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:

1. A revolving fund not exceeding three percent of the total appropriation does not require approval.
2.  A revolving fund exceeding three percent but not ten percent of the total appropriation will require the Department of Finance budget analyst approval.

3. A revolving fund exceeding ten percent of the appropriation will require the approval of the Department of Finance Program Budget Manager and the State Controller’s Office (SCO).

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. See State Administrative Manual (SAM) Sections 8110–8112 for the criteria on each sub-revolving fund.

To establish or increase a revolving fund, an agency/department will prepare a Claim Schedule form, STD 218 (Continuous), and a Remittance Advice form, STD 404C, and enter its revolving fund as the payee on the claim schedule face sheet.  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.

SAM Sections 8100-8170 provides specific procedures for revolving fund transactions. SAM Section 8072 provides procedures to replenish the revolving fund for cash deficiencies. SAM Chapter 8000 provides general procedures for handling cash transactions.