At LGO, the segregation of duties in bank reconciliation involves different individuals handling various aspects of the reconciliation process:

1. Preparer: This person is responsible for compiling the bank statements, reconciling them with the NGO’s financial records, and identifying any discrepancies.
2. Approver: A separate individual, such as a finance manager or director, reviews and approves the reconciliations prepared by the first person. They ensure that the reconciliation is accurate and complete before further action is taken.
3. Reviewer: A third party, such as a board member or an external auditor, independently reviews the reconciliations to provide an additional layer of oversight and assurance.

By assigning these distinct roles to different individuals, the NGO can minimize the risk of errors, fraud, or unauthorized activities in the bank reconciliation process.