13.305-3
Conditions for use
Imprest funds and third party drafts can only be used for small-dollar purchases when advantageous to the government and in strict compliance with agency and FAR policies.
Overview
FAR 13.305-3 outlines the specific conditions under which imprest funds and third party drafts may be used for government purchases. The regulation sets dollar thresholds for each payment method, requires that their use be advantageous to the government, and mandates compliance with both agency-specific conditions and broader regulatory policies. This section ensures that these streamlined payment methods are only used for small-dollar, low-risk transactions and within established controls to prevent misuse.
Key Rules
- Imprest Fund Limit
- Imprest fund transactions are limited to $500, unless a higher limit is approved by the agency head.
- Third Party Draft Limit
- Third party draft transactions are limited to $2,500, unless a higher limit is authorized in accordance with Treasury restrictions.
- Advantageous Use
- The use of these payment methods must be considered advantageous to the government.
- Compliance with Additional Conditions
- Transactions must comply with any additional agency-specific conditions and the policies referenced in FAR 13.305-1.
Responsibilities
- Contracting Officers: Ensure transactions do not exceed the specified limits, assess the advantage to the government, and verify compliance with agency and FAR policies.
- Contractors: Accept payment via imprest funds or third party drafts only when transactions meet the outlined conditions.
- Agencies: Set and enforce additional conditions, approve higher limits where appropriate, and oversee compliance.
Practical Implications
- This section exists to control the use of cash-like payment methods for small purchases, minimizing risk and ensuring proper oversight.
- It impacts daily purchasing by limiting when and how these payment methods can be used, requiring careful documentation and justification.
- Common pitfalls include exceeding dollar thresholds, failing to document the advantage to the government, or overlooking agency-specific requirements.