Fiscal Policies - Rotary Account
A rotary account is established for an agency to provide immediate cash disbursement availability, within an authorized limit. The rotary account must be reconciled to its authorized limit at the end of each month. Idaho Code Title 67 gives the State Board of Examiners the responsibility to authorize rotary accounts and to approve the amount of the rotary account. Idaho Code also grants authority to the State Controller to charge the operating fund of the agency for which the rotary account is established.
Idaho Code further specifies that:
Rotary Account - A revolving account created within an agency's fund structure, to expedite disbursements.
Abusive Use - Repeated or severe violations of Idaho Code, State policy, or procedures established by the State Controller or the State Treasurer.
All rotary accounts will be established or increased only upon approval of the State Board of Examiners. The rotary account disbursing officer shall be held responsible and accountable for all rotary account activity and the money transferred to the account. Reimbursements to the account should be made within 30 days. Travel advances must be reimbursed to the fund prior to the next advance. Upon recommendation of the State Controller or the State Treasurer, the Board of Examiners may revoke its authorization of rotary accounts, for abusive use of the rotary account. Rotary accounts are not to be used for any expenditure reasonably payable through the State warrant system.
A rotary account, as approved by the Board of Examiners, will be established for an agency to issue its own sight drafts (checks) for travel advances, travel expense reimbursements, petty cash, and small emergency expenditures.
1. The agency director must write a letter to the Board of Examiners, requesting a rotary account be established or the amount increased. The letter must specify the amount to be transferred to the rotary account and the agency's operating fund from which the money is to be transferred. Upon approval by the Board of Examiners, the money is transferred from the agency's operating fund's cash balance to the rotary account and does not offset the appropriation until the rotary account is reimbursed for actual expenditures.
2. Pre-numbered sight drafts may be obtained from any commercial printer designated by the State Treasurer's Office.
3. Applicable detailed procedures are established by the State Controller's Office.
1. A rotary account may have more than one disbursing officer. Each disbursing officer is required to complete a signature authorization form for the financial institution where the rotary account is held. Forms may be obtained from the State Treasurer's Office.
2. Only those persons with a signature authorization form on file as disbursing officer for a specific rotary account may sign sight drafts.
3. Persons authorized to sign a sight draft must sign with the same signature in the same format used on the signature authorization form.
4. The State Controller's Division of Statewide Accounting and the State Treasurer must be notified in writing when a disbursing officer's authority has been revoked.
5. The disbursing officer shall reconcile the rotary account monthly and account for all sight drafts, as indicated in detailed instructions established by the State Controller's Office.
6. Agencies must follow all rotary instructions established by the State Controller's Office, unless granted a written exception.
7. Reimbursements to the account should be made within 30 days.