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System of Financial Control and Budgeting QUESTION #5650
Question 1
A PAO sanctions expenditure without consulting the Financial Adviser on a matter that falls within the delegated field. The CFAO disagrees with the decision but the PAO overrules him. Which statement BEST describes the legal and procedural position?
  • The CFAO's objection invalidates the expenditure sanction
  • The PAO may overrule the CFAO and record reasons but the expenditure within delegated powers remains valid; however the CFAO's advice may not be disregarded for non-delegated matters✔️
  • Since CFAO works under the PAO the PAO's sanction is always final without any need to record reasons
  • The CFAO must refer the matter to the Financial Adviser automatically to protect himself
Correct Answer Explanation
The PAOs may exercise delegated powers without consulting the Financial Adviser. The CFAO may however be consulted where considered necessary or advisable. His advice can however be over-ruled by the PAO who may record reasons for overruling the advice. This applies to the delegated field. In the non-delegated field matters must go through proper channels.