Accounting Case

INTRODUCTION

Assume you are a CPA hired to audit the books of a minor league baseball team, the Triangle Ball Club

(TBC) from Tallahassee, Florida. It is mid-August, and you have been on the job several weeks preparing

for the September year-end. During your stay, you have become acquainted with many of the employees

in the team’s small office. You have also observed certain characteristics of TBC. Company revenues are

generated from ticket sales, parking, concessions, programs, and promotional fundraising. The company

president, Phil Ackers, oversees fundraising. Ben Hill, office manager, oversees the day-to-day

functioning of the office. Tucker Johnson, general manager, has responsibility for the baseball players.

Refer to Student Handout 1 for an illustrative Organizational Chart. TBC’s office expenses are typical of

a small firm. Other expenses are typical of a minor league baseball team and include equipment,

concession goods, programs, team travel, and memorabilia for resale. Though payroll timesheets are

compiled in-house, the TBC contracts out the payroll function to ADP Payroll Services.

While the audit is going well, the team’s owner, Franklin Kennedy, has approached you and offered an

additional fee if you will quietly investigate the possibility of fraud within the firm. Mr. Kennedy has

received an anonymous tip and believes it warrants further investigation. For your initial investigation, he

has asked you to concentrate on the last four months; the time frame will be expanded if you discover

fraud. During your audit, you have also noted that there seems to be an unusual amount of tension in the

office. When you inquire about it, the employees brush it off as normal during the playing season. Your

observation is that Ben Hill, the office manager, observes and minutely checks his employees work. He

has complained to you about employee turnover and incompetence. Ben grumbles that without his efforts

the team would fold.

One night, at a local bar, you run into the equipment manager, Sam MacCarty. During the evening, Sam

talks about some of the employees in the front office. A summary of Sam’s opinions follows:

Phil Ackers (Company President): Phil’s a nervous little fellow. He’s always out on promotional trips.

He may be the president, but it is Ben Hill who really runs the place.

Terri Hughes (Assistant to the President): Terri guards Ackers’ office like the Centurion Guards. It’s

impossible to get hold of Ackers to ask the simplest question because Terri will nip your heels right out of

the office.

Tucker Johnson (General Manager): Mr. Johnson is great. He used to play pro ball. The team loves

him. He can be tough, but he’s good. We’ve sent a lot of guys up to the majors. He doesn’t like the

paperwork. He lets me do most of the ordering and stuff.

Ben Hill (Office Manager): Ben’s a piece of work. He dresses only in suits and is always hitting on the

20-year-olds, even though he’s got to be 40. He’s got a bunch of ex-wives. The girls think he’s

disgusting; maybe it’s the comb-over. Some people in the office complain that he’s all over their work,

but he sure keeps the place running smoothly. Luckily, he’s healthy. I don’t know what would become of

this place if he ever took a vacation. He changed our equipment vendor recently. The new rep and Ben

seem tight. I think it’s a good change. Not only is the equipment always on time, but also the salesman,

Charlie Thurgood, delivers it personally! Sure has kept Mr. Johnson off my back.

Michelle Shelton (A/P Clerk): She’s Tucker Johnson’s niece. She works hard, but as soon as it is 5

P.M., she’s out at the dugout hanging around the guys. She’s cute and all, but I think the guys are afraid

of asking her out because of Mr. Johnson.

Candie Harris (Receptionist): Candie’s great. She’s always nice to me and gets stuff for me if I need it.

You begin your investigation by quietly observing each process within the company, noting how each

employee performs his or her job. The results of your observations are described in Student Handout 2.

You also collect a copy of the team game schedule (refer to Student Handout 3) and organize all the

financial information you currently have from the TBC files for April through July (refer to Student

Handouts 4-20).

