Case Study Analysis: The Missing Money (A) - Group Presentation

This case study examines the ethical and leadership challenges presented in 'The Missing Money (A)' case, focusing on Erica, the treasurer of the Spirit club. The case revolves around missing funds from a t-shirt fundraising event, highlighting issues of financial accountability, communication breakdown, and the complexities of interpersonal relationships within a club setting. Erica discovers that Matt, the club president, has not deposited all the funds into the club's account. This creates an ethical dilemma for Erica as she grapples with how to address the situation without jeopardizing her friendship with Matt. The case explores Erica's decision-making process, her discussions with other club members, and the potential consequences of her actions. It delves into the importance of maintaining accurate financial records, the impact of poor communication, and the ethical responsibilities of individuals in positions of financial trust. The analysis considers the implications of Erica's choices on the club's operations, Matt's reputation, and her own role within the organization, emphasizing the need for ethical leadership and transparent financial practices. The case concludes by discussing the importance of ethical behavior and the impact of financial mismanagement.

CASE STUDY OF “The Missing
Money (A)1”
GROUP PRESENTATION

Contents
INTRODUCTION...........................................................................................................................1
Major issues in the case...............................................................................................................1
Voice to value..............................................................................................................................2
Purpose and choice......................................................................................................................3
Process and Data..........................................................................................................................4
Most powerful and persuasive response of Erica............................................................................6
REFERENCES..............................................................................................................................10

INTRODUCTION
Major issues in the case
The present case of missing money, it is case of Erica ad Matt. Erica has involved in
Spirit club in the year 2011 as treasurer. She had a good friendship with Matt, president, Laura
and wise president. They have decided to sell T-shirt in order to raise revenues of the club. The
authorities have passed funds for this evert in the Matt accounts. When Erica had to send
financial report to the authorities then she has realised that there is balanced money in the Matt
account but it is not informed by the Matt to anyone. The main issues in the case are described as
below:
 Spirit club is planning to sale t-shirts to the consumers in order to earn more revenues.
The step taken for raising the fund is effective as they were able to get huge profit.
However, it was later on identified that matt had not deposited any money on the account
of Spirit. Main concern was to make sure that cost which is generally incurred can be
reduced. This was only possible when the excess amount that is received from selling t-
shirts can be used in other activities. It was identified that after making the calculation by
Erica she identified that there are some problem in the total amount. One of the main
problem determined was making use of the account of Matt.
 Being a treasurer it is the duty of the Erica that to maintain financial records of the club
effectively. The records were not maintained by Erica on regular basis. It is important for
Erica as a treasurer to maintain all the records on regular basis so that all the problems
identified could have been eliminated at initial stage itself.
 She was unknown with the real cost of t-shirt, it was just estimating that cost of t-shirt is
near about 10 to 14. This shows that Erica is not conscious about the exact amount that
was taken from people for each shit. As a treasurer, it is important to make sure that all
details are identified that in which it includes total cost that was incurred and the amount
in which the t-shirt was.
 The main issue is in the case is poor communication between all involved persons
(Pitney, Mazerolle and Pagnotta, 2011). There is required to have to clear communication
among all people that the amount that has been transferred in the bank account of Matt.
This information need to be known by all involved members.
1

 There is issue of relationship that is why Erica was uncomfortable to discuss this issue of
money balance with Matt. When individual has to fulfil their responsibility then person
need not to look upon the relationship. As in the case, Erica has not talk regarding cost of
t-shirt and balance money with Matt so that confusion can be resolved. Otherwise, it is
creating issue in the mind of Erica and spoiling the image of Matt.
 Another issue in the case is that no firm can transfer the funds for the business in personal
account of individual. And it happens then individual is responsible to give all detail of
expenditures that occurs. Matt has not given any detail of cash outflow and balanced
amount to anyone.
 She was young and had relationship with Matt thus, we was in fear that if she talks with
Matt then it may create conflict for her. She did not want that money issue become the
problem for their friendship.
 She knew that new program is going to organize in club and for that club is required to
hire a speaker (Farh, Lee and Farh, 2010). Club has not received additional funds for the
next year thus, balance amount can be utilized in this event for giving the speaker.
 When this case has been discussed with Laura then she has not given the correct advice to
talk to higher authorities regarding the balanced money. She has suggested to talk to Matt
only.
 When Erica has discussed about this issue with Matt then Matt has given confidence to
her that he will resolve this mistake soon and will pay this money to the speaker so that
accounts can be managed. But Matt has not deposited the money to the club account.
Matt was responsible to clearly use the funds that have been provided by the higher
authorities for T-shirts and individual needs not be misuse these funds. There should be a clear
record of cash inflow and outflow. Matt has made mistake and has not said to anyone regarding
balanced money. Erica is in ethical dilemma situation whereas she does not want to spoil her
friendship with Matt and also does not want to hide this thing with management as well. She
believes that mistake in financial records is completely wrong but friendship with Matt is also
important.
Voice to value
Erica has noticed that Matt has not communicated to higher authorities regarding
balanced funds and this money is in his account. She knew that it is not right and against the
2

