f -1.650 to nethosts by which

SAN SEREREs if stedes and services A Sate governing poli

{s2cal 2 Thefnoris auf cash purchases.

Following are te vricus methods by WINGI EST DUNchases ang be made:

& Te of Pelt Party Expense Funds. (See 14-2.651-2

3. Jed Zavel Funds. (See § 4-3.

(e) Dre of Personal Funds. (See 14-2.856-8.)

(6) Use of Imprest Funds. (See # 1-3.604 and 4-3.604.) $4-3.650-3 Field Party Expense Funds.

Under the authority of the Act of June 3, 1902 (31 U.S.C. 533), funds may be advanced in accordance with 7 AR 598 and 599 for the purpose of making cash purchases by field parties. Such funds may be used for cash purchases where the use of other cash purchase procedures or other established procurement traveling expenses of regular employees facilities is not feasible. Wages and/or shall not be paid from these funds. Otherwise, such purchases may include any field party requirements such as supplies, hire of laborers, food, lodging transportation, etc., the purchase of which is not otherwise restricted by law or regulation. This authority is especially useful for program operations in foreign countries as well as in kolsted,

emergency, or other unusual program operations in the United States.

[29 F.R. 14279, Oct. 16, 1964; 35 F.R. 3681, Feb. 25, 1970]

§ 4-3.650-4 Travel expense funds.

Under the authority of 5 U.S.C. 5705, funds may be advanced in accordance with 7 AR 598 and 599. Such funds may be used for cash purchases of only those requirements related to travel in accordance with the Standardized Government Travel Regulations.

[35 F.R. 3681, Feb. 25, 1970] §4-3.650-5 Personal funds.

Employees authorized to make purchases may procure necessary supplies, equipment, or services from personal funds and be reimbursed therefor in accordance with 7 AR 67. This method of purchase should be considered where establishment of an imprest fund is not feasible, and use of personal funds will simplify the making of small purchases. § 4-3.651 Purchase documentation. § 4-3.651-1 Purpose.

This section sets forth the requirements for documenting purchase transactions.

§ 4-3.651-2 Policy.

(a) Any documentation of a purchase transaction is permissible that assures the following:

(1) That the vendor and purchaser are in agreement as to what is being purchased.

(2) That at the time of delivery a record of sale and receipt is created.

(3) That at the time of billing for payment, the foregoing requirements have provided evidence of the items, quantity, price, date sold and other relevant data.

(b) These requirements can be met by:

(1) Issuance of a purchase order on SF-44, which form is then used as an invoice and as a receiving report. (See § 1-3.605-1.)

(2) Issuance of a purchase order on Form AD-38, which the vendor either signs as his invoice or provides his commercial invoice, and receipt for supplies is acknowledged on the form or otherwise in writing.

(3) Payment of cash supported by itemized receiving officer's report and vendor's receipt for cash. (See § 1-3.604.)

(4) Verbal order where vendor's itemized job order or invoice is signed by the officer ordering and receiving the supplies. (See also § 1-3.606 on Blanket Purchase Arrangements.)

§ 4-3.652 Cancellation of purchase orders.

Where the Government's interest demands and will best be served, purchase order may be cancelled. Ordinarily, orders should be cancelled in writing. In order to maintain good business relations, the vendor should be advised wherever feasible of the necessity for cancellation in advance of formal cancellation and his concurrence obtained. Obtaining concurrence of the vendor will avoid questions of liability. The determination as to whether the public interest requires the cancellation of an order should include consideration of the Government's ultimate responsibilty resulting from the cancellation. Cancellation will be generally acceptable to the vendor except where items have been shipped or expense has been incurred such as in special manufacturing or fabrication of items to order. In cases where the vendor will not concur in the cancellation and when it can be established that a contractual relationship exists, the order should be terminated in the same manner as stated in § 4-8.201 for contracts.

§ 4-3.653 Duplicate purchase orders.

If the vendor reports nonreceipt or loss of an original purchase order and requests another copy, there may be issued to him a duplicate copy as his basis of performance. This second issue should be conspicuously marked "DUPLICATE COPY." To avoid the possibility of a duplicate shipment, a letter of transmittal or a notation on the purchase order should read somewhat as follows:

This is a duplicate copy of lost original purchase order, furnished in accordance with your request of The Govern(Date) ment will not be responsible for duplicate shipment.

§ 4-3.654 Follow-up of purchase orders.

It is the function of the procurement officer to devise and maintain a purchase-order follow-up system in order to assure that delivery is made within the terms of the purchase order. This may be a periodic review of the fiscal obligations file where arranged alphabetically or by setting up a tickler file of purchase

A "Cashier" is an employee of the Department designated as a cashier in accordance with § 4-3.604-52 of this subpart. An "Alternate Cashier" is one who has been designated in the same manner as a cashier but who will function in such capacity (a) during the absence of the principle cashier and/or (b) where the volume of work requires the principle to have alternates, in which case the principle will advance funds on the basis of a receipt signed by the alternate.