ASSIGNMENT

Your class will be divided into teams of 6-7. The task of each team is to determine if any fraud was

committed in this company between April and July, to prepare a report of your findings delivered by a

pecha kucha (http://www.pechakucha.org/ ), watch and evaluate all team reports, and complete a peer

evaluation of your team members. To investigate any suspected frauds, follow the requirements below

using the materials in the Student Handouts and collecting any additional information you think you

might need to investigate the frauds between the hours of 10 am to 3 pm on Friday by emailing your

professor. Interview (10 minutes) appointments may be scheduled between 3pm and 5 pm with the

person or persons you suspect of perpetrating the fraud(s). To successfully complete this assignment, each

team must determine what additional information is needed for the various frauds, and submit via email a

report in the form of a pecha kucha no later than 8 pm on Friday.

REQUIREMENTS

In preparation of this assignment, you can read an article and/or a PowerPoint slide deck about financial

shenanigans in Pre-work Handout 1 and 2. As a CPA you believe that a good forensic investigation is

built on instinct and experience, and you like to remember to look up from the numbers and consider the

people who created those numbers. Your firm has developed a methodology that your team will follow.

(In some states CPAs can hold themselves out as investigators while in other states investigators must be

separately licensed. To find the details on licenses by state visit:

http://www.aicpa.org/interestareas/forensicandvaluation/newsandpublications/advocacy/pages/privateinve

stigator-licensing.aspx.)

Your Firm’s Methodology for Forensic Accounting Investigations

Step 1: Obtain an understanding of the company

Business environment Consider the company’s industry. Are there any challenges related to that

industry that the company may face? Is the industry highly specialized, or highly competitive? What are

the company’s competitive advantages? Is the industry in decline or growing? For example, you may

obtain insight into the industry http://entertainment.howstuffworks.com/minor-league-baseball-

team4.htm/printable

People Because it is people who commit fraud, observe the employees and their backgrounds. Do any

employees appear to have pressure to commit fraud? Have any employees exhibited changes in behavior?

(Review Student Handout 1 “Organization Chart” and their background profiles.)

Corporate culture Do employees have pressure to meet unrealistic deadlines or performance goals? Do

staff and management have open lines of communication? Do employees feel free to discuss company

problems with management, or are they more inclined to just keep quiet?

Business processes Observe the processes within TBC. Are internal controls strong, or do they contain

weaknesses that may be exploited? (See Student Handout 2“Observations of TBC Functions”).

Checkbook Examine the checkbook and look for unusual patterns.

Do the payments and receipts make sense, and do relationships seem logical? Does the checkbook appear

to reflect the underlying economics of the company? Do any receipts or payments seem unusually large or

small? (See Student Handout 4 “Checkbook Register”).

Chart of Accounts Review Student Handout 5 “Partial Chart of Accounts.” Look for unusual accounts

or entries.

Step 2: Brainstorm and Hypothesize

Convene your team and conduct a brainstorming session where you share the ideas that you gleaned from

your work in Step 1. For example, list the internal control weaknesses found by team members, list any

individuals within the firm you feel have pressure to commit fraud, list any unusual relationships or trends

noted from the financial statements, etc. Look at your lists and create fraud hypotheses using the fraud

triangle (http://www.acfe.com/fraud-triangle.aspx). For example, what frauds could arise in an

environment with the control weaknesses you found? Are any of the people you found with pressure in a

position to exploit those weaknesses? If you identified red flags in the checkbook or chart of accounts,

who made the entries and is that person someone with motivation to commit fraud?

Step 3: Plan the investigation

Create an investigation plan for each of your hypotheses. For example, if you saw a weakness in payroll

processing, and identified ghost employees as a possible fraud, how would you investigate to determine

whether or not the company’s payroll contained non-existent employees? What documents would you

need to examine—for example, would you want to look at time cards, payroll registers, or cancelled

checks? What questions would you need to ask, and to whom would you address those questions? Once

you have determined what you need, prepare an inquiry for information as outlined in the next step.

