Separation of Duties

Separation of duties for routine bookkeeping and other accounting functions are imperative. Although a charity pharmacy may have a small staff size, accounting policies should require that financial tasks be spread across multiple staff members or volunteers. For example, incoming mail may be received and opened by an office manager or administrative designee. Incoming bills and outgoing invoices could be reviewed and signed by the executive director or board treasurer. The bills and invoices will then be posted to the accounting records by an accountant or another staff/volunteer. Any outgoing payments will require the signature of the executive director, board treasurer, or both. Separating financial duties across multiple staff or volunteers eliminates opportunity for fraud or errors, as all as provides a layer of protection to staff or volunteers in the event an error or misdeed is identified. See Appendices\Finance for examples of financial policies adopted by other charity pharmacies.