Improvements Needed In The Administration Of Imprest Funds

Findings and Conclusions

GAO reviewed 10 funds each having a balance of $10,000 or more. A total of at least $247,000 more than was needed was being kept in nine of the funds. GAO believes that this excess resulted because the Administration was not performing periodic reviews of fund levels.

The cash verifications required by regulations were not being performed. For example, for 15 of 26 funds reviewed, cash verifications had not been made for more than 1 year. Verifications within a month of a change in the principal cashier were made in only three of 17 instances.

The Administration maintains two or more imprest funds at each of eight different locations. GAO believes that an opportunity exists for consolidating the funds at each location, which would reduce the number of administrative reports and the number of employees that are assigned imprest fund responsibilities. For example, four separate funds were kept in the same building in Silver Spring, Maryland.

Why the Review was Made

The Environmental Science Services Administration, as of September 30, 1969, was administering 141 imprest funds totaling $504,550. An imprest fund is an advance of cash in a fixed amount from a disbursing office to a designated cashier for the purpose of making immediate payments of comparatively small amounts.

Because of the large number of imprest funds and the sizable dollar amount, the General Accounting Office (GAO) evaluated the administration of these funds.