Which item is NOT part of a sound financial management system?

• A. Extensible to include personal investments of staff
• B. A means to safeguard assets
• C. Reliable bookkeeping and reporting
• D. Adherence to laws and policies

Answer: (A)

A sound financial management system focuses on protecting resources, keeping accurate records, and following rules and policies. Safeguarding assets is a core control—things like segregation of duties, restricted access, and regular reconciliations help prevent theft or errors. Reliable bookkeeping and reporting provide accurate financial information that decision-makers rely on. Adherence to laws and policies ensures compliance, governance, and accountability. Extending the system to include personal investments of staff would mix personal finances with organizational controls, creating conflicts of interest and privacy concerns, and is not part of how a financial management system is intended to function.