2005 California Government Code Sections 12460-12468 Article 4. Reports

12460.  The Controller shall submit an annual report to the Governor
containing a statement of the funds of the state, its revenues, and
the public expenditures during the preceding fiscal year.  The annual
report shall be prepared in the manner that will account for
revenues and expenditures on the same basis as that of the Governor's
Budget and the Budget Act.  The format of the budgetary-legal report
shall be prepared as closely as possible in accordance with
"Generally Accepted Accounting Principles."
   Until the Controller's records, the Budget Act, and information
provided by each state department and agency based on the state's
accounting system will permit the conversion to "Generally Accepted
Accounting Principles," the Controller shall issue an additional
report prepared strictly in accordance with "Generally Accepted
Accounting Principles."  The additional report will be prepared
annually unless the Director of Finance and the Controller agree that
such additional report is not feasible and so notify the Joint
Legislative Audit Committee.
   The annual report shall be compiled and published by the
Controller in the time, form, and manner prescribed by him or her.
12461.  The Controller's annual report shall include:
   (a) General Purpose Financial Statements prepared in accordance
with Section 12460 and "Generally Accepted Accounting Principles."
   (b) Tabular statements showing:
   (1) The amount of each appropriation for the preceding fiscal
year, the amounts expended, and the balance, if any.
   (2) The revenues and cost of government of the state for the
preceding fiscal year, classified in the manner and detail that the
Controller may determine.
   (3) The receipts, disbursements, and closing balances of each fund
in the State Treasury for the preceding fiscal year.
   (4) Variances between budgetary-legal statements prepared pursuant
to Section 12460 and any statements prepared under "Generally
Accepted Accounting Principles."
   The Controller may also publish a condensed summary of the annual
report.
   The reports required by this article shall be published in an
electronic format or printed, as determined by the Controller.  The
Controller shall make printed copies of the reports available upon
request.
12461.1.  The Controller shall also prepare a quarterly report on
the General Fund comparing state revenues and expenditures for that
quarter with the Budget Act, and other expenditures authorized
pursuant to statute, in effect during that quarter.  Such reports
shall be submitted to the Legislature within 30 days after the end of
the quarter, unless the Legislature is not in session, in which
event the reports shall be submitted to the Joint Legislative Budget
Committee.
   In preparing such quarterly report, the Controller shall consult
with all necessary or appropriate public and private agencies,
boards, departments and organizations, and all state and local public
agencies shall provide any information requested by the Controller.
12461.2.  If any state agency, department, board, or commission,
which is required by statute or regulation to furnish a financial
statement or report to the Controller fails to furnish a complete and
accurate financial report or statement within 20 days of the date
prescribed, the Controller may withhold any or all operating funds
from the agency, department, board, or commission, upon 30 days prior
notification in writing to the chairperson of the committee in each
house which considers appropriations and the Chairperson of the Joint
Legislative Budget Committee, or upon such lesser time as the
chairperson of the committee, or his or her designee, may in each
instance determine, until the agency, department, board, or
commission provides a complete and accurate report or statement.
   The provisions of this section shall not be applicable to any
reports required pursuant to Sections 7502, 7503, and 7504.
12462.  Upon request, the Controller shall give information in
writing to either house of the Legislature relating to the fiscal
affairs of the State or the duties of his office.
12463.  (a) The Controller shall compile and publish reports of the
financial transactions of each county, city, and special district,
respectively, within this state, together with any other matter he or
she deems of public interest.  The reports shall include the
appropriations limits and the total annual appropriations subject to
limitation of the counties, cities, and special districts.  The
reports to the Controller shall be made in the time, form, and manner
prescribed by the Controller.
   (b) Effective January 1, 2005, the Controller shall compile and
publish reports of the financial transactions of each county, city,
and special district pursuant to subdivision (a) on or before August
1, September 1, and October 1 respectively, of each year following
the end of the annual reporting period.  The Controller shall make
data collected pursuant to this subdivision available upon request to
the Legislature and its agents, on or before April 1 of each year.
   (c) The Controller shall annually publish reports of the financial
transactions of each school district within this state, together
with any other matter he or she deems of public interest.  The
reports shall include the appropriations limit and the total annual
appropriations subject to limitation of the school district.  The
reports to the Controller shall be made in the time, form, and manner
prescribed by the Controller.
