13.305-4 Procedures
Source: FAR 13.305-4 on acquisition.gov
Proper documentation and verification are essential when using imprest funds or third party drafts for small purchases to ensure accountability and compliance.
Overview
FAR 13.305-4 outlines the procedures for making purchases using imprest funds or third party drafts, which are simplified payment methods for small-dollar acquisitions. The section details the required documentation, purchasing process, and recordkeeping obligations to ensure proper use and accountability of these funds. It emphasizes the need for authorized requisitions, reasonable pricing, and specific documentation to support each transaction.
Key Rules
- Authorization and Funding Verification
- Every purchase must be supported by an authorized requisition, contracting officer verification, or another agency-approved method to confirm funds are available.
- Oral Purchases and Competition
- Purchases are typically made orally and without soliciting competition if prices are deemed reasonable.
- Contract Clauses Not Required
- No contract clauses are necessary for purchases using these payment methods due to the immediate nature of order and delivery.
- Written Orders and Endorsements
- Written orders may be used if needed, and must be endorsed to indicate payment method (imprest fund or third party draft).
- Documentation and Supplier Requirements
- Purchasers must provide annotated documentation to the cashier and require suppliers to furnish invoices or similar documents with detailed purchase information.
Responsibilities
- Contracting Officers: Ensure purchases are properly authorized and funds are available; verify reasonable pricing.
- Contractors: Provide required documentation and ensure invoices or sales instruments accompany deliveries.
- Agencies: Approve methods for fund verification and oversee compliance with documentation and purchasing procedures.
Practical Implications
This section exists to streamline small purchases while maintaining accountability and transparency. It impacts daily contracting by allowing quick, low-value transactions but requires strict adherence to documentation and verification processes. Common pitfalls include inadequate documentation, failure to verify funds, or missing supplier invoices, which can lead to audit issues or improper payments.
(a) Each purchase using imprest funds or third party drafts shall be based upon an authorized purchase requisition, contracting officer verification statement, or other agency approved method of ensuring that adequate funds are available for the purchase.
(b) Normally, purchases should be placed orally and without soliciting competition if prices are considered reasonable.
(c) Since there is, for all practical purposes, simultaneous placement of the order and delivery of the items, clauses are not required for purchases using imprest funds or third party drafts.
(d) Forms prescribed at 13.307(e) may be used if a written order is considered necessary (e.g., if required by the supplier for discount, tax exemption, or other reasons). If a purchase order is used, endorse it "Payment to be made from Imprest Fund" (or "Payment to be made from Third Party Draft," as appropriate).
(e) The individual authorized to make purchases using imprest funds or third party drafts shall-
(1) Furnish to the imprest fund or third party draft cashier a copy of the document required under paragraph (a) of this subsection annotated to reflect-
(i) That an imprest fund or third party draft purchase has been made;
(ii) The unit prices and extensions; and
(iii) The supplier’s name and address; and
(2) Require the supplier to include with delivery of the supplies an invoice, packing slip, or other sales instrument giving-
(i) The supplier’s name and address;
(ii) List and quantity of items supplied;
(iii) Unit prices and extensions; and
(iv) Cash discount, if any.