Instructions:

(a) Indicate the weaknesses in internal control over the handling of guest fees. For each weakness cited, indicate which Principle of Internal Control was violated.

(b) List the policies or procedures that you would implement to correct the corresponding deficiency in internal control cited in part (a).

(a)	Weakness in Internal Control	Principle of Internal Control Violated
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(b))	Procedure to correct internal control deficiency described in part (a)
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THE STAR-LEDGER LOCAL NEWS Hillside pool robbed of thousands in fees BY ERIN EILEEN O'NEILL the result of a series of thefts of FOR THE STAR-LEDGER several hundred dollars. As much as $5,000 in daily fees "Unfortunately, we put too collected at the Hillside munici- much trust into some of our eru pal pool this summer never made ployees and there was too many it from the Central Avenue swim- people handling the money," said ming complex to the bank. Dennis Kobitz, chairman of the Nobody was caught in the al municipal pool commission - a leged theft, which a Hillside police volunteer body appointed by the investigation blames on poor cash township council. management and lack of account The pool usually opens at the ability at the municipal pool. end of the school year and re- "This is the result of poor finan- mains open through Labor Day. cial record-keeping and an ab. Pool guests pay $10 for admission sence of management control at and their names are kept on a led- the facility," wrote Hillside Police ger at the entrance. With 30 slots Chief Robert Quinlan in a report per ledger, the sheet should rep. released last month that detailed resent $300 in revenue. However, the investigation. Quinlan would through subpoenas of the pool's not comment on the matter when financial records, investigators reached by phone yesterday. found that several times deposits The investigation, which began did not match the amount of rev- last July and included surveillance enue investigators estimated dur- over several weekends, concluded ing their surveillance, according that between $4,000 and $5,000 in to the report. guest fees were not deposited into Investigators found that the led- the pool's bank accounts dur gers of guest names, which were ing the 2009 season, according to not numbered, were also routinely the report. The report also stated destroyed, the report said. that the missing money is likely [See POOL, Page 23) THE STAR-LEDGER LOCAL NEWS Hillside pool robbed of thousands in fees BY ERIN EILEEN O'NEILL the result of a series of thefts of FOR THE STAR-LEDGER several hundred dollars. As much as $5,000 in daily fees "Unfortunately, we put too collected at the Hillside munici- much trust into some of our eru pal pool this summer never made ployees and there was too many it from the Central Avenue swim- people handling the money," said ming complex to the bank. Dennis Kobitz, chairman of the Nobody was caught in the al municipal pool commission - a leged theft, which a Hillside police volunteer body appointed by the investigation blames on poor cash township council. management and lack of account The pool usually opens at the ability at the municipal pool. end of the school year and re- "This is the result of poor finan- mains open through Labor Day. cial record-keeping and an ab. Pool guests pay $10 for admission sence of management control at and their names are kept on a led- the facility," wrote Hillside Police ger at the entrance. With 30 slots Chief Robert Quinlan in a report per ledger, the sheet should rep. released last month that detailed resent $300 in revenue. However, the investigation. Quinlan would through subpoenas of the pool's not comment on the matter when financial records, investigators reached by phone yesterday. found that several times deposits The investigation, which began did not match the amount of rev- last July and included surveillance enue investigators estimated dur- over several weekends, concluded ing their surveillance, according that between $4,000 and $5,000 in to the report. guest fees were not deposited into Investigators found that the led- the pool's bank accounts dur gers of guest names, which were ing the 2009 season, according to not numbered, were also routinely the report. The report also stated destroyed, the report said. that the missing money is likely [See POOL, Page 23)