The proposed amendments are intended to promote clarity and efficiency in the handling of revolving funds.

 

DEPARTMENT OF FINANCIAL SERVICES

Division of Accounting and Auditing

RULE NOS.:RULE TITLES:

69I-23.002Definitions

69I-23.003Establishment, Changes, and Continuation of Revolving Fund

69I-23.004Use of Revolving Fund

PURPOSE AND EFFECT: The proposed amendments are intended to promote clarity and efficiency in the handling of revolving funds.

SUMMARY: The rules are being amended to do the following:

• Update the definitions contained in the rule.

• Update requirements for the establishment, change or continuation of the Revolving Fund.

• Update the internal controls for the use of the Revolving Fund.

• Correct clerical and formatting errors on Forms DFS-A1-1823 and DFS-A1-2185.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department conducted an economic analysis of the potential impact of the proposed rule and determined that there will be no adverse economic impact or regulatory increases that would require legislative ratification.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 17.14, 17.29, FS.

LAW IMPLEMENTED: 17.14, 17.29, 17.58, 17.65, 216.271, FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW (IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: June 26, 2017, 10:00 a.m.

PLACE: Room 430, Fletcher Building, 101 E. Gaines Street, Tallahassee, FL

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Jennifer Reeves-Foster, telephone: [phone], email: [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Jennifer Reeves-Foster, Chief, Bureau of Financial Reporting, Division of Accounting and Auditing, address: 200 East Gaines Street, Tallahassee, Florida 32399-0364, telephone: [phone], email: [e-mail].

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

69I-23.002 Definitions.

For purposes of this chapter, the following terms shall have the meaning indicated:

(1) through (2) No change.

(3) Department. Department means the Department of Financial Services, Bureau of Accounting, Division of Accounting and Auditing, Bureau of Financial Reporting Department of Financial Services.

(4) through (6) No change.

(7) FLAIR Account Code. FLAIR Account Code means the 29-digit code used in FLAIR to account for disbursements, receipts, and budgetary transactions.

Rulemaking Authority 17.14, 17.29 FS. Law Implemented 17.14, 17.29, 17.58, 17.65, 216.271 FS. History–New 3-24-88, Amended 11-20-94, 5-12-97, Formerly 3A-23.002, Amended __________.

 

69I-23.003 Establishment, Modification Changes, and Continuation of Revolving Fund.

(1) Requests to establish or modify a revolving fund, to continue or to make changes to an existing revolving fund must be submitted in writing to the Department. The required form, Revolving Fund Request, Form DFS-A1-1823 (Rev. 10/16), which is hereby incorporated by reference, Forms required may be obtained from the Department’s website: http:www.myfloridacfo.com/Division/AA/Forms. Requests shall and requests should be sent to the:

Bureau of Financial Reporting

Department of Financial Services

200 East Gaines Street

Tallahassee, Florida 32399-0354

or [e-mail].

(2) A request to establish a new revolving fund shall be on the Request to Establish – New Revolving Fund http://www.flrules.org/Gateway/reference.asp?No=Ref-01723, Form No. DFS-A1-1823, rev. 03/08 which is hereby adopted and incoporated by refererence. Such requests shall also include the following information, if applicable:

(a) The name and FLAIR code of the source fund from which the revolving fund will be established;N

(b) The name of the agency and budget entity requesting the revolving fund;

(c) The revolving fund name;

(d) The dollar amount being requested and the basis for the amount of the request;

(e) The proposed types of disbursements to be made from the revolving fund and the anticipated number and amount of disbursements to be made on a monthly basis;

(f) An indication of whether the revolving fund is intended to meet a temporary need or an ongoing need. If the revolving fund is intended for a temporary need, an estimate of the date the fund will no longer be needed should be provided;

(g) A brief explanation of why the fund is needed;

(h) An indication of whether the monthly disbursements are expected to be fairly level or whether peak periods are expected. If peak periods are expected, an indication of when such periods are expected should be provided;

(i) Whether the revolving fund will be maintained as cash-on-hand or in a local checking account;

(j) If the revolving fund is to be maintained in a financial institution, the name and address of the institution must be included; and

(k) The name, position, title and location of the revolving fund custodian.

