Fund Balance Reconciliation

The reconciliation of fund balances between accounting and budget 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 and Budget Act. 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. 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 fund balances 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 2022-23 Governor’s Budget. The fund reconciliation packet includes a Detailed Fund Balance Report (Form DF-303 or DFB) for state departments to reconcile fund balances.

• Fund Balance Reconciliation Guide

Forms and Templates

• DF-303 DFB Report Excel Template (revised 09/21)
• DFB Consolidated Worksheet Excel Template (revised 09/21)
• FCS Template (revised 06/21)
• DF-117 Certification (revised 06/21)
• Finance Memo Template (revised 06/21)
• Preliminary List of Funds Subject to Detailed Fund Balance Report Process

Due Dates

Submit DFB packets to Finance no later than:

• October 1, 2021 Non-shared fund administrators
• October 8, 2021 Shared fund administrators

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 budget data for the past year. A DF-304 must be submitted to Finance for all NGCFs that will not have a FCS in the 2021-22 Governor’s Budget. NGCFs with a FCS are required to submit a DF-303.

• DF-304 Instructions

Forms and Templates

• DF-304 Excel Template (revised 06/21)
• DF-117 Certification (revised 06/21)

Due Dates

Submit DF-304 and DF-117 with past year budget documents to Finance no later than:

• October 1, 2021 Non-shared fund administrators
• October 8, 2021 Shared fund administrators