Imprest Fund Reconciliation

Accounts Receivable and Cash Management

Al Rosier
Director, Account Receivable and Cash Management
Phone: (202) 692-1716
Beya Ghariani
Overseas Cashier Liaison / Africa-EMA
Phone: (202) 692-1763
Edmond Dossa Sossavi
Overseas Cashier Liaison / IAP-EMA
Phone: (202) 692-1702

FAX (202) 692-1786

Imprest Fund Reconciliation

Introduction
The Imprest Fund is what most organizations would refer to as petty cash.
Because the Peace Corps operates in many cash dependent countries the imprest
fund is a critical component of post operations. Rules regarding management of
the imprest fund are contained in the Overseas Financial Management Handbook,
section 13, the Peace Corps Manual
section 760 and the State Department Foreign Affairs Manual (4FAM3)*, and
Foreign Affairs Handbook (4FAH 2 & 4FAH3)* and the FSC Cashier Users
Guide (CUG). Administrative Officers should familiarize themselves with these
regulations before beginning their duties at post.
Proper imprest fund management is important for two reasons:
First, to protect the Peace Corps from loss due to theft or poor management.
You will be operating in developing nations where the incentive to steal or
borrow from the imprest will be very high. Cashiers may be pressured by
staff, relatives or friends to loan funds from the imprest. Proper cash
management not only detects loss, it also removes temptations to steal.
Secondly, proper cash management is important to protect your Cashier.
Peace Corps Cashiers are personally liable for any losses to the imprest.
Even if theft is not suspected, the Cashier will have to reimburse the agency
for any loss of funds. This could be financially devastating for the Cashier
and his family.
The Monthly Reconciliation (also known as the cash count or verification) is one
of the most important aspects of managing the imprest fund.
The Monthly Reconciliation must be conducted;
Quarterly by the Country Director
In the remaining Months, it may be delegated to the
Administrative Officer

* http://www.state.gov/m/a/dir/regs/
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Verifications must be made at irregular intervals to avoid long undisclosed

shortages.

How to Conduct the Imprest Reconciliation in

Three Easy Steps

First - The Administrative Officer decides to conduct a surprise

audit.
The audit should be conducted at the end of Cashiering hours, RANDOMLY,
and without warning.
Important: Remember the Reconciliation should not be conducted at the
same time every month (and definitely not always at the very end of the
month).
Print out the following forms;
1.
2.
3.
4.
5.

365 Report (see example below). This 365 report you bring into the cash count
will be a blank 365, (i.e. no balances will have been entered yet.)
99 Report
Verifying Officers Checklist
Bank Statement and Ledger (if your post has a bank account)
Latest ACDC Report (see example below)

Example-365 Report

ACDC Balance

+ Increases

- Decreases
= Accountability

Line 14 Line 28

Line 28= sum (L17:L26)

Positive= Cash Shortage

Negative=Cash Overage

Please review the 365 report above.

Tip: Cashiers should print out a 365 every day. If a discrepancy

does arise it will be much easier to track.

Example ACDC Report

ACDC Report

The ACDC Report is generated by the Financial Service Center (FSC) in either Charleston or
Bangkok.
ACDC Reports for the week are forwarded to you and your Cashier at the end of the week
via SFTP.
The ACDC is FSCs view of your accountability on any given day. (It is much like a bank
statement).
Your US dollar Accountability appears at the top of the report under currency code 001.
Local currency accountability appears in the second half of the report under your countrys
currency code.
Notice, this report shows one increase and one decrease to the LCU accountability.

The ACDC will be reconciled once a week by your Cashier. As transactions appear on the
ACDC, they will no longer appear as In-transit on you 365 Report.

Second-The Administrative Officer Enters the Cashiers Office.

1. Verify Lines 01 and 02 from the ACDC report
2. The Cashier opens their safe and gathers cash and other monetary
documents (monetary documents include interim receipts,
reimbursement checks, other checks and general receipts.)
3. Count the cash, interim receipts, checks and deposits and enter on the
Excel spreadsheets for lines 17, 19, 22 and 23. Check if any interim
receipts are more than five days old.
4. Verify other on-hand items from the 99 report against actual
paperwork. Then check off on the 365.
5. Verify In-transit items from the 99 Report (lines 05-12) against
copies of actual paperwork. Check if any items are older than 30
days.
6. Check lines 25, 26, and 30, if they contain an entry.
7. Confirm that all lines with an entry on the 365 have a check mark.

