Misuse of Funds

Misuse of funds occurs when money that was allocated for a specific purpose—such as a project, organization, or program—is used improperly or for unintended reasons. This can include spending on personal expenses, diverting funds without approval, or not following established guidelines. Such actions undermine trust, can lead to financial loss, and may be considered illegal or unethical. Ensuring proper use of funds involves transparent, accountable management to meet the intended goals and meet legal and organizational standards.