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Requirements for Local Operating Funds and Associated Local Funds

FPP S.009



Local funds are individually reported in the Uniform Statewide Accounting System (USAS). D23 funds for local funds that do not use USAS to make payments or process payroll infer D22 Appropriated Fund (D22 Fund) – 9999 Funds Held Outside the Treasury.

Separate D23 fund required for each local fund

Agencies must have a separate D23 fund for each local fund. Each local fund must be designated in USAS as one of the following:

  • Local Funds – Operating
  • Local Funds – Custodial
  • Local Funds – Bond
  • Local Funds – Trust

For any questions on fund designation, please contact your financial reporting analyst.

D23 funds, D24 GAAP fund (D24 fund) and AFR Reporting

For annual financial report (AFR) purposes, the D24 GAAP fund (D24 fund) on a D23 fund profile for a local fund is based on whether the D23 fund is:

  • Reported in a separate column


  • Reported in a column with other similar D23 funds

If the D23 fund is reported in a separate column, it will have an inferred D24 fund different from the other D23 funds.

If the D23 fund is combined with other D23 funds, all of the related D23 funds will infer the same D24 fund. D23 funds that share the same D24 fund allow for the balances and activities in similarly related funds to be reported in the same column for AFR purposes. This is primarily the case for local funds and related local USAS operating funds.

See Agency Requirements for the procedures associated with creating D23 funds in USAS for local funds.