Must imprest funds always be set at a fixed amount?
A12. Most funds are established at a fixed amount because it is easier to manage and standard internal controls are effective. However, certain funds operate within a predetermined range. Agencies may operate a fluctuating fund if it is not practicable to maintain an imprest fund. For example, some overseas imprest funds are funded by collections made in foreign currency. Rather than deposit those funds and have to repurchase foreign currency to replenish the fund, those funds are retained as imprest funds and used as payment for goods and services. In addition, some overseas funds require flexibility in the amount of the fund because, in some areas, cash is the only accepted payment method and needs are varied.
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- Must imprest funds always be set at a fixed amount?
