Overview
FAR 13.305 outlines the policies and procedures for using imprest funds (cash) and third-party drafts (checks drawn on commercial banks) to purchase and pay for supplies or services. It establishes the financial limits, agency oversight responsibilities, and documentation requirements for these immediate-payment acquisition methods.
Key Rules
- Transaction Limits: Imprest fund purchases are generally limited to $500, while third-party drafts are limited to $2,500, unless higher limits are specifically authorized by the agency head or Treasury.
- Regulatory Compliance: Agencies must follow the Treasury Financial Manual, the GAO Policy and Procedures Manual, and the Manual of Procedures and Instructions for Cashiers.
- Oversight Requirements: Agencies must periodically review the need for these funds, adjust amounts to match actual needs, and issue internal regulations for personnel designation and documentation.
- Documentation: Every purchase requires an authorized requisition or funding verification, evidence of receipt and acceptance of supplies/services, and a supplier invoice or packing slip.
- Simplified Procedures: Purchases are typically placed orally without formal competition if prices are reasonable; because delivery and payment are essentially simultaneous, standard FAR clauses are not required.
- Endorsement: If a written purchase order is used, it must be specifically endorsed to indicate payment will be made via imprest fund or third-party draft.
Practical Implications
- These methods serve as a "petty cash" mechanism for the government, allowing for rapid, local acquisitions of low-dollar items where traditional contracting cycles or purchase cards may not be practical.
- Purchasers must maintain a rigorous audit trail, ensuring that the "simultaneous" nature of the transaction does not result in a loss of financial accountability or failure to verify that the government actually received the goods.