Instructions

o identify the role you are playing;

o assess the landscape, considering the user needs, constraints, and business environment;

o identify the issues;

o analyze the issues (qualitatively and quantitatively); and

o provide a recommendation and conclusion for each issue.

It is January 10, 2017. You, CA, live in the Peel region of southern Ontario and your children attend one of the area's private schools, Niagara Escarpment Greenlands Collegiate (the school). The School is one hundred percent owned by Mr. Calypso Orchid, who also acts as the School's Headmaster. The School's volunteer council (the Council) is looking for a new Treasurer since the previous Treasurer, another CA, resigned unexpectedly in December. The Council was created in September 2016 to raise funds to pay for books and computers for the new library that is expected to be completed in 2017. After speaking to the Headmaster over the phone, you accept the volunteer Treasurer position.

You decide to meet with the Headmaster in person to determine what needs to be done. When you arrive at his office, you find the Headmaster clearly upset.

"The Council meets each month, but I wasn't able to attend any of the meetings since I have been so busy this fall with the construction of the new library building. The Treasurer kept promising to give me a statement of how much money was raised, but the only financial information I received was a statement of fundraising activities when she resigned. I just don't understand why the Council hasn't raised more money given all of the fundraising initiatives this fall. I thought we would have raised at least $20,000 by the end of December.

"I would like you to review the profitability of the fundraising initiatives of the Council and redraft the Statement of Fundraising Activities for any errors or concerns you find." The Headmaster hands you some background information on the Council's fundraising activities that he has summarized for you (Exhibit I) and the Council's Statement of Fundraising Activities provided by the Treasurer (Exhibit II).

"I need to understand what is going on. I'm worried that the Council is going to continue with a fundraising campaign that doesn't generate any profit. Please give me recommendations on what kind of information, both financial and otherwise, I should be requesting from the Council to stay informed.

"In the fall, the Council accepted cash payments only. However, the School received a number of complaints from parents about having to send cash to school with their children. As a result, we have decided to move to a cashless online system to collect all payments. The School has hired Parent Centre Inc. (Parent Centre) to provide an online system for us. We have delayed the start of any further fundraising activities until the new system goes live on March 1, 2017. Halton Hills Academy, a neighboring school, implemented Parent Centre's system last year and had some problems. Therefore I need you to determine whether appropriate controls are in place over the system before we go live. I am particularly concerned about the confidentiality of parent and student information." He hands you a description of the proposed website (Exhibit III) and some of the comments that the Principal of Halton Hills Academy had emailed him (Exhibit IV).

"I almost forgot to tell you something. The Council has its own bank account and I just received the December 2016 bank statement. The account balance was $11,400 at the end of the year but the statement of fundraising efforts shows a net profit of $12,442. The Treasurer said that all deposits had been made and I know that there is no cash left in the school office. What can be done to figure out where this extra cash went? Can you or someone else conduct an investigation to see what has happened and explain to me what work would be involved?" You decide to draft a report to the Headmaster addressing his concerns.

One of the key objectives of the Council is to initiate and oversee fundraising activities throughout the school year to generate funds to purchase library books and computers. The Council oversaw the following fundraising activities:

EXHIBIT I Information on the Council's Fundraising Activities

Milk Days

During the first week of school, the Council offered a daily milk program to the School's 620 students, whereby a student would receive a 250 ml carton of 2% white milk or 1% chocolate milk at lunch time on each school day. The Council negotiated a purchase price of $0.40 per carton with a local grocery store, Bruno's Food Port, based on an expected enrollment of 300 students in the milk program.

Parents had to sign up their students for the entire school year at a weekly price of $2.50 for 40 weeks (which takes into account PD days and March Break). The payment for the entire school year was submitted with a sign-up form and dropped off at the School's main office. Based on the sign-up forms collected, 60% of the School's students enrolled in the program. The office remitted all of the collected funds to the Treasurer. A cheque was issued to Bruno's Food Port on October 1, 2016 to pay the entire purchase price for the school year.

Pizza Lunches

Beginning in September, the Council offered pizza lunches to students on the first Tuesday of each month and on the last Friday of each month. Students could choose from the following options:

1 slice for $2.00, either cheese or pepperoni

2 slices for $3.50, either cheese or pepperoni

The Council initially estimated that 40% of students would participate on each pizza day, of which 50% of students would choose the one slice option. The Council planned to order extra-large pizzas with 10 slices at a cost of $16 per pizza from Antonello's Pizzeria.

Unfortunately, Antonello's Pizzeria went out of business before the first pizza day and the Council instead purchased from Little Brutus's at a cost of $17 per 10 slice pizza. Pizza slices were distributed at a central location in the school. The cash was collected by Council volunteers on each pizza day and then remitted to the Treasurer. A cheque for the pizzas ordered was issued to Little Brutus's on each pizza day. In December, a Council volunteer tallied all the orders and noted that a total of 550 pizzas were ordered from September to December. On average, 420 students had participated in the program on each pizza day, and 60% had chosen the one slice option. She commented that there were often extra slices at the end.

Pumpkin Drive

The Council partnered with a local farm, Chudleigh's Farm (CF), to sell pumpkins in the month of October. Students could sell large pumpkins for $7, medium pumpkins for $5 and small pumpkins for $3. CF agreed to charge the Council $5 for large pumpkins, $4 for medium pumpkins and $3 for small pumpkins. Students accepted cash for payment and then remitted the amount to their teacher with their order form. Each teacher submitted a summary order form and all of the monies collected were remitted to the Treasurer.

At the time of invoicing, CF decided to donate the small pumpkins at no cost because the School's students had sold so many large and medium pumpkins. Based on the invoice received from CF, the number of pumpkins delivered to the School was as follows:

Large - 870

Medium - 615

Small - 375

A cheque was issued to CF on December 1, 2016.

Garbage Bag Sales

In November, the Council held a garbage bag fundraising campaign through a program with Poly Bag Central (PBC). Each student was given a brochure from which consumers could select garbage bag products to purchase. Students collected cash at the time of ordering and then submitted the funds with their order envelope to the School's main office. Once all the forms were collected, the Council sent the order forms to PBC and the Treasurer collected the cash. Teachers collected envelopes from 470 students and a total of 1,830 rolls were sold. A cheque was issued to PBC on December 15, 2016 to pay for the rolls sold.

The following items were offered in the brochure:

Item Description Dimensions Number of Selling Price Cost per (Width x Length) Bags per Roll per Roll Roll* Compostable Bags 41 cm x 42 cm 30 $12 $7.60 Kitchen Bags 50 cm x 53 cm 50 $12 $7.60 Large Garbage Bags 76 cm x 83 cm 20 $12 $7.60Niagara Escarpment Greenlands Collegiate Council Statement Of Fundraising Activities For the four months from September 1, 2019 to December 31, 2019 Fundraising Revenue Milk Days (note 1) $ 30,000 Pizza Lunches (note 2) 5,456 Pumpkin Drive (note 3) 9,300 Garbage Bag Sales (note 4) 11,904 Student Pictures (note 5) 18,352 75,012 Fundraising Expenses Payment to Bruno's Food Port (6) 24,000 Payment to Brutus's Pizzeria (note 7) 4,768 Payment to Chudleigh's Farm (note 8) 7,440 Payment to Poly Bag Central (note 9) 8,928 Payment to Picture Perfect Imaging (note 10) 17,434 62,570 Net Profit $ 12,442