§ 16400 State Agency Revolving Funds

• •State agencies can take out a small amount of money (up to 3%) from their budget to use as a flexible fund without showing detailed receipts right away.
• •If they need more than 3% (up to 10%), they must get permission from the Director of Finance.
• •If they need even more than 10%, they must get permission from both the Director of Finance and the Controller.
• •If the flexible fund runs low, the agency can refill it from another budget with the Director of Finance’s approval.

A school district gets $1,000,000 for the year. They need quick cash to buy extra computers for a new program.

The school can take up to $30,000 (3%) from their budget without asking anyone. If they need $50,000, they must ask the Director of Finance first. If they need $150,000, they must ask both the Director of Finance and the Controller. Later, if they spend most of that money and need more, they can refill the fund from another part of their budget if approved.