Reference no: EM132524627

Question - Habitat for Humanity (HFH) is a not-for-profit organization that provides assistance in building homes for local families in need. It has a local branch in Brandon. HFH just had its annual charity gala with a lottery draw to raise funds. Facts pertaining to HFH, the annual charity gala, and the lottery include the following:

Lottery tickets were sold by volunteers until one day before the charity gala.

Lottery tickets were sold individually for $5, or five tickets for $20. 25 volunteers were each given 20 books of ten tickets.

If a volunteer sold their allotment of tickets, they were encouraged to ask other volunteers to share some of their allotment, if they still had any for sale.

Volunteers gave the cash from ticket sales to Lesley Darnes, HFH's fundraising manager, at the charity gala.

Lesley, alone, performed a count of the cash at 10pm, one hour before the lottery draw. Ticket receipts totaled $20,520. Dan Smith, the executive director of HFH, had expected revenues to be closer to $25,000.

Volunteers stated that many tickets were sold as half a book, but NO data were collected.

The volunteers did NOT know that they had to return the unsold tickets and, as a result, NO unsold tickets were returned.

HFH placed several donation boxes for cash and cheques around the floor of the Victoria Inn during the night of the gala. Donations collected during HFH's charity galas are often quite high.

Dan took all the ticket-sale money, as well as all cash and cheque donations made during the charity gala, home that night and deposited them in the bank the next business day.

Required - Identify five internal control weaknesses and provide the implication and a recommendation for improvement for each.