U.S.
Department of Agriculture
Washington,
D.C. 20250
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DEPARTMENTAL REGULATION |
Number: 2250-1 |
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SUBJECT: Imprest Fund Authorities and
Requirements |
DATE: August
11, 2003 |
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OPI: Office of the Chief Financial Officer |
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Section Page
1 Purpose 1
2 Special
Instructions/Cancellation 1
3 References 1
4 Background 2
5 Abbreviations 2
6 Definitions 2
7 Policy 3
8 Responsibilities 6
9 Inquiries 7
Appendix A A-1
1 PURPOSE
This policy directive requires that the
Department of Agriculture agencies eliminate agency imprest funds except where
waivers are approved. This directive
provides waiver request and approval policy.
This directive applies to both domestic and international imprest funds.
This regulation revises
Departmental Regulation 2250-001, “Imprest Fund Authorities and Requirements,”
dated January 10, 1986.
a Financial Management Service, Imprest Fund
Policy Directive
b 31 CFR 208, Management of Federal Agency Disbursements
c Manual of Procedures and Instructions for Cashiers
d Debt Collection Improvement Act of 1996
e 31 CFR 202,
Depositaries and Financial Agents of the Government
Treasury required
agencies to eliminate agency imprest funds because they were labor intensive,
required relatively more internal controls than non-cash payment mechanisms,
and the government did not earn interest on money held in these accounts.
Treasury’s Imprest Fund
Policy Directive was issued based on the recommendations of the National
Performance Review, Report on the Elimination of Imprest Funds in the Federal
Government through the Use of Electronic Commerce, January 1996 (Report), as
well as the requirements of the Debt Collection Improvement Act of 1996, and
the implementing regulation at 31 CFR 208, Management of Federal Agency
Disbursements, Final Rule (Treasury Electronic Funds Transfer Rule).
CFO - Chief
Financial Officer of USDA Agency
FMS - Financial
Management Service, US Department
PCMS - Purchase Card Management System
a Electronic Fund Transfer: Any transfer of funds, other than a
transaction originated by cash, check, or similar paper instrument, that is
initiated through an
electronic terminal, telephone, computer,
or magnetic
tape, for the purpose of ordering,
instructing, or authorizing a financial institution to debit or credit an
account. The term includes but is not
limited to, automated clearinghouse transfers, fedwire transfers, and transfers
made at automated teller machines and point-of-sale terminals.
b Imprest Fund: Fixed-cash or petty cash, which includes all
field party advances or change making funds, maintained by USDA agencies in the
form of currency, coin, or depository account balance representing advanced
funds held outside of Treasury. The
Approving Official may designate three types of Imprest Fund Cashiers. Class A Cashiers are authorized to make
disbursements but may not advance funds to another cashier, except to an
alternate cashier. Class B Cashiers are
authorized to make disbursements and may also advance funds to an alternate
cashier or sub cashier. Class D
Cashiers are designated solely for change making purposes.
c Third-Party Drafts: Check-like instruments drawn on and paid by
an outside contractor (draft company) or FI.
The FI or draft company supplies the Federal agency with drafts to be
issued against an agency’s account by the FI.
d Convenience Checks: Issued to authorized cardholders. Convenience checks are written against a
purchase card account and reconciled in PCMS. Pursuant to DCIA, convenience checks are not considered electronic
transactions. Convenience checks may not be used unless a waiver has been
received from the Department.
This policy directive requires that USDA
agencies eliminate agency imprest funds except for waived payments described
below. Agencies may establish,
maintain, and operate an imprest fund only if they meet the waiver criteria
described in the FMS Imprest Fund Policy Directive at www.fms.treas.gov/imprest, and 31
CFR 208. An agency’s primary payment
mechanisms should be electronic funds transfer, as required by 31 CFR 208 and
the DCIA. In addition, imprest funds
may be approved for change making
purposes when justified and no other source
is available for change making. The
maximum imprest fund transaction limit is $500 unless accompanied by a written
waiver from the Agency Head.
Purchase cards, convenience checks, and
third party drafts shall not be used to establish, maintain, or replenish
imprest funds. Purchase cards,
convenience checks, and third party drafts shall not be used to obtain cash for
imprest funds directly, through employees, or through third parties.
USDA agencies that justify and receive
approval for waivers must implement an internal agency process and related
procedures for establishing, maintaining, and operating imprest funds. The process and procedures must be in
compliance with Departmental policy, the FMS Policy Directive on Imprest Funds,
and the FMS Manual of Procedures and Instructions for Cashiers. The internal agency imprest fund process
must have agency headquarters’ oversight to ensure uniformity and consistency
of imprest fund requests, operation, and reporting.
The OCFO approval of imprest fund waivers
is based on the submission of an agency’s (a) request (b) justification, (c)
certification, and (d) semi-annual informational reporting. The absence of any of the four items will
jeopardize the approval of a waiver.
All imprest fund waivers approved by OCFO are for one year and must be
re-justified annually.
a Request
for Waivers: USDA agency CFOs must
submit imprest fund waiver requests to OCFO.
