13.305
Imprest funds and third party drafts
FAR 13.305 allows agencies to use imprest funds and third party drafts for small, immediate purchases, but requires strict controls and procedures to ensure accountability.
Overview
FAR 13.305 addresses the use of imprest funds and third party drafts as payment methods for small purchases under simplified acquisition procedures. Imprest funds are small cash funds maintained by agencies to make immediate, low-value payments, while third party drafts are negotiable instruments similar to checks. This section outlines when and how these payment methods may be used, agency responsibilities, and the required procedures to ensure proper control and accountability. The regulation is designed to facilitate efficient, low-dollar transactions while maintaining adequate safeguards against misuse or fraud.
Key Rules
- General Use
- Imprest funds and third party drafts are authorized for small purchases when other payment methods are not feasible or practical.
- Agency Responsibilities
- Agencies must establish controls, designate responsible officials, and ensure proper training and oversight for the use of these funds and drafts.
- Conditions for Use
- These payment methods are limited to specific dollar thresholds and circumstances, such as emergencies or when vendors do not accept other forms of payment.
- Procedures
- Agencies must follow prescribed procedures for disbursement, documentation, reconciliation, and reporting to ensure accountability and compliance.
Responsibilities
- Contracting Officers: Ensure proper authorization and use of imprest funds or third party drafts, and verify compliance with agency procedures.
- Contractors: Accept payment via these methods when applicable and provide necessary receipts or documentation.
- Agencies: Maintain oversight, provide training, and implement controls to prevent misuse or loss of funds.
Practical Implications
- This section enables quick, low-value purchases where traditional payment methods are impractical, supporting operational efficiency.
- Agencies must balance convenience with strong internal controls to prevent fraud or errors.
- Common pitfalls include inadequate documentation, exceeding dollar limits, or lack of oversight, which can lead to audit findings or disciplinary action.