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Mixed Accounts

The audit report at Good Teaching Middle School revealed the following findings:

  1. During both fiscal years of 2015-2016 and 2016-2017 at Good
    Teaching Middle School, collections and disbursements from several
    activities were commingled within the Classes and Clubs Eighth-Grade
    account. Consequently, this commingling required a complete review of
    all the financial activity posted to the account. Although some of the
    activities did not raise sufficient revenues, all related expenditures
    were covered with account balances carried over from the prior year. As
    of June 30, 2017, the Classes and Clubs Eighth-Grade account balance was
    nearly zero. This account started the 20152016 fiscal year with a
    carryover balance of approximately $3,000.
  2. The auditors’ analyses of the 2015-2016 financial activity for
    the Gradventure field trip disclosed that the school should have raised
    $20,625 based on student participation; however, they could only trace
    $19,925 to account postings identified as revenues collected for this
    activity. This pointed to a revenue shortfall of $700 that could not be
    explained by the school.
  3. In the case of the end-of-the-year dance, for both fiscal
    years, admission tickets were not issued to control the sale of
    admissions. Instead, the school used Official Teacher’s receipts, which
    although numbered, are not documented with a vendor’s invoice. This
    condition precluded us from performing an analysis of these sales
  4. The school did not complete a Student Activity Operating Report for any of the eighth-grade activities.

The yearbook was sold to students for $25 each. The school ordered 175
books; however, only 117 were sold for a leftover inventory of 58 books.
Revenues generated from the sales and ancillary activity amounted to
$3,600. However, this total was not sufficient to cover the yearbook
invoice, which amounted to approximately $4,000. The remaining balance,
or approximately $400 was paid with revenues from the General
Miscellaneous account.

  1. Yearbook Monthly Operating Reports, the Yearbook Distribution
    Report, and ancillary documentation for the 2016-2017 fiscal year was
    not on file. The auditors inquired as to whether the school was
    producing a yearbook in 2017-2018 and found that the school had already
    placed an order with the yearbook publisher for 135 books. They also
    found that, as of March 1, 2018, only 70 books had been sold. They met
    with the yearbook sponsor, who stated that she had not received training
    regarding the yearbook activity, and she was not aware that monthly
    reports were required. Consequently, none had been prepared and filed
    for the current year. The auditors discussed this matter with the
    current school administration for their information and follow-up.

What systems would you put in place in order to correct the missteps of this administrator?


Write a thorough response discussing all steps that you would take
as the principal of the school to ensure this no longer occurs. Keep in
mind that this error cannot be repeated as it is an audit exception.

Sample Solution

oes not talk about interests but only about virtue itself; “secular morality” is the morality that needs to be proved by reference to public welfare. In my analysis, Locke separated God’s “law enforcement power” by distinguishing the two kinds of morals. The “right of reward and punishment” in “God exercises the right of reward and punishment” is mainly based on “confidence” to reward and punish, not on “interests” to reward and punish. It is not in Protestant ethics that God punishes a man if he does not continue to work and earn benefits to glorify God, but in the framework of Locke’s theory of decentralization, that once someone infringes upon public interests, the power to administer rewards and punishments to him may not be God, but a secular force. There is no interest problem in the kingdom of heaven. Interest is a human problem. God endows human with the legislative power and law enforcement power when dealing with interest issues. Hobbes also advocates that once a man is evil, he needs Leviathan as a secular thing to punish him. Locke and Hobbes are identical in transferring the basis of law enforcement to the secular. So, after confining God to the kingdom of heaven, what position does God have in Locke’s philosophy? Locke once compared God to a “legislator” (Human Understanding: P33). God himself is perfect, omnipotent and perfect, so the legislator can and does have the power to enforce the law. But God only deals with faith and not with interests, so “natural law is given to everyone in that state (natural state)” (The Treatise of Government (Part Two): P5). Man is not God. Man will face the problems brought about by non-decentralization. Locke holds that human beings have “inherent inferiority” (see “The Treatise of Government (Part II)). The root of this nature is that people tend to infringe on the interests of others. This is based on epistemology. Christianity in the Middle Ages believed that cognitive errors were caused by judgments. There were no errors in human sensory impressions, but judgments could lead to errors. Because God has endowed man with unlimited free will, but not with sound knowledge, the combination of unlimited free will and limited knowledge may lead to wrong judgment. The human will will will expand unreasonably. This is the root of people’s inferiority in understanding. The distinction between intellect and will was clearly proposed by Locke’s descendant Berkele

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