Embezzlement at the Grandview Community Recreation Association

Introduction and Background

As a senior accounting student at Grandview State University (a fictitious university), you have been selected to join a new initiative based on your interest in forensic accounting. This new initiative, described as the Fraud Service Project (FSP), is a collaborative effort between the accounting department at your university and the Grandview Police Department (PD). The FSP provides free forensic accounting services to small not-for-profit organizations in the Grandview community that believe that they may have been victims of fraud. Student volunteers, under the supervision of their faculty advisors, assist the Grandview PDs fraud unit in the investigation of possible fraud. The responsibilities of the student volunteers and their faculty advisors include meeting with the fraud victims and police detectives, examining relevant documents, and preparing a written report to the Grandview PD. Upon reviewing the written report, the Grandview PD will consult with the county attorney to decide the next course of action. The county attorney could dismiss the case, request further investigation, or charge the alleged fraud perpetrator. Your first assignment for the FSP involves a possible fraudulent situation at a local not-for-profit organization, the Grandview Community Recreation Association (GCRA). As part of this assignment, you and your faculty advisors are invited to attend a confidential meeting at the Grandview PDs headquarters to discuss the GCRA case with police sergeant Brody Carnahan, lead investigator on the case, and two of GCRAs Board members. GCRA is a community-based recreational association that sponsors various youth sports activities in the Grandview community. It was organized as a not-for-profit organization under Internal Revenue Code Section 501(c) (3). As such, GCRA is required to file Form 990 each year with the Internal Revenue Service. The primary revenue source of GCRA is participant fees, usually paid by the parents of the youth who participate in the various sports activities sponsored by GCRA. In addition, GCRA receives two grants from the local government. Expenses for GCRA consist of playing field and office rentals, salaries for two part-time employees (the executive director and the office manager), utilities, insurance, sports apparel, and a variety of sports equipment. To minimize expenses, GCRA relies heavily on volunteers to help with coaching, setting up and tearing down the playing fields, staffing registration booths at sports events, and distributing promotional flyers in the community. The GCRA Board of Directors is comprised of the paid part-time executive director and four volunteers. The current members of the Board are Quentin Macintosh, executive director; Greg Andres, president; Brittney Wheeler, vice-president; Robert Norwalk, treasurer; and Annemarie Karon, Board officer. Jess Daniels, the paid part-time office manager, attends all Board meetings in an ex officio capacity. Members of the Board are tasked with carrying out the general business operation of GCRA. Quentin sets the agendas for the Board, oversees the volunteers, and promotes the associations activities. Greg manages the scheduling of the playing fields. Brittney oversees the training of coaches. Robert handles the associations finances, including filing tax returns and preparing the financial statements. Annemarie assists wherever help is needed. The Confidential Meeting During the confidential meeting at the Grandview PDs headquarters, both Greg and Brittney expressed concerns about GCRAs financial situation. In particular, they were worried about an apparent discrepancy between the cash balance in the accounting record, as reported by Robert, and the checking account balance, as reported on GCRAs bank statement. They also suspect that Robert might have obtained a debit card for GCRAs checking account without the Boards knowledge or approval. In addition, they have concerns about Roberts recent behavior, reporting that he did not attend the last two monthly Board meetings and has not responded to numerous phone calls and email messages in regard to the cash discrepancy. They recalled a Board meeting where Robert complained about not getting paid for all of the time that he was spending on GCRAs business. After discussing the cash discrepancy and Roberts odd behavior with the other Board members, Quentin and Annemarie, they decided to contact the police. To aid with the investigation, Greg and Brittney brought several documents for Sergeant Carnahan, which were then shared with you and your faculty advisors. These documents are presented as Exhibits 1 through 8. Exhibit 1 shows the fee structure for each GCRA-sponsored sport. Exhibit 2 provides the details on the revenues, expenses, and increase in net assets for the year ending October 31, 20X1. Exhibit 3 provides the details on the revenues, expenses, and increase in net assets for the three months ending October 31, 20X1. Exhibit 4 is the accounting record prepared by Robert, detailing the associations transactions from August through October 20X1. Given that GCRA is a small not-for-profit organization, it elects to use the cash-basis method of accounting. Exhibit 5 contains the three most recent bank statements. In addition, several of the associations canceled checks and all of the deposit slips for the three-month period are included in Exhibits 6 and 7, respectively. The approved supplier