3813  REVOLVING FUND ADVANCES

Payroll advances from the Revolving Fund may be made under any of the 
following circumstances.

	1.	There have been errors or delays in submitting or processing 
		documents, making it impossible for the State Controller's Office 
		to prepare and deliver proper warrants on the scheduled day for 
		delivery of payroll warrants.

	2.	Separating employees are in immediate need of their final salary 
		payments.

	3.	Payment of salaries earned is necessary to alleviate serious, 
		unforeseeable hardship.

	4.	Casual laborers have been hired through local unions which 
		require more frequent payments than the payroll system allows.

Care must be exercised to avoid a payroll advance that is more than the net 
amount due the employee at the time of the advance.

Advances to employees should be collected when the corrected or delayed 
warrant for the pay period involved is received.  Generally, the time period 
for recovery of salary advances should not exceed sixty days.

When salary advances due the State are not recoverable from the employee 
after a 120-day period, action to write off the account should be taken.  This 
includes filing a claim on Std. Form 27 with the State Board of Control (SAM 
section 8072.3 outlines the requirements for completing the form).  Since 
nonrecoverable Revolving Fund advances create a deficiency in an 
established fund balance, it is necessary to file for recovery regardless of the 
amount.  Simultaneously, action should be initiated to utilize the tax offset 
process when the amount due the State is in excess of $50.00, or less if the 
campus wishes to establish a lower level.