Internal Control System (Segregation of Duties and Responsibilities, Level of Authority) Facilitate by: Mr. Meas Kheang Administration and finance Manager Cambodian Center for Independent Media (CCIM)

Contents: 1. Definition of segregation of duties and responsibilities. 2. Objective of segregation of duties and responsibilities. 3. Levels of authority

Definition: SEGREGATION OF DUTIES AND RESPONSIBILITIES Segregation of duties is crucial to effective internal control. It reduces the risk of both erroneous and inappropriate actions. It can help to prevent fraud. When it is extremely difficult to separate these functions, a detailed supervisory review of related activities or transactions is required as a compensating control activity.

Objective: SEGREGATION OF DUTIES AND RESPONSIBILITIES To ensure proper separation of duties, a person should never approve a transaction for which they are the payee. To ensure the appropriateness of the segregation of duties.

SEGREGATION OF DUTIES AND RESPONSIBILITIES (Cont) The following action should be considered dividing - Authorities to endorse, check and approve transactions are clearly defined and stated; - Responsibilities for authorizing transactions, recording them and handling the related asset are divided;

SEGREGATION OF DUTIES AND RESPONSIBILITIES (Cont) - Where feasible, no one individual is allowed to work alone with cash or other highly vulnerable assets; and - Bank accounts are reconciled by staff that have no responsibilities for cash receipt, disbursement, or custody.

LEVELS OF AUTHORITY - Authority and responsibilities are clearly assigned throughout the organization and this is clearly communicated to all employees; - Responsibilities for decision making are clearly linked to the assignment of authority, and individuals are held accountable accordingly; - Appropriateness of control-related standards and procedures, including employee job descriptions.

Thank you for no question!