Define: Imprest Money

Imprest money refers to a fixed amount of funds that are provided to an individual or organisation for specific purposes, such as petty cash expenses or emergency needs.

Imprest money is distinct from regular funds as it is a predetermined amount that is replenished after it is spent, ensuring that the total amount remains constant.

The person or entity designated as the custodian is responsible for managing imprest money, including its safekeeping, disbursement, and record-keeping.

No, imprest money should only be used for authorized business-related expenses. Using imprest money for personal expenses is considered a breach of trust and may have legal consequences.

Imprest money should be reconciled regularly, ideally on a daily basis, to ensure that the amount spent matches the amount replenished and to identify any discrepancies.

If imprest money is lost or stolen, it should be reported immediately to the appropriate authorities and documented. Depending on the circumstances, the custodian may be held liable for the loss.

Imprest money is typically intended for small, routine expenses. Using it for large purchases or investments may require additional authorization or may not be allowed at all.

Imprest money can be replenished by submitting a request to the appropriate authority, along with supporting documentation of the expenses incurred.

Yes, there may be restrictions on the use of imprest money depending on the specific guidelines or policies set by the organisation or entity providing the funds.

Misusing imprest money can result in disciplinary actions, legal consequences, and potential financial liabilities. It is essential to adhere to the designated guidelines and use the funds responsibly.