Inouropinion,thefinancialstatementsreferedt~abovepresentfairly,ina] i

Transcription

1 ORLEANSPARI~HCORONER NewOrleans,Lolsian6 CITYOFNEWORLEANS (AComponentUnit)i FortheyearendedJune3t0,197 Financla]Statements'

2 IndependentAudJtots'_Report TotheOrleansParishCoroner Kelton&Company OneOakSquare,Ste1 ACorporotionof('et#, t%o.box4053 Pubh~Acoutdanl~ Ilouma,1., (504) FaxNo.(504) Asdiscusedinote4,thefinancialstatements,ftheOrleansParishCoroner positionandresu]tsofoperationsofonlythatpoltionofthefundsandacount groupsofthecityofneworleansthatjsatributa])letothefundsolelyintile (AComponentUnit),CityofNewOrleans,areinte]Ldedtopre.~:enthefinancial custodyoftheorleansparishcoroner's0~flce,aldoesr.otincludethefunds apropriatedandexpendedbythecityofneworle~nsfortheoperationsofthe Coroner'sOfJce. ~ Inouropinion,thefinancialstatementsreferedt~abovepresentfairly,ina] i matcrialrespects,thefinancialpositionofth~orleansparishcoroner(a ComponentUnit),CityofNewOrleans,asofJune30197,andtheresultsofits operationsfortheyearthenended,inconformitywithgeneralyacepted acountingprinciples. InacordancewithGovernmentAuditingStandards,iwehavealsoisuedareport datedjanuary8,198onourconslderat5o~loftheorleansparishcoroner's internalcontrolandareportdatedjanuary8,19onitscompliancewithlaws andregulations January8,198

3 ORLEANSPARISHCORONE (AComponentUnit) CITYOFNEWORLEANS AlFundTypesandAcountGroups BalanceShet June30,197 Governmental FundType- Acount Genera] Asets Fund Genera] Group Asets Fixed Memorandum Total Only) Cash Acountsreceivable Fixedasets (Netofalowancefor Improvements doubtfulacountsof$i,0) Movableproperty Totalas.~ets 1,13 7,45] 8,]84 36,738 I,]i3 3785[$ 36, Acountspayab]e FundEquity Totaliabilities $17,865 i].7,865 17, Irlvestmentilgeneral Fundbalance(deficit) fixedasets Unreservedand 37:851 undesignated Totalfundequity(deficit).(9~681) Totaliabilitiesand (9,681) 37,85] _ 28,370 9,68] fundequity $ 8,184 37,85] $ 46,035 Theacompanyingnotesareanintegralp~rtofthesefinancialstatements

4 ORLEANSPAR]SHCORONSR (AComponentUnit)i CITYOFN StatementofRevenues,Expenditu GovernmentalFund Revenues Autopsyandtoxicologyreports Burialpermits Cremationpermits Deathreports Photographs Useofcoroner'sfacility Miscelaneous Les:refunds Totalrevenues Expenditures-.curent Badebts Banking Boksandprinting Continuingeducationand training DuesandmenJgerships Gasoline Licensesand]permits Penaltiesandfines Postage Yrofesionalservices Repairsandmaintenance Salarysup]ements SuplJes ofice Laboratoryandmorgue Telephone Travel,conferences,and conventiens Totalexpenditures-curent Expenditures-capitaloutlay Equipment Totalexpenditures Excesofexpendituresover revenues Fundbalance(deficit),beginingofyear FunJbalance(defJclt},endofyear ngesinfundbalance alfund Fortheyearended Actual $ 49, , ,05 4,50 2,861 (2,018 74~ , ,786 3, O5 I,i01 2,120 1,42 26,626 9,312 5,798 1,74] 2,431 82, ~643 (8,467.(~214 (9,681 Theacompanyingnotesareanintegralpartofthesefinancialstatements

5 ORLEANSPARISHCORONER (AComponentUnit)i CITYOFNEWORLEANS! StatementofRevenues GovernmentalFundType-G Expenditures,and Budget:andActua esinfundbalance Forthe],ear Fund Revenues Autopsyandtoxicology.B~d~et iactual,non-gap ende_djune 30~19 ibudget Basis Burialpezmits Cremationpermits Deathreports reports$30,0 (Unfayorable Favorable Variance Pinotographs ],0 Useofcoroner 17,0 Miscelaneous Les:refunds 1,0 5,0 50 Expenditures-curent Totalrevenues 3,50 Banking _~7,70 (30) Boksandprinting Continuingeducationand Duesandmemberships Gasoline training 2,0 80 Licensesandpermits Penaltiesandfines postage Insurance 1,70 2,30 3, , ,274 Profesionalservices 3, ,103 ],434 (~i (56 (1(13 30 Repairsandmaintenance Sa]arysup]ements Suplesandexpense Telephone Ofice Laboratoryandmorgue i],804 (2(159 (]0 5,0 ].70 9~689 5,935 (6,076 (]05 1,6!94 (],689 (935 Expenditures-capitaloutlay Equipment Totalexpenditures-curent 56, ,41{1 Excesofexpendituresover revenues Totalexpenditures _1,o.o 78,180 (83i 6 52,7o_ 78, ,480 _30 Fundbalance,beginingofyear 3,972 (2o~9os 575 Fundbalance,endofyear 436El9 3,972) 7]7 Theacompalyingnotesareanintegralpartofthesefinaneialstatements

