Depending on the cost of the item, this may include seeking competitor information from various sources of the item, with regards to price, quality and reliability and accessibility of vendor support. Orders for such items should be handled using the purchase requisition procedure. There should be a division of duties and responsibilities so that no person has complete control over all aspects of a financial transaction. Segregation of duties means that different people should be responsible for the authorization of transactions, recording of transactions, and the physical custody of assets. Segregation is adequate when no one person can misappropriate assets or improperly record or account for transactions without reasonable assurance of detection by another person.
Segregation of duties helps detect errors in a timely manner and deters improper activities.
If a person who approves requisitions or negotiates contracts also reconciles the UFAS statements, an improper requisition submitted by that person or an inappropriate contract negotiated by that person might not be detected. University policy requires additional processes and approvals as the amount of the purchase increases. For example, approval of the Board of Trustees is required for certain purchases and purchases in excess of established dollar amounts. Procedures should be in place that provide assurance that a single purchase is not divided into multiple purchases to avoid the control afforded by these additional reviews and approvals. This segregation of duties helps ensure that no one person can misappropriate assets or improperly record or account for transactions without reasonable assurance of detection by another person.