C3 Imprest Accounts

Background

Imprest Accounts are a means of delegating expenditure to an account holder using a cash flow provided by DFID. Imprest Accounts typically operate in DFID Overseas Offices or smaller Project Offices. In our main Overseas Offices the Head of Office accepts full responsibility for the safeguarding of these funds but delegates day to day responsibility for running the imprest account to others. Most smaller offices will use the Foreign and Commonwealth Office (FCO) Post Account. For individual projects a named project manager will be the imprest account holder.

Compliance Tasks

1. The justification for an imprest account must be clearly established at the outset (in preference to other means of financing) by consulting Financial Management Group (FMG) via the Imprest Questionnaire.

Task assigned to: Project Staff

2. An imprest account holder must be a DFID appointee (either UK based or SAIC) approved by the relevant Head of Department/Head of Overseas Office. The experience in financial management (including competencies) must be carefully considered for each individual whose duties will include imprest management.

Task assigned to: Head of Department, Head of Overseas Office

3. The bank account for imprest funds must not be held in the name of an individual. The account must either be opened in the name of a DFID office or an individual project.

Task assigned to: Project Staff

4. Unless agreed otherwise by FMG, an Imprest Holder must be trained by FMG before operating the account. The training will take account of the Imprest Holder's previous experience in financial management.

Task assigned to: Head of Department, Head of Overseas Office

5. Heads of Overseas Offices must be briefed on their financial management responsibilities before taking up post, including the accounting instructions that they will be expected to sign up to.

Task assigned to: Head of Department, Head of Overseas Office

6. Heads of Department/Overseas Offices must ensure that unannounced spot-checks, using the standard checklist, are carried out at least four times a year for each imprest account.

Task assigned to: Head of Department, Head of Overseas Office

Risks of non-compliance

• Payments in advance of need tie up DFID and Exchequer funds for which DFID pays a surcharge (current capital charges are 3.5% on all suspense balances)
• Excessive amounts paid in advance increase costs and possibly hide fraud
• FMG has the right to refuse to make any payment if it is not satisfies that the procedures have been complied with
• Advance may not properly be accounted for.

Associated learning and skills

Training for all Imprest Holders and briefing for new Heads of Overseas Office is mandatory.