8452.2     APPROVAL OF PLAN OF FINANCIAL ADJUSTMENT  
(Revised 5/95)

The following statutes authorizing the use of PFA require that the PFA be approved by the Director of Finance and the State Controller: Government Code Section 16365;  Education Code Section 12060; and the Health and Safety Code Section 111.  See SAM Section 8452.1. Government Code Section 11251 for general PFA requires only the approval of the State Controller, after consultation with the Department of Finance.  Departments will submit the original and three copies of the proposed PFA to the SCO, Division of Accounting.  That office will review the proposed plan for proper format and availability of funds and appropriations covered therein.  The SCO will furnish the Department of Finance budget analyst a copy of the proposed plan for review and comment.

Proposed PFA for Federal Trust Fund operations will be submitted directly to the Department of Finance budget analyst for approval.  The Department of Finance will forward the Federal Trust Fund PFA to the SCO for his/her approval and distribution.

Upon approval, the SCO will return an approved copy of the PFA to the submitting department.