list for GRCA is in Exhibit 8. The Board of Directors You learn more about the Board of Directors as you start the investigation. The executive director, Quentin Macintosh, started working part-time for GCRA after retiring from a full-time career as a salesperson. A widower, Quentin enjoys spending time with his grandchildren, who are involved in GCRAs baseball activities. The president, Greg Andres, is an attorney with his own law office. He is a married father of three and enjoys volunteering because his children are involved in many of the sports activities. Vice-president Brittney Wheeler is a single mother and grade school teacher with two children, who are in the baseball program. Robert Norwalk, the treasurer, recently married his third wife. He is currently working for a temporary agency, as his previous managerial position with a mid-sized firm was eliminated due to a merger and acquisition. His three children from his previous marriages participated in the sports activities when they were younger. Annemarie Karon, a Board officer, is retired from an administrative job with the city. She wants to be involved because her four grandchildren are starting the T-ball program. Jess Daniels, the paid part-time office manager, attends college full-time. As a teenager, she was very active in soccer and umpire training. The Internal Controls Internal control refers to procedures and policies, as well as certain activities, established by an organization to safeguard assets and records, assign responsibility and accountability, prepare accurate financial statements, and ensure compliance with laws, contracts, and regulations. Many control activities are important, but in the context of GCRA, you decide to focus on two important control activitiesseparation of duties and independent checks on performanceand to determine how these control activities operate at GCRA. To achieve an effective segregation of duties, no one person should have responsibility over authorization, accounting, and custody. Potential problems could arise if one person has control over any two of the preceding functions. At GCRA, the parttime executive director, Quentin Macintosh, and the Board president, Greg Andres, are in charge of authorization. They authorize the payment of checks by performing a brief review of the checks and supporting documentation. Robert Norwalk, the volunteer treasurer, is in charge of accounting. He prepares the monthly accounting documents and the quarterly and annual financial statements, and also files the tax returns. Jess Daniels, the part-time office manager, maintains custody of the checkbook by keeping it locked up when Robert does not need it to write the checks. Quentin conducts independent checks on performance, in a general sense, and addresses any questions or problems brought up by the volunteers. As required, Annemarie must review the schedules for the playing fields that Greg prepares. Mistakes in scheduling the playing fields are difficult to correct, so this review is important. Jess is responsible for reviewing the bank statements and reconciling the checking account. It appears, however, that the review and reconciliation are not completed on a timely basis. The Fraud Triangle The fraud triangle is a useful tool for analyzing situations in which fraud has occurred or is suspected or where it could occur.1 There are three parts to the fraud triangle: motivation, opportunity, and rationalization. Motivation is the reason the perpetrator (a person or an organization) has for beginning the fraud; it is a real or perceived financial pressure or need. For an individual, for example, motivation could be supporting an elderly parent, experiencing a divorce, or suffering from drug addiction. Opportunity is the way in which the perpetrator can commit the fraud without being detected. Opportunity, for instance, could be weak separation of duties or a supervisor who does not understand the work of subordinates. Rationalization is the self-justification that explains committing the fraud. Possible rationalizations are a belief that stolen money is a loan and will be paid back or is a way to get even for not receiving a pay raise. Some Characteristics of a Not-For-Profit Organization A not-for-profit organization (NFP) faces some challenges not typically faced by large for-profit organizations. An NFP will have a Board of Directors to provide oversight, as does a for-profit corporation. The members of a Board at an NFP, however, may not be familiar with accounting or internal controls, or, if they are, these areas might be neglected as the NFP focuses on its core services. In addition, the Board may not have an ethics policy or an audit committee. Such an organization will most likely rely on volunteers to do much of the work, and these volunteers may not be familiar with financial oversight. Moreover, conflicts of interest among executives, Board members, suppliers, and beneficiaries may not be addressed (Ho 2010; Zac and De Armond 2015). Donations are essential for the operations of the NFP, and it is possible that a major donor will come to wield substantial influence and possibly override the wishes of the Board members. An NFP may hesitate to report suspected fraud because it does not want bad publicity. The concern is that if donors hear about such a financial loss, they will not contribute in the future. In addition, as the result of such a situation, the Board may fear losing the organizations important tax-exempt status (Baker Tilly 2016).

