SEPARATION OF FINANCIAL ADMINISTRATIVE DUTIES
Effective: June 1, 2000
Departmental management is responsible for assuring that financial administrative duties indicate clear lines of authority and responsibility. These duties are to be segregated so that one individual's work routinely serves as a compensating check on another's work. No one individual should have complete control over a financial transaction. Standards for separation of duties shall be implemented to the maximum degree possible.
When full separation of duties is considered not practical or feasible, (i.e. due to limited departmental staff) the variance from the standard and appropriate compensating controls must be documented in writing and approved by the college or division business officer.
Clear lines of authority and responsibility must be established in order to segregate, where practical, the various steps of a transaction. An expenditure transaction consists of initiation of the purchase, receipt of goods, preparation of the payment voucher, authorization of the voucher, month-end reporting and reconciling. A revenue transaction consists of initiation of the sale, invoicing for the sale (if charged), collection and receipting of the funds, depositing the funds, month-end reporting and reconciling.