adjustments to the
Governor's Budget except as specified by subdivisions (c) and (d).
(c) The Director of Finance shall provide to the Legislature, on
or before May 1 of each year, all proposed adjustments to the
Governor's Budget in appropriations for capital outlay.
(d) The Director of Finance shall provide to the Legislature, on
or before May 14 of each year, all of the following:
(1) An estimate of General Fund revenues for the current fiscal
year and for the ensuing fiscal year.
(2) Any proposals to reduce expenditures to reflect updated
revenue estimates.
(3) All proposed adjustments to the Governor's Budget that are
necessary to reflect updated estimates of state funding required
pursuant to Section 8 of Article XVI of the California Constitution,
or to reflect caseload enrollment or population changes.
(e) The Director of Finance may authorize suspension for the
current fiscal year of any provision of this section not sooner than
30 days after notification in writing of the necessity therefor to
the chairperson of the committee in each house that considers the
State Budget and the Chairperson of the Joint Legislative Budget
Committee.

13308.05. For purposes of Section 13308, "workload budget" means
the budget year cost of currently authorized services, adjusted for
changes in enrollment, caseload, or population, or all of these
changes and any of the following:
(a) Statutory cost-of-living adjustments.
(b) Chaptered legislation.
(c) One-time expenditures.
(d) The full-year costs of partial-year programs.
(e) Costs incurred pursuant to constitutional requirements.
(f) Federal mandates.
(g) Court-ordered mandates.
(h) State employee merit salary adjustments.
(i) State agency operating expense and equipment cost adjustments
to reflect price increases.

13309. (a) The Director of Finance shall reconcile with the
Controller, and report to the Joint Legislative Budget Committee by
October 1 of each year, the number of permanent employees by
department appointed as full-time or part-time tenure in blanket
positions for more than six consecutive months in the immediately
preceding fiscal year.
(b) For purposes of this section, "blanket positions" are those
positions included in the temporary help category for purposes of the
state budget.

13310. (a) It is the intent of the Legislature that the department
set statewide fiscal and accounting policies and procedures, and
provide adequate fiscal and accounting training, advice, and
consulting services to any agency of the state that is authorized or
required to handle public money or its equivalent in order to ensure
that the state's assets are protected and that accurate and timely
financial information is maintained.
(b) To the extent permitted by state law, the department may
assess special funds, bond funds, and nongovernmental cost funds in
amounts sufficient to support the functions identified in subdivision
(a). The director shall determine the amount of the total assessment
for each fund periodically. Upon order of the director, the moneys
authorized pursuant to this section shall be transferred by the
Controller, as needed, from each fund for a total amount not to
exceed the amounts authorized in the annual Budget Act.

13311. (a) Notwithstanding any other provision of law, in order to
achieve effective management of state cash resources, the Director of
Finance may defer payment of General Fund moneys, in a cumulative
amount not to exceed five hundred million dollars ($500,000,000)
annually, appropriated to the University of California in the annual
Budget Act.
(b) The payment of the amount deferred shall be in May or June, as
established by the Director of Finance, of the same fiscal year that
the original payment would have been made.

13311.1. (a) Notwithstanding any other law, including, but not
limited to, Section 13311, in order to achieve effective management
of state cash resources, the Director of Finance may do both of the
following:
(1) Defer payments of General Fund moneys owed in July through
September of 2009, in an amount not to exceed seven hundred fifty
million dollars ($750,000,000), appropriated to the University of
California in the 2009 Budget Act.
(2) Defer payments of General Fund moneys owed in February 2010,
in an amount not to exceed two hundred fifty million dollars
($250,000,000), appropriated to the University of California in the
2009 Budget Act.
(b) (1) Of the amount deferred pursuant to paragraph (1) of
subdivision (a), the payment of two hundred fifty million dollars
($250,000,000) shall be made in October 2009. The payment of the
remaining amount deferred pursuant to paragraph (1) of subdivision
(a) shall occur no earlier than April 2010 and at the earlier of (A)
the day after all outstanding revenue anticipation notes issued by
the state in the 2009-10 fiscal year have been repaid, as determined
by the Director of Finance, or (B) June 30, 2010.
(2) The payment of the amount deferred pursuant to paragraph (2)
of subdivision (a) shall be made no earlier than April 20, 2010, but
no later than May 31, 2010.
(c) Notwithstanding any other provision of law, in order to
achieve effective management of state cash resources, the Director of
Finance may do both of the following:
(1) Defer payments of General Fund moneys owed in July 2009, in an
amount not to exceed two hundred ninety million dollars
($290,000,000) appropriated to the California State University in the
2009 Budget Act.
(2) Defer payments of General Fund moneys owed in February 2010,
in an amount not to exceed two hundred fifty million dollars
($250,000,000), appropriated to the California State University in
the 2009 Budget Act.
(3) Defer payments of General Fund moneys owed in March 2010, in
an amount not to exceed one hundred fifty million dollars
($150,000,000), appropriated to the California State University in
the 2009 Budget Act.
(d) (1) The payment of the amount deferred pursuant to paragraph
(1) of subdivision (c) shall be made in October 2009.
(2) The payment of the amount deferred pursuant to paragraph (2)
of subdivision (c) shall be made no earlier than April 20, 2010, but
no later than May 31, 2010.
(3) The payment of the amount deferred pursuant to paragraph (3)
of subdivision (c) shall be made no earlier than May 1, 2010, but no
later than May 31, 2010.

