Segregation of Duties
Overview
Segregation of Duties is the idea or concept of separating tasks between various stakeholders to ensure that no single person is responsible for an entire process. Segregation of Duties (or SoD) is an essential element of a control system. Auditors will look for duty segregation as part of their analysis of an entity's system of internal controls. LeaseAccelerator offers a variety of workflows that may be turned on or off by our clients to allow for this type of control, adding steps to ensure the separation of tasks.
These workflows create a final approve/reject step in the user interface (UI) after completion of the action, such as entering, booking, and classifying a new lease or modification, recording an asset event, or doing some bulk imports. A preparer is responsible for actions leading up to the approve/reject step and then an approver will be able to review and either approve or reject the new lease, modification, or asset event.
Download a PDF version of the guide.
Available SoD Workflows
LeaseAccelerator offers the following workflows that enable a segregation of duties:
New Deal Workflows
Enter Schedule (UI)
Enter Schedule (PIW Import)
Modify Deal (UI)
Modify Deal (MDIW Import)
Record Asset Event Workflows
Record Asset Event (UI)
Record Asset Event Bulk Import (RAE)
Payment Adjustment Workflows
Payment Adjustment (UI)
Payment Adjustment Bulk Import (PIW)
Segregation of Duties Workspace
Within the user interface, clients have the ability to turn on/off individual approve/reject workflows as necessary. The workspace includes options for all of our current approve/reject workflows, including lease origination, deal modifications, and end of term. Since all segregation of duties workflows are optional, the default system behavior will have the features turned off.
Visibility of the Segregation of Duties workspace is restricted to Power Users and System Admin Users. Custom access levels may be granted visibility by submitting a Support case.
New Deal Workflows
New deal workflows enable a final approve/reject step after the entry of a lease. You can turn on the workflow (either UI or import) for new deals and modifications by checking the appropriate box and clicking Save.
When a preparer (typically an Accounting Analyst) enters a new deal, an Accounting Approver will need to approve or reject the deal before it becomes active.
When a specific workflow is checked, you’ll see text reminding you that this workflow will require a separate approver for any schedules entered through the specific workspace or import.
Record Asset Event Workflows
These workflows enable a final approve/reject step after the entry of an EOT event, either through the UI or with a bulk import. You can turn on the workflows for all EOT events by checking the appropriate box and clicking Save.
When a preparer enters a new event, either via the UI or with a bulk import, an Accounting Approver will need to approve or reject the event before it becomes active.
Additional Information
When the workflow is on, users that are neither an “Accounting Analyst” nor an “Accounting Approver” will only be able to enter, book, and classify (as allowed by permissions) and will not be able to approve a lease. This applies to Power Users, as well.
Deals created prior to turning on the workflow will not be eligible to go through the approve/reject workflow when it is turned ‘on’.
Likewise, deals created when the workflow is on and are in Incomplete or Pending Approval status, must proceed through the approve/reject workflow even if the feature is turned ‘off’.
When the MDIW import workflow is turned ‘on’, any modifications coming in via API will also go through the steps for approve/reject.
You may only make changes to one section at a time and must click Save in the appropriate section.
There is no bulk approval at this time.
Payment Adjustment Workflows
These workflows enable a final approve/reject step after the entry of a payment adjustment event, either through the UI or with a bulk import. You can turn on the workflows for all payment adjustment events by checking the appropriate box and clicking Save.
When a preparer enters a new payment adjustment, either via the UI or with a bulk import, an Accounting Approver will need to approve or reject the payment adjustment before it becomes active.
Additional Information
Users may not record additional payment adjustments when there are payment adjustments pending approval. A message will appear in the Payment Adjustment workspace stating there is a pending payment adjustment that must be approved before another may be recorded.
Users may not import additional payment adjustments for any deal when there are pending adjustments awaiting approval. A validation error message will result, and import will be prevented.
Workflow Requirements
Access Level Assignment
Lease entry (via UI or bulk import), along with recording asset events (via UI) can be done by users with permission to enter deals and record asset events. Lease booking and classification can be done by users with permission to book and classify deals. Please review the Access Control Matrix to determine which Access Level works best for your business.
Approval of new leases entered, or recorded asset events will be restricted in different ways, depending on the Access Level of the user with approval privileges.
The workflow can be completed (or performed) by users with existing Access Levels as stated above. However, a new Access Level of Accounting Reviewer provides the strictest control for segregation of duties.
A user with this access is only allowed to view deals and approve/reject deals that are Incomplete or Pending Approval. Users are still limited by Scope of Access and Scope of Ledgers.
Additional Information
This is a view-only Access Level similar to the Observer/Monitor, but with the added ability to approve and reject deals.
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When a user with this level is reviewing a deal for approval, they will have rights to view:
Deal History
Deal Summary
Schedule
Asset Management
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This Access Level has access to the following:
“Approve Deal” To-Do in Deal History
“Approve / Reject” To-Do in Deal Summary, Summary
Approve/Reject workspace
This Access Level will not see any ‘day two’ event options in the Record Event cascading menu.
Reporting access is granted to all reports by default and is limited by Scope of Access and Scope of Ledgers. Report access can be edited by a Power User.
Configuration Settings workspace access is granted with view-only permissions.
The Accounting Reviewer level is able to see deals that are not in need of approval (e.g., active deals), but a user with this level can only view the deal characteristics they cannot make changes.
Can Act As Lessee Roles
Can Act As Lessee Roles are critical to the correct function of these workflows.
The following Can Act As Lessee Roles are required to be assigned to any user that will enter or approve deals and/or asset events using the workflow:
Accounting Analyst – user is going to be entering deals via Enter Schedule.
Accounting Approver – user is going to approve/reject deals via Enter Schedule.
Only one of these Lessee Roles can be assigned to a single user. If a single user has both of these Can Act As boxes checked, they will not be able to perform any steps in the workflow process. One of the boxes must be unchecked if the new workflow is to be instituted.