6 ORLEANSPARISHCORONER (AComponentUnit) CITYOFNEWORLEANS NotestoFinancialStatements i.sumaryofsignificantacountinqpolicies TheOrleansParishCoronerisauthorized~yLouisianaRevisedStatute i 3:151(B).Thecoroneriselectedbytilequalifiedelectorsofthe ParishofOrleansforatermofouryears.Thecoroner,ingeneral,is responsiblefordeterminingthenaturealdcauseofalsuspicious, unexpected,unusual,violent,andsudend,:aths;examiningalcasesof alegedrape,carnalknowledge,andcrim~againstnature;comiting mentalydisturbedpersons;andpxovidjngm,~dicalandhealthservicesto parishprisonersandreportingonthehealthandsanitationconditionsof parishprlsons. A.ReDortin~[entity ASdefiLed AcountJnminSectlo andfinann210ofthecodificationof CJ_a_l_.Rej~ort~Standards,the thecityofnevorleans,since responsibility"ogertheorleansi "componentunit"iofthecityof,'reportingentity"is sjgn]fjcant"oversight andis.therefore,a Governmenta] governmenta] itexercisce~ arishcoroner, NewOrleans. Acordingly,thesefinancialstatements;onlypresentinformationast( i thefundingofactivitiesoftheorleansparishcoronerwhicharc solelyjnthecustodyofthecoroner'sofice. Fundacountinm Theacountingpo]JciesoftheOrleajsParJshCoronerconformto genera]lyaceptedacountingprinciplesiasaplicabletogovernments. TheacountsoftheOrleansParishCoroherareorganizedonthebasls o~fundsandacountgroups,eachofwhichjsconsideredaseparate acountingentity.theoperationsof6a~hfundareacountedforwith aseparatesetofself-balancingaceoqntscomprisedofitsaset,s', ljabl]jtjes,fundequity,revenues,andexpendituresorexpenses,as apropriate.governmentresourcesare@]locatedtoandacountedfor inindividualfundsbaseduponthepurposesforwhichtheyarcspent andthemeansbywhichspendingactivitiesarecontro]ed. TheGeneralFundisthegenera]operatlbgfundoftheOrleansParish Coroner.ItJsusedtoacountforalfinancialresources,except thoserequiredtobeacountedforina~otherfurld. 9'heGenera]FixedAset.AcountGroupisusedtoacountforfixed ~setsusedingovernmentalfundtype~perations.theseasetsare recordedasexpendituresinthegeneralifundwhentheyarepurchased. Nodepreciationhasbenprovidedforgeneralfixedasets. C.Basisofacounting TheGenera]Fundisacountedforusingthemodifiedacrualbasisof acounting,whichrecognizesrevenuesfromfeswlbenearned,4]othez ~evenueswhentheybecome_avajlab]e'andmeasurabie,anda] expendituresandtherelatedfundobligationswhenincured.

7 ORLEANSPARISHCORONER CITYOFNEWORLEANS (AComponentUnit) NotestoFinancialStatersents D,Bud~letarvaecountinq TheOrleansParishCoroner,asanindependentlyelectedparish oficial,isa.politicalsubdi~isj6n",asdefinedbythelocal GovernmentBudgetAct,andis,acordingly,requiredtoadopta budget.thecoronerhasadoptedabudgetforthegeneralfundtype forthatportionofthefundsatributabletothetransactions generatedbythefundssolelyin~hecustodyofhisofice; therefore,thesefinancialstatementsincl~ideacomparisonof revenuesandexpenditurestobudget,i ThebudgetfortheyearendedJtu]e30,197waspreparedonthecas] uncomited.budgetarycontrolisex~'cisedathefundlevel. (non-gap)basis.budgetapropriajionslapseatyearend,if Areconciliationofexcesofexpendi,turesoverevenues-budget acrual(gap)basisfortheyearende~june30,197isasfolows: (non-gap)basistoexcesofexpend~thresoverevenues-modified Excesoiexpendituresoverevenuesbudget Netefectofconversionofrevenuesto (non-gap)basis I 3, Netefectof modifiedacrual(gap)basis tomodifiedconversionof Excesofexpendituresoverevenues acrual(gap)expenditures basis 3,539 E.Total(MemorandumOnly)column-BalanceShet modifiedacrual(gap)basis 8,46~ "(MemorandumOnly)"toindicateitisionlytofacilitatefinancial ana]ysjs.datainthiscolumndoesnotpresentfinancialposition ['hetotalcolumnonthebalanceshetispresentedandcaptioned inconformitywithgenera1[yacepted~countingprinciples.such dataisnotcomparab]eto,norshohldbezonstruedtobe,a conso]jdation 2.Cash Cashconsistsofdemandepositsinalocalb~nkcharteredbytheStateof Louisiana.Thedepositisinsuredupto$i0(,0byFDICinsurance.The balanceperthebankwas$5,29~lasofjune3d,197.

