Read the following description of a sports club. Which features of good internal control seem to be missing? Are any of those features offset by strengths in other areas?

The club earns revenue from members' fees, selling tickets to its games and advertising in its programs. Advertising receipts are mainly by cheque. Other receipts are primarily cash, with an increasing percentage by credit card. Most expenditures are in cash, except for equipment, facility rentals and the three employees' pay, which are all done by cheque. One employee does some coaching, schedules games and coordinates players and officials. The second employee (who is married to the first) looks after equipment, prepares rental facilities for games, makes travel arrangements and does various miscellaneous jobs. The third employee looks after cash, payroll and accounting. The club's board of directors meets monthly and always has monthly (or annual) financial reports to scrutinise. All three employees are members of the board, and other board members rely on them.

The club has a rented office/storeroom where all employees work most of the time, and where all the club's equipment and various supplies are stored. Cash, cheques and credit card slips are deposited into the bank every two weeks, and payment cheques are issued as needed. Cash expenses are paid out of cash collected from members' fees and ticket sales, so often there is not enough cash to bother depositing. Sometimes there is not enough cash to pay cash expenses, in which case the third employee, who is authorised to sign all cheques, just writes a cheque to 'cash' and cashes it at the nearby bank where the club's bank account is maintained. The board of directors discusses all major trips, equipment purchases and other large expenditures in advance and gives general approvals (or denials) to the employees, who then look after the details.