By: @Ophelia Szigeti
The 2025 Edition of the Special District Uniform Accounting and Reporting Procedures (SPD) manual is now available on State Controller’s Office website. Special Districts are encouraged to review the updated manual by clicking here and scrolling down to “Special District Uniform Accounting and Reporting Procedures (SPD)”.
The SPD manual provides uniform accounting and reporting procedures that conform to Generally Accepted Accounting Principles (GAAP) as prescribed by the Governmental Accounting Standards Board (GASB). The State Controller’s Office (SCO) is charged with prescribing uniform accounting and reporting procedures for all local agencies, minus some exceptions such as cities, counties, and school districts.
Special districts are required, as applicable, to annually report financial information to the State Controller, including the salaries and compensation of all staff and board members. Districts must also submit periodic financial audits conducted by a county auditor or certified public accountant and report bond issuances to the California State Treasurer’s Public Finance Division, including a statement of the specific purpose of the bonds and an annual follow-up report.
Additionally, special districts are required to provide each county in which they are located with a public facilities report, a designation of registered office and agent, and their regular public meeting schedule.
All financial transactions must be fully documented and are subject to audit. Expenditures should be supported by approved purchase agreements, matching invoices, and proof of delivery or receipt, and records must be retained in accordance with applicable laws and regulations. The Secretary of State administers the Local Government Records Program which sets minimum standards for records maintenance and retention through the California State Archives.
If a special district fails to file its required reports within 10 months after the end of its fiscal year (or by the deadline set by the State Controller’s Office), the SCO will notify the Attorney General, who may impose penalties ranging from $1,000 to $5,000, depending on the agency’s prior-year revenue.
For any questions, contact the Local Government Policy Unit at LocalGovPolicy@sco.ca.gov
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