2. Revolving Funds By Tanya Harris, CPA Principal Accountant

3. What is a Revolving Fund? An authorized amount of cash in the form of currency, a bank checking account or both

4. Governed By: –S–Standard Practice Manual # III E-1-2.1 (old) (Policy 708 - new draft policy) –B–Board of Supervisors Resolution # 74-156 –C–California Government Code Sections 29320 to 29334

5. Revolving Fund Request 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

6. Revolving Fund Request Order & Change Form ( cont ’ ) O ne 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. A ny change in amount or custodian requires department head signature

7. 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

8. 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

9. Monthly Requirements ( cont ’ ) 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

10. Year-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

11. Audit of Revolving Funds I nternal Audits is currently conducting an audit on Revolving Funds T he General Accounting Division of the ACO will be reconciling and reviewing all Revolving Funds and asking departments to –U–Update custodian information –C–Checking account information –W–Where the money is kept

12. Cash Overage and Shortage Related 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

13. Cash Overage and Shortage Related to Revolving Funds ( cont ’ ) 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

14. Cash Overage and Shortage Related to Revolving Funds ( cont ’ ) S hortages will be handled as follows: –I–Issued from the General Fund ACO will issue a warrant to reimburse the departments –I–Issued from other Funds Departments will reimburse themselves according the County voucher process guidelines

15. 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

16. Questions ? Any Questions Contact: Heydee Koury at 951-955-9461 or Susan Porte at 951-955-3850 or Tanya Harris at 951-955-8375