PURPOSE OF THE CENTRAL FUND ACCOUNTS - 8800

(Revised: 06/2023)

The State Controller’s Office (SCO) and the State Treasurer’s Office (STO) perform certain central services for all state agencies/departments. The SCO maintains central accounts for all funds in the State Treasury, including appropriation account balances. The STO provides banking services for all state agencies/departments through the Centralized Treasury System (CTS) and the use of accountability accounts. These interrelated accounting and banking functions of the SCO and the STO require adequate coordination to ensure effective state government operations. State Administrative Manual sections 7320 and 7330, include summary information related to the broad duties of the SCO and the STO, respectively.

This chapter provides an overview of the SCO’s responsibilities over the state’s central fund accounts, its’ coordination with agency/department’s accounts, and a description of the Treasurer's CTS management and accountability.

THE STATE CENTRAL FUND ACCOUNTS

The State Controller’s Office (SCO) maintains the central fund accounts of the state. During the fiscal year, the SCO posts to the accounts when cash is received, transferred, or disbursed from the fund to keep the accounts on a cash basis and provide the SCO with the following information to the degree applicable for each fund:

• Cash
• Investments
• Appropriation balances
• Disbursements (by appropriation if the fund is appropriated by specific appropriations)
• Receipts by source.

The information ensures that money and, where applicable, specific appropriations for its expenditure exist whenever claims are presented for payment, and to prepare periodic financial reports.

At the end of the fiscal year, each agency/department operating from a governmental cost fund or a bond fund sends the SCO a Report No. 1, Report of Accruals to Controller's Accounts, for each fund from which it operates. See State Administrative Manual (SAM) Section 7952 for information and illustrations on the preparation of Report No. 1.

The SCO’s posting of the accrual reports to the central accounts results in a consolidation of all assets, liabilities, and net position for each governmental cost fund on a modified accrual basis. Refer to SAM Section 7440 for more information about the basis of accounting. This brings the central accounts to the same basis, for reporting purposes, as the agency/department’s detailed accounts as of June 30.

In addition to the Report No. 1, agencies/departments will submit required financial reports to the SCO for each fund, at the end of the fiscal year. The SCO will check the balances of the accounts it keeps to the balances of such accounts as shown on these reports and incorporate the data into the annual reports the SCO publishes.

NUMBERING OF CENTRAL FUND ACCOUNTS

The State Controller’s Office (SCO) uses central account codes to record fund activities. The central accounts are identified by code numbers divided into code fields as shown below:

1	2	3	4	5	6	7	8	9
Fund	Agency	Year	Reference Item	Federal Catalog	Category	Program	Account	Revenue / Object
4 digits	4 digits	4 digits	6 digits	8 digits	2 digits	10 digits	4 digits	6 digits

 

1. Fund Number (4 digits + 3 additional digits may be added for sub-fund identification)
2. Agency Code Number (4 digits)
3. Year of Enactment/Fiscal Year (4 digits)
4. Reference Item Number (3 primary digits + 3 additional for reference)
5. Federal Catalog Number (5 primary digits + 3 additional for subsidiary coding)
6. Category (2 digits)
7. Program (2 digits), Element (2 digits), Component (3 digits), and Task (3 digits)
8. Account Code (4 digits)
9. Revenue/Object Code (6 digits)