EXECUTIVE ORDER B-5-11 BY THE GOVERNOR OF THE STATE OF CALIFORNIA
WHEREAS Executive Order B-1-11, issued on January 11, 2011, ordered state agencies and departments to review operational expenditures and to reduce waste, redundancies, and costs to create a more efficient and effective government; and
WHEREAS, state agencies and departments have established revolving funds to pay certain expenses, such as earned compensation when a regular paycheck cannot be issued, advances on earned compensation under authorized circumstances, travel expenses, advances on travel expenses, and when an immediate payment of an expense is necessary; and
WHEREAS, agencies and departments are authorized under Government Code Section 16400 to draw from a duly authorized appropriation to fund and reimburse their revolving funds; and
WHEREAS internal state audits have revealed that some agencies and departments are failing to apply sufficient internal controls to properly administer their revolving funds, and that this failure has cost the State millions of dollars; and
WHEREAS applicable regulations, policies, and guidelines must be vigilantly followed to ensure that the amounts distributed from revolving funds are recorded and collected in a timely manner.
NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State of California, by virtue of the power vested in me by the Constitution and the statutes of the State of California, do hereby issue the following orders to become effective immediately:
IT IS ORDERED that all State agencies and departments take immediate action to ensure that:
• Revolving funds are used only for payments authorized under Government Code section 16401 and the State Administrative Manual.
• Revolving fund reports are reviewed on a monthly basis.
• Periodic statements are sent to employees who have received a travel advance but have not submitted a travel expense claim.
• Collection letters and overpayment notification letters are sent in accordance with State Administrative Manual sections 8776.6 and 8776.7.
• Diligent collection efforts are undertaken when a receivable remains uncollected after three collection letters have been sent.
• Salary and travel advances are cleared within 30 days by an expense claim, and that advances not cleared within 30 days are deducted from the employee’s next payroll warrant in accordance with applicable bargaining unit agreements.
• Personnel offices clear any outstanding employee advances during the exit clearance process or deduct amounts due from the final payroll warrant.
• Proper recordkeeping is maintained and source documents are retained for at least four years.
• Appropriate training is provided to staff on an ongoing basis.
IT IS REQUESTED that other entities of State government not under my direct executive authority, including the California Public Utilities Commission, the University of California, the California State University, California Community Colleges, the legislative branch (including, for purposes of this Executive Order, the Legislative Counsel Bureau), and the judicial branch, implement similar measures.
This Order is not intended to create, and does not create, any rights or benefits, whether substantive or procedural, or enforceable at law or in equity, against the State of California or its agencies, departments, entities, officers, employees, or any other person.
I FURTHER DIRECT that, as soon as hereafter possible, this Order shall be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this Order.
IN WITNESS WHEREOF I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this 20th day of April 2011.
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EDMUND G. BROWN JR.
Governor of California
ATTEST:
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DEBRA BOWEN
Secretary of State