Key persons

Priscilla Collier = dean

Troy Wheeler = assistant dean

Lily Woodring = business manager (retiring soon)

Kurt Vogel = accounting assistant

Robert James = student worker (graduate next semester)

Troy's response to the internal auditor To: Internal Audit Department From: Troy Wheeler As you know my signature appears on the deposit slip for our copy operations. Transactions are run through a register primarily by one or two employees with occasional help from a third. The register tape is available for my inspection when I sign the deposit, totals are reconciled to the deposit amount and overages and shortages are noted. Any significant overages and shortages are explained. In addition to the control provided by the register, I have a general sense of the volume of business that we do at various times of the year and of the proportion of cash to credit card sales. If cash sales were to be insignificant during a time when we had good credit card sales, it would send up a red flag. While nothing is absolute, I feel confident that a large cash shortage would be noticeable. While our deposits are large during the first few days of each semester, the volume declines noticeably as the semester progresses, and the risk of loss is much less. Let me know if you have additional questions or suggestions about procedures. Troy's role in the process * Sign the deposit slip brought to him intermittently * Deposit should be made on a daily basis.in the reality by Lily = NO The deposit slip was always attached by the . He often looked at the summary totals and match register tape and the summary report prepared them to the deposit slip when the register was zeroed out * Lily always stood, gave verbal explanations, and waited for Troy to sign After Troy signed the slip, Lily took the deposit to the University lock box. Due to parking issues, she usually walked to the lock box location (about half-block)SBPP of Westland University . Public university . 55 full-time faculty members and 15 part-time faculty . Serves about 20,000 traditional students . Offers 3,000 business majors Background Student Services . Locate in the SBPP building, across from the office of the dean and asst. dean . Serves both students and faculty members o self-service copier, fax machine, storage area for office supplies, sales of course packets, Student Services Functions Financial recordkeeping for the college, Done by: Lily Woodring (no accounting but experienced) including travel and payroll and Kurt Vogel (no accounting training and no experience) Mail distribution to the faculty mailboxes Done by: Roberta James Photocopying and word processing jobs Done by: Roberta James for faculty Sales of course packets and office supplies Done by: Lily Woodring, Kurt Vogel, Roberta James to studentsFax services Done by: Roberta James Reports and papers bind Done by: Roberta James Operating hours: Monday - Thursday from 7.30 am to 6.00 pm Friday from 8.00 am to 5.00 pm Course packet = course materials that exceeds 20 pages **Sold only during the first two weeks of the term with intermittent bursts of sales before the exam dates or the due dates of major projects Other SBPP functions Budgeting Done by Priscilla Collier Day-to-day operations Done by Troy Wheeler Undergraduate faculty scheduling, student advising, curriculum assessment and development support, student Done by Troy Wheeler disciplinary, complaints, graduation ceremony Staff supervision: school advisors, his Done by Troy Wheeler assistant, career planning coordinatorCash Deposit Daily deposit If not... Cash was locked in a cabinet at the end of the business day Keys to the cabinet were kept in Lily's desk drawer, so they would be accessible to whoever unlocked and opened the support services office the next morning All support services staff had keys to the office The dean, assistant dean, and two members of the dean office staff had master keys Lily's explanation of the process The register is used when we sell course packets or supplies to students and is sometimes used to collect fees for training courses for the training center downstairs. We also collect cash when students or faculty want to send faxes, or when a faculty member makes personal copies on our copier. We do not make personal copies for students- they use the coin machine out front. Students can pay using cash or credit cards. During our peak sales at the beginning of a semester, our highest deposit was over $6,000. Last year, the total annual revenue generated from sales was about $50,000 with about 40% being cash sales. Kurt, Roberta and I all make sales from the register on a given day, except for Fridays when I am not here and Kurt and Roberta are alone. On Fridays, because of lunch breaks, meetings and Roberta's part-time schedule, there is often only one person in the office. Monday through Thursday, between 5:00 and 6:30 PM, I am the only one here, since I work four ten-hour days. Usually at least one of us is in the office but sometimes we need to have a staff member from the dean's office or the graduate office cover the register-vacations, illness, meetings; there are times when none of the three regular employees can be here.Other responsibilities of Troy Wheeler Staffing and scheduling classes at three distance College and university learning locations across the committees state Troy Wheeler had a few Teach undergraduate and years of audit experience MBA programs with an international public accounting firm Current Situation The internal auditors ask the dean to assure adequate internal control of cash register operation in the Student Services Priscilla asks Troy to respond to the internal auditors and follow up with this issue 7 of 14