FAR 13.305-4—Procedures.
Plain-English Summary
FAR 13.305-4 explains the operating procedures for purchases made with imprest funds or third party drafts. It covers the required purchase authorization or funding verification before the buy is made, the normal practice of placing orders orally without competition when prices are reasonable, the fact that contract clauses are generally unnecessary because ordering and delivery happen almost simultaneously, when a written purchase order may still be used, how that order must be marked if used, and the post-purchase documentation that the authorized buyer must provide to the cashier and obtain from the supplier. In practice, this section is designed to keep very small, immediate purchases fast and simple while still preserving basic fiscal control, auditability, and proof of what was bought, from whom, and at what price. It matters because it balances speed with accountability: agencies can meet urgent, low-dollar needs without full formal contracting procedures, but they still must document funds availability, the transaction, and the supplier’s sales information. Contractors and suppliers should understand that these purchases may be made quickly and informally, but they still need to provide proper sales documentation when requested and may be asked to support discounts or tax-exempt treatment through a written order.
Key Rules
Funds must be verified first
Each purchase must be based on an authorized requisition, a contracting officer verification statement, or another agency-approved method showing that funds are available. This is the basic control that prevents purchases from being made without budget authority.
Oral orders are normally allowed
Purchases are normally placed orally and without soliciting competition if the price is considered reasonable. The section assumes these are small, immediate buys where speed is more important than formal competition.
Clauses usually are not needed
Because ordering and delivery are essentially simultaneous, contract clauses are generally not required for imprest fund or third party draft purchases. The transaction is treated as a very short, simple purchase rather than a fully developed contract action.
Written orders may still be used
If a written order is needed for supplier requirements such as discounts, tax exemption, or other reasons, the forms prescribed at 13.307(e) may be used. If a purchase order is used, it must be endorsed to show payment will be made from an imprest fund or third party draft.
Buyer must document the transaction
The authorized purchaser must give the cashier a copy of the funding/authorization document annotated to show the purchase was made, including unit prices, extensions, and the supplier’s name and address. This creates the internal record needed for cash accountability and audit support.
Supplier must provide sales evidence
The supplier must provide an invoice, packing slip, or other sales instrument with the delivery showing the supplier’s name and address, the items and quantities supplied, unit prices and extensions, and any cash discount. This supports receipt, payment, and reconciliation of the purchase.
Responsibilities
Contracting Officer
Ensure the purchase is supported by an authorized requisition, verification statement, or other approved funding-control method. When a written order is needed, use or approve the appropriate form and ensure it is properly endorsed for imprest fund or third party draft payment.
Authorized Purchaser / Individual Authorized to Make Purchases
Place the purchase, normally orally, only when the price is considered reasonable and the purchase is otherwise authorized. After the purchase, provide the cashier a copy of the authorization document annotated with the purchase details and require the supplier to furnish the appropriate sales documentation with delivery.
Imprest Fund Cashier / Third Party Draft Cashier
Maintain cash control and receive the annotated copy of the authorization document showing the purchase was made, including pricing and supplier information. Use the documentation to support disbursement and reconciliation of the fund or draft account.
Supplier
Provide an invoice, packing slip, or other sales instrument with delivery that identifies the supplier, lists the items and quantities supplied, shows unit prices and extensions, and states any cash discount. If a written order is requested for supplier purposes, accept the order marked for imprest fund or third party draft payment.
Agency
Establish and approve the internal method used to verify that funds are available before the purchase is made. Set procedures for when written orders are necessary and ensure the imprest fund or third party draft process supports accountability and audit requirements.
Practical Implications
This section is meant to keep very small purchases fast, so buyers should not overcomplicate them with unnecessary formal contracting steps when the price is reasonable and the purchase is immediate.
The biggest compliance risk is weak documentation: if the authorization document, supplier sales paperwork, or cashier copy is missing or incomplete, the agency may have trouble reconciling the fund and supporting the payment.
Even though competition is normally not solicited, the buyer still has to make a reasonableness judgment on price; skipping that check can create audit issues or allegations of poor stewardship.
A written purchase order is optional, not forbidden, but it becomes important when the supplier needs it for discount, tax exemption, or similar administrative reasons.
Suppliers should be prepared to provide a proper invoice or packing slip at delivery, because the agency will need enough detail to show what was bought, from whom, and at what price.
Official Regulatory Text
(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.