Imprest funds may only be used when:
(1)
A payment by EFT is waived in accordance with the provisions of 31 CFR
208, Management of Federal Agency Disbursements. Section 208.4 states that EFT is not required where an individual
determines, in his or her sole discretion, that payment by EFT would impose a
hardship due to physical or mental disability or a geographic, language, or
literacy barrier, or would impose a financial hardship; and
(2) Payments involve national security interests,
military operations, or national disasters;
(3)
Payments are made in furtherance of a law enforcement action;
(4)
The amount is less than $25;
(5) The
political, financial, or communications infrastructure of a foreign country
does not support payment by a non-cash mechanism; or
(6) Payments are made in emergencies, or in mission
critical circumstances, that are of such an unusual and compelling urgency that
the Government would otherwise be seriously injured, unless payment is made by
cash.
b Justification of Imprest
Funds: Annual imprest fund
waiver justifications must be completed by the agency CFO. The justifications must be by individual
fund and include the following:
(1) Imprest Fund location and if applicable
reference number.
(2) OCFO
prior year approved balance.
(3) Requested new fiscal year balance.
(4) Number
of Sub-Cashiers and amount of each.
(5) Types
of payments made from the fund.
(6) Specific Treasury waiver(s) and reasons
justifying the imprest fund.
c Certification of Imprest
Funds: Agency CFOs must
certify at the end of each fiscal year whether their agency imprest funds are
managed and operated in accordance with the Department of the Treasury and USDA
regulations. The certification must
address and include the departmental certification standards and requirements
in the appendix of this Departmental Regulation. The certification may be all
encompassing if all imprest funds are in compliance. If there are imprest funds not in compliance, the certification
should identify and itemize the funds not in compliance, the reason(s) for
noncompliance, and estimated compliance date.
(1) Certification of full reconciliation of fund
balances.
(2) The completion of cash verifications and
audits.
(3) The revocation of agency cashiers that no
longer have the authority to disburse funds.
d Informational Report: Agencies with imprest funds must submit
semi-annual informational reports for each fiscal year to the OCFO. The first six-month report is due on April
30 and the second six-month report is due October 30. The report should include the following:
(1) The
number of agency imprest funds.
(2) Total
balance outstanding.
(3) Total number and dollar amount of transactions
during the six months.
8 RESPONSIBILITIES
a OCFO: Responsible
for the following:
(1) Review and analysis of requests,
justifications, certifications, and reports.
(2) Approval of waivers in accordance with the FMS
Imprest Fund Policy Directive, 31 CFR 208, and USDA’s Imprest Fund Directive
(Departmental Regulation No. 2250-001).
(3) Departmental policy oversight and monitoring.
b Agencies:
Responsible for the following:
(1) Requesting waivers in accordance with the FMS
Imprest Fund Policy Directive, 31 CFR 208, and USDA’s Imprest Fund Directive
(Departmental Regulation No. 2250-001).
(2) Preparing
annual certification and justifications for imprest funds that have waivers.
(Due to OCFO by October 30).
(3) Ensuring
personnel are in full compliance with all applicable Treasury and Departmental
imprest fund regulations.
(4) Implementing
an internal agency process and related procedures for establishing,
maintaining, and operating imprest funds with oversight from agency
headquarters.
(5) Preparing
semi-annual informational reports for funds that have waivers. (Due to OCFO by
April 30 and October 30).
9 INQUIRIES
Inquiries should be
directed to the Credit, Travel and Accounting Policy Division, Office of Chief
Financial Officer, 202-720-1167.
APPENDIX A
The CFO of each agency
operating imprest funds is responsible for ensuring the integrity of the
agency’s imprest funds. The CFO must
manage and operate imprest funds in accordance with Treasury and Departmental
regulations.
2 CERTIFICATION REQUIREMENTS
The CFO of each agency
operating imprest funds shall provide written certification to the OCFO
addressing the following requirements:
a Imprest fund cashiers have an updated
listing of the signatures of all officials authorized to approve reimbursement
claims. The listing is updated whenever
there is a change in authorizing official and signatures on claims are verified
against these listings prior to issuing funds to claimants.
b Internal controls have been established to
ensure an ongoing monitoring process of imprest fund operations. Imprest fund cash verifications, audits, and
reconciliations have been performed, discrepancy reports submitted to the OCFO,
and necessary corrective actions have been taken.
c Fund balances are not excessive and the
appropriate agency official has ascertained this by periodic reviews of the
fund’s activities.
d Reasons have been identified and steps taken
to rectify the causes of any discrepancies disclosed by Departmental or
external review of agency imprest funds.
A report of actions taken has been provided to the OCFO.
e All agency cashiers that no longer have the
authority to disburse funds are revoked immediately.
f The establishment, operation, and physical
security of imprest funds complies with Treasury and USDA policies on
safeguarding of cash funds.
g Document control is effective. Cashiers are required to number sequentially
each voucher prior to issuing cash and maintain a master voucher number
register to ensure that cashiers are aware of the last voucher number issued.
h Claims in excess of $500 are disapproved
unless accompanied by a written waiver from the Agency Head.