PERMISSIBLE USES - 8101

In accordance with Government Code section 16401 (and unless otherwise allowed in statute),  revolving funds drawn under the provisions of Government Code section 16400 may only be used for:

• Payment of compensation earned
• Travel expenses, travel expense advances
• Where immediate payment is otherwise necessary

In determining whether immediate payment is necessary, the determining factor is whether the payment can be made through the normal process of presenting claims and issuance of a State Controller's warrant.

Agencies/Departments must have sufficient spending authority in the Budget Act, constitution, statutes, or other spending authority for the related fiscal year of the revolving fund disbursement. For a Budget Act item or other spending authority not available during a budget impasse in a new fiscal year, revolving fund disbursements for the prior fiscal year are allowable; however, current year revolving fund disbursements are not.

SAM Sections 8110–8123.2 detail some of the most common uses of the revolving fund.

Renumbered from 8110