II. CASE REQUIREMENTS

1. Compare GCRAs accounting document (Books) with its bank statements (Bank). Identify the differences, if any. Consider using a table to keep track of any differences.

Month End	Balance per book	Balance per bak	Differences	Reasons
8/31
9/30
10/31

2. Consider the differences, if any, identified in Question n 1. Do you have any concerns about these differences? Be specific regarding the items and amounts that create any differences. What potential issue(s) do you see?

3. Consider and apply the fraud triangle. Define motivation, opportunity, and rationalization. From the information that you have gathered concerning Robert Norwalk, what do you speculate is his motivation, opportunity, and possible rationalization to perpetrate fraud?

GCRA Sport Activities Seasons and Ages of Participants Year Ending October 31, 20X1 Sport T-Ball Season Fee Summer $75 Baseball Summer $100 Soccer Fall S75 Ages 5-7 years, co-ed 7-8 years, co-ed 9-11 years, co-ed 12-14 years, co-ed 1517 years, boys 5 years, co-ed 6 years, co-ed 7 years, co-ed 8 years, co-ed 9-10 years, girls 9-10 years, boys 11-12 years, girls 11-12 years, boys 13-14 years, girls 1314 years, boys 15-18 years, girls 15-18 years, boys 8 years, co-ed 9 years, co-ed 10 years, co-ed 11 years, co-ed 12-14 years, co-ed Track Spring 575 Umpire training 1418 years, co-ed $100 Summer for baseball, and fall for soccer Income Statement Year Ending October 31, 20X1 REVENUES Type of Revenue Source Number of Participants x Fee Amount T-Ball Fees 200 x $75 S 15.000 Baseball Fees 700 x $100 70,000 Soccer Fees 1,500 x $75 112,500 Track Fees 100 x $75 7,500 Umpire Fees 50 x $100 5.000 Total Revenue from Fees S210,000 Grandview Grant City S 25,000 Lakeview County Grant County 3,000 Total Revenue from Grants S 28,000 Total Revenue $238,000 EXPENSES Type of Expense Description Amount T-Ball Field Rental S 2.000 Baseball Field Rental 7,000 Soccer Field Rental 35.000 Track Field Rental 4,000 Umpire Field Rental 2.000 Total Expenses for Field Rentals S 50,000 Salary for Part-time Director $ 40,000 Salary for Part-time Office Manager 25.000 Total Expenses for Salaries S 65,000 Office Rent $ 24,000 Office Utilities 12.000 Total Expenses for Office S 36.000 S 12.000 30,000 22.000 S 64,000 Insurance Equipment T-Shirts Total Other Expenses Total Expenses Increase in Net Assets $215,000 $23,000 GCRA Income Statement Three Months Ending October 31, 20x1 (August, September, and October 20X1) REVENUES Type of Revenue SourceNumber of Participants x Fee Amount Soccer Fees 370 x $75 $27,750 Soccer Fees 280 x $75 21,000 Total Revenue from Fees $48,750 Grandview Grant City S 25,000 Lakeview Grant County 3,000 Total Revenue from Grants S 28,000 Total Revenue $76,750 EXPENSES Type of Expense Description Amount Soccer Field Rental $29,000 Umpire Field Rental 2.000 Total Expenses for Field Rentals $31,000 Salary for Part-time Director $ 9,228 Salary for Part-time Office