(3) Requests for a change in or a continuation of an existing revolving fund shall be made by submitting the following forms: Request to Increase – Revolving Fund http://www.flrules.org/Gateway/reference.asp?No=Ref-01724, Form DFS-A1-1821, rev. 03/08, the Request to Decrease – Revolving Fund http://www.flrules.org/Gateway/reference.asp?No=Ref-01726, Form DFS-A1-1822, rev. 03/08, or the Request for Continuation – Revolving Fund http://www.flrules.org/Gateway/reference.asp?No=Ref-01727, Form DFS-A1-1906, rev. 03/08, all of which are hereby adopted and incorporated by reference. Such requests shall include the following information, if applicable:

(a) The same information required in paragraphs (2)(a) through (d) herein.

(b) A schedule by month for the last 12 months (if fund has been in existence for less than 12 months, for the time it has been in existence) on the Schedule of Disbursements – Revolving Fund http://www.flrules.org/Gateway/reference.asp?No=Ref-01728, Form No. DFS-AA-27, effective 03/08, which is hereby adopted and incorporated by reference and available from the Department, containing the following information:

1. The number of checks written (excluding checks written to the State Treasury for interest earned or reductions in the authorized amount of the revolving fund);

2. The amount disbursed (less any amounts returned to the State Treasury as reductions in the authorized amount of the revolving fund);

3. The number and dollar amount of reimbursement requests submitted to the Chief Financial Officer;

4. The amount of interest earned; and

5. The vendor number or account code used to request reimbursement for the revolving fund.

(c) Copies of the last two months bank statements.

(d) The name and location of the revolving fund custodian.

(e) The name and address of the financial institution if the fund is located in an institution.

(2)(4) The Department will provide written approval of revolving Revolving fund requests received by the Department will be approved in writing indicating the approved dollar amount approved and the types of expenditures, when the Revolving Fund Request form, which is incorporated in subsection (1), is received, if that form has been signed by the requesting agency’s Chief Financial Officer or equivalent, provides evidence of for which the revolving fund is approved. Approval shall be based on review of the above required information, good cash management practices, and provides adequate justification of the agency adequately justifying the need to have the funds outside of the State Treasury.

(3)(5) Annually, the Department will notify selected agencies in writing of any revolving funds for which a continuation must be furnished. The Department will may require the agency to complete a Request for Continuation of a Revolving Fund, Form DFS-A1-2185 (Rev. 10/16), which is hereby incorporated by reference information specified in subsection (3) herein on a sample basis, or whenever it appears to the Department that the dollar amount approved may be excessive.This form must be signed by the agency’s Chief Financial Officer or equivalent. This form can be obtained from the Department of Financial Services, Bureau of Financial Reporting, 200 East Gaines Street, Tallahassee, Florida 32399-0354. The Department will notify selected agencies in writing of any revolving funds for which the continuation must be furnished.

(4)(6) No change.

Rulemaking Authority 17.14, 17.29 FS. Law Implemented 17.14, 17.29, 17.58, 17.65, 216.271 FS. History–New 3-24-88, Amended 11-20-94, 1-27-98, Formerly 3A-23.003, Amended 11-8-12, __________.

 

69I-23.004 Use of Revolving Fund.

(1) Each agency is required to establish and maintain an adequate system of internal control over each of its authorized revolving funds. The internal controls This shall include at a minimum:

(a) No change;

(b) Procedures for reconciling bank statements. Bank statements must be reconciled by someone other than the custodian or an employee directly supervised by the custodian Reconciliation of bank statements by someone other than the custodian or employee directly supervised by the custodian; and

(c) No change.

(2) through (12) No change.

Rulemaking Authority 17.14, 17.29 FS. Law Implemented 17.14, 17.29, 17.58, 17.65, 216.271 FS. History–New 3-24-88, Formerly 3A-23.004, Amended __________.

Cf. See Chapter 69I-10 and 69I-40, F.A.C., for object code identification rules.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Jennifer Reeves-Foster

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Jeff Atwater, Chief Financial Officer

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: May 25, 2017

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: March 27, 2017