PLAN OF FINANCIAL ADJUSTMENT – PREPARATION - 8452.1
A Plan of Financial Adjustment (PFA) request must follow its respective illustration format and preparation process. A proposed PFA with incorrect or missing information will be returned to the agency/department for correction. The three types of PFA, with their statutory authority, are listed below.
General PFA
Government Code section 11251 authorizes the use of a general PFA for agencies/departments supported by a special fund or a separate appropriation from the General Fund. Agencies/Departments requesting a general PFA shall follow the format shown in 8452.1 Illustration 1.
Federal PFA
Government Code section 16365 authorizes the use of a federal PFA for the Federal Trust Fund. Agencies/Departments requesting a federal PFA shall follow the format shown in 8452.1 Illustration 2.
Combination PFA
This PFA type incorporates both general and federal authorizing statutes provided above. Agencies/Departments requesting a combination PFA shall follow the format shown in 8452.1 Illustration 3.
Required Information
Agencies/Departments must include the following information in a PFA:
- The request for approval and statement of the PFA’s effective period. The effective period can be limited (e.g., one, two, three years) or continuous. Agencies/Departments may seek approval to establish a new clearing program by adding language to the PFA.
- Identification of the funds and appropriations covered and displayed under the following conditions:
- Use the 11-digit item code (e.g., 8860-001-0001) of a support appropriation to identify a yearly support appropriation.
- Provide the year and chapter for any appropriation established by authority other than Budget Act legislation.
- If more than one fund or appropriation is included, complete the PFA table workbook titled, PFA Letter Special Appropriations, located on the Department of Finance’s website and attach to the PFA letter.
If the PFA includes a continuing appropriation as defined in SAM Section 8326, the continuous PFA is effective until the appropriation availability end date or when the agency/department amends or rescinds the existing PFA, whichever is earliest.
- Frequency of transfer requests between funds and/or appropriations covered. Transfers should be on a monthly basis but can be more frequent if needed. Transfers should be for a one-month period, and months should not be combined. The transfer request should specify whether it is for actual or estimated expenditures.
- Certification by an authorized agency/department officer.
Agencies/Departments shall review their PFA each fiscal year and update as necessary. If the PFA is no longer needed, the agency/department must notify the State Controller’s Office and the Department of Finance, Fiscal Systems and Consulting Unit (FSCU) by agency/department memo.
For additional information on PFA, contact FSCU at PFARequests@dof.ca.gov.
For approval of the PFA, see SAM Section 8452.2.