2007 California Education Code Article 3. Prepayment Funds

CA Codes (edc:42820-42821)

42820.  The governing board of any school district may establish a
revolving cash fund in any bank or other institution whose deposits
are federally insured, for the purpose of paying bills as prescribed
in Section 42821.  Article 1 (commencing with Section 42800) of this
chapter shall not apply to the revolving cash fund established
pursuant to this article.
   The governing board may appropriate money from the county or joint
school district fund in the county treasury belonging to the school
district to establish the revolving cash fund.
   The maximum amount in the revolving cash fund shall be as follows:

   (a) In a school district with 20,000 or more units of average
daily attendance, ten thousand dollars (,000).
   (b) In a school district with 5,000 or more, but less than 20,000,
units of average daily attendance, five thousand dollars (,000).
   (c) In a school district with 500 or more, but less than 5,000,
units of average daily attendance, two thousand five hundred dollars
(,500).
   (d) In a school district with less than 500 units of average daily
attendance, one thousand dollars (,000).



42821.  The governing board of any school district that has
established a revolving cash fund pursuant to Section 42820 shall
designate a person or persons who shall be authorized to make
immediate payments by check, drawn on the revolving cash fund, for
purchases in an amount of one thousand dollars (,000) or less,
including tax and freight, or at the time of preparing the order for
those purchases to make the check payable to the vendor permitting
him or her to fill in the amount to be paid upon shipment of the
purchases, the check to state on its face that it is not valid for
more than one thousand dollars (,000).
   A monthly list of the payments shall be submitted to the governing
board by the designated person or persons for approval.
   Upon approval of those expenditures by the governing board, the
clerk of the governing board shall draw an order for the
replenishment of the revolving cash fund from the county or joint
school district fund in the county treasury belonging to the school
district.  The order shall be treated in the same manner as
prescribed for payment of other claims against the funds of the
school district.
   Any person who issues a check drawn on the revolving cash fund
shall be personally liable for the amount of the check only if the
expenditure is in violation of rules and regulations established by
the governing board with respect to the revolving cash fund.