Sunshine center Case Study Example | Topics and Well Written Essays - 750 words

Sunshine center - Case Study Example Under the church’s control, the Sunshine is under the management of Barb who had no prior experience as a teacher, childcare provider or manager. The resignation of the first Sunshine Center committee led to the formation of a two person committee comprising of Olivia as the secretary and Sarah as the chair of the committee with the Rev. Andrew as an ex-officio member. The new committee has noticed some inconsistencies in the running of the center especially its finances. The Sunshine center need a radical overhaul inn terms of its financial management and its overall operating protocols and procedures. This paper aims to provide an outline of the organizational structure and specific internal control activities that must be in place for Sunshine Center Committee and the church to consider keeping the Sunshine Center open. The Sunshine Center lacks a clear organizational structure as Barb carrying out all the organizational duties all on her own exemplifies it. This puts her i n a position of stress because she handles every issue concerned with running the organization. Barb is responsible for both the human resource and financial management of the organization, which diminishes the effectiveness, and efficiency of the organization’s management. ... The development of a monetary or financial policy to govern how the organization’s funds will be managed is dependent on competent governance. Administration is another arm of an organization’s internal structure that is concerned with the execution of policy recommendations. Olivia who can coordinate staff duties in achieving the goals of the organization should handle this task. The primary program that is the concern of Sunshine Center is to deliver affordable childcare to the community served by the church. This endeavor should be handled like a program with its head being responsible for spearheading the goals and objectives of the center in delivering quality child care to the community. To achieve internal control according to Committee of Sponsoring Organizations of the Treadway Commission  (COSO), Sunshine Center Committee must institute changes at all levels of management and their standard operational procedures. Internal control is described as a process t hat is affected by an organization’s board of directors and management that is meant to provide reasonable assurance in the attainment of objectives and goals. Internal control ensures that there is effective and efficient operational management and reliable financial reporting. Internal controls will ensure that Sunshine center is compliant with applicable and necessary laws and regulations like the filing of tax returns with the IRS. The institution of appropriate internal controls will see Sarah and Olivia safeguard the Sunshine center’s assets. Financial reporting is the key weakness at Sunshine Center, which exposes the organization to risks of litigation from the IRS and their creditors. Instituting an internal control at the Sunshine center will ensure that the execution