New ACO ppt Template 072308 PRINTING Handouts & … · Definition : A Revolving fund ... required to complete SPM Form AP-5 “Request to Establish a Checking Account” ... must

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County of Riverside ■ Office of the Auditor-Controller

Revolving FundsRevolving Funds

Robert E. Byrd, CGFMRobert E. Byrd, CGFMCounty AuditorCounty Auditor--ControllerController



Definition : Definition :

A Revolving fund is an authorized A Revolving fund is an authorized amountamount of of cash in the form of currency, a bank cash in the form of currency, a bank checking account or both. Revolving funds checking account or both. Revolving funds are established for specific operational needs are established for specific operational needs to facilitate certain expenditure and cash to facilitate certain expenditure and cash transaction throughout the County transaction throughout the County departments.departments.

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Governed by:Governed by:

•• Government Code Section 29320Government Code Section 29320--2933429334

•• Board Resolution No. 74Board Resolution No. 74--156156

•• Standard Practice Manual # III EStandard Practice Manual # III E--11--2.1 2.1

(Policy 708)(Policy 708)


Revolving Funds Revolving Funds

SPM ARSPM AR--1 FORM is 1 FORM is used to:used to:

•• Establish, Increase, Establish, Increase, Decrease or Discontinue Decrease or Discontinue a Revolving Fund.a Revolving Fund.

•• Change a CustodianChange a Custodian

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Revolving Funds Revolving Funds

SPM ARSPM AR--1 FORM Requirements:1 FORM Requirements:

• On Form AR-1, if you check Yes on Question #2 that there will be a checking account, you will also be required to complete SPM Form AP-5 “Request to Establish a Checking Account”

• The checking account should have at least two signors (and the Custodian can not be a signor)


Revolving FundsRevolving FundsSPM ARSPM AR--1 FORM Requirements:1 FORM Requirements:

•• Fund and Department IDFund and Department ID

•• Justification/PurposeJustification/Purpose

•• A CustodianA Custodian

•• Separation of Duties (Matrix)Separation of Duties (Matrix)

•• Department Department Head ApprovalHead Approval

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Internal Controls:Internal Controls:

•• Separation of Duties/MatrixSeparation of Duties/Matrix


Revolving FundsRevolving FundsInternal Controls:Internal Controls:• One Custodian per Revolving Fund

- Custodian is the person who is responsible for the money issued. Custodians can not be signers on the checking account as there must be a separation of duties.

• Any change in amount or custodian requires the department head signature

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Internal Controls:Internal Controls:

•• Replenishment warrants will be made out to Replenishment warrants will be made out to the Revolving Fund Bank Account the Revolving Fund Bank Account Name Name (i.e. ACO Revolving Fund(i.e. ACO Revolving Fund) ) rather then rather then an an individuals name individuals name ( i.e. Judy Green)( i.e. Judy Green)



Internal Controls:

• The Auditor Controller’s Office will start reviewing Revolving Fund Vendor IDs and Request Departments to submit a new AP-7 Form with the Revolving Fund Bank Account Name.

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Replenishment Requirements:Replenishment Requirements:

•• VoucherVoucher

•• Original ReceiptsOriginal Receipts

•• Copy of Checks (front and back)Copy of Checks (front and back)

•• JustificationJustification

•• Summary Sheet of all items being Summary Sheet of all items being Replenished.Replenished.

•• Approved Voucher by Department HeadApproved Voucher by Department Head



Cash Overage and Cash Overage and Shortage:Shortage:

•• Daily Cash Overage and Daily Cash Overage and Shortage is Reported on Shortage is Reported on SPM Form ARSPM Form AR--3 3 (Overage/Shortage (Overage/Shortage Daily Report).Daily Report).

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Revolving Revolving FundsFunds

Monthly Requirements:

• Monthly, at a minimum, the custodian should submit a voucher supported by proper evidence of authorized expenditures, for the amount to be reimbursed back into the revolving fund

• To Replenish Shortages the Department will provide a Vendor Code, Warrant Payable To, and an Address (AR-4 Form).