   (d) As used in this section, the following terms have the
following meanings:
   (1) "School district" means a school district as defined in
Section 80 of the Education Code.
   (2) "Special district" means any of the following:
   (A) A special district as defined in Section 95 of the Revenue and
Taxation Code.
   (B) A commission provided for by a joint powers agreement pursuant
to Chapter 5 (commencing with 6500) of Division 7 of Title 1.
   (C) A nonprofit corporation that is any of the following:
   (i) Was formed in accordance with the provisions of a joint powers
agreement to carry out functions specified in the agreement.
   (ii) Issued bonds, the interest on which is exempt from federal
income taxes, for the purpose of purchasing land as a site for, or
purchasing or constructing, a building, stadium, or other facility,
that is subject to a lease or agreement with a local public entity.
   (iii) Is wholly owned by a public agency.
12463.1.  (a) The Controller shall appoint an advisory committee
consisting of seven local governmental officers to assist him or her
in developing complete and adequate records.
   (b) Whenever, in the opinion of the advisory committee and the
Controller, the public welfare demands that the reports of the
financial transactions of a district other than a school district be
published, the Controller shall notify the district that reports of
its financial transactions are required to be furnished to him or her
pursuant to Article 9 (commencing with Section 53890) of Chapter 4
of Part 1 of Division 2 of Title 5.  A public entity, agency, board,
transportation planning agency designated by the Secretary of the
Business, Transportation, and Housing Agency pursuant to Section
29532, or commission provided for by a joint powers agreement
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of
Title 1, and a nonprofit corporation as defined in subdivision (d),
shall be deemed a district within the meaning of this section.  The
Controller shall compile and publish these reports pursuant to
Section 12463.
   (c) The Controller shall make available annually, in a separate
report, published in an electronic format on the Controller's Web
site, certain financial information about selected special districts.
  The information provided in this report shall be published no later
than June 30 following the end of the annual reporting period.  This
report may be included whenever the Controller publishes a report
pursuant to this section.  The Controller shall include in his or her
report information that best illustrates the assets, liabilities,
and equity of selected districts.  Specifically, the Controller shall
include in this report a breakdown of each special district's (1)
fund balance, which shall include the reserved and unreserved funds,
typical for a nonenterprise district; (2) retained earnings, which
shall include the reserved and unreserved funds, typical for
enterprise districts; (3) fixed assets; and (4) cash and investments.
  The Controller may also include separate line items for "total
revenues" and "total expenditures."  This report shall cover the 250
special districts with the largest total revenues for that reporting
period.  When the report is available, the Controller shall notify
the Legislature, in writing, within one week of its publication.
   (d) For purposes of this section, "nonprofit corporation" means
any nonprofit corporation (1) formed in accordance with the
provisions of a joint powers agreement to carry out functions
specified in the agreement; (2) that issued bonds, the interest on
which is exempt from federal income taxes, for the purpose of
purchasing land as a site for, or purchasing or constructing, a
building, stadium, or other facility, that is subject to a lease or
agreement with a local public entity; or (3) wholly owned by a public
agency.
12463.3.  On or before May 1 of each year, the Controller shall
compile and publish annually reports of the financial transactions of
each community redevelopment agency created pursuant to Division 24
(commencing with Section 33000) of the Health and Safety Code.  The
Controller shall make the data available to the Legislature and its
agents upon request, on or before April 1 of each year.  The
Controller shall publish this information for each project area of
each redevelopment agency.  The reports shall be made in the time,
form, and manner prescribed by the Controller, after consultation
with the Department of Housing and Community Development and the
advisory committee created pursuant to Section 12463.1.
12464.  (a) If the county, city, or district reports are not made in
the time, form, and manner required or there is reason to believe
that a report is false, incomplete, or incorrect, the Controller
shall appoint a qualified accountant to make an investigation and to
obtain the information required.  The accountant appointed shall
report to the Controller the results of investigation, and a copy
shall be filed with the legislative body of the county, city, or
district, the accounts of which were investigated.  If a similar
investigation has to be made of the accounts of any county, city, or
district, for two successive years, a certified copy of the results
of the investigation last made shall be transmitted to the grand jury
of the county that was investigated or in which the city or district
investigated is situated, or, if the district is situated in more
than one county, in the county in which any portion of the district
is situated.
