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Ethical Choices at Choice House Case

In: Business and Management

Submitted By vjam
Words 517
Pages 3
1. Identify any internal control weaknesses for the five areas mentioned by the Finance Committee. Discuss any weakness and explain how to improve each situation.

* Inadequate system to track the revenue generation and grant * There is no system to track the revenue generation * Inadequate system to monitor the expenses * All the expenses should go through an approval process which requires all the expenses should be properly documented and the need explained. This is not in place in Choice House

2. Identify ethical issues that Ashley should discuss with the Finance Committee? Which IMA Ethical Standards would apply to Ashley? Discuss. * Credibility: The ED should record all expenses and provide all information when I asked. He cannot deny any information. Providing accurate and insightful information are the key function to ED role.

3. How should Ashley respond to the Finance Committee? Review the IMA Resolution of Ethical Conflict section of the IMA Statement of Ethical Professional Practice for guidance. Prepare a memo to Joan sharing Ashley’s findings. Should Ashley send a copy of the memo to the ED? Explain.

* Ashley should discuss the case with her immediate supervisor and also take the issue to upper level to the executive director.

* Ashley’s Memo to Joan:

Date: 6/3/2013
From: Ashley Parsons
Subject: Findings on Choice House expense issue and lack of revenue for the year
To: Joan Tanner
CC: Beth * Most expenses were due to publicity brochures and small gift items that the ED requested for her trips to the state legislature and for other unspecified publicity activities. The overage was due to the leasing of two copiers for five years. Each house is required to prepare reports daily on the clients for the program and for the prison system. There are other records required for social services,...

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