CHSCM 3.0 - Unit 1 - SCM in the Humanitarian World

Segregation of duties is defined as the appropriate division of tasks and responsibilities,
such that no one person controls a process from beginning to end, and that transactions
are reviewed independently at various points during the process. It is a ‘checks and
balances’ approach, designed to easily identify errors, discrepancies, and fraud.
Individuals assigned to the various tasks in a process should be independent from each
other in both function and relationship.
SOURCE: Mercy Corps – Field Finance Manual
Segregation of duties is essential to successful operations and should be reviewed regularly, as well
as when establishing the project implementation team. Early involvement of Supply Chain in the
project cycle will help ensure that segregation of duties is applied appropriately, in particular to
procurement processes and supplier relationship management.
Key areas to review are:
• Payment approval, processing, and reconciliation
• Identification, tendering, and contracting of suppliers and service providers
• Asset management and inventory
Mercy Corps uses a Segregation of Duties Matrix tool that makes it easy to review tasks and assign
responsibility to available personnel. The tool includes key activities on the left as rows, and
available personnel across the top as column headers. Note: the below picture is an excerpt, not the
full matrix.
Personnel availability, experience and skill sets, as well as job responsibilities will be different for
every project implemented. Organizations may have policies identifying which staff member should