Step 4: Execute the plan

You can gather information beyond the Student Handouts by asking questions of individuals within TBC,

as well as those outside of the company. To do this, send an-email to your professor, but address it to the

person from whom you require information. The requests should be very specific because you will

receive exactly what you requested, even if it is not what you really needed. If you ask for useless

information you will receive useless information. Remember, all the employees have jobs and are very

busy. If your requests are overwhelming or not specific, they may be put in a “to do” basket, as would

happen in a real life situation.

Each team should choose a “corresponding investigator” whose task is to send all inquiries from the team

to the professor. Inquiries can be sent via separate emails. To create a proper inquiry, be sure to address it

to the correct person listing the specific items you require. Your professor, acting as the person to whom

the inquiry has been directed can respond line by line by either attaching the information or hand

delivering an answer to your request (in your inquiry, specify your team’s location in the building).

Review the Following Prior to Sending Email Requests for Information to Your Professor: This is a role-playing game. You are interacting with employees from TBC or other individuals outside

the firm. As in a real audit, you must request specific information from a specific employee. The only

instance in which you will not address your request to a specific employee is when you request

information that would not come from a specific individual. You can make reasonable assumptions about

the behavior of individuals. For example, a guilty person will have a rationale for his or her behavior and

will do whatever is necessary to conceal his or her guilt from coworkers. Finally, be efficient and specific

in your requests.

Step 5: Discuss findings and investigate further

Throughout the investigation, it is important to discuss progress and problems with your teammates. In

complex problems like this case, discussing evidence aloud and sharing different points of views is

extremely helpful. So communicate often within your team. One question you should ask throughout your

investigation: does the evidence you have gathered lead to further investigation, or can you eliminate a

hypothesis and focus elsewhere? Remember that fraud requires intent. Every error is not fraud.

Sometimes people are just unaware of the proper way to perform a business activity or record an

accounting transaction. To prove intent, you must show that someone made a deliberate, calculated action

with the purpose to deceive for personal gain.

Step 6: The Interview

At the end of the investigation period, your team may schedule a 10 minute interview your suspect(s).

This is optional and on a FIFO basis. To schedule a 10 minute interview between 3 pm and 5pm, email

professor specifying who you want to interview. You will receive an email back specifying the location

and time of your 10 minute interview. The objective of the interview is to obtain a confession. Interviews

can take place using either a confrontational or non-confrontational approach. An example of a non-

confrontational approach would be the Wicklander-Zulawski interrogation method—that is, you let the

suspect know that you know what happened and how it happened, but you want to understand why it

happened (Zulawski and Wicklander, 2002). (For more information, go to http://www.w-z.com/) When

the suspect explains the pressure and motivation that led to committing the fraud, he or she is close to

confessing. Be thoroughly prepared before your interview because if you know the facts of the case, you

can direct the interviewee to keep on track and not give empty denials.

In a more confrontational approach, you should also go into the ten minute interview completely prepared

with all the facts and figures of your fraud. You should know what the fraud is, who did it, how they did

it, how much money was taken, and how they stood to benefit from the crime. You should have your

evidence complied as if you were presenting it in court to persuade a jury. In this approach, you present

your case to the suspect and give him or her no room to do anything but confess.

No matter the approach taken in the interview, come prepared with a written “confession” which the

suspect can sign if you induce a confession. The suspect will generally not confess unless you have

shown that only he or she has committed the crime. To show this, you must accurately describe what the

suspect did and how much money was involved. You must show the suspect benefited from the crime and

had the opportunity, ability, and intent to commit the crime.

Include this confession in your final report.

