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System of Financial Control and Budgeting QUESTION #5635
Question 1
A Principal Accounting Officer (PAO) approves an expenditure that falls outside the scope of any Grant or Appropriation. It is neither covered by a Supplementary Grant nor a Technical Supplementary Grant. Under the System of Financial Control and Budgeting what is the legal status of such expenditure?
  • The expenditure is valid if approved by the Financial Adviser
  • The expenditure is treated as unauthorized✔️
  • The expenditure can be regularized by the PAO if within delegated powers
  • The expenditure is automatically absorbed in the next budget cycle
Correct Answer Explanation
Any expenditure in excess of the Grant or Appropriation amount or that falls outside its scope and intent is treated as unauthorized unless regularized by a Supplementary Grant or Technical Supplementary Grant.