The categories of loss to which this part relates are

(a) Cash deficiency which is a deficiency of cash or other negotiable instrument, whether it arises from a simple cash shortage or from the use of fictitious entries or vouchers to conceal the existence of a deficiency.

(b) revenue losses which may arise from

  (i) uncollectable revenue when debts due to government cannot be collected by reason that the debtor cannot be traced or is insolvent; and

(ii) loss of revenue, arising from failure to assess or collect in circumstances which preclude subsequent assessment or collection, and include any loss of interest caused by delay in making payments into the appropriate public funds or from the making of irregular advances.

(c) expenditure losses which may arise from

(i) irrecoverable overpayments, when an excess payment has been made by error and recovery cannot be effected because the recipient cannot be traced or is otherwise incapable of making repayment;

(ii) nugatory payments, which arise in circumstances such as, the incurrence of a penalty in which government has been legally obliged to make payment, but for which no corresponding receipt of goods or services has been derived;

(iii) improper  payments  arising  from transactions that are contrary to law, but which do not involve any offence under the criminal code, and which have been declared to be improper under regulation 229 and include cases of gross waste or extravagance;

(iv) excess expenditure, which is a special case of Improper Payment which arises when payments have been made in excess of approved estimates without the prior authority of Parliament; and

(v) fraudulent payments which arise from transactions which involve a breach of the criminal code, by the use of falsified documents or certificates to steal money or other property belonging to the state.

(d) Store and Equipment Losses which may arise from

(i) deficiencies, including fraudulent issues from stock and issues without proper evidence of use;

(ii) damage or deterioration of goods in stock; and

(iii) loss by accident in so far as they relate to equipment and stores in use.

(e) Financial Losses which may arise from

(i) irrecoverable advances and loans when moneys due to government cannot be recovered by reason of a debtors default and include default on Government Guarantees; 

(ii) irregular advances and loans when money cannot be recovered because government cannot establish a claim against any person or institution, as in the case of expenditure wrongly charged to advances, or advances and loans made without agreement for recovery;

(iii) reduction of financial asset where the value of any financial asset has to be reduced by reason of failure or capital restructuring of an enterprise.

(iv) losses on sale of securities where the losses are aggregated with gains over the financial year, and any net loss is written off at the end of the year. 

(f) Miscellaneous Losses which may arise from

(i) loss of Value Books dealt with as laid down in Part VIII of these Regulations  

(ii) the loss of safe keys of any government safe or the compromise of any combination lock

(iii) the cost of altering locks and providing new keys or combinations

(iv) the value of any missing items from the safe

(v) irrecoverable claims dealt with as laid down in these regulation.