Imprest account of G M

1) Sanction of Imprest & its maintenance,

2)Cash Monitory limit (CML),
3) Nature of expenditure incurred through
imprest account,
4) Irregularities involved and regularization
action
 What is Imprest

• An imprest is a standing advance of a fixed

sum of money given to an individual to enable
him to make certain classes of disbursements
which may be entrusted to his charge by the
competent authority in accordance with such
rules, and subject to such restrictions, as may
be laid down by the Administrative Ministry /
Administrator concerned.
 Sanction of Imprest
• Permanent advance or Imprest for meeting
day to day contingent and emergent
expenditure may be granted to a government
servant by the Head of the Department in
consultation with Internal Finance Wing,
keeping the amount of advance to the
minimum required for smooth
functioning.(Rule 322 of GFR-2017)
 Maintenance of Imprest Fund
• Permanent Cash Imprest when drawn for the
first time is classified as Debit to Major/Minor
Head. On the encashment of the said cheque,
physical cash will remain in the custody of the
Permanent Cash Imprest Holder. As and when
the money is utilized therefrom, the same has
to be recouped subsequently by Debit to
Office Contingencies.
 Cont…..
• When permanent Cash Imprest Account is to
be closed due to the closure of the Division or
on withdrawal of Imprest facility, the
Permanent Cash Imprest Holder will be
required to refund the cash to the D.D.O for
remitting the same into the Bank. The
imprest-holder is responsible for the safe
custody of imprest money and he must at all
times be ready to produce the total amount of
the imprest in vouchers or in cash
 Cont……
• The amount of the advance outstanding as on
31st of March each year should be entered in
the money column for the subsequent year.
Acknowledgement from the officers holding
permanent advance shall be obtained as on
31st March, in the month of April.
(Civil Account Manual)
 GMs Imprest Fund
• Every G.M is having one Imprest Account to
meet day to day miscellaneous expenses.
• 1. Every factory is allowed a fixed amount of
permanent advance and from which to defray
its day to day miscellaneous expenses of the
nature .
• 2) The Imprest account is maintained in the
Cash Book under Column ‘Contingency’.
 Cont…..
• 3) Cheques received from the A.O. in
requirement of the Imprest are included in the
main Cash Book on the debit side under
Column. ‘Contingency.
• 4) The detailed daily payment from the
Imprest of the factory will be posted. in the.
Cash Book under the appropriate Column.
 Cont…
• 5) If the Imprest runs short and in any case at the
end of each month, bills will be submitted to the
Local Accounts Office for requirement of the
Imprest.
• 6) In the balance sheet of a factory the
sanctioned amount of the Imprest will appear on
the liability side and the balance of the Cash in
hand and the amount spent but not yet recouped
or bill submitted to the Accounts Officer but
awaiting requirement on the assets side.
 Scrutiny of Sanction of Imprest
• Sanctions for permanent advance accorded by
Heads of Department are to be scrutinized to
see-
• (i) That the officer sanctioning the advance is a
recognized Head of Department;
• (ii) That the advance is intended for the
subordinate and not for his own office; and
• (iii) That the advance has been sanctioned in
accordance with the provisions of Rule 322 of
GFR- 2017.
 Nature of expenditure incurred
through imprest
• The Head of the Office may sanction advances
to a Government Servant for purchase of
goods or services or any other special purpose
needed for the management of the office,
subject to the following conditions:-
• (i) The amount of expenditure being higher
than the Permanent Advance available cannot
be met out of it.
 Cont….
• (ii) The purchase or other purpose cannot be
managed under the normal procedures,
envisaging post procurement payment system.
• (iii) The amount of advance should not be
more than the power delegated to the Head
of the Office for the purpose.
• (iv) The Head of the Office shall be responsible
for timely recovery or adjustment of the
advance.
 Cash Monitoring limit(CML)
• The cash monitoring limit is fixed on the basis of
requirement beyond which limit no payment can
be made. The amount of permanent advance
should normally fixed to the extent of half of the
average monthly expenditure and the no of
recoupment be at least twice a month so that the
monthly requirement can be met from such
advances by recoupment in 2 occasions during
the month. Cash Monitoring limit may be
increased/decreased on the basis of requirement.
 Adjustment of Advance

• The adjustment bill, along with balance if any,

shall be submitted by the government servant
within fifteen days of the drawal of advance,
failing which the advance or balance shall be
recovered from his next salary.
Irregularities & regularization thereof

• 1. The procurement of items which are

neither of emergent production &
maintenance stores nor petty contingent
items are also being made from Imprest Fund.
• 2. The number of recoupment of Imprest Fund
is abnormally high.
 Cont…..
• 3. Delay in submission of adjustment bill.
• 4. Purchase of items from unauthorized/
unapproved sources.
• 5. Non maintain register of receipt &
expenditure.
 Cont…..
• 6. Total amount of sanction exceeding the
ceiling limit. i.e. amount balance in hand+
amount of expenditure for which bill is
prepared+ amount of bill due for recoupment
should not exceed the total amount of
permanent advance sanctioned.
• 7. All mandatory documents i.e. sanction,
printed invoice, cash receipt etc. not enclosed
with the bill.
 Cont….
• 8. Frequent purchase of similar item.

• 9. Purchase without sanction.

• 10. Delay in refund of unutilized amount.

Thanks