   (b) Any costs incurred by the Controller pursuant to subdivision
(a), including contracts with, or employment of, certified public
accountants or public accountants, in compiling a financial report
pursuant to Section 12463 or 12463.3 shall be borne by the county,
city, district, or redevelopment agency, and shall be a charge
against any unencumbered funds of the county, city, district, or
redevelopment agency.  Any forfeiture imposed by Section 53895 or
53895.5 may be offset up to the total costs incurred by the
Controller.  Any remaining balance shall be forfeited in accordance
with Sections 53895 and 53895.5.  Any costs incurred by the
Controller in excess of the forfeiture imposed shall be a charge
against any unencumbered funds of the county, city, district, or
redevelopment agency.
12465.  (a) When they are in excess of five years old, reports from
county and city officials and individuals, claims, canceled and paid
warrants, payroll documents, and other records may be destroyed by
the Controller, with the concurrence of the Director of General
Services.
   (b) Except as provided in subdivision (c), original reports,
claims, canceled and paid warrants, payroll documents and other
records may be destroyed after one year if they are reproduced in
accordance with Section 14756 and the reproduction is preserved for
the required period.
   (c) Records relating to the annual Controller's report on the
revenues and expenditures of state government shall not be destroyed
pursuant to subdivision (b) for at least three years.
12466.  On the first business day of each month, the Controller
shall furnish the Department of Finance with a statement of the
amount of money in each fund of the Treasury, and the total amount as
it appears upon the books of his office, together with the amount of
warrants issued by him but not paid by the Treasurer, and for the
payment of which there is money in the Treasury.
12467.  (a) (1) The Legislature finds and declares that the General
Fund has experienced significant deficits in recent years due to
economic factors and extraordinary demand for public services
supported by the General Fund.  In order to meet the cash needs of
the state it has been necessary to obtain external loans.  The
Legislature desires to provide a specific mechanism to eliminate
chronic General Fund cash deficits, provide fiscal stability and
facilitate temporary, short-term borrowing.
   (2) For purposes of this section, "unused borrowable resources,"
as of any date, means total available borrowable resources on that
date less total cummulative loan balances on that date.
   (b) On November 15, 1994, the Controller shall provide a detailed
report to the Legislature and the Governor of the estimated cash
condition of the General Fund for the 1994-95 fiscal year.  The
Legislative Analyst shall prepare an analysis of General Fund
revenues and expenditures for the 1994-95 fiscal year for use by the
Controller in the estimate of the 1994-95 General Fund cash
condition.  The Legislative Analyst shall review the Controller's
estimate of the General Fund cash condition and within five working
days shall advise the Controller, the Treasurer, the Chairperson of
the Joint Legislative Budget Committee, and the Director of Finance
whether that estimate reasonably reflects anticipated expenditures
and revenues during the fiscal year.  The Controller's report shall
identify the amount of any 1995 cash shortfall, as set forth in this
subdivision.  To that end, the Controller shall identify the
projected amount by which the unused borrowable resources on June 30,
1995, will differ from the unused borrowable resources on June 30,
1995, as indicated in the cash-flow analysis included in the official
statement accompanying the sale of the July 1994 revenue
anticipation warrants.  If the Controller's report identifies a
decrease in the unused borrowable resources on June 30, 1995, of more
than four hundred thirty million dollars ($430,000,000), then the
1995 cash shortfall shall be the amount of the difference that
exceeds four hundred thirty million dollars ($430,000,000). On or
before January 10, 1995, the Governor shall propose legislation
providing for sufficient General Fund expenditure reductions, revenue
increases, or both, to offset the amount of the estimated 1995 cash
shortfall as reported by the Controller.  This legislation, or
legislation providing equivalent expenditure reductions, revenue
increases, or both, shall be enacted on or before February 15, 1995.
   (c) The Director of Finance shall include updated cash-flow
statements for the 1994-95 and 1995-96 fiscal years in the May
revision to the budget proposal for the 1995-96 fiscal year submitted
to the Legislature pursuant to Section 13308.  The revised budget
proposal for the 1995-96 fiscal year shall not result in any
projected negative amount of unused borrowable resources as of June
30, 1996.  By June 1, 1995, the Controller shall concur with those
updated statements or provide a report to the Governor and the
Legislature identifying specific corrections, objections, or concerns
and the Controller's estimate of the cash condition of the General
Fund for the 1994-95 and 1995-96 fiscal years.  If the Controller
identifies any projected negative amount of unused borrowable
resources as of June 30, 1996, then the Governor shall propose
additional General Fund expenditure reductions, revenue increases, or
both, to eliminate that cash shortfall.  The enacted budget shall
not result in any projected negative unused borrowable resources as
of June 30, 1996.
