To establish a change fund, the governing body must ______.

• A. Have a resolution
• B. Issue a memo
• C. Pass a budget
• D. Obtain a court order

Answer: (A)

Establishing a change fund requires formal authorization from the governing body through a resolution. A change fund is a small cash account used by offices to make change for routine transactions, and it needs explicit approval, defined limits, a trusted custodian, and clear reporting. A resolution provides that official, documented authority and creates the accountability framework the fund requires. A memo would only communicate an intent and lacks binding authority. A budget outlines overall spending but does not, by itself, create a dedicated change fund with its own controls. A court order is not the mechanism for internal financial arrangements.