Authority for Imprest Fund
Naval activities with contracting authority are
authorized to establish an IF under the follow-
1. The activity has been granted contracting
authority to use the IF method of purchase.
(Activities with contracting authority in
excess of ,000 automatically have
authority to use the IF method of
2. The establishment of the fund is approved
in writing by the commanding officer of
3. Use of the IF method of purchase by afloat
units must be approved in writing by the
type commander (TYCOM).
4. IFs are not authorized for commissary
The authorization letter signed by the com-
manding officer should state the maximum
amount of the fund. The original copy of the
authorization letter is retained by the IF cashier,
and a copy is forwarded to the cognizant regional
contracting management activity, TYCOM, or
The amount of each IF for shore activities is
based on (1) estimated monthly payments (not to
exceed ,000) or (2) an amount of 0. For
afloat activities, the IF amount may not exceed
,000 for ships with Supply Corps officers or
0 for ships without Supply Corps officers. A
review is made at least once each quarter to
determine the continuing need for each fund
established and whether the amount of the fund
is in excess of actual needs based on the average
monthly volume of expenditures. This review is
made by the officer who approved the establish-
ment of the fund or by a delegated representative.
Imprest Fund Cashier
Although the general management of the IF
purchase method is a responsibility of the
contracting organization, any officer, enlisted
person, or civilian employee of the activity may
be appointed by the commanding officer as an
IF cashier (or alternate IF cashier). Exceptions to
this are disbursing or fiscal office personnel and
individuals responsible for originating, approving,
or processing requirements.
Appointment of Imprest Fund Cashier
The appointment (and revocation of the
appointment) of the IF cashier and alternate
must be made in writing by the commanding
officer of the activity. The IF cashier acknowl-
edges acceptance of the position by signing the
following statement: I agree to hold myself
accountable to the United States for all public
funds received. A letter of appointment is main-
tained in a permanent file and should be retain-
ed for a period of not less than 5 years after the
appointee ceases to serve. Two copies of the
appointment letter are furnished to the cashiers,
one copy to the disbursing office and one copy
to the purchasing office.
The IF cashier and alternate do not have to
be bonded. Both the IF cashier and alternate must
each have his or her safe and are the only persons
authorized to have the combination for their
respective safes. The combination of each safe
must be changed every 6 months.
Conditions for Use of Imprest Funds
The IF maybe used for small purchases under
the following conditions:
The transaction does not exceed 0.
The use of the IF is considered to be
advantageous to the government.
Supplies or services are available for delivery
within 60 days.
The purchase does not require detailed
technical specifications or technical inspection.
Authorized Use of Imprest Funds
IFs MAY be used for the following:
Delivery charges associated with the
purchase from the IF when the contractor
is requested to arrange for delivery. These
charges include C.O.D. postal charges and
intercity transportation charges of or
C.O.D. charges for supplies ordered for
payment from the IF.
Civilian volunteers for participation in
approved medical research projects.