Campaign Manager

You are leading a campaign to influence the government to improve the health care system. Your funding is limited and you try hiring people who are committed to your cause and will work for less. A systems analyst recently volunteered her services and put together a web strategy to attract supporters. She also strongly encouraged you to force all employees to take at least one week of vacation per year. Why does she feel so strongly about a forced vacation policy?

QS 7-3Internal controls for cash LO3

The treasurer of a local not-for-profit organization was found guilty today of defrauding the organization of thousands of dollars. Among the individual's many responsibilities were the recording of cash deposits, the writing of cheques, and the preparation of the bank reconciliation. A member of the organization suspected wrongdoing when the treasurer reported total cash collections of $2,800 regarding the sale of nonsequentially numbered raffle tickets; the member submitted $1,600 to the treasurer and knew that other members had collectively sold in excess of $3,000. The police were consulted and an investigation revealed that not only had the treasurer pocketed an undisclosed amount of cash over a two-year period but also had made cash withdrawals from the bank and destroyed the debit memos when returned with the bank statement.

Required

Identify three weaknesses of how cash is handled. For each weakness, explain the implication of the weakness and make a recommendation to the organization for the future.