Step 7: Prepare Final Report (a pecha kucha) (For more information http://www.pechakucha.org/ )

At the conclusion of your investigation you will prepare a final report in the form of a pecha kucha for

your team (20slides with timed narration of 20 seconds per slide (PowerPoint template available upon

request). This report will include:

1. A brief statement of your conclusion(s) (fraud (how many) or no fraud at TBC)

2. If a fraud or frauds have occurred, you will present the following for each fraud:

a. Identification of the perpetrator;

b. Description of the fraud;

c. Evidence of the pressure or motive the perpetrator had to commit the fraud;

d. Evidence the perpetrator had the opportunity and knowledge to commit the fraud;

e. Evidence of the perpetrator’s intent. That is, you must show that the perpetrator’s actions were not

simply a mistake or ignorance that resulted in the fraud, but a deliberate action;

f. Evidence of how the perpetrator benefited from the crime;

g. The dollar amount of the fraud; and

h. The perpetrator’s confession if you obtained one.

Your team will be graded not only on the content of your pecha kucha, but also on its organization,

presentation, clarity, and delivery style. Neatness, grammar, spelling, punctuation, and clarity of speech

are important. See Grading Handout 1.

This is a competitive exercise where your findings will be compared to the findings of other teams in your

class. All pecha kucha presentations will be scored by everyone in the class as well as several

experienced professionals. Therefore, it is imperative that your team keep your leads and solutions

private, so unfair advantage is not given to other teams.

You will also evaluate each of your team members. See Grading Handout 2.

Student Handout 1

Personal facts about the TBC employees:

Phil Ackers, President Home address: 4945 Bobbin Brook Court, , FL.

Home description: The house sits in an exclusive older section of northeast Tallahassee.

Vehicles: Nissan Sentra, this year’s model. Toyota Camry, three years old. Information from personnel file:

Age: 53

Length of employment by TBC: Ten years.

Prior employment: Owner-manager, Pizzano’s Restaurant in Miami.

Education: M.B.A., University of Miami. Information that can be gleaned from Phil’s coworkers:

Phil is married with two grown children. His wife has her own catering company, which does very well.

Information from public and private sources:

Criminal record: None.

Court records: No bankruptcies, no criminal action pending.

Property records: House on Bobbin Brook, Condo at Sandestin, two vehicles, a 35-foot sailboat, two jet

skis.

IRS: Phil was audited extensively while at Pizzano’s, though no action was taken. Anyone who knew

Phil during those days, will report that the IRS suspected him of tax evasion.

Credit report: Phil has good credit, but a lot of debt, including debt to department stores, furniture stores,

and loans on both vehicles. He also has PLUS loans for his children’s education.

Candie Harris, Secretary/Receptionist Home address: 3232 Baragona Acres Road #45, Tallahassee, FL.

Home description: Her home is in a medium-range apartment complex.

Vehicles: Honda Accord, eight years old; Yamaha V-Star 650 motorcycle, six months old. Information from personnel file:

Age: 26

Length of employment by TBC: Three years.

Prior Employment: Red Carpet Reality, as a secretary for five years.

Education: Financial Certificate from Lively Vocational School. Information that can be gleaned from Candie’s coworkers:

Candie has never been married. She is always dating at least one of the ball players, often more. She was

born and raised in Perry, Florida. Her father is a vice-president at Capital City Bank. She is the reigning

Queen of the Crab Festival for Taylor County. Candie dislikes Ben.

She thinks he is a picky little man who doesn’t trust her or believes she has a brain in her head. She’s

always complaining about being his dating service. Women are always calling, including his ex-wife

asking for money. Gleaned from past employer: Candie was a good worker, if a bit of a flirt. She left with good feelings all around.. Information from public and private sources:

Criminal Record: Series of speeding tickets, most on her motorcycle.

Court record: Three times in driving school to remove tickets.

Property records: One car, one motorcycle.

IRS: No actions.

Credit report: Three credit cards: Burdines, Dillards, and Goodys, all at credit limit.

She owes $165 per month on her motorcycle.

Ben Hill, Office Manager Home address: 1832 Jackson Bluff Road #25, Tallahassee, FL (Villa Cortez Apts).

Home description: It is an older apartment, situated in a less prosperous part of town.

Vehicles: Toyota Corolla, four years old. Information from personnel file:

Age: 42

Length of employment at TBC: Three years. Prior employment, past ten years beginning with his most recent employer:

*Three years at Tallahassee Doors, a small manufacturing firm.