Manager 5,766 Total Expenses for Salaries S 14.994 Office Rent $ 6,000 Office Utilities 3,000 Total Expenses for Office $ 9,000 Insurance Equipment Total Other Expenses $ 6,000 12,000 $ 18,000 $72,994 Total Expenses Increase in Net Assets $3,756 GCRA Accounting Document August, September, and October 20X1 Date Description 08/01 Cash Balance 08/05 Direct Deposit-City of Grandview Grant 08/05 Check # 4999Grandview Park Boardplaying field rental 08/05 Check # 5000Safe Hands Insurance2nd payment on insurance 08/05 Check #5001-Quentin Macintoshbiweekly paycheck 08/05 Check #5002Jess Daniels-biweekly paycheck 08/19 Check #5003Quentin Macintoshbiweekly paycheck 08/19 Check #5004Jess Daniels-biweekly paycheck 08/20 DepositParticipation Feessoccer 08/20 Check #5006Seasons River Academy playing field rental 08/24 Check #5007Regency Properties-monthly office rental 08/24 Check #5008Utilities Management utilities 08/31 Cash Balance Amount $15,900.00 25,000.00 (7,000.00) (6,000.00) (1,538.00) (961.00) (1,538.00) (961.00) 27,750.00 (6,000.00) (2,000.00) (1,000,00) $41,652.00 (1,538.00) (961.00) (5,500.00) (1,538.00) (961.00) 21,000.00 (3,700.00) (2,000.00) (1.000.00) $45,454.00 09/05 Check #5009Quentin Macintoshbiweekly paycheck 09/05 Check #5010Jess Daniels-biweekly paycheck 09/14 Check #5011-Sports Authority-equipment 09/19 Check #5012Quentin Macintosh_biweekly paycheck 09/19 Check #5013Jess Daniels-biweekly paycheck 09/22 DepositParticipation Fees soccer 09/22 Check #5014RCN Merchandising-equipment 09/22 Check #5015Regency Properties-monthly office rental 09/22 Check #5016Utilities Management utilities 09/30 Cash Balance 10/05 Check # 5018-Quentin Macintoshbiweekly paycheck 10/05 Check #5019Jess Daniels-biweekly paycheck 10/19 Check #5020Quentin Macintoshbiweekly paycheck 10/19 Check #5021Jess Daniels-biweekly paycheck 10/20 Check #5022RCN Merchandising equipment 10/20 Check #5023Soccer Express-equipment 10/21 Direct Deposit-County of Lakeview Grant 10/22 Check #5024Shander Athletic Complex playing field rental 10/27 Check #5025Regency Propertiesmonthly office rental 10/27 Check #5026_Utilities Management-utilities 10/31 Cash Balance (1,538.00) (961.00) (1,538.00) (961.00) (2,000.00) (800.00) 3,000.00 (18,000.00) (2,000.00) (1,000,00) $19,656.00 GCRA Bank Statements Panel A: GCRA Bank Statement-August 20X1 August 20x1 SECOND STATE BANK Account: 31-0041 08/31/20X1 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 08/01/20X1 Deposits (Credits) Checks and Withdrawals (Debits) Ending Balance 08/31/20X1 $15 9.00 52,750.00 29.972.20 $38,677.80 Deposits Direct/Electronic Deposit - City of Grandview xxxX6617 08/05 Deposit at Bank 08/20 $25,000.00 $27,750.00 Checks Paid #4999 08/06 #5000 08/06 #5001 08/06 #5002 08/06 #5003 08/21 $7,000.00 #5004 08/22 $6,000.00 #5005 08/22 $1,538.00 #5006 08/25 $ 961.00 #5007 08/27 $1,538.00 #5008 08/27 $961.00 $2,500.00 $6,000.00 $2,000.00 $1,000.00 Other Withdrawals xx7801 ATM Withdrawal 