Segregation of duties and delegation of financial and administrative authority are essential controls within the procurement cycle. Together, they ensure the integrity of the process by reducing exposure to inappropriate or unauthorized expenditure.
Segregation of duties
There are five procurement functions that require segregation from the activities of the staff conducting the procurement:
- definition of needs
- budget approval
- contract approval
- receipt of goods or services
- payments.
Ideally, UNAIDS offices should segregate at least three of these functions, one of which must be payments.
In addition, the staff member conducting procurement shall, to the extent possible, not be the same individual who is the procurement requestor. Where these functions cannot be separated, the staff conducting procurement shall document that the preparatory phase of the procurement action, including the definition of requirements, was concluded before the start of the purchasing action.
Delegation of authority (DOA)
Delegation of financial and administrative authority, including the relevant provisions for procurement, is the framework for ensuring necessary accountability.
The delegation of financial and administrative authority shall be in writing, and it must make specific provisions for assigned responsibilities. Individuals with a DOA should seek clarification that may be needed for them to exercise their responsibility, and they should request appropriate capacity building and support as required.
The delegation of financial and administrative authority for review and award of contracts is provided to staff at different levels with relevant threshold values.
The delegation of financial and administrative authority can be revoked in any instance where the terms of this delegation have not been followed.
Further delegation of financial and administrative authority is granted by the UNAIDS Executive Director. Individuals granted delegation of financial and administrative authority cannot delegate it further; however arrangements to delegate 'horizontally' with colleagues who already have financial authority within the Branch, Department or RST, or 'upwards' as appropriate, in case of absence is permitted.