*Four years at the Florida Department of Transportation in the Financial and Auditing Department.

*Two years at Holiday Construction, as an accountant.

* One year at Krispy Kreme Donut Corporation, as an accountant.

Education: Four-year degree in accounting, no CPA.

Information gleaned from co-workers:

Ben has been married twice, that we know of. He had two kids with his first wife, but ended up leaving

her for wife number two. The second wife left him a few months ago; He had to give her his house. He’s

always dating someone or other; women are always calling here. Information gleaned from prior employer:

Ben said he left because he was bored. If he hadn’t left, I’d have fired him. Seems we got less and less

profitable while he was around. The new guy here is doing much better. Profits are up again. Gleaned from apartment manager:

Ben’s always late paying his rent, but then most of my tenants are. He always eventually pays it. Always

in cash, but I give him a receipt. Information from public and private sources:

Criminal record: None.

Court records: Two divorces. In divorce number one, his spouse was awarded $1,000 per month in child

support and alimony. In divorce number two, his spouse was awarded the family home, and car, but no

alimony or child support.

Property records: Owns one car.

IRS: No actions.

Credit report: Shows a bankruptcy four months ago and a debt of $14,000 in past alimony and child

support.

Terri Hughes, Assistant to the President Home address: 80 Autumn Woods Way, Crawfordville, Florida.

Home description: Terri’s is an old rented home with a very tidy yard.

Vehicle: Honda Civic, four years old. Information from personnel file:

Age: 42

Length of employment by TBC: Ten years.

Prior employment: Pizzano’s Restaurant in Miami, Florida, ten years.

Education: High school. Information gleaned from coworkers:

Terri never married. Big surprise. She’s about as uptight as people come; maybe it is the fact that she has

her hair in such a tight bun it cuts off circulation to her brain. She dresses nice enough, always in dark

blue business suits. She’s been with Phil forever, worked with him in Miami and came here with him.

She’s condescending and guards Phil’s office like Fort Knox. She answers his mail and phones for him.

Everything goes through her first. Information from public and private sources:

Criminal record: None.

Court records: None.

Property records: One vehicle, a beach house in the Florida Keys, owned 12 years.

IRS: Audited three times in Miami.

Credit Report: She has two credit cards: Burdines and Visa. Both carry a zero balance.

Tucker Johnson, General Manager Home address: 8086 Baby Farm Road, Tallahassee, Florida.

Home description: Tucker’s house is firmly middle-class, in the country with several acres and two

horses.

Vehicles: Ford Excursion, this year’s model; Honda Accord, three years old. From personnel file:

Age: 55

Length of employment by TBC: Six years.

Prior Employment: St. Louis Cardinals assistant pitching coach, 11 years. He played major league ball

in his twenties and early thirties.

Education: Degree in Sports Management. Information gleaned from coworkers:

Tucker is married, and has seven children. Only two kids are still at home. He drives a new car every

year, as payment for an advertising campaign he stars in for a local car dealership. Information from public and private sources: Criminal record: One bar fight, 15 years prior.

Court Records: No bankruptcy or divorces. Assault charges dropped from fight.

Property records: One house, two cars, and one powerboat, three jet skis.

Credit report: Seven credit cards, only two with small balances.

Michelle Shelton, Accounting Clerk Home address: 4571 Gautier Drive, Tallahassee, Florida.

Home description: Michelle shares a nice townhouse with two roommates.

Vehicle: Plymouth, eight years old. Information from personnel file: Age: 21.

Length of time by TBC: Two years. She works part-time.

Prior employment: Chick-fil-A in Tampa for three years.

Education: Michelle is a student a FAMU, seeking business degree. She transferred two years ago from

Tampa Bay Community College. Information gleaned from coworkers: Michelle is trying to save up enough money to buy a car. She’s a hard worker, and everyone likes her, but

even so, we think she got the job because of her uncle, Tucker Johnson. Michelle would like to date

baseball players, but they’re all afraid of her uncle. Information from public and private sources:

Criminal record: None.

