Which financial control helps prevent misuse of funds in a DECA chapter?

• A. Centralization to a single approver.
• B. Segregation of duties, approval workflows, and regular audits of expenses.
• C. No documentation.
• D. Cash-based operations only.

Answer: (B)

This question is about internal financial controls that prevent funds from being misused in a DECA chapter. The best approach combines several safeguards: separating duties so no one person handles all aspects of a transaction, having a clear approval process, and conducting regular audits to review expenses.

Segregation of duties means different people initiate, approve, record, and reconcile transactions. This creates checks and balances; if one person tries to misuse funds, another is in place to catch the issue. Approval workflows ensure expenditures are reviewed and authorized before money goes out, helping keep spending aligned with the budget. Regular audits of expenses provide accountability and deter misuse because discrepancies are more likely to be detected and corrected.

Relying on a single approver introduces a vulnerability since one person could approve improper spending. Lack of documentation eliminates traceability, making misreporting hard to detect. Relying on cash-based operations alone doesn’t establish the necessary checks and balances and can worsen risk.