California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 3 - Accounting Procedures for Special Districts
Article 2 - Water Utility Districts
Section 1041.9 - Account Adjustments

Transactions which correct a previously recorded transaction of the current period are posted directly to the account affected. Recovery of costs from insurance or damage settlements shall be credited against the account charged with the cost of repairing the damage. Provision is also made for the transfer of expense from one segment of the accounts to another without disturbing balances of accounts to which the expenses were initially entered.