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System of Financial Control and Budgeting QUESTION #5641
Question 1
A government servant exercises re-appropriation powers to move funds from a Development scheme to meet Current Expenditure of his Ministry without the consent of the Financial Adviser. Which TWO prohibitions does this simultaneously violate?
  • It violates the rule against re-appropriation from one grant to another and the rule against re-appropriation from Development to Current Expenditure✔️
  • It violates only the rule against re-appropriation without Financial Adviser consent and the Prudence principle
  • It violates the Purpose principle under GFR and the Limitations principle since it will exceed Current Expenditure allocation
  • It violates the Rules and Regulations principle and the Public Advantage principle under GFR
Correct Answer Explanation
Two explicit restrictions apply simultaneously: (1) No re-appropriation may be made from Development to Current Expenditure and vice-versa and (2) without the previous consent of the Financial Adviser/Finance Division an authority may not meet by re-appropriation expenditure it is not empowered to meet by appropriation.