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System of Financial Control and Budgeting QUESTION #5639
Question 1
A PAO is overruled by his Minister on a financial matter that the PAO considers inconsistent with his duties as Principal Accounting Officer. What is the CORRECT course of action according to the O.M.?
  • The PAO must comply since the Minister has higher authority and accountability transfers to the Minister
  • The PAO must record the disagreement but is personally answerable before the PAC for all financial decisions regardless
  • The principle of personal answerability shall not apply to the PAO in such a case and the PAO should submit the case to the Minister explaining the inconsistency✔️
  • The PAO must refer the matter to Finance Division immediately before complying
Correct Answer Explanation
The principle of personal answerability shall not apply where a PAO has been over-ruled by the Minister on a matter of importance affecting the financial administration of his Ministry/Division. The PAO should not hesitate to submit the case to the Minister explaining how the action is inconsistent with his duties.