Blue Bayou Middle School wants to raise money for a new soundsystem for its auditorium. The primary fund-raising event is adance at which the famous disc jockey Kray Zee will play classicand not-so-classic dance tunes. Grant Hill, the music and theaterinstructor, has been given the responsibility for coordinating thefund-raising efforts. This is Grant’s first experience withfund-raising. He decides to put the eighth-grade choir in charge ofthe event; he will be a relatively passive observer. Grant had 500unnumbered tickets printed for the dance. He left the tickets in abox on his desk and told the choir students to take as many ticketsas they thought they could sell for $5 each. In order to ensurethat no extra tickets would be floating around, he told them todispose of any unsold tickets. When the students received paymentfor the tickets, they were to bring the cash back to Grant, and hewould put it in a locked box in his desk drawer. Some of thestudents were responsible for decorating the gymnasium for thedance. Grant gave each of them a key to the money box and told themthat if they took money out to purchase materials, they should puta note in the box saying how much they took and what it was usedfor. After 2 weeks, the money box appeared to be getting full, soGrant asked Lynn Dandi to count the money, prepare a deposit slip,and deposit the money in a bank account that Grant had opened. Theday of the dance, Grant wrote a check from the account to pay KrayZee. The DJ said, however, that he accepted only cash and did notgive receipts. So Grant took $200 out of the cash box and gave itto Kray. At the dance, Grant had Dana Uhler working at the entranceto the gymnasium, collecting tickets from students and sellingtickets to those who had not pre-purchased them. Grant estimatedthat 400 students attended the dance. The following day, Grantclosed out the bank account, which had $250 in it, and gave thatamount plus the $180 in the cash box to Principal Sanchez.Principal Sanchez seemed surprised that, after generating roughly$2,000 in sales, the dance netted only $430 in cash. Grant did notknow how to respond. Identify as many internal control weaknessesas you can in this scenario, and suggest how each could beaddressed.
