2005 California Government Code Sections 13290-13308.05 Article 1. General

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 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 be of a nature so as to permit a comparison
of budgeted  expenditures, actual expenditures and encumbrances and
payables, as defined by the California Fiscal Advisory Board, and
estimated revenue to actual revenue, which 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 which
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
the several agencies of the state 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.  The Controller or the Director of Finance
may submit to the State Board of Control and the State Board of
Control shall consider and adopt any rule or regulation required to
implement this section.
   (d) The requirements of this section shall apply to departments
commencing with the second fiscal year following the fiscal year for
which funds are appropriated by the Legislature to implement the
provisions of this section.  The department shall adopt guidelines
and instructions to implement the application of this section.
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:
   (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 and the due date for the tax is within two months of the
end of the period.
   (2) Cash in agency trust accounts within the centralized State
Treasury system which 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:
   (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.
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.  The department shall provide an annual report to the
Legislature on tax expenditures.  The report shall include each of
the following:
   (a) A comprehensive list of tax expenditures.
   (b) Additional detail on individual categories of tax
expenditures.
   (c) Historical information on the enactment and repeal of tax
expenditures.
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.