13312. (a) (1) Commencing with the 2008-09 fiscal year, and
notwithstanding any other provision of law, if after the annual
Budget Act is enacted, the Director of Finance determines that
General Fund total available resources for the fiscal year will
decline substantially below the estimate of General Fund total
resources available upon which the Budget Act was based, or that
General Fund expenditures will increase substantially above that
estimate of General Fund total resources available, the director may
make reductions pursuant to subdivision (b).
(2) For purposes of this subdivision, "total resources available"
includes prior year balance and revenues and transfers for the fiscal
year.
(b) Upon making a determination as described in subdivision (a),
the Director of Finance, in consultation with agency secretaries and
other cabinet members, may reduce General Fund items of
appropriation, subject to both of the following:
(1) The Director of Finance shall not reduce, pursuant to this
section, the amounts appropriated for any of the following:
(A) The Legislature.
(B) Constitutional officers.
(C) Transfers pursuant to the Article XIX B of the California
Constitution.
(D) Debt service, including, but not limited to, tobacco
settlement revenue shortfalls, payment of interest on General Fund
loans, and interest payments to the federal government.
(E) Health and dental benefits for annuitants.
(F) Equity claims before the California Victim Compensation and
Government Claims Board.
(G) Augmentations for contingencies or emergencies.
(H) Local assistance appropriations.
(I) Any collective bargaining agreement with a recognized state
employee organization.
(2) A General Fund state operations or capital outlay item of
appropriation, and a program or category designated in any line of
any schedule set forth by that appropriation, may not be reduced by
more than 7 percent.
(c) Notwithstanding any provision of law to the contrary, any
cost-of-living adjustment or rate increase funded in an annual Budget
Act shall be subject to the following conditions:
(1) If the Director of Finance determines that suspension by up to
120 days of the effective date of a cost-of-living adjustment or
rate increase funded in an annual Budget Act is necessary to mitigate
conditions that would authorize the issuance of a proclamation
declaring a fiscal emergency pursuant to subdivision (f) of Section
10 of Article IV of the California Constitution, that cost-of-living
adjustment or rate increase shall not take effect during that time.
(2) (A) If the Governor issues a proclamation declaring a fiscal
emergency pursuant to subdivision (f) of Section 10 of Article IV of
the California Constitution, then no cost-of-living adjustment or
rate increase funded in the annual Budget Act for that fiscal year
shall take effect until the Legislature passes and sends to the
Governor a bill or bills to address the fiscal emergency.
(B) Commencing with the 2009-10 fiscal year, the annual Budget Act
shall include a section specifying the cost-of-living adjustments or
rate increases included in the Budget Act or authorized by other
statutes which may be suspended pursuant to this paragraph.
(d) The Director of Finance shall report to the Chair of the Joint
Legislative Budget Committee and the chairs of the committees of
each house of the Legislature that consider appropriations not less
than 30 days prior to making reductions pursuant to this section. The
report shall list the specific reductions, by department, agency,
and program, and state the programmatic effects and impacts of each
reduction.
(e) Cost-of-living adjustments for purposes of this section shall
not include any apportionments made to fund a cost-of-living
adjustment to augment appropriations made pursuant to Section 2558 of
the Education Code, for county office of education revenue limits,
or Section 42238 of the Education Code, for school district revenue
limits, nor shall it include a cost-of-living adjustment negotiated
in a collective bargaining agreement with a recognized state employee
organization.
(f) Nothing within this section shall be construed to confer any
authority upon the Director of Finance to modify or eliminate any
provision of existing law.
(g) This section shall only become operative if either Senate
Constitutional Amendment 1 or Assembly Constitutional Amendment 1 in
the 2009-10 Third Extraordinary Session is submitted to, and approved
by, the voters at a statewide election.