Authority for Imprest Fund Naval  activities  with  contracting  authority  are authorized  to  establish  an  IF  under  the  follow- ing   conditions: 1. The activity has been granted contracting authority to use the IF method of purchase. (Activities  with  contracting  authority  in excess   of   $25,000   automatically   have authority   to   use   the   IF   method   of purchase.) 2. The establishment of the fund is approved in  writing  by  the  commanding  officer  of the  activity. 3. Use of the IF method of purchase by afloat units must be approved in writing by the type   commander   (TYCOM). 4.   IFs   are   not   authorized   for   commissary stores. The  authorization  letter  signed  by  the  com- manding   officer   should   state   the   maximum amount  of  the  fund.  The  original  copy  of  the authorization letter is retained by the IF cashier, and a copy is forwarded to the cognizant regional contracting   management   activity,   TYCOM,   or NAVSUP. The amount of each IF for shore activities is based on (1) estimated monthly payments (not to exceed  $10,000)  or  (2)  an  amount  of  $500.  For afloat  activities,  the  IF  amount  may  not  exceed $1,000  for  ships  with  Supply  Corps  officers  or $500  for  ships  without  Supply  Corps  officers.  A review  is  made  at  least  once  each  quarter  to determine   the   continuing   need   for   each   fund established and whether the amount of the fund is in excess of actual needs based on the average monthly  volume  of  expenditures.  This  review  is made by the officer who approved the establish- ment  of  the  fund  or  by  a  delegated  representative. Imprest Fund Cashier Although  the  general  management  of  the  IF purchase   method   is   a   responsibility   of   the contracting   organization,   any   officer,   enlisted person,  or  civilian  employee  of  the  activity  may be  appointed  by  the  commanding  officer  as  an IF cashier (or alternate IF cashier). Exceptions to this are disbursing or fiscal office personnel and individuals  responsible  for  originating,  approving, or  processing  requirements. Appointment  of  Imprest  Fund  Cashier The   appointment   (and   revocation   of   the appointment)  of  the  IF  cashier  and  alternate must  be  made  in  writing  by  the  commanding officer  of  the  activity.  The  IF  cashier  acknowl- edges  acceptance  of  the  position  by  signing  the following   statement:   “I  agree  to  hold  myself accountable  to  the  United  States  for  all  public funds received.” A letter of appointment is main- tained in a permanent file and should be retain- ed for a period of not less than 5 years after the appointee   ceases   to   serve.   Two   copies   of   the appointment letter are furnished to the cashiers, one  copy  to  the  disbursing  office  and  one  copy to  the  purchasing  office. The  IF  cashier  and  alternate  do  not  have  to be bonded. Both the IF cashier and alternate must each have his or her safe and are the only persons authorized   to   have   the   combination   for   their respective  safes.  The  combination  of  each  safe must  be  changed  every  6  months. Conditions for Use of Imprest Funds The IF maybe used for small purchases under the   following   conditions: The  transaction  does  not  exceed  $500. The   use   of   the   IF   is   considered   to   be advantageous  to  the  government. Supplies or services are available for delivery within 60 days. The   purchase   does   not   require   detailed technical  specifications  or  technical  inspection. Authorized Use of Imprest Funds IFs  MAY  be  used  for  the  following: — Delivery   charges   associated   with   the purchase from the IF when the contractor is requested to arrange for delivery. These charges include C.O.D. postal charges and intercity transportation charges of $75 or less. —  C.O.D.  charges  for  supplies  ordered  for payment  from  the  IF. —   Civilian   volunteers   for   participation   in approved  medical  research  projects. 4-5