California Code of Regulations
Title 2 - Administration
Division 2 - Financial Operations
Chapter 2 - State Controller
Subchapter 3 - Accounting Procedures for Special Districts
Article 4 - Harbor and Port Districts
Section 1061.10 - 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 costs of repairing the damage. If desired, such costs and recoveries may be initially collected in clearing accounts, and the difference subsequently posted to the operating accounts.