Michael arranges a morale-boosting birthday party for Meredith and is determined to come up with the funniest message in her card. Dwight wants a pact with Jim to fight the downsizing, and Michael regrets showing off when Oscar asks for sponsorship for a charity walk being undertaken by his nephew, who has cerebral palsy.

While Michael and Dwight are out of the office for the day trying to close a deal on a new condo for Michael, Jim and Pam arrange for the staff to participate in an "Office Olympics," where the workers play strange, invented games (among them, Dunderball, Hate Ball...and Pam Pong) that they usually play while the boss is out. At the end of the day, the festivities cheer up everyone - even the oblivious Michael.

Michael hosts a Christmas party at the office, but somehow manages to decrease the holiday cheer when he changes the arranged secret Santa pairs to a game of "Yankee Swap", where everyone gives their pre-bought presents to a different, random worker. To boost morale, Michael introduces vodka shots while the others compete for an iPod, Jim hopes that his sentimental present, meant for Pam, doesn't end up with Dwight, and Angela becomes enraged about Michael's party changes.

The Dunder-Mifflin staffers join in kindergarten-like festivities for Valentine's Day while Michael heads to New York City for a conference with the corporate heads. After showing the documenters a tour of his favorite city, Michael accidentally lets slip to the others at the conference that he and Jan hooked up, and he finds himself in hot water when Jan and the new CFO of Dunder-Mifflin hear the story. Back in Scranton, Pam becomes irked when she discovers that Roy hasn't gotten her anything for Valentine's Day, Dwight struggles to find a gift for Angela, and Kelley talks off Jim's ear about her rather desperate affections for Ryan, who is less than interested.

The accountants inform Jan that the books don't balance and $3000 is missing. The accountants decide to interrogate the other office employees, but Oscar is sure Michael took it.

The accountants question Phyllis and she makes a confession that she borrowed $14 and forgot to report it.

Meredith is the next employee to be questioned. She claims that she wouldn't be at work if she did and wouldn't risk getting arrested because she has a son to take care of. She also indicates she has already lost custody of her other child, a daughter, so would not risk it.

The accountants talk to Stanley. Stanley thinks whoever did it is smart to steal that much.

Kevin thinks Angela has a crush on Roy, who ends up being questioned next, but he doesn't even know how to take $3000 out of petty cash.

Kevin types a memo for the thief to come forward. Kevin gets ticked off that Angela is bossing him around and makes a fake memo for himself.

With new developments, the accountants start turning on each other.

The accountants wait for Michael to leave his office so that they can check to see if he stole the money, and Angela is mean to Kevin.

The accountants check Michael's office for evidence of the money. After finding nothing but inexpensive, useless novelty items, Oscar and Kevin unanimously decide Angela must talk to him.

Dwight confronts Angela about her decision to accuse Michael of taking the money. Kevin and Oscar discover that the missing funds are merely an accounting mistake made by Angela, upon which Kevin declares "this is the best day of my life."

Jan told Michael that the board had voted to close the Scranton branch. There would be a select group of employees that would get a severance package; the others would be going to work at the Stamford branch. She informed Michael that he would be one who would get a severance package.

Michael decided to send his employees out into the field for sales calls. He paired himself up with Andy. He let the veterans choose who they wanted their partners to be. Phyllis chose Karen, Stanley chose Ryan and that left Jim and Dwight paired together. This wasn't the first time Dwight and Jim had done sales calls together.

Since Dwight's departure, Andy had been clinging to Michael. Andy's antics had been wearing very thin on his co-workers. In fact, Andy left Jim actually wishing Dwight would come back.

Roy paced in the parking lot outside Dunder-Mifflin and then charged the building looking for Jim. When he spots Jim and rushed him, only to get pepper sprayed in the eyes by Dwight, who managed to spray everybody around him, as well.

After Pam's outburst at Beach Day, she and Jim had a talk and realized how much they both missed their friendship. Pam never regretted her speech she gave to Jim in front of the rest of the staff; in fact, she was happy that it only took her three years to summon the courage to say what was on her mind.

Ryan returns to Scranton with a plan to bring Dunder Mifflin into the digital age by launching a new website - Dunder Mifflin Infinity. Michael is worried about ageism and attempts to win back clients using old fashion business skills. Relationships are on the forefront as Ryan returns to an eager Kelly, Jim and Pam are outed to the office, and Angela is still upset with Dwight about her cat.