Loss or shortage of public funds is depletion in government funds at a given time.

Enumerate SIX sources through which loss of funds may arise in the public sector.

The six sources of loss of funds in the public sector include:

  1. Misappropriation of Funds:
    Public officers may misuse or divert public funds for unauthorized purposes, leading to significant financial losses.
  2. Falsification of Records:
    Creating fraudulent records to cover up financial discrepancies, making it difficult to track actual fund usage.
  3. Conversion of Funds to Personal Use:
    Public officials may convert public funds to their own use, depleting the available government resources.
  4. Fraudulent Payments:
    Payments made based on forged or incorrect documentation, such as paying non-existent vendors or inflated contracts.
  5. Theft:
    Physical theft of cash, vouchers, or assets that were meant to support public services or operations.
  6. Negligence:
    Failure to properly monitor and manage financial transactions, leading to inadvertent losses due to untracked expenses or uncollected revenues.
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