MHSA Fiscal Oversight
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DHCS is responsible for overseeing the use of Mental Health Services Act (MHSA) revenue and expenditures. This is done by reviewing expenditure reports and conducting onsite financial audits. DHCS reviews county MHSA Annual Revenue and Expenditure Reports on an annual basis to determine consistency of expenditures with county planning documents, ensure reporting of interest, and to review prudent reserve levels. Upon review of county Annual Revenue and Expenditure Reports, DHCS is also responsible for calculating and managing the amount of Mental Health Service Funds subject to reversion.
Annual Revenue & Expenditure Report
Per Welfare and Institutions Code (WIC), Section 5899(c), counties must submit a completed Annual Revenue Expenditure Report (ARER) to DHCS by January 31st. The purpose of the ARER is to identify Mental Health Services Act fund expenditures, identify interest earned and unspent funds, and determine reversion amounts.
Beginning with FY 20-21, Counties are required to complete and submit the ARER through the Enterprise Cost Reporting System (ECRS). If you need access to ECRS or if you need a copy of the ECRS User Manual, please send an email to mhsa@dhcs.ca.gov.
MHSA Annual Revenue and Expenditure Reports by County
- Status Table
- RER Data Set Overview (August 2025)
- FY 16-17 through FY 24-25
- FY 06-07 through FY 15-16
Forms and Publications
Prudent Reserve
Per WIC 5847(b)(7), counties are required to establish and maintain a prudent reserve (PR) to ensure children, adults, and seniors can continue receiving services at current levels in the event of an economic downturn. The Prudent Reserve is funded with monies allocated to the Community Services and Supports component and cannot exceed 33% of a county’s average distribution for the previous five years.
Per 5892 (b)(7), counties are required to assess and certify their local prudent reserve every 5 years, beginning in FY 17-18.
Per the California Code of Regulations (CCR) 3420.30 (f) counties may reassess the Prudent Reserve funding level more frequently at the county level, which may allow for a new Prudent Reserve maximum level, based on the most recent assessment. Counties choosing to reassess the prudent reserve funding level must submit a DHCS 1819: PR Certification Form.
PR Balances and Funding Levels
MHSUDS IN 19-037
Enclosure – PR Maximum Funding Levels
County PR Funding Balances
DHCS 1819: PR Certification Form
FY 18-19 PR Maximum Funding Levels
FY 19-20 PR Maximum Funding Levels
FY 20-21 PR Maximum Funding Levels
FY 21-22 PR Maximum Funding Levels
FY 22-23 PR Maximum Funding Levels
FY 23-24 PR Maximum Funding Levels
FY 24-25 PR Maximum Funding Levels
Reversion Calculations
WIC Section 5892(h)(1) requires reverted funds be placed into the Reversion Account and made available for other counties in future years. These reports detail the amount of funds subject to reversion by county, by component.
October Reports for Legislature
- MHSA Funds Subject to Reversion 07/01/2024
- MHSA Funds Subject to Reversion 07/01/2023
- MHSA Funds Subject to Reversion 07/01/2022
- MHSA Funds Subject to Reversion 07/01/2021
- MHSA Funds Subject to Reversion 07/01/2020
- MHSA Funds Subject to Reversion 07/01/2019
- AB 114 Funds Reverted before 07/01/2017
- 1516 Funds Reverted before 07/01/2017
- MHSA Funds Subject to Reversion FY 05-06 to FY 14-15
Reversion Reports by County
Redistribution of Reverted MHSA Funds
Monthly reports of funds redistributed from the Reversion Account.
November 2025
June 2025
May 2025
August 2024
June 2024
December 2023
September 2023
March 2023
February 2023
August 2022 – Revised 11/28/2023
July 2022 – Revised 11/28/2023
October 2020 – Revised
March 2020
February 2020
January 2020
December 2019
November 2019 – Revised
State Controller’s Office Reallocation
Year-to-Date Reallocated MHSA Funds
Fiscal Audit Reports
Fiscal Audit Reports are conducted under the authority of Welfare and Institutions (W & I) Code Sections 14124.2 and 5897(d).
Other Resources
Legislative Reports
Per WIC 5813.6, DHCS shall submit to the Legislature information regarding the projected expenditure of Proposition 63 funding for each state department, and for each major program category specified in the measure for local assistance.
Contact Us
For questions, concerns or assistance with accessing any of the documents on this webpage, please send a message to mhsa@dhcs.ca.gov.