HISTORY OF STATE OF CALIFORNIA ACCOUNTING - 7140
The history of the state’s system of accounting, chart of accounts and fiscal policies spans many years as described below:
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1911 |
The Legislature established the Department of Public Accounting under the State Board of Control charged with the duty of devising and installing a uniform system of accounting and reporting "to the end that there shall be a general systematic and uniform check upon the receipt and disbursement of public revenues." |
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1921 |
This duty was transferred to the then newly formed Department of Finance. |
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1920 |
The first accounting manual was published. |
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1951 |
Substantial changes were made to meet an increasing need for more-comprehensive and more-timely reporting of the state’s financial affairs and the state’s accounting manual was revised and designated as the fiscal affairs section of the State Administrative Manual (SAM). |
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1959 |
The chart of General Ledger accounts was devised, and released by Management Memo, which provided greater standardization and integration between the accounts maintained by agencies and those maintained by the State Controller's Office. It also provided greater standardization among agency accounts for Non-Governmental Cost Funds. |
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1965 |
The duty of prescribing uniform accounting procedures was transferred to the newly formed Department of General Services. The fiscal affairs section of SAM was revised to incorporate the revised chart of accounts. |
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1973 |
Section 13300 was added to the Government Code transferring duties related to the state system of accounting and policies back to Finance. |
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1978 |
All state agencies/departments were required to have a fully automated accounting and program cost accounting system. A study of the state's basis of accounting and general ledger was undertaken by Finance. This study resulted in standardizing the accounts to facilitate reporting in automated systems and the restructuring and renaming of the accounts for conformance with Generally Accepted Accounting Principles. |
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2007 |
Section 13310 was added to the Government Code requiring Finance to set statewide fiscal and accounting policies and procedures, and provide adequate fiscal and accounting training, advice, and consulting services. |
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2012 |
Section 13344 was added to the Government Code requiring Finance to implement procedures that facilitate annual reconciliations of General Fund and special fund balances between those provided by a state agency/department to Finance and to the State Controller’s Office. |
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2014 |
A new chart of accounts was deployed as a result of the implementation of the Financial Information System for California (FI$Cal) the new statewide accounting system. |