Question

The sponsor of a high school athletics club and his students plan to have a car wash on a Saturday in the school's parking lot to raise money to defray the cost of attending a summer athletics competition. Which of the following represents an acceptable procedure for handling funds collected during the car wash?

Choose an answer
A. The club sponsor deposits the monies collected into his personal bank account so that he can write one check back to the school for deposit.
B. The club sponsor provides each patron with a handwritten receipt on school letterhead as documentation of their donation and then deposits the monies collected.
C. The club sponsor places all of the monies collected into a manila envelope and deposits the money following school protocol.
D. The club sponsor takes a relatively small portion of the monies collected to purchase lunch for students helping with the car wash and prepares a deposit for the remaining amount.

Answer 1

The club sponsor should provide each patron with a handwritten receipt on school letterhead as documentation of their donation and then deposit the monies collected.

Step-by-step explanation:

The acceptable procedure for handling funds collected during the car wash would be option B. The club sponsor should provide each patron with a handwritten receipt on school letterhead as documentation of their donation and then deposit the monies collected. This ensures transparency and accountability as it provides evidence of the funds collected and their intended purpose.