Management Minute: How Segregation of Duties Safeguards Federal Funds
William Maes: Segregation of duties is an internal control which requires multiple people to perform a task. There are two goals:
The first goal is to reduce the opportunity for fraud by having more than one person involved in a transaction. It's easier to detect wrongdoing and more difficult to get a group of people to agree to a crime.
The second goal is to reduce the chance of error in data. A strong internal control system has several people entering and reviewing transactions, so data has a higher level of integrity.
Segregation of duties will support a strong fiscal management system and reward you with good audit outcomes.Close
Learn how segregation of duties safeguards federal funds by reducing opportunities for fraud and errors in data collection. Learn more about segregation of duties and other best practices in the iPD course Financial Essentials 4: Internal Controls, Closeout, and Reporting.