Mountainview Country Club: Who's Minding the Store?
After five years of working at the Mountainview Country Club, Sandi Lane must decide which of several courses of action to take in response to financial improprieties committed by her supervisor and some co-workers. The Club's general partner has refused to act on Lane's concerns. Her supervisor's wife who also worked at the Club has just threatened Lane: "I'll see to it that you don't work here anymore!" As Controller of the Club, Lane was responsible for all aspects of the accounting functions -- but, with no staff. She handled payroll and tax preparation, human resources, budget and financial statement preparation, membership tracking, and cash flow forecasting. She spent much of her time at the Club trying to implement basic accounting procedures. Cash flows were precarious with one of the partners in the Club making expenditures of $20,000 and more without regard to budgets or cash availability. The food/beverage area had losses of $60,000 annually and inventory shrinkage in the Pro Shop was more than $100,000 each year.