In response to the Cabinet's resolution concerning procurement regulation and storehouse management in federal government, to the requirements of flexibility in the permanent imprest system, and in accordance with federal entities’ recommendations, a circular was issued by the Minister of State for Financial Affairs, addressing the under secretaries and general directors working in federal entities.
Permanent imprest involves entrusting an employee with petty cash for procurement and paying for urgent daily services. Petty cash will be replenished after a certain period of time with the amount spent at a minimum of 25% of the total value each time.
Only one imprest shall be granted to each federal entity at the beginning of the fiscal year, upon request of the Assistant Under Secretary for the affairs of institutional and supportive services, the CEO, or their delegate. The request shall include the amount of the imprest, which is deposited into the ministry’s bank account according to the rules of opening and closing bank accounts in the UAE.
The Assistant Under Secretary shall issue an internal decision determining the name of the treasurer(s) and the persons authorised to approve disbursements. An inventory shall be made at the end of the fiscal year and the imprest shall be circulated in the inventory records. Moreover, periodical inventories shall be made at the end of every month, as well as at any time during the year without prior notice.
The circular specifies disbursement rules, the amounts allowed to disburse from the fund, procedures, documents, allocations and signatures required in each case.
This is a temporary imprest for a specific purpose, and is subject to the availability of funds appropriated to the relevant budget items. This imprest must be requested in a letter from the relevant minister if it is AED 5 million or more. The request should include the value of the imprest needed, the name of the person responsible for it, as well as the purpose and objects of expenditure in detail. The imprest shall be settled once the purpose has been fulfilled and permanently closed within 30 days of its fulfilment.
In general, public funds may not be disposed of except as may be required in the public interest, and the purpose of imprest.
Financial Circular No. 11 of 2015 - Concerning permanent and specific imprests for ministries and federal entities