08/07 19:10 Holiday Station Store Hilltop xx7801 POS Purchase 08/20 6:30 Super America St. Paul xx7801 ATM Withdrawal 08/28 17:45 Menkota Liquor Store Xx7801 POS Purchase 08/28 17:55 Menkota Liquor Store $200.00 $ 56.70 $100.00 $117.50 Panel B: GCRA Bank Statement-September 20X1 September 20x1 Account: 31-0041 09/30/20X1 SECOND STATE BANK 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 09/01/20X1 $38,677.80 Deposits (Credits) 21,000.00 Checks and Withdrawals (Debits) 17.495.34 Ending Balance 09/30/20X1 $42,182.46 Deposits Deposit at Bank 09/22 $21,000.00 Checks Paid #5009 09/06 #5010 09/07 #5011 09/17 #5012 09/22 $1,538.00 #5013 09/22 $ 961.00 #5014 09/23 $5,500.00 #5015 09/27 $1,538.00 #5016 09/27 $ 961.00 $3,700.00 $2,000.00 $1,000.00 Other Withdrawals xx7801 POS Purchase 09/01 19:10 Holiday Station Store Hilltop xx7801 POS Purchase 09/15 5:31 Barnes & Noble St. Paul xx7801 POS Purchase 09/27 19:25 Brainerd Wine Shop $ 52.17 $149.77 $ 95.40 (continued Panel C: GCRA Bank Statement-October 20X1 October 20X1 Account: 31-0041 10/31/20X1 SECOND STATE BANK 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 10/01/20x1 $42,182.46 Deposits (Credits) 3,000.00 Checks and Withdrawals (Debits) 31,448.59 Ending Balance 10/31/20X1 $13,733.87 Deposits Direct/Electronic Deposit-County of Lakeview xxxx1415 10/21 $3,000.00 Checks Paid #5017 10/02 #5018 10/07 #5019 10/07 #5020 10/21 #5021 10/21 $ 2,100.00 #5022 10/24 $ 1,538.00 #5023 10/24 $ 961.00 #5024 10/25 $ 1,538.00 #5025 10/29 $ 961.00 #5026 10/29 $ 2,000.00 $ 800.00 $18,000.00 $ 2,000.00 $ 1,000.00 Other Withdrawals xx7801 ATM Withdrawal 09/07 19:10 Holiday Station Store Eagan xx7801 POS Purchase 10/14 7:30 Walgreen's Roseville xx7801 POS Purchase 10/20 11:50 Target Roseville xx7801 POS Purchase 10/25 18:22 TGIF's Roseville $200.00 $ 56.70 $192.00 $101.89 Sample of Canceled Checks Panel A: Canceled ChecksAugust 20X1 2-402/710 #5000 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: August 5. 20X1 $ 6,000.00 Payee Safe Hands Insurance Six thousand and no/100- 2nd payment insurance Signed Recent C. Nowak SECOND STATE BANK 5000 31-0041 Deposit Only August 6, 20X1 Mega Bank, Silver Falls, MN ACCT# 75-9670 Safe Hands Insurance Co. 2-402/710 #5005 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: August 20, 20X1 Payee Carol Norwalk $ 2.500.00 Two thousand and five hundred and no/100S-- Signed Rotary C Norway Field Set-Up SECOND STATE BANK 5005 31-0041 Deposit Only August 23, 20X1 First State Bank Fridley, MN ACCT# 1443-0298 Carol Norwalk EXHIBIT 6 (continued) Panel B: Canceled ChecksSeptember 20X1 Grandview Community Recreation Association 2-402/710 #5012 1414 Plymouth Avenue Grandview, MN 56009 Date: Sentember 19, 20X1 Payce Quentin Macintosh $ 1.528.00 One thousand and five hundred and twenty eight and no/100S----- Paycheck Signed Robert C Norwall SECOND STATE BANK 5010 31-0041 quentin macintosh Deposit Only September 29, 20X1 Richmond Bank River