The Importance of Delegation of Authority and Segregation of Duties

Do you know what “Delegation of Authority” means?  Does your company have a Delegation of Authority (DOA) policy? 

In this course, you learn the importance of a DOA policy, what it should cover, and how such a policy affects operations across the company, not just Accounts Payable.  Recognize the benefits of documenting the approval limits by job title as well as the steps one should take before approving any document.  Explore the details that should be supplied when approvals are applied, whether by manual signature, email or through a workflow system. Recommendations for formatting this policy and some tips on managing the content and distribution will also be covered.

Just as important and in some ways related, a company should consider a Segregation of Duties (SOD) policy.  For example, should a person who is able to create Purchase Orders also be able to manage the Vendor Master?  Reduce the possibility of risk and protect your employees from the appearance of impropriety.  Additionally, having a SOD policy may reduce the need for dual approvals or the application of the “Four-eye” rule.

Finally, learn how to weigh the pros and cons when creating and applying these policies in order to reduce delays in processing volumes of small dollar amounts or recurring transactions.  Discover what to consider when establishing an acceptable tolerance for price variances, freight billed on invoices, utility costs, etc.

Creating or modifying existing policies can be time consuming but just one small change can save time and reduce risk in the long run.