JFAC adds language directing State Controller to reconcile LUMA and Treasury balances back to July 2023

Legislative staff described and the committee adopted language directing the State Controller to reconcile cash account balances and activity as recorded in LUMA and the Treasury accounting reporting system (TATRS/Taters) for each fund and agency for the period beginning July 1, 2023, through June 30, 2026.

Keith Ivey, Division Manager for Budget and Policy Analysis, walked the committee through three sections of the proposed language: (1) require monthly reconciliations by fund and agency between LUMA and Taters for the stated period; (2) report findings as of June 30, 2026 to the Joint Finance-Appropriations Committee and the Legislative Services Office at the fall interim meeting or by Oct. 16, 2026 (whichever is earlier); and (3) maintain documentation to support reconciliations for audit to support the Comprehensive Annual Financial Report.

Committee members pressed staff on feasibility and staffing. Ivey said the controller’s office had four staff working on cash reconciliation plus a contractor and that they were close to reconciling recent months. One committee member expressed that the inability to reconcile bank accounts to agency records undermines disciplined budgeting and that the language was necessary to restore accountability.

Why it matters: Persistent unreconciled cash balances since LUMA’s go-live have been a point of concern for legislators; the required reconciliation and reporting aim to close gaps in fiscal transparency and support annual financial audits.

What’s next: The language instructs the controller to complete reconciliations and report to the committee by the fall interim or Oct. 16, 2026. Implementation will depend on controller office resources and the success of technical reconciliation work.