Rapids, MN ACET 2012-2277 2-402/710 #5017 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: October 1, 20X1 Payee RCN Consulting $ 2.100.00 Two thousand and one hundred and no/100s- Consulting Signed Riberec Nowak SECOND STATE BANK 5013 31-0041 Deposit Only October 2, 20X1 First State Bank Fridley, MN ACCT# 1443-0298 Carol Norwalk GCRA Sport Activities Seasons and Ages of Participants Year Ending October 31, 20X1 Sport T-Ball Season Fee Summer $75 Baseball Summer $100 Soccer Fall S75 Ages 5-7 years, co-ed 7-8 years, co-ed 9-11 years, co-ed 12-14 years, co-ed 1517 years, boys 5 years, co-ed 6 years, co-ed 7 years, co-ed 8 years, co-ed 9-10 years, girls 9-10 years, boys 11-12 years, girls 11-12 years, boys 13-14 years, girls 1314 years, boys 15-18 years, girls 15-18 years, boys 8 years, co-ed 9 years, co-ed 10 years, co-ed 11 years, co-ed 12-14 years, co-ed Track Spring 575 Umpire training 1418 years, co-ed $100 Summer for baseball, and fall for soccer Income Statement Year Ending October 31, 20X1 REVENUES Type of Revenue Source Number of Participants x Fee Amount T-Ball Fees 200 x $75 S 15.000 Baseball Fees 700 x $100 70,000 Soccer Fees 1,500 x $75 112,500 Track Fees 100 x $75 7,500 Umpire Fees 50 x $100 5.000 Total Revenue from Fees S210,000 Grandview Grant City S 25,000 Lakeview County Grant County 3,000 Total Revenue from Grants S 28,000 Total Revenue $238,000 EXPENSES Type of Expense Description Amount T-Ball Field Rental S 2.000 Baseball Field Rental 7,000 Soccer Field Rental 35.000 Track Field Rental 4,000 Umpire Field Rental 2.000 Total Expenses for Field Rentals S 50,000 Salary for Part-time Director $ 40,000 Salary for Part-time Office Manager 25.000 Total Expenses for Salaries S 65,000 Office Rent $ 24,000 Office Utilities 12.000 Total Expenses for Office S 36.000 S 12.000 30,000 22.000 S 64,000 Insurance Equipment T-Shirts Total Other Expenses Total Expenses Increase in Net Assets $215,000 $23,000 GCRA Income Statement Three Months Ending October 31, 20x1 (August, September, and October 20X1) REVENUES Type of Revenue SourceNumber of Participants x Fee Amount Soccer Fees 370 x $75 $27,750 Soccer Fees 280 x $75 21,000 Total Revenue from Fees $48,750 Grandview Grant City S 25,000 Lakeview Grant County 3,000 Total Revenue from Grants S 28,000 Total Revenue $76,750 EXPENSES Type of Expense Description Amount Soccer Field Rental $29,000 Umpire Field Rental 2.000 Total Expenses for Field Rentals $31,000 Salary for Part-time Director $ 9,228 Salary for Part-time Office Manager 5,766 Total Expenses for Salaries S 14.994 Office Rent $ 6,000 Office Utilities 3,000 Total Expenses for Office $ 9,000 Insurance Equipment Total Other Expenses $ 6,000 12,000 $ 18,000 $72,994 Total Expenses Increase in Net Assets $3,756 GCRA Accounting Document August, September, and October 20X1 Date Description 08/01 Cash Balance 08/05 Direct Deposit-City of Grandview Grant 08/05 Check # 4999Grandview Park Boardplaying