ethics. She knew that club officers have trust on Erica and they believe that she will make good
financial statements and will clearly present cash inflow and outflow in the t-shirt selling
program. She understands that if she did not discuss this topic with Matt then it may be possible
that next time this thing happened against. Because club is planning to release funds for next
year and it would be deposited in the Matt account against. But if she did not solve this issue
now then this issue may arise in the future as well.
If Matt continues doing the same thing then it would be against ethics and company's
policies. Thus, she has discussed this issue with Laura. She was needed solution for this issue
through which she can become able to resolve this money issue and can maintain her friendship
as well (Juang and Alvarez, 2010). She was afraid that she is new to the club and Matt is senior
so nobody will listen her voice. If she discusses this issue with Matt directly then it may impact
on their friendship. However, she was needed and action plan through which she can resolve this
problem and can manage her friendship as well.
Purpose and choice
Erica is new to the club and she is working as treasurer in the organization first time. She
is well aware with her responsibilities and duties. She has found the issue in financial
transactions where Matt has not disclosed the balance amount that is in his bank account. Club
has transferred money for the T-shirt in the Matt bank account. He was responsible to make
experiences correctly and give all detail about the remaining amount. But when Erica had to send
report to the officers of club then she found by looking at bank club account that Matt has not
given money to the company and has not disclosed this issue with anyone. Erica has found that
non discloser of funds is the serious offence and if higher authorities get this information then it
may spoil image of Matt and he might get failed to perform in the club in the future. There are
many ways through which Erica can resolve this issue and can minimize consequences. Erica has
to find the correct way through which she can maintain her friendship and can fulfil her
responsibility as well. She was thinking that if she discusses this issue with Matt then it may hurt
Matt and their friendship may get affected and if this issue is being hide with management then it
would be unethical. She has decided to discuss this issue with Laura so that she can guide her
what would be the correct way to resolve this money issue. Laura has suggested to Erica that to
directly discuss this money issue with Matt, he would justify this thing and can resolve this
confusion. It might be possible that Matt is also unaware with this balanced amount in his bank.
3

Then she decided to discuss this problem with matt in a manner so that she can realise him that it
is just a small mistake and can be rectified easily. When she talked to matt then Matt has ensured
that he will utilize this balance amount to pay to the speaker and this remaining money will be
used for the next year. But Matt has not done the same now she needs to talk to Matt again so
that he realises his mistake and correct it soon. By this way she would be able to save her
friendship and would be able to stop such kind of mistakes in the future.
Process and Data
It is essential for Erica that to identify the consequence that can be taken place if she goes
to higher authorities and discuss the problem of money that is done by Matt. If she discusses on
this topic with Matt against then it might be possible that conflicts may arise between both of
them. It may affect their friendship as well and if she hides this thing then it would be
professionally wrong. If she discusses this problem directly with club officers then it might be
possible that they do not take the arguments seriously because she is new to the club and Matt is
the senior person. If club members do not believe on me then it may impact on my job to great
extent.
Therefore, it is very important for the Erica that to analyses case deeply, find out cause
and consequence and then take any action, any small mistake can be negative for her. This will
help her in resolving this issue and protecting her friendship with Matt as well. If she takes any
action without examining the situation then it may negatively affect the reputation of Matt and
can impact negatively on her job as well. She is required to identify all stakeholders those who
are involved in this case and how they can react on this money problem (Bingham, Harawa and
Williams, 2013). By looking upon all these effects individual can make a right decision and can
resolve such issue easily. The issue related to the loss or missing of money can greatly affect the
club, Matt and Eric as it involves efforts of each and every member of the Spirit club. The
Impact of missing money issue has been described below:
 Erica is a newly added member to the club and she was appointed as a treasurer for the
spirit club. Due to the issue of missing money there can be a lot of problems for Erica as
she owes the responsibility of managing the funds of the club. The Spirit club member’s
pre-pay money to Matt for buying the T-shirts and later selling it at high prices for the
profit which was credited to the club's account. There can be a major impact of missing
money issue on Erica's job as a treasurer. It is very important for a treasurer to manage
4

and record the transaction of money as well controls the flow of money. The
responsibility given to Erica was very important and critical. When the club members
will identify that money is missing from club's account it will negatively affect Erica's
performance or job role. The Spirit club can even take away her job or responsibilities
and ask her to leave the club. This impact of the issue can also affect Erica's state of
mind, as she was dedicated for the job as well as can not bear the pain of called as a
culprit.
 The issue of missing money can also affect the relationship of Matt and Erica. A treasurer
needs to be honesty and impartial while he or she is doing the duties. Erica is very honest
towards her job or responsibilities. She identified that Matt is doing something wrong
with the club's money, such as he didn't deposit the money to club's account. Erica
needed to confront Matt for resolving this issue but Matt ended the conversation quickly.
The doubt or issue was still in Erica's mind but Matt was a good friend of her and she did
not want to hurt him at all. Therefore, the missing money can force Erica to again
confront Matt about money which can really affect their friendship as Matt was a senior
he will not feel good and can get frustrated with Erica's questions again and again. It can
also break their friendship forever. Erica did not want to bring money in between their
friendship but due to the issue it is possible that it is important to discuss the issue which
can lead to a conflict among the two and affect their healthy relation or friendship.
 Another impact of missing money can be described by the fact that Spirit club needs fund
for the activities they want to perform in the next academic year but due to the missing
money they will not be able to perform or conduct any activity in the college which will
be a great issue. The Spirit club was collecting fund for conducting various activities in
the college during summer. Missing money issue can negatively affect these activities
and can be a barrier to the same (Sherif, 2015). Club's members were putting a lot of
efforts for collecting funds which can used further in conducting various activities or
programs for themselves or college students. Therefore, Money shortage or missing can
have a negative impact in the performance of the spirit club and also can affect academic
performance of each and every member of the club.
 The issue related to missing money can also affect Matt's reputation and public image, if
Matt is found guilty in the issue of missing money in the club's account he will develop a
5

bad image or reputation among the members of the Spirit club as well as in the college.
Matt was a senior and was an office for two years in the spirit club, it is obvious that
people must be respecting him. The funds which are collected by club by selling the T-
shirts were impossible to be gained if the members did not pay him money before to buy
the t-shirts, therefore they club members can blame Matt for robbing their money and it
can also rise as illegal action for which Matt can face legal consequences in the future.
The missing money can negatively affect his positive image in the minds of people as the
club members were pre-paying him money for buying the t-shirt, they trusted him blindly
and it will break their trust.
 In order to get a good career in future it is important to develop and maintain a positive
and impressive image in the academic or college life. Matt and Erica both were good
friend and capable of performing their roles and responsibilities effectively for the
development or activities of the spirit club in their college. It was very important for both
of them to perform their respected duties effectively. Treasure is a person who is
responsible for the funds which are coming as well as being spent, Erica needs to manage
funds in club's account which she failed to do, this can affect her future career as it can
appear to be lack of skill or capability of being a treasurer and can affect her future career
or desire to be a treasurer or accountant in a company. It can also be the same for Matt,
he will be treated as a cheater for stealing club's money.
 Another impact of missing money can be the mismanagement of the activities performed
in the college, it is important for the club to conduct or develop activities on the next
academic year (Sherif, 2015). Money shortage can be a problem for the club and college
too in providing activities or development programs for the new students. The issues can
also negatively affect reputation of Spirit club among the students of the college as well
as faculty.
Most powerful and persuasive response of Erica
Main responsibility that is required to be taken is from the side of Erica as she is the one
who is responsible to make sure that all the records of amount that is spend or earned is
maintained in effective manner. However, the scenario it can be stated that time to time
recording were are not made by Erica. In condition when she would have calculated all the funds
that were received, the problem that was raised could have been eliminated. In situations when
6

all the records are made, then should would have known about the total price that were decided
for t-shits and cost on which these were sold. Further, it can be stated that there are many steps
that were required to be taken but were not made.
The treasurer holds up important role to maintain balance in the account so that the
burden faced by members can be reduced. The finding show that the decisions need to be taken
by Erica in which should conduct a meeting in which all the incident that occurred are conveyed.
This will be helpful enough to make each member know about the problems that actually
happened. In condition when these type of meeting is not conducted, then it will highly affect
Erica as a treasurer. Further, this can be also cause serious problem in which the post can be
changed to other person. Different people have diverse set of perception that is carried out. When
there are many people who are involved in decision making, then it enables to identify the most
suitable step that can be taken to overcome the condition in effective manner.
In order to work in club or any other firm, it is important to make sure that the people
who are given with a job perform them with their full willingness. When these are not done, then
it causes serious problem and this can be lead to serious issues. On the other hand, the
relationship that is maintained within working place should not come in the way that it has
negative impact on work. It is important for individuals to make sure that work and personal life
to be kept separate.
Main step that should be taken by Erica should be to call on a meeting that involved all
the main members of the club. When this is done, then it becomes favourable enough to make
sure that all the people of the club will get to know the situations faced and so appropriate steps
and decision can be taken with the help of which it can be solved. In order to consider that
conversation that will take place in the meeting is given below:
Narration: There are in total five people in the room. More specifically, it includes Matt, Erica,
Laura and two other fellow members of Spirit Club.
Erica: Good Morning everyone. Thank you every one to come to attend this meeting in such
short notice.
All: No no not at all, it fine..
Erica: There is an issue that I need to share with every one. As a treasurer, it is my responsibility
to make sure that all the roles that are played by me are perfectly done so that our club and each
member get benefited.
7