§ 4-3.604-52 Designation of cashiers.

In accordance with 7 AR 64, heads of agencies recommend employees for designation as cashiers or alternates. Where imprest funds are to be used primarily for making purchases, requests for designation should be limited, where feasible, to responsible employees in the agency's procurement organization. Upon receipt of the designation and notice of assignment to a position covered by a position schedule bond, the employee is authorized to perform the duties of cashier.

§ 4-3.604-53 Instructions for cashiers.

Prescribed procedures for operating an imprest fund are contained in 7 AR 64 and Treasury Department "Manual of Procedures and Instructions for Cashlers Operating Under Executive Order No. 6166." This manual is furnished by the Treasury Department to each cashier upon his designation. Necessary additional copies required by procurement officers may be obtained through the Office of Plant and Operations.

§ 4-3.604-54 Accountability of imprest funds.

(a) Custody and safeguarding of funds. Cashiers should at all times be

able to account for the full amount of the fund, either by cash, uncashed Government checks, unscheduled subvouchers, unpaid reimbursement vouchers, or interim receipts for cash. Employees designated to serve as cashiers will act as agents of the disbursing officers who advance them the necessary funds. Since cashiers are personally accountable and responsible for the custody of and payments made from the fund, employees upon whom this authority is conferred should be notified of their responsibility. They are required to utilize, to the fullest extent available, means of safeguarding cash advanced to them, and agencies should take necessary steps to furnish cashiers with suitable facilities for that purpose. Such facilities will depend upon equipment that can be made available and the size of the imprest fund to be safeguarded, but as a minimum, locked storage space must be provided. Consideration should be given to the determinations necessary under § 4-3.60454 (c) in the event of loss or theft of imprest funds. Imprest funds may not be deposited in any bank nor commingled with personal or other funds. Each imprest fund shall be maintained separately. (See Treasury Manual of Procedures and Instructions, Section 4.)

(b) Responsibility for doubtful transactions. The cashier is authorized, where doubt exists as to the propriety of any transaction, to require written acceptance of responsibility for such transaction from the official authorizing the procurement to provide him recourse to such employee for reimbursement to the fund if the transaction is later disallowed. The cashier may also request an advance written opinion from the certifying officer with respect to a doubtful transaction.

(c) Physical loss or deficiency. In the event of physical loss or deficiency in the imprest fund, the General Accounting Office is authorized, in concurrence with determinations and recommendations of the Secretary of Agriculture, to relieve the cashier of responsibility, provided the Secretary determines (1) that such loss or deficiency occurred while the cashier was acting in the discharge of official duties, and (2) that such loss or deficiency occurred without fault or negligence on the part of the cashier. (31 U.S.C. 82a-1.) § 4-3.605

Purchase order forms. [35 FR. 3681, Feb. 25, 1970]

§ 4-3.605-1 Department of Agriculture Form AD-744, Purchase Order/Invoice/Voucher.

(a) Prescribed form. The Department of Agriculture Form is prescribed for use by this Department. The form is to be used as a combination purchase order and vendor's invoice/voucher for making local, small commercial purchases of items and services for immediate delivery. The Form AD-744 will replace the Standard Form 44 for all such purchases. The Standard Form 44 may continue to be used for the functions listed in paragraph (b) of this section.

(b) Restrictions on use. The Form AD-744 shall not be used for any of the following:

(1) Purchases involving future delivery of the items purchased.

(2) As a confirming purchase order. (3) As an order under a Blanket Purchase Arrangement.

(4) Purchases from GSA or other Government Agencies.

(5) Purchases for which the vendor is paid in cash or as a receipt for such purchase.

(6) Purchases which may be accomplished through an imprest fund transaction.

(c) Availability. Both Form AD-744 and SF-44 are stocked by the Central Supply Branch, Office of Operations. The forms are four part snap out sets bound in books of twenty-five sets. [40 FR 3997, Jan. 27, 1975] 84-3.605-2 Standard Forms 147 and

148, Order for Supplies and Services. Department of Agriculture Form AD38, Purchase Order, is prescribed for use by this Department. See § 4-16.350. § 4-3.606 Blanket purchase arrange

ments.

§ 4-3.606-1 General.

(a) Blanket purchase arrangements may be made by employees to whom purchasing authority has been delegated.

(b) They may be participated in by one or more offices or projects in the

same area.

(c) The use of a blanket purchase arrangement does not authorize purchases not otherwise authorized by law or regulation, and such an arrangement may not be used to avoid the statutory advertising requirement normally applicable to purchases of known quantity requirements.

84-3.606-3 Establishment of account.