field rental 08/05 Check # 5000Safe Hands Insurance2nd payment on insurance 08/05 Check #5001-Quentin Macintoshbiweekly paycheck 08/05 Check #5002Jess Daniels-biweekly paycheck 08/19 Check #5003Quentin Macintoshbiweekly paycheck 08/19 Check #5004Jess Daniels-biweekly paycheck 08/20 DepositParticipation Feessoccer 08/20 Check #5006Seasons River Academy playing field rental 08/24 Check #5007Regency Properties-monthly office rental 08/24 Check #5008Utilities Management utilities 08/31 Cash Balance Amount $15,900.00 25,000.00 (7,000.00) (6,000.00) (1,538.00) (961.00) (1,538.00) (961.00) 27,750.00 (6,000.00) (2,000.00) (1,000,00) $41,652.00 (1,538.00) (961.00) (5,500.00) (1,538.00) (961.00) 21,000.00 (3,700.00) (2,000.00) (1.000.00) $45,454.00 09/05 Check #5009Quentin Macintoshbiweekly paycheck 09/05 Check #5010Jess Daniels-biweekly paycheck 09/14 Check #5011-Sports Authority-equipment 09/19 Check #5012Quentin Macintosh_biweekly paycheck 09/19 Check #5013Jess Daniels-biweekly paycheck 09/22 DepositParticipation Fees soccer 09/22 Check #5014RCN Merchandising-equipment 09/22 Check #5015Regency Properties-monthly office rental 09/22 Check #5016Utilities Management utilities 09/30 Cash Balance 10/05 Check # 5018-Quentin Macintoshbiweekly paycheck 10/05 Check #5019Jess Daniels-biweekly paycheck 10/19 Check #5020Quentin Macintoshbiweekly paycheck 10/19 Check #5021Jess Daniels-biweekly paycheck 10/20 Check #5022RCN Merchandising equipment 10/20 Check #5023Soccer Express-equipment 10/21 Direct Deposit-County of Lakeview Grant 10/22 Check #5024Shander Athletic Complex playing field rental 10/27 Check #5025Regency Propertiesmonthly office rental 10/27 Check #5026_Utilities Management-utilities 10/31 Cash Balance (1,538.00) (961.00) (1,538.00) (961.00) (2,000.00) (800.00) 3,000.00 (18,000.00) (2,000.00) (1,000,00) $19,656.00 GCRA Bank Statements Panel A: GCRA Bank Statement-August 20X1 August 20x1 SECOND STATE BANK Account: 31-0041 08/31/20X1 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 08/01/20X1 Deposits (Credits) Checks and Withdrawals (Debits) Ending Balance 08/31/20X1 $15 9.00 52,750.00 29.972.20 $38,677.80 Deposits Direct/Electronic Deposit - City of Grandview xxxX6617 08/05 Deposit at Bank 08/20 $25,000.00 $27,750.00 Checks Paid #4999 08/06 #5000 08/06 #5001 08/06 #5002 08/06 #5003 08/21 $7,000.00 #5004 08/22 $6,000.00 #5005 08/22 $1,538.00 #5006 08/25 $ 961.00 #5007 08/27 $1,538.00 #5008 08/27 $961.00 $2,500.00 $6,000.00 $2,000.00 $1,000.00 Other Withdrawals xx7801 ATM Withdrawal 08/07 19:10 Holiday Station Store Hilltop xx7801 POS Purchase 08/20 6:30 Super America St. Paul xx7801 ATM Withdrawal 08/28 17:45 Menkota Liquor Store Xx7801 POS Purchase 08/28 17:55 Menkota Liquor Store $200.00 $ 56.70 $100.00 $117.50 Panel B: GCRA Bank Statement-September 20X1 September 20x1 Account: 31-0041 09/30/20X1 SECOND STATE BANK 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 09/01/20X1 $38,677.80 Deposits (Credits) 