Court records: None.

Property records: One vehicle.

IRS: No action.

Credit report: Michelle has three credit cards: JCPenney, Burdines, and Victoria’s Secret. Each carries a

balance close to $200.00.

Student Handout 2 Observations of TBC Functions

Concessions You arrive an hour before the gates open to observe the concession operation. There is one concession

booth. Holly Hope, the supervisor, brings carts of supplies from the locked storeroom located beneath the

bleachers. Holly rushes back and forth between the storeroom, always answering questions and seeming

to do three things at once. You make a trip to the storeroom with her toward the end of the evening and

note that it seems to be neatly ordered and though some supplies are low, they are not in real danger of

running out of anything. There are three people working in the booth and six college-aged people working

the bleachers. The bleacher workers come back periodically to refill drinks and trays. You find yourself

pitching in and helping to fill trays of drinks for the students. By the end of the night, a grateful Holly has

offered you a job. You note the bleacher workers are given $50 in small bills at the beginning of the night.

When they return with an empty tray, they are required to turn over the money for the tray they sold. For

example, if they sold 40 drinks, they turn over $40.00. At the end of the night, each returns $50.00 to the

register. The concession booth closes during the ninth inning and the money counting begins. The register

report shows number of items sold and total receipts. Holly and one worker count the cash and compare

the numbers with the register-generated receipts. Ben Hill arrives before they have finished and the two

stay until they come close to a balance. Ben then takes the register tape and cash to the office under the

protection of an armed security guard. Ben locks the money in the safe, and leaves the register tape on

Michelle’s (A/R clerk) desk. The next day, Michelle and Ben recount the money to make certain it

reconciles with the number of items sold on the register report. Michelle creates receipts in the

bookkeeping program that automatically adjusts the inventory and creates a deposit slip. Ben Hill, Terri

Hughes, or Phil Ackers will deposit the money.

Equipment Purchases Equipment orders originate with Tucker Johnson, the general manager, or Sam McCarty, the equipment

manager. When new equipment is needed, one or the other tells Ben Hill. Ben chooses a vendor and has

Michelle generate a purchase order in the bookkeeping program. All equipment purchase orders are

“open” so they can have the best available price at the time. The bookkeeping program also generates a

receiving report that Michelle returns to Sam. You note that Ben insists that Michelle give him the

purchase order for his verification before he mails it out. You are at the training facility one day when an

order arrives. You note that Charlie Thurgood, the salesman from Sports Equipment, personally delivers

the equipment. Sam carefully counts the shipment and checks off the appropriate amounts on his

receiving report. Charlie tells Sam he will drop the invoice off with Michelle because he wants to stop in

the office and see his good friend Ben. Sam later takes his receiving report to Michelle. Michelle

compares the receiving report, the purchase order, and the invoice to make certain all the equipment has

arrived, then generates a check. She forwards the check and supporting documentation to Ben, who signs

the check and mails it to Sports Equipment.

Parking You spend an evening watching the parking operation. You notice there are five employees working. The

workers wear carpenter’s aprons and collect $2.00 for cars and $3.00 for larger vehicles such as RVs.

They put the cash in their aprons, and put a ticket under the windshield wiper of each vehicle. You count

1,500 parking spaces in the lot. The crew quits collecting money an hour after the game begins. The

workers turn their aprons and remaining tickets over to the supervisor. The supervisor then takes the

aprons and tickets to the ticket booth where he reconciles the number of tickets sold with the cash on

hand. Ben supervises the process and verifies the amounts.

Payroll You find that payroll is subcontracted out to ADP Payroll Services. Permanent staff and players are paid

bi-monthly. Players have eight-month contracts while permanent staff has 9- or12- month contracts.

