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California Board of Accountancy posts surplus, holds 13.4 months in reserve; board discusses drawdown process and travel rules
Summary
The California Board of Accountancy reported a $21.86 million revenue year and a roughly $2.1 million surplus for fiscal year 2024–25, leaving the accountancy fund with about 13.4 months in reserve. Board members questioned how reserves would be used and what would happen if the board exceeded its budget authority.
The California Board of Accountancy reported that it closed fiscal year 2024–25 with $21,860,000 in total revenue and a budgetary surplus of roughly $2,100,000, leaving the accountancy fund with about 13.4 months in reserve, the board heard at its Sept. 19 meeting in Burbank.
The board’s secretary-treasurer presented the year-end financial statements covering July 1, 2024, through June 30, 2025. The board’s adopted budget for the year was $19,785,000. License renewal fees were the largest revenue source, contributing more than $15,300,000, the presentation said. Total expenditures equaled about 89.6% of budget. Enforcement costs for the year totaled $779,314, with most enforcement spending allocated to the California Attorney General’s Office.
Board members asked how an overexpenditure would be handled. Executive Officer Franzella and the assistant executive officer explained that if the board were to exceed its authorized budget authority the normal sequence would be internal planning and working with the Department of Consumer Affairs (DCA) budget office. In acute shortfall scenarios, staff said it could request transfers or a budget change proposal and that the Department of Finance has authority over augmentations, a process that can be lengthy. One board member asked whether an overexpenditure would require the executive officer to personally write a check; staff replied that the board would pursue planning steps and administrative remedies before that would occur.
The presentation noted the fee increase effective July 1, 2024, as the primary driver of the revenue increase; a second phase of the fee increase is scheduled for July 1, 2026. Staff said the increase helped restore reserves after prior years of lower balances and past loans from the fund to support the state general fund.
Board discussion also addressed travel funding and budgeting practices. Staff told the board that out-of-state travel is treated as mission-critical and must meet Department of Finance guidance; requests must be routed to DCA’s budget office about eight weeks in advance. Board members were reminded to track receipts for reimbursement and to consider ride-sharing vs. rental cars to minimize state costs.
No formal board action was required to accept the report; staff answered member questions and made staff available for follow-up requests for more detailed line-item explanations.
