- 9 Marks
Question
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.
Answer
The six sources of loss of funds in the public sector include:
- Misappropriation of Funds:
Public officers may misuse or divert public funds for unauthorized purposes, leading to significant financial losses. - Falsification of Records:
Creating fraudulent records to cover up financial discrepancies, making it difficult to track actual fund usage. - Conversion of Funds to Personal Use:
Public officials may convert public funds to their own use, depleting the available government resources. - Fraudulent Payments:
Payments made based on forged or incorrect documentation, such as paying non-existent vendors or inflated contracts. - Theft:
Physical theft of cash, vouchers, or assets that were meant to support public services or operations. - Negligence:
Failure to properly monitor and manage financial transactions, leading to inadvertent losses due to untracked expenses or uncollected revenues.
- Tags: Financial management, Fraud, Losses in Public Sector, Misappropriation, Public Funds
- Level: Level 2
- Topic: Government Expenditure
- Series: NOV 2016
- Uploader: Kwame Aikins