Back to Questions
System of Financial Control and Budgeting QUESTION #5644
Question 1
Under the GFR principles enforced by the PAO the principle of 'Prudence' requires that expenditure must not be prima facie more than the occasion demands. A government servant incurs lavish hospitality expenditure at a public function claiming it is within the budget allocation. Which principle is MOST directly violated even if funds are available?
  • Limitations — because actual expenditure may approach the budget allocation
  • Prudence — because every government servant must exercise the same vigilance over public funds as a person of ordinary prudence would over their own money✔️
  • Public Advantage — because the expenditure benefits a section of the community
  • Propriety — because high standards of financial propriety require formal approval
Correct Answer Explanation
Prudence directly applies: expenditure must not be prima facie more than the occasion demands and every government servant must exercise the same vigilance over public funds as a person of ordinary prudence would over their own money. Lavish hospitality directly contradicts this standard even if within budget.