21,000.00 Checks and Withdrawals (Debits) 17.495.34 Ending Balance 09/30/20X1 $42,182.46 Deposits Deposit at Bank 09/22 $21,000.00 Checks Paid #5009 09/06 #5010 09/07 #5011 09/17 #5012 09/22 $1,538.00 #5013 09/22 $ 961.00 #5014 09/23 $5,500.00 #5015 09/27 $1,538.00 #5016 09/27 $ 961.00 $3,700.00 $2,000.00 $1,000.00 Other Withdrawals xx7801 POS Purchase 09/01 19:10 Holiday Station Store Hilltop xx7801 POS Purchase 09/15 5:31 Barnes & Noble St. Paul xx7801 POS Purchase 09/27 19:25 Brainerd Wine Shop $ 52.17 $149.77 $ 95.40 (continued Panel C: GCRA Bank Statement-October 20X1 October 20X1 Account: 31-0041 10/31/20X1 SECOND STATE BANK 9700 West Broadway Avenue Grandview, MN 56009 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Beginning Balance 10/01/20x1 $42,182.46 Deposits (Credits) 3,000.00 Checks and Withdrawals (Debits) 31,448.59 Ending Balance 10/31/20X1 $13,733.87 Deposits Direct/Electronic Deposit-County of Lakeview xxxx1415 10/21 $3,000.00 Checks Paid #5017 10/02 #5018 10/07 #5019 10/07 #5020 10/21 #5021 10/21 $ 2,100.00 #5022 10/24 $ 1,538.00 #5023 10/24 $ 961.00 #5024 10/25 $ 1,538.00 #5025 10/29 $ 961.00 #5026 10/29 $ 2,000.00 $ 800.00 $18,000.00 $ 2,000.00 $ 1,000.00 Other Withdrawals xx7801 ATM Withdrawal 09/07 19:10 Holiday Station Store Eagan xx7801 POS Purchase 10/14 7:30 Walgreen's Roseville xx7801 POS Purchase 10/20 11:50 Target Roseville xx7801 POS Purchase 10/25 18:22 TGIF's Roseville $200.00 $ 56.70 $192.00 $101.89 Sample of Canceled Checks Panel A: Canceled ChecksAugust 20X1 2-402/710 #5000 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: August 5. 20X1 $ 6,000.00 Payee Safe Hands Insurance Six thousand and no/100- 2nd payment insurance Signed Recent C. Nowak SECOND STATE BANK 5000 31-0041 Deposit Only August 6, 20X1 Mega Bank, Silver Falls, MN ACCT# 75-9670 Safe Hands Insurance Co. 2-402/710 #5005 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: August 20, 20X1 Payee Carol Norwalk $ 2.500.00 Two thousand and five hundred and no/100S-- Signed Rotary C Norway Field Set-Up SECOND STATE BANK 5005 31-0041 Deposit Only August 23, 20X1 First State Bank Fridley, MN ACCT# 1443-0298 Carol Norwalk EXHIBIT 6 (continued) Panel B: Canceled ChecksSeptember 20X1 Grandview Community Recreation Association 2-402/710 #5012 1414 Plymouth Avenue Grandview, MN 56009 Date: Sentember 19, 20X1 Payce Quentin Macintosh $ 1.528.00 One thousand and five hundred and twenty eight and no/100S----- Paycheck Signed Robert C Norwall SECOND STATE BANK 5010 31-0041 quentin macintosh Deposit Only September 29, 20X1 Richmond Bank River Rapids, MN ACET 2012-2277 2-402/710 #5017 Grandview Community Recreation Association 1414 Plymouth Avenue Grandview, MN 56009 Date: October 1, 20X1 Payee RCN Consulting $ 2.100.00 Two thousand and one hundred and no/100s- Consulting Signed Riberec Nowak SECOND STATE BANK 5013 31-0041 Deposit Only October 2, 20X1 First State Bank Fridley, MN ACCT# 1443-0298 Carol Norwalk