The City Manager has come to you about a concern at a local sports facility. He
ID: 420005 • Letter: T
Question
The City Manager has come to you about a concern at a local sports facility. He noticed a trend in which concession collections were decreasing. The accepted procedures is to not issue receipts when concessions stand sales were made. The sales were collected in a box and the director was responsible for counting the cash, preparing a cash collection report and turning the receipts over to the accounting department. Inform the City Manager what is the threat or scheme and how it can be corrected. What internal controls do you recommend.
Explanation / Answer
The procedure being followed have many loop holes as the cash counting might be misleaded and false results can be shown. The method of not giving receipts must not be encouraged and on the spot receipts must be given. The city manager must be advised to appoint executives who evaluate the amount on time and give receipts and online system must be introduced where all the particulars are entered on the spot . This will make the procedure transparent and there will not be much scope for any schemes.