Final Step
While still in the Cashiers office enter the totals for lines 17, 19,
22 and 23 into FORPost.
Here is an example of the FORPost screen where you will enter
the totals:

Print the 365 and 99 Reports.

Print the Cash-on-Hand Screen Shot. Check if it matches actual.
If not, contact your Cashier Liaison for support.
Complete the Verifying Officers Checklist.
Ensure paperwork is complete, has been signed by yourself and the
cashier. See Appendix A for list of documents to be submitted.
Transmit an Electronic Copy to PC/W and FSC. Mail original to
PC/W. Retain two copies at post for AO and Cashier. See Appendix
B for where to submit your documents.

Voila! You are done.

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But wait!

What if my 365 shows a Discrepancy?!

You must explain any discrepancies that appear on line 29 of your 365, either
shortages or overages. Be as specific as possible (include voucher numbers, etc.)

Unexplained Shortages
If you have a shortage that can not be explained, you must immediately contact the
Country Director. Shortages that can not be satisfactorily resolved within 24 hours
must be reported to Peace Corps HQ. Please see OFMH section 13.21 for the
complete process.
Unexplained Overages
Posts with an unexplained overage should contact their Cashier Liaison with
details of the overage and current 365/99 and FORPost cash on hand screen shot.
The Cashier Liaison will assist in researching the overage and, if appropriate, the
Cashier Liaison will provide instructions on creating a collection to the 3220
General Fund.

Rules for the Cash Count

The Cashier should do a daily cash count.
(The AO should request to see and initial the cash
count daily to make sure it is done every day.)
The monthly cash count should be conducted at
the end of business, randomly and without
warning.
The Cashier may not leave until the cash count is
completed.
U.S. and foreign currency must not be co-mingled.
Funds and paperwork that are not part of the
imprest fund must not be kept in the cashiers safe.
YOU HAVE NO FRIENDS DURING THE CASH
COUNT!

Two to three months after arriving at Post, contact FOR Post Support
(forpost@peacecorps.gov) to request the link to the FOR Post Training for
Cashier Supervisors. It is important that you have done a couple 365
verifications before taking this class. Do not share this training with your
Cashier, as it includes supervisor imprest controls.
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Appendix A
How can I tell if my submission is complete?
The Cashier and Verifying Officer must sign and date several forms. Additionally, the Post
name (or Cashier Code) should be written on each page of the documentation. A complete
submission has the following forms in the order listed:
1. Cashier Reconciliation Statement (ACS-365) (FOR Post Generated)
2. List of Items on Hand and of Transmittals in Transit (PC-99 Form) (FP Generated)
3. FOR Post Cash on Hand Screen Shot (FP Generated) (print separately, this form does not
print out with the pc-99 form).
5. Line 17 Spreadsheet-Cash Count Spreadsheet (currency denominations)
6. Line 19 Spreadsheet-List of Cash Advances to a Sub-cashier and/or Interim Receipts (names,
dates, amounts).
7. Line 22 Spreadsheet-List of Checks/Deposit Slips Not Yet Sent to HQ
8. Line 23 Spreadsheet-List of Checks from Accommodation Exchanges
9. ACDC Report Used to Reconcile (E-mailed from HQ)
10. Bank Statement and Copy of Bank Register Used to reconcile if you have a pass-thru
account. Bank Statement and Copy of Bank Register Used to reconcile if you have a passthru account. Bank Statement and Copy of Bank Register Used to Reconcile and SF1149 if you have a checking account.
11. Monthly Checklist for Verifying Officer (Pages 12-15 to 12-20) (Manually Generated)

If there is a difference on Line 29 of the ACS-365, the reason for the difference must be clearly
explained in as much detail as possible. If need be, please use a separate sheet of paper to
explain why the reconciliation is out of balance.
Appendix B
Where do I submit this document?
Once completed, the documentation should be transmitted as follows:
1. Original document mailed to PC/Washington (Overseas Cashier Liaison).
2. A copy should be retained both by the Cashier and by the Administrative Officer at Post.
3. The complete document should be scanned and emailed as follows:*
a. To the Overseas Cashier Liaison at PC/Washington.
b. To the Cashier Monitor at either FSC Bangkok, Paris or Charleston.
*This documentation should be transmitted within 24 hours of completion to both PC/Washington and FSC
Bangkok/Paris or Charleston. The scanned document must be both legible and complete.
If it is not possible to scan and email this documentation, please send a fax to both PC/Washington and
FSC/Bangkok/Paris or Charleston. The faxed document must be both legible and complete.