INTRODUCTION AND LIMITATIONS - 8100

In accordance with Government Code section 16400, an agency/department for which an appropriation is made may draw from that appropriation to establish a revolving fund, commonly known as office revolving fund, subject to the following limitations:

• If the amount does not exceed three percent of the total appropriation, approval is not required.
• If the amount exceeds three percent but does not exceed ten percent of the total appropriation, approval from the Department of Finance budget analyst is required.
• If the amount exceeds ten percent of the total appropriation, approval from both the Department of Finance Program Budget Manager and the State Controller’s Office (SCO) is required.

There are no limitations to the number of sub-revolving funds, such as change funds or cash purchase funds that may be established from each revolving fund appropriation. For information on sub-revolving funds, see SAM sections 8110–8112.

To establish or increase a revolving fund, an agency/department will prepare and submit a Claim Schedule form, STD 218, and a Remittance Advice form, STD 404C, to the SCO. The agency/department will enter its revolving fund as the payee on the STD 218. The SCO will issue and mail a warrant payable to the agency/department for the amount of the claim schedule. Upon receipt of the warrant, the agency/department will deposit the warrant into its checking account.

For information on revolving funds, see SAM Chapter 8100. For information on handling cash, see SAM Chapter 8000.