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Petaluma City Schools |  BP  3314.2  Business and Noninstructional Operations

Revolving Funds   

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Revolving Cash Fund

The Board of Education has a fiduciary responsibility to effectively manage and safeguard the district's assets and resources. All revolving cash funds shall be subject to the internal control procedures established by the district to prevent and detect fraud, financial impropriety, or irregularity and shall be maintained in accordance with law and the California School Accounting Manual.

(cf. 3314 - Payment for Goods and Services)

(cf. 3400 - Management of District Assets/Accounts)

(cf. 3451 - Petty Cash Funds)

(cf. 3530 - Risk Management/Insurance)

(cf. 3551 - Food Service Operations/Cafeteria Fund)

The Superintendent or designee shall establish a revolving cash fund in the amount of $29,200.00. The Superintendent or designee shall make appropriate regulations as to the expenditure and control of this fund. The Superintendent or designee shall be authorized to approve claims against the revolving cash fund. (Education Code 42800-42806, 45167)

At the request of the Board, County Auditor or County Superintendent of Schools, the Superintendent or designee shall give an account of the fund. (Education Code 42804)

The Board shall review and revise fund usage as appropriate.

(cf. 3400 - Management of District Assets/Accounts)

Alternative Revolving Cash Funds

The Board also may, by resolution, establish revolving cash funds for use by school principals and other administrative officials to pay for goods and services. The total amount of the funds shall not exceed three percent of the current year's instructional supply budget. (Education Code 42810)

No funds maintained in a revolving fund shall be used in an attempt to influence government decisions, for entertainment purposes, or for any other purpose not related to classroom instruction. (Education Code 42810)

The Board shall name the administrators who will have use and control of the funds. Officials so named shall be responsible for all payments into the accounts as well as expenditures from the accounts, subject to restrictions established by the Board.

Pursuant to Education Code 42810, the Board has adopted a resolution establishing a revolving cash fund for use by school principals and other administrative staff. The fund shall be used for services or materials related to classroom instruction or to correct an error in a classified employee's salary pursuant to Education Code 45167, as specified in the Board's resolution.

The revolving cash fund for supplies shall be subject to the bonding provisions of Education Code 42801.

The principal or administrative staff member in whose name the revolving cash fund is created shall be responsible for all fund expenditures, subject to Board regulation. (Education Code 42810)

The Board shall provide an audit of revolving funds on a regular basis. (Education Code 42810)

Legal Reference:

EDUCATION CODE

35160 Authority of governing boards

35250 Duty to keep certain records

38091 Cafeteria revolving accounts

41020 Audits of all district funds

41021 Requirement for employee's indemnity bond

41365-41367 Charter school revolving loan fund

42238 Revenue limits

42238.01-42238.07 Local control funding formula

42630-42652 Orders, requisitions, and warrants

42800-42806 Revolving cash fund

42810 Revolving cash funds; use; administrators

42820-42821 Prepayment revolving cash fund

45167 Error in salary

Management Resources:

WEB SITES

California Department of Education, Finance and Grants: http://www.cde.ca.gov/fg

Fiscal Crisis and Management Assistance Team: http://www.fcmat.org

Policy PETALUMA CITY SCHOOLS

adopted: June 25, 2002 Petaluma, California

revised: March 15, 2011

revised: November 18, 2014