Salaried employees are paid on the 1st and 15th of each month. Game-day employees are paid after each

home game series. Candie Harris collects the time cards from the supervisor of each division after each

game (concessions, parking, programs, ticket sales, security, and the team mascot). Each employee’s time

card is signed by his or her supervisor and co-signed

by the person from the front office who is responsible for that division. Candie creates a consolidated

timesheet after each series showing the worker’s name, hours worked, and rate of pay. Ben Hill verifies

her numbers and sends the sheet on to ADP. ADP tabulates the amount owed in payroll including

matching FICA taxes, and distributes the payments. Salaried workers have their money deposited directly

into their bank accounts; checks are written for the game-day employees. ADP sends a detailed listing of

the amounts paid back to the TBC. Ben checks over the listing, then forwards a summary to Michelle,

who reimburses ADP for the salaries and taxes paid.

Programs The team orders a large number of programs before the season begins, which includes advertisers and

team biographies and histories. Prior to each series, TBC orders inserts that contain updated player

statistics as well as information on the opposing team. Two people sell programs at each game. One

salesperson is near the front gate; one is near the concession stand. The program sellers arrive before the

game to stuff the new inserts into the programs. They continue to sell programs until the 7th inning. At

that time they return their money to Ben Hill, who counts it with them. Ben then takes the money with

him to the ticket booth where he helps count the ticket revenue and parking receipts. The money is taken

back to the office safe under armed guard. As with the other sources of revenue, Ben turns the money

over to Michelle the next morning. Michelle determines the number of programs sold by dividing the total

receipts by $3.00 (sales price). Once a month she does a physical count of the remaining programs to

ensure there is no leakage. Michelle enters the receipts and deposit slip for programs into the bookkeeping

system. The bookkeeping program keeps a perpetual inventory count. Ben Hill, Phil Ackers, or Terri

Hughes deposit the money into the bank and return the deposit slip to Michelle for verification.

Promotions (Fundraising) Phil Ackers hosts a series of fundraising/promotional activities throughout the Southeastern United States.

He makes an occasional trip to Boston, since the TBC are affiliated with the Boston Sox. He rents a hotel

conference room, displays team souvenirs, and has a team member or two to sign the merchandise and

autographs. The merchandise is sold to raise money for the team as well as promote the team. Phil uses

Seminole Catering to provide food, which he transports with him to the various affairs. Phil usually drives

to events within a few hours driving time of Tallahassee, and flies coach to events that are further away.

Phil returns all money and receipts to Terri Hughes. Terri verifies the expenses and forwards the receipts,

expense invoices, and cash to Michelle. Michelle enters everything in the bookkeeping program. Ben Hill

usually deposits the promotional receipts.

Tickets Sales The ticket booth is a small wooden structure with three windows. There are three elderly ladies working

there, Myrna Myers, Janice Lipponi, and Gerta Child. They have obviously been working together for a

long time, since they spend the evening catching up on each other’s grandchildren and their activities. The

women meet outside the booth two hours before game time and enter the booth together. There are no

pre-sold tickets. They accept cash and checks only. It is an old-fashioned affair; the ladies ring up the

sales on old registers, and all tickets come off one sequentially numbered roll. A security officer is posted

nearby as tickets are sold. An hour after the opening pitch, the ladies close up the windows and count the

money. Janice and Gerta are permitted to leave when Ben Hill and the security officer arrive. Ben and

Myrna recount the money and verify the ticket log. Ben takes the ticket log, along with the cash, under

guard to his office safe. As you leave with Ben and the guard, you notice Myrna taking a small notebook

out of her purse and making notations. The next morning, Ben gives the ticket log (which shows the

number of each type of ticket sold) to Michelle who enters the sales into the bookkeeping system,

generates a deposit slip, and adds the money to the post-game deposit. Ben Hill, Phil Ackers, or Terri

Hughes deposits the money. The deposit slip is returned to Michelle for reconciliation. Michelle and Terri

Hughes do the monthly bank reconciliation.

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