Segregation of Duties
Office of Origin: Finance
Date Adopted: 04-28-15
Date Reviewed: 04-28-15, 11-20-17, 1/23/18
Last Date Modified & Approved: 04-28-15, 11-20-17, 1/23/18
Segregation of duties is an internal control concept that requires different people to complete different parts of a task to reduce the risk of erroneous and/or inappropriate actions that could result in loss or misappropriation of the assets of Lake Michigan College (the College).
This policy applies to all managers and supervisors that interact with financial systems at the College.
Managers and supervisors must consider the whether duties are appropriately segregated when designing and defining job duties and when authorizing user accounts in Banner.
Managers and supervisors must adhere to existing approved processes or must design and implement new processes and control procedures that, to the extent feasible, segregate duties among employees and that include effective oversight of activities and transactions.
Maintaining segregation of duties can be challenging for areas with a small number of employees. When critical functions cannot be segregated, more reliance must be placed on compensating controls, such as managerial review. In these situations, approval of lack of segregation of duties and use of a compensating control must be approved by the Director of Finance in advance.
Responsibility: Chief Financial Officer