PURCHASES - 8123.2

Agencies/Departments with field operations where normal payment methods, particularly cash purchase funds, are difficult to maintain or impractical to use, may use the bank draft system.

Agencies/Departments may use bank drafts for purchases that have all of the following conditions:

1. Immediate payment is necessary.
2. Purchase is an over-the-counter transaction.
3. The vendor is reluctant to accept a purchase order or unable to accept the Department of General Services CAL-Card.
4. Alternative payment methods (e.g., the cash purchase fund or the revolving fund) are not available.
5. The dollar amount of the purchase is $500 (inclusive of taxes) or less. The Department of Finance, Fiscal Systems and Consulting Unit (FSCU) may approve an increase in the limit.

The following are improper uses of bank drafts:

1. Paying for multiple invoices and credit card purchases.
2. Mailing bank drafts to vendors.
3. Using bank drafts to avoid the use of purchase orders.
4. Allowing headquarters’ accounting personnel to use bank drafts.
5. Splitting purchases to avoid the $500 limit or other FSCU approved limits.

Renumbered from 8124