Accounting Basis

The information on Open FI$Cal is generally shown on the modified accrual basis of accounting. The site also includes information from non-FI$Cal departments that is currently shown on a cash basis. Different numbers published by the State of California for different purposes may use different bases of accounting, so the expenditures on this site will generally not match expenditure numbers you may see elsewhere.

The different bases of accounting differ in when they recognize revenues and expenditures. The primary bases used by California include the following:

Basis	When expenditures are recognized	When revenue is recognized	Where it’s used
Modified Accrual	When goods and services are received or a liability is incurred	When funds are measurable (can be stated in terms of dollars) and available (can be used to pay current liabilities)	Most day-to-day accounting by state departments, Open FI$Cal
Cash	When cash is spent	When cash is received	State Controller’s Office tracking of cash balances
Full Accrual	When goods and services are received or a liability is incurred	When revenue is earned (i.e. owed to the state)	Not commonly used in state accounting
Budgetary Legal (this basis is unique to California)	When funds are encumbered for future use (for example, when a contract is entered into)	When funds are measurable (can be stated in terms of dollars) and available (can be used to pay current liabilities)	Annual Budget, Budgetary-Legal Basis Annual Report (BLBAR)
Generally Accepted Accounting Principles (GAAP)	GAAP includes multiple bases of accounting for the different views shown in the state’s annual financial report	GAAP includes multiple bases of accounting for the different views shown in the state’s annual financial report	Annual Comprehensive Financial Report (ACFR)