Coe 707.5R2
Segregation of Duties Procedures
General internal control principles for the Central Office are:
1. Separation of duties
a. Duties are separated so that one person's work routinely serves as a check on another's work.
b. No one person has complete control over more than one key function or activity (e.g., authorizing, approving, certifying, disbursing, receiving, or reconciling).
2. Employees must understand their own roles in the internal control system, as well as how individual activities relate to the work of others. To this end, whenever a new budgetary unit, financial activity, research project, etc. is set up, the Controller will provide notification to the appropriate parties of the responsibilities incumbent on them for good business practices and sound financial management, including reference to the principles within this policy.
3. Authorization and approval
a. Proposed transactions are authorized when proper and consistent with District policy and the department's budget and plan.
b. Transactions are approved by the person who has delegated approval authority, which is usually delegated based on special competency or knowledge and supervisory position.
4. Custodial and security arrangements
a. Responsibility for physical security/custody of District assets is separated from record keeping/accounting for those assets.
b. Unauthorized access to District assets and data is prevented.
5. Timely and accurate review and reconciliation
a. Departmental accounting records and documents are examined by employees who have sufficient understanding of school accounting and the Districts financial accounting software to verify that recorded transactions took place and were made in accordance with District policies and procedures.
b. Departmental accounting records and documentation are compared with the District’s accounting system reports and financial statements to verify their reasonableness, accuracy, and completeness.
6. The general internal control principles should be applied to all departmental operations, especially accounting records and reports, payroll, purchasing/receiving/disbursing approval, equipment and supply inventories, cash receipts, petty cash and change funds, billing and accounts receivable. All District systems, processes, operations, functions, and activities are subject to evaluations of internal control systems. The results of these evaluations provide information regarding the District’s overall system of control.
7. Information and communication – information must be timely and communicated in a manner that enables people to carry out their responsibilities.
Approved: 10/14/2020, Reviewed: 9/13/2023, Revised: