The Missing Money (A)1
Erica, a sophomore at a large university, served as the Treasurer of the Class of 2011 Spirit Club,
which had been a big part of her life in college. She had become great friends with the members
of the club and her fellow officers, particularly the president, Matt, and the vice president, Laura.
Early in the fall semester, the Spirit Club decided to purchase and sell T-shirts as a way to raise
money for the club. The club wanted to buy T-shirts from an outside vendor, which meant they
could not use funds already in the club’s account. To purchase the T-shirts, the club required
that members pre-pay Matt in cash, who would then buy the shirts with his personal credit card.
The club decided to charge $15 per T-shirt. Since the T-shirts cost about $10 each, the club
would make about $5 per T-shirt sold. In the end, the club sold about 70 shirts.
In the middle of the spring semester, Erica and Laura had to write out the club’s projected budget
for the next academic year, using the revenues and expenses from the current year. When Erica
reached the point where she needed to record fundraising revenues, she realized that the bank
account report did not have an entry corresponding to the fall T-shirt sales.
Erica thought that Matt most likely did not realize that the club members had given him more
cash than the actual cost of the T-shirts. As a result, Matt had money in his account that actually
belonged to the Spirit Club. Erica never knew what the actual cost of the shirts was because of
bulk pricing, taxes, and shipping and handling. She knew the T-shirts cost somewhere between
$10 and $14 each, meaning Matt may have forgotten to deposit anywhere from $70 to $350 of
money back to the club account.
1
Developed by Andrea Green and Jessica McManus Warnell, University of Notre Dame, with Karen Whelan-Berry,
Providence College. This case was inspired by an actual internship experience but names and other situational
details have been changed, and interview sources left un-credited with permission, for confidentiality and teaching
purposes.
This material is part of the Giving Voice to Values curriculum collection (www.GivingVoiceToValues.org).
The Aspen Institute was founding partner, along with the Yale School of Management, and incubator for Giving Voice to Values (GVV).
Now Funded by Babson College.
Do not alter or distribute without permission. © Mary C. Gentile, 2010
1
Erica didn’t know what she should do. She was conflicted because Matt was a senior and had
been an officer of the Spirit Club for two years, while she was the youngest and only sophomore
officer of the club. Matt was also a good friend, and Erica did not want the money issue to
become a problem in their friendship. However, Erica knew Matt was planning on hosting a
speaker later in the semester which would likely use up most of the remaining money in the club
account. Because the club did not receive any additional funds for the next year, she knew that
$70 might make a difference to the club next year.
Erica first brought up the missing money to Laura. After she explained that there should have
been money deposited to the club account from the fall T-shirt sales, Laura immediately said that
Erica needed to talk to Matt about the money. The nonchalant manner in which Laura told Erica
to talk to Matt gave Erica the confidence that Matt would realize that it was a simple mistake, not
a big deal, and that he would not be personally offended.
Erica then approached Matt and explained the situation. She told him that he should have had
more cash than the total cost of the T-shirts, and that the extra should have been deposited into
the club account. She also offered to help Matt figure out exactly how much money he owed the
club. Matt ended the conversation by turning down Erica’s help but promising to correct the
mistake. The entire conversation lasted less than two minutes. However, at the end of the
semester, Erica looked at another report of the club bank account and realized that Matt never
actually deposited the money. Furthermore, the final speaker that Matt had brought to campus
ended up leaving the club with only $400 for the next academic year. At this point, club
activities for the year were done and with only weeks left before going home for the summer,
Erica had to make a decision.
She knew she wanted to do something but was not sure how to proceed. Should she approach
Matt again? Should she consult an advisor? Should she go so far as to involve an administrator
in the Student Activities Office?
Last Revision: 8/29/12
This material is part of the Giving Voice to Values curriculum collection (www.GivingVoiceToValues.org).
The Aspen Institute was founding partner, along with the Yale School of Management, and incubator for Giving Voice to Values (GVV).
Now Funded by Babson College.
Do not alter or distribute without permission. © Mary C. Gentile, 2010
2