INCOME FROM INVESTMENTS - 8284
Upon receipt of interest on investment securities, the State Controller’s Office (SCO) will issue agencies/departments a receipt showing the amount of interest received and appropriate adjustments of the accrued interest purchased, premium, and discount. The agency/department will record the entry as of the date on the SCO receipt.
Early in July of each year, SCO will issue to agencies/departments adjusting journal entries to accrue income to June 30 of the prior year on both interest-bearing and noninterest-bearing securities. Agencies/departments will record these entries as of June 30.
(Separate arrangements have been made with departments accounting the State Compensation Insurance Fund, Legislators’ Retirement Fund, State Employees’ Retirement Fund, and Teachers’ Retirement Fund.)
Surplus Money Investment Fund
Monies of various funds deposited in the State Treasury are transferred for investment purposes in the Surplus Money Investment Fund (SMIF). Interest on investments of the Surplus Money Investment Fund is apportioned to other funds quarterly by the SCO pursuant to Government Code section 16475. The administering agency/department for the funds receiving the interest will receive the SCO Notice of Transfer in the month following the end of the quarter. Upon receipt of the Notice of Transfer from SCO, agencies/departments will recognize the interest as revenue or operating revenue in the applicable funds, see SAM section 10532, Entry 32—Interest Earnings On Investments Of The Surplus Money Investment Fund And Condemnation Deposits Fund.
Agencies/departments will accrue the June 30 interest as described in SAM section 10605, Entry A-6, Receivables Due From Surplus Money Investment Fund and Condemnation Deposits Fund Are Accrued for Interest Earnings.
Condemnation Deposits Fund
Interest on investments of the Condemnation Deposits Fund is apportioned quarterly by the SCO pursuant to Government Code section 16429. Agencies/departments that have money deposited in the Condemnation Deposits Fund will account for interest revenue transferred from that fund in the same manner as the Surplus Money Investment Fund.