   (d) On October 15, 1995, the Controller shall provide a detailed
report to the Legislature and the Governor of the estimated cash
condition of the General Fund for the 1995-96 fiscal year.  The
Legislative Analyst shall prepare an analysis of General Fund
revenues and expenditures for the 1995-96 fiscal year for use by the
Controller in the estimate of the 1995-96 General Fund cash
condition.  The Legislative Analyst shall review the Controller's
estimate of the General Fund cash condition and within five working
days shall advise the Controller, the Treasurer, the Chairperson of
the Joint Legislative Budget Committee, and the Director of Finance
whether that estimate reasonably reflects anticipated expenditures
and revenues during the fiscal year.  The Controller's report shall
identify the amount of any 1996 cash shortfall, as set forth in this
subdivision.  The Controller shall identify the projected amount of
unused borrowable resources as of June 30, 1996.  If the Controller's
report identifies a negative amount of unused borrowable resources
as of June 30, 1996, then the 1996 cash shortfall shall be the amount
necessary to bring the balance of unused borrowable resources on
June 30, 1996, to zero.  Within 10 days of the Legislative Analyst's
review, the Governor shall propose legislation providing for
sufficient General Fund expenditure reductions, revenue increases, or
both, to offset the estimated 1996 cash shortfall as reported by the
Controller.  This legislation, or legislation providing equivalent
expenditure reductions, revenue increases, or both, shall be enacted
on or before December 1, 1995.
   (e) (1) If the legislation required by subdivision (b) is not
enacted, within five days the Director of Finance shall reduce all
General Fund appropriations for the 1994-95 fiscal year, except those
required by subdivision (b) of Section 8 of Article XVI, Section 25
of Article XIII, Section 6 of Article XIIIB, or any other provision
of the California Constitution, and general obligation debt service,
or law of the United States, by the percentage equal to the ratio of
the 1995 cash shortfall to total remaining General Fund
appropriations for the 1994-95 fiscal year, after excluding the
appropriations that are not subject to reduction.
   (2) If the legislation required by subdivision (d) is not enacted,
within five days the Director of Finance shall reduce all General
Fund appropriations for the 1995-96 fiscal year, except those
required by subdivision (b) of Section 8 of Article XVI, Section 25
of Article XIII, Section 6 of Article XIIIB, or any other provision
of the California Constitution, and General Obligation debt service,
or law of the United States, by the percentage equal to the ratio of
the 1996 cash shortfall to total remaining General Fund
appropriations for the 1995-96 fiscal year, after excluding the
appropriations that are not subject to reduction.
   (3) Notwithstanding any other provision of law, in the event a
General Fund appropriation that is reduced pursuant to paragraph (1)
or (2) is for a program under which individuals other than an officer
or employee of the state receive an amount determined pursuant to
statute, whether that amount is an entitlement or not, that amount
shall be reduced by the same percentage as the General Fund
appropriation from which that payment is made is reduced.
   (f) The State of California hereby pledges to and agrees with the
holders of any registered reimbursement warrants and any revenue
anticipation notes issued in July 1994, and any banking institutions
that provide credit support for these warrants or notes, that the
state will not limit or alter the obligation hereby required of the
state by this section until the registered reimbursement warrants and
revenue anticipation notes, together with interest thereon, are
fully met and discharged.
12468.  The Controller shall regularly audit the apportionment and
allocation by counties of property tax revenue pursuant to this
chapter, in accordance with the following schedule:
   (a) For counties with a population in excess of 5,000,000 the
audit shall be performed annually.
   (b) For counties with a population greater than 200,000 and less
than 5,000,000, the audit shall be performed on a three-year cycle.
   (c) For counties with a population of 200,000 or less, the audit
shall be performed on a five-year cycle.
   (d) The Controller may, at his or her discretion, perform audits
more frequently than provided in subdivisions (b) and (c).
   (e) The Controller shall annually submit a report to the
Legislature containing a description of the audit findings for each
county that was audited during the prior year.  The report shall
contain recommendations to the Legislature for legislation to correct
any errors in the apportionment and allocation of property tax
revenues that were determined as a result of these audits.