All: What is this all about? What is the main concern?
Erica: It is been few months since this incident has taken place. I was able to identify some
issues when I was going through the account details. If you all remember all the amount was we
collected for t-shit were given to Matt and that amount was deposited in his personal account. I
got to identified that the total budget that our club should have is low. The reason for this was
that Matt did not transfer the amount to club’s account.
All: What why did not you inform this initially?
Erica: As Matt is my good friend and in am just in second year so I was hesitating to share go
ahead and ask Matt. This act would have happened accidently. He would not have notices that he
did not transfer any money.
All: When what did you do? You did not inform this to any one?
Erica: yes, I did. I through that it would be better that I shared this to Laura as she is also good
friend and as being the Vise president of Spirit Club I through that this would be better that she
provide me help for this situation.
Laura: Ya, she came to be telling this and I just told her that she should go directly to Matt and
convey him regarding the things that were identified by her.
All: Ok,. It was good that Erica through of sharing this to Laura and we can understand that as
why she did not share the information directly to Matt.
Erica: Laura was helpful for me to boost up my moral and this also helped me to develop
confidence and I when to Matt and ask him regarding the condition.
All: When what happened? What did you say?
Erica: I told him about the mismatch that happened. I told him that there is certain amount that is
not transferred for the personal account to club’s account. Then he told me that he that it would
have missed out and I also added that if he needs any help regarding finding out the total amount
that is to be transfer then I can help him, out.
All: What did he say?
Erica: He said that he will take help from me. All this conversation just took 2 minutes time.
When I was checking the details again, I identified that Matt has still not transferred any amount
to the club’s account and this time I through that it will be better to call up a meeting and let you
know about it.
8

Matt: I was about to make the transfer but suddenly some emergency came and I forgot to do so.
Further, there was no one to remind me again. I know that I should have consider all the aspects
and should have transfer but I forgot do so. The only thing that I can do is that I can transfer the
amount today itself if it is OK with you all.
All: You should have been more responsible. You are the president and you need to take up
responsibilities in which that fund could have been transferred. There was a speaker that was
called on from where did that amount came from was that from personal account of Matt?
Erica: No, that was also from fund of our club. In through that he would made use of amount
from his account and balance it but even this was not done. The total amount in spite on taking
up so much initiatives to raise the fund we are know just left out with $400.
All: This is something serious. Matt should have used from this personal account. If he would
have used it, then the rate of amount should have reduced and the balance would have been
maintained.
Matt: I will make sure that all the records are proper done and the amount is transfer to clubs
account. This will be done today itself.
Laura: Erica needs to be more serious to record the amount so that all the problems could be
identified at initial stage itself. If we talk about the current condition we got just few days for this
semester to get over.
Erica: Yes. I will make sure that all the records are properly maintained timely basis.
All: It’s good that Erica took initiative and took the decision to share this problem and we hope
that this type of mistakes is not done in the future and Matt need to make sure that all the amount
is transferred and to ensure that he does not make mistake, Erica should help him out.
Erica and Matt: Ok.
9

REFERENCES
Bingham, T. A., Harawa, N. T. and Williams, J. K., 2013. Gender role conflict among African
American men who have sex with men and women: associations with mental health and
sexual risk and disclosure behaviors. American journal of public health, 103(1), pp.127-
133.
Farh, J. L., Lee, C. and Farh, C. I., 2010. Task conflict and team creativity: a question of how
much and when. Journal of Applied Psychology, 95(6), p.1173.
Juang, L. P. and Alvarez, A. A., 2010. Discrimination and adjustment among Chinese American
adolescents: Family conflict and family cohesion as vulnerability and protective factors.
American Journal of Public Health, 100(12), pp.2403-2409.
Pitney, W. A., Mazerolle, S. M. and Pagnotta, K.D., 2011. Work–family conflict among athletic
trainers in the secondary school setting. Journal of athletic training, 46(2), pp.185-193.
Sherif, M., 2015. Group conflict and co-operation: Their social psychology (Vol. 29).
Psychology Press.
10

11