If you sign a payment that results in an erroneous payment, what liability applies?

• A. Administrative penalties only
• B. No liability
• C. Pecuniary liability
• D. Criminal liability automatically

Answer: (C)

The key idea is that accountable officials bear financial responsibility for disbursement errors. When you sign a payment that ends up being erroneous, you are expected to have exercised due care to prevent that loss. If the payment goes out incorrectly, pecuniary liability means you may be required to reimburse the government for the amount of the erroneous payment or overpayment. This is a monetary obligation tied to safeguarding government funds. Criminal charges or administrative penalties can apply in certain circumstances (such as fraud or willful misconduct), but they are not automatic for every erroneous payment; the default remedy in this situation is financial liability to recover the loss.