REFUNDS OF REVENUE - 8240
When payments collected and deposited by an agency/department are subsequently determined to be erroneous or excessive, the agency/department may refund the overpayment. Refund claims typically occur when the public has either overpaid for licenses, fees, or services or does not qualify to receive a service. These funds shall be returned to the payer. Refunds of amounts that were remitted in a previous fiscal year or as prior year revenue shall be filed against the prior year revenue account. Refunds of amounts that were remitted in the current fiscal year as current year revenue shall be filed against the current year.
Issuing a Refund
Government Code sections 13140-13144 permit refunds of erroneous amounts for any fee or excess payment. Refunds shall be made from one of the following:
- Any unremitted balance of receipts of the same nature in the agency/department’s checking account.
- The revenue account in the fund where the original receipt was credited.
When possible, agencies/departments using FI$Cal shall follow the standard voucher process.
Claims in Excess of $10,000 Made from a Revenue Account
Prior to submission to the State Controller’s Office, agencies/departments must obtain approval from the Finance Budget Analyst for individual refund claims in excess of $10,000 to be made from a revenue account. Agencies/Departments shall submit a PDF with a digitally certified signature of the written request on the agency/departmental letterhead with the required supporting documentation to the Finance Budget Analyst or mail the signed hardcopy to:
Department of Finance, IMMS A-15
Attn: Finance Budget Analyst
915 L Street
Sacramento, CA 95814
The request shall include all pertinent information to review and approve the request, such as:
- Agency/Department contact
- Fund
- Revenue account where the original receipt was credited
- Brief background/justification for the request, such as:
- Reason for refund
- Refund amount
- When payer made the payment(s)
- Government Codes, legal citations, budget authority (if applicable)
- Proof of payment, e.g., copy of cashed payer check(s)
- Applicable back-up documentation/calculation for refund
The request for approval shall include the following certification signed by an authorized agency/department officer:
In accordance with Government Code sections 13140-13144, I hereby certify this claim is for a refund of an erroneous or excess payment, and sufficient funds exist for payment of this claim.