13.305-2 Agency responsibilities
Source: FAR 13.305-2 on acquisition.gov
Agencies must regularly review, adjust, and document their use of imprest funds and third party drafts to ensure proper control and compliance.
Overview
FAR 13.305-2 outlines the responsibilities of federal agencies that use imprest funds and third party drafts for making small purchases. The regulation requires agencies to regularly assess the necessity and appropriate size of these funds or accounts, ensuring they are not excessive and are aligned with actual operational needs. Agencies must also promptly adjust fund levels as circumstances change and develop internal regulations to govern the use of these payment methods. These internal regulations must specify who is authorized to use the funds and detail the required documentation for purchases, including evidence of receipt and acceptance of goods or services, proof of payment to suppliers, and records of cash advances and reimbursements.
Key Rules
- Periodic Review of Funds
- Agencies must regularly evaluate the need for each imprest fund or third party draft account and ensure fund levels match actual requirements.
- Adjustment of Fund Levels
- Agencies are required to promptly adjust fund or account levels to reflect current needs.
- Implementing Regulations
- Agencies must issue internal regulations covering authorized personnel and documentation procedures for all transactions involving these funds.
Responsibilities
- Contracting Officers: Ensure agency compliance with periodic reviews, fund adjustments, and implementation of internal regulations.
- Contractors: Provide proper documentation for receipt and acceptance of goods/services and payments received.
- Agencies: Oversee fund/account management, designate authorized personnel, and maintain comprehensive documentation and internal controls.
Practical Implications
- This section ensures fiscal responsibility and accountability in the use of imprest funds and third party drafts for small purchases.
- It impacts daily operations by requiring agencies to monitor, adjust, and document fund usage, reducing the risk of misuse or overfunding.
- Common pitfalls include failing to adjust fund levels promptly or lacking adequate documentation, which can lead to audit findings or compliance issues.
Each agency using imprest funds and third party drafts shall-
(a) Periodically review and determine whether there is a continuing need for each fund or third party draft account established, and that amounts of those funds or accounts are not in excess of actual needs;
(b) Take prompt action to have imprest funds or third party draft accounts adjusted to a level commensurate with demonstrated needs whenever circumstances warrant such action; and
(c) Develop and issue appropriate implementing regulations. These regulations shall include (but are not limited to) procedures covering-
(1) Designation of personnel authorized to make purchases using imprest funds or third party drafts; and
(2) Documentation of purchases using imprest funds or third party drafts, including documentation of-
(i) Receipt and acceptance of supplies and services by the Government;
(ii) Receipt of cash or third party draft payments by the suppliers; and
(iii) Cash advances and reimbursements.