Monthly Requirements:• Each disbursement from the Revolving Fund

must be substantiated with a properly filled out, prenumbered, paid out disbursement receipt.

• Disbursement Receipts must be in duplicate with the original copy attached to the voucher requesting replenishment

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Revolving FundsRevolving FundsCash Overage and Cash Overage and

Shortage:Shortage:•• Monthly Cash Overage and Monthly Cash Overage and

Shortage is Reported on Shortage is Reported on SPM Form ARSPM Form AR--4 4 (Overage/Shortage Monthly (Overage/Shortage Monthly ReportReport).).

• This is due two weeks after the close of the month and MUST be signed by a Department Head



SPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements:4 Requirements:

•• Date, Fund, Department ID, Account Amount Date, Fund, Department ID, Account Amount and Explanation.and Explanation.

•• Detailed Backup DocumentationDetailed Backup Documentation

• Department Head Approval

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Revolving FundsRevolving FundsSPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements4 Requirements::

Quarterly , departments will be reimbursed for shortages. A Form 11 is prepared and taken to the board within 60 days from the end of the quarter


Revolving FundsRevolving FundsSPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements4 Requirements: :

(Major Area of Improvement)

• Departments with Shortages of $20 or more are required to notify the Auditor-Controller’s Internal Audits Division (Section 3 Policy #3).

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SPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements: 4 Requirements: • Shortages will be handled as follows:

– Issued from the General Fund

• ACO will issue a warrant to reimburse the departments

– Issued from other Funds

• Departments will reimburse themselves according the County voucher process guidelines



SPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements:4 Requirements:

• Departments cannot use the Revolving Fund to replenish a Shortage in other funds. By doing so they are commingling the funds (Internal Control Handbook).

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SPM Form ARSPM Form AR--3 and AR3 and AR--4 Requirements:4 Requirements:• Overages will be handled as follows:

– All overages must be returned to the fund

that initially established the Revolving Fund

– The Treasurer Cash Receipt (TCR) number

must be notated on the SPM Form AR-4



Year End:Year End:

California Government Code Section 29321.1 California Government Code Section 29321.1 requires the Auditorrequires the Auditor--Controller to render a Controller to render a written report to the Board of Supervisors at written report to the Board of Supervisors at the end of each fiscal year identifying the the end of each fiscal year identifying the revolving funds in existence during the fiscal revolving funds in existence during the fiscal year, the amount of such fund, and the officer year, the amount of such fund, and the officer using the fund. using the fund.

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Year EndYear End::

• When checking accounts are held outside the County Treasury a Schedule P, reconciliation and a signature card must be completed at the end of the each fiscal year



Year End:Year End:

• Schedule W Identifies:–– Fund and Department ID Fund and Department ID

–– Treasury NumberTreasury Number

–– Revolving Fund AmountRevolving Fund Amount

–– LocationLocation

–– CustodianCustodian

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Year End:Year End:

• Treasurer’s Office List:•• ContainsContains

–– Treasury NumberTreasury Number

–– Department NameDepartment Name

–– Revolving Fund AmountRevolving Fund Amount

–– CustodianCustodian

•• Treasurer’s Office List is Treasurer’s Office List is compared with Schedule compared with Schedule W.W.



Year End:Year End:

•• A Form 11 is A Form 11 is submitted to for submitted to for Approval to the Approval to the Board of Board of Supervisors. Supervisors. ((California Government California Government Code Section 29321.1)Code Section 29321.1)

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Discontinuance of a Revolving Fund

• The Custodian must request and obtain reimbursement for all unreimbursed expenditures

• A check or cash must be returned to the Treasurer

• The Treasurer will sign the AR-1 form approving the discontinuance of the fund

• The signed AR-1 form will then go to the Auditor-Controller to close out the account in the PeopleSoft, General Ledger Module



Contact Information:Contact Information:

Heydee Koury at 951Heydee Koury at 951--955955--94619461

OrOr

Tanya Harris at 951Tanya Harris at 951--955955--83758375

Documents

New ACO ppt Template 072308 PRINTING Handouts & … · Definition : A Revolving fund ... required to complete SPM Form AP-5 “Request to Establish a Checking Account” ... must