The ventor-agency relationship is that of an open account. While usually unnecessary, the arrangement may include maximum amount and time limitations. The account may cover certain specific items or commodity groups or classes, or all of the supplies or services the supplier is able to furnish. Its use does not exempt agencies from keeping obligations and expenditures within available funds, but this should be done by avoiding, through the use of simplified methods, a detailed fiscal record of individual transactions.

§ 4-3.606-4 Documentation.

(a) It is the responsibility of the vendor with whom we do business to determine that a purchase chargeable to the Department is made by one who is authorized to purchase from him in the name of the Government. Vendors are generally accustomed to receiving Government purchase orders which they honor even though the signer may not be known to them-this they do somewhat at their own risk. To protect the Government against criticism and the vendor against loss due to unauthorized purchases made from him in the name of the Government, any arrangements with him for making purchases without the use of a purchase order form must be carefully worked out. These arrangements, called Blanket Purchase Arrangements, should be made in person with the vendor. While no documentation is required, it may be desirable to have a record of the arrangement, which may be in the form of a letter, purchase order, or other document, telling the vendor:

(1) Who is authorized to make individual purchases;

(2) How purchases will be placed, 1.e.. by phone, by certain designated persons ordering and picking up supplies from the vendor, etc.;

(3) What the vendor must do to assure that only authorized purchases are made and to obtain payment, i.e., prepare an itemized sales slip showing order number, if one is given, and which must be signed by an authorized person; send invoice with shipment; give invoice to person picking up supplies; payment to be made once a month, or quarterly, etc.;

(4) What discounts will be given (particularly on repair parts and labor); how time discounts will be handled;

(5) Limitations by class of item, time, or dollar amount.

(b) The following is illustrative of the form of a written blanket purchase arrangement. Arrangements involving

special discounts, prices, delivery, etc., are usually terminable by the vendor and accordingly are not contracts requiring signature of the vendor. Term contracts on prescribed contract forms should be used where contractual agreement is desired. It is usually desirable to number such Blanket Purchase Arrangements either in a series of numbers established by the purchasing office or by using the number assigned by the vendor to the agency's account with him:

Sample Format UNITED STATES DEPARTMENT OF AGRICULTURE

SOIL CONSERVATION SERVICE

Blanket Purchase Arrangement

1. Persons authorized to place orders. John Jones, purchasing agent, Joe Smith, mechanic, Tom Sawyer, warehouseman, or such other persons as John Jones, purchasing agent, may indicate by phone to the vendor as authorized to make special purchases.

2. Procedure for placing orders with vendor.

Orders will be placed by phone for local delivery or will be ordered and picked up at the vendor's place of business by persons designated above. The buyer will give the vendor an order number for each purchase. The vendor will write up the order on his sales form showing the order number and itemizing the purchase with unit prices and totals. The vendor will secure the receipt of the receiving officer on the sales form and provide one copy to the receiving officer. No written purchase orders on government forms will be issued unless necessary to adequately describe purchase requirements or as may be desired by the vendor.

3. Billing procedure.

Invoices in single copy identified with the agency order number and date are to be sent to:

Soil Conservation Service,

1234 X Street,

Atlanta, Ga.

Payment will be made monthly on or about the 10th of the month for all invoices received.

4. Pricing arrangements.

Prices on all items shall be as quoted for each purchase or as stated in any applicable contract with the Vendor. However, as

agreed with Mr. W. T. Adams of the ABC Hardware Co., all time discounts shall be extended to the 10th of the month following billing or receipt of supplies, amount of time discount to be as stated on the invoice. Trade discounts shall be as quoted but shall generally be 40 percent of list for automotive repair "parts, common"; labor for repair to be at the rate of $3.00 per hour; all supply items to be generally priced at 10 percent less than list for distributors prices. 5. General.

No conditions of sale other than as specifed herein or as may be mutually agreed to for a specific order shall be applicable to purchases made under these arrangements. These arrangements are effective immediately and until cancelled by the Government or the Vendor.

§ 4-3.650-2

Methods of cash purchases. Following are the various methods by which cash purchases may be made: (a) Use of Field Party Expense Funds. (See 4-3.650-3.)

(b) Use of Travel Funds. (See § 4-3.650-4.)

(c) Use of Personal Funds. (See § 4-3.650-5.)

(d) Use of Imprest Funds. (See §§ 1-3.604 and 4-3.604.) §4-3.650-3 Field Party Expense Funds.

Under the authority of the Act of June 3, 1902 (31 U.S.C. 533), funds may be advanced in accordance with 7 AR 598 and 599 for the purpose of making cash purchases by field parties. Such funds may be used for cash purchases where the use of other cash purchase procedures or other established procurement facilities is not feasible. Wages and/or traveling expenses of regular employees shall not be paid from these funds. Otherwise, such purchases may include any field party requirements such as supplies, hire of laborers, food, lodging transportation, etc., the purchase of which is not otherwise restricted by law or regulation. This authority is especially useful for program operations in foreign countries as well as in isolated,