Tallahassee Bean Counters Case Case Solution

Case Facts

The given research dissertation has discussed the financial failures that have contributed in making the Tallahassee Bean Counters morenoticeable.Tallahassee Bean Counters is one of the minor league baseball team in Tallahassee, Florida. The primary source from where the team’s revenue is generated is the tickets sales, parking, promotional fundraising, programs and concessions. Phil Ackers – the president of the baseball team is responsible for monitoring the fundraising activities. In addition to this, the Office Manager – Ben Bill is accountable for looking after the daily routines and other business related activities taking place in the office. Also, the General Manager – Tucker Johnson is held responsible for the players of the baseball team. The office expenses of Tallahassee Bean Counters are typical of a mid-sized organization. Other expenses of Tallahassee Bean Counters include: concession goods, equipment, traveling expense of the team, programs, as well as memorabilia for resale. Since the time sheets of the payroll are being compiled in-house, Tallahassee Bean Counters has contracted with the ADP payroll for carrying out the payroll function.

Frauds Presented In Case

The case involves three fraudulent activities that have taken place in the Tallahassee Bean Counters, which include: recognition or registration of the revenue generated from ticket sales, fictitious or ghost employees on the payroll and the kickback scheme with the supplier of the equipment. Each of these frauds is discussed with rationale as below:

Kickback scheme with the supplier of the equipment

The equipment vendor had been changed by Tallahassee Bean Counters. There had always been a strong and close relationship between the salesmen and the new vendor, namely: Charlie and Ben. The priced charged per item became comparatively expensive after Tallahassee Bean Counters chose Sports Equipment Inc. as a new vendor. The business was diverted  to Sports Equipment Inc. by Ben for no specific reason, despite of his strong friendship bond that he shared with Charlie Thur good. In the catalog, it can be seen that there isn’t any difference in the price of both the vendors.The purchase order was usually submitted by Michele to Ben, and Ben always had chances of recreating the purchase orders as they are left open, due to which it was very easy for Ben to increase the number of orders than they are required in real. He used to increase the orders’ quantity and asked Charlie for falsifying and mislead ingpur chasing quantity mentioned in the invoices.

In short, the excess goods have been fenced by Ben and Charlie, and they divided the money, which they got from this fraud.In the scheme, the multiple purchase orders as well as multiple invoices were recorded, one set falsified and another set accurate. The misleading asset subsequent sales were detected by Play It Again Sports through PI. The total difference between the purchases made in actual and the altered and misleading purchase order amounted to $4149.28, which was witnessed when the actual invoice as paid was compared with the uninflated amount of invoices. In short,  Ben had inflated the prices which created the illusion of the greater profit being generated than the actual profit.

Fictitious or ghost employees on the payroll

A ghost or fictitious employee refers to an employee who is recorded on the payroll system but does not work for any corporation or may not even exist. The ghost employee could be the fictitious person who is recruited by the deceitful or dishonest HR employee. The ultimate objective of the ghost employee fraud is having a wage paid to the ghost employee and received by the deceitful employee. This is done by entering a fictitious or ghost employee into the system of payroll.

In this case, the altered and misleading time sheets are generated by Ben in such a manner that he had created the time cards of all the three employees who used to work for Tallahassee Bean Counters, but had left their jobs to avail other employment opportunities. Since Ben was dealing as the head of monitoring the employee’s resignations and recruiting other employees as their replacement, he easily did not let the higher authorities know about the resignations as they were not directly dealing with the matters involving the employees’ recruitment and quitting, so what Ben did in order to have fraud money was that he did not take the signatures of the employees on any resignation letters. With ADP, Ben had entered the change of addresses in order to mail their checks to a similar post office in Monticello. Later on, the checks were deposited into Jessica account. He also used to crimple or destroy the details and give a summary page to Michele. The comparison between the payroll summary and game-day employee time sheet had shown discrepancies amounted to $180.00 for each month.

Recognition of the revenue generated from ticket selling

Improper recognition of the revenue can be held accountable for the substantial portion of the financial fraud. Ben Bill has been supervising the sellers of the ticket as they had responded to reconcile the collected money with the dispensed tickets. Also, he had been signing the ticket ledger as well. Ben Bill had an overseas collection as well as a reconciliation of the process of the ticket.  The discrepancies were found between the notebook of Myrna and the recorded ticket ledger that Ben had given to Michele. The amount stolen by Ben amounted to $3949.80………….

 

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