Revolving FundsRevolving Funds

By Tanya Harris, CPA

Principal Accountant

What is a Revolving Fund?What is a Revolving Fund?

An authorized amount of cash in the form of

currency, a bank checking account or both

Governed By:Governed By:

– Standard Practice Manual # III E-1-2.1 (old)

(Policy 708 - new draft policy)

– Board of Supervisors Resolution # 74-156

– California Government Code

Sections 29320 to 29334

Revolving Fund Revolving Fund Request Order & Change FormRequest Order & Change Form

SPM Form AR-1 - Used for the following purposes: - Establish a new Revolving Fund - Increase/Decrease the amount - Discontinue the Revolving fund - Change Custodians

Department Head signature REQUIRED

Submit original signatures to the Auditor-Controller’s Office (Heydee Koury) for approval

Revolving Fund Revolving Fund Request Order & Change FormRequest Order & Change Form ( (contcont’’))

One custodian per Revolving Fund - Custodian is the person who is

responsible for the amount of money issued. Custodians must be bonded up to amount of the Revolving Fund.

Any change in amount or custodian requires department head signature

Revolving Fund Revolving Fund Request Order & Change FormRequest Order & Change Form ( (contcont’’))

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

Monthly RequirementsMonthly 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

Monthly Requirements Monthly Requirements ((contcont’’))

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

Year-End RequirementsYear-End Requirements

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

More information will follow in the Year-End packet which will be presented in May

Audit of Revolving FundsAudit of Revolving Funds Internal Audits is currently conducting an audit on

Revolving Funds

The General Accounting Division of the ACO will be reconciling and reviewing all Revolving Funds and asking departments to – Update custodian information– Checking account information– Where the money is kept

Cash Overage and Shortage Cash Overage and Shortage Related to Revolving FundsRelated to Revolving Funds

Daily Report SPM Form AR-3 Monthly Report SPM Form AR-4 (These are the

combination of Daily Reports AR-3) – This is due two weeks after the close of the month and MUST be signed by a Department Head

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

Cash Overage and Shortage Cash Overage and Shortage Related to Revolving FundsRelated to Revolving Funds ( (contcont’’))

Overages will be handled as follows:– All overages should 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

Cash Overage and Shortage Cash Overage and Shortage Related to Revolving FundsRelated to Revolving Funds ( (contcont’’) )

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

Discontinuance of a Discontinuance of a Revolving FundRevolving 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

Questions ?Questions ?Any Questions Contact:

Heydee Koury at 951-955-9461 or

Susan Porte at 951-955-3850 or

Tanya Harris at 951-955-8375