8 ORLEANSPARISHCORONER (AComponentUnit) NotestoFinancJa]Statements CITYOFNEWORLEANS 3.Fixedasets Fixedasets,asdenotedonthebalanceishet,consistofbuilding improvementsandmovableproperty,andarelacounted~orinthegenela] fixedasetsacountgroup.alfixedas'etsarevaluedathistorica] cost.nodepreciationhasbenprovidedohfixedasets.theacount groupisnota"fund".acordingly,itiso~lyrelatedtothemeasurement ofinancialpositionandisnotapartof~hemeasurementofresultsof operations. Anyfixedasets,includingthecoroner,sOperatingf~.cilJtywhichar( furnishedbythecityofnewor]~asareacqountedforbythecityofnew n! Orleansandarchnotpresentedinthesefinancialstatements. l Asumaryofthechangesingenera]fixeda~setsisasfolows: I, Balance Improvements 6/30/96 Movableproperty $1,313 Total $51,672 50A5~ Aditionsi De]et5ons $ 4I $ Balance 6/30/97 $i,~]3 $(14,246)$37,853 36,738 4 ExpendituresweremadebytheCityofNewOrleansfortheoperationsof end_j_ture~i.~_thecityofne_w~qr~eanstheorleansparishcoroner.theseexpendithresarenotincludedinthe acompanyingfinancialstatementsbecause theexpendituresweremade directlybythecityofneworleansandare,~cordingly,reportedbythat entity.theci.tyofneworleanspaysalaries,employebenefits,and ] othernecesaryexpensesfortheorleanspa~ishcoroner. I 5.Sa]arvsuDn]e.ments DuringtheyearendedJune30, $26,626insalarysuplementsto 6.ContJnc~encies bythecityofneworleans. 197,theOrleansParishCoronerpaid employesinaditiontothesalarypaid AtJune30,]97,therewaslitigationagainstheOficeoftheOrlea~s ParishCoroner,whichwasnamedasapart~,althoughnotsingu]arly, amongst,othercodefendantsinclaimsagqregatingap:~oximately$i0,0. NOliabilityhasben theseclaimsasjtis materialelfectonthe recordedinthefinancial consideredprobablet~ese financialstatements.: statementsrelatingto c]aimswilnothavea

9 ORLE)ZNSPTU~IS}ICORONER {AComponentUnit) CITYOFNEWORLE/dqS NotestoFinancialStatements 7.Budqe~= ThebudgetfortheyearendingJune30,19~wasaprovedbytheCoroner. i 8Actualexpenditureswere$20,905moreth~nbudgeted.Thisvariance exceedsthepercentagevariancea]owedby~awhichis5%. icitinfundbalan Ashow~lonpage3ofthefinancia]statemen%ștheOrleansParishCoronel hasadeficitof$9,681inthe~undbalance]fthegeneralfundunderthe modifiedacrualbasisofacountingasofune30,197.

10 Kelton&Company OneOakSquare.~t("1 ACorporotion(,[('t,h',' I~ublcAcountuld~ P.O.Box4053 liouma,1.4y0361 (504) FaxNo.(504)851-35"~1 PerformedinAcordancewithGovernmentIAuditingṢtandards IndependentAuditors'Reporton]n=er~alControl BasedonanAuditofFinancialIStatements TotheOrleansParishCoroner WehaveaudJtedtheacompanylngflnancJa]statementsoftheOrleansPart Coroner(AComponentUnit),CityofNewOrleans,~sofandfortheyearend., l June30,197,andhaveisuedoureporthereonidatedJanuary8,198. Weconductedourauditinacordancewithgenera]ly~aceptedauditingstandar i shec] andgovernmentauditingstandardsisuedbythecom~trolergeneraloftheunit I m~statement. dsedina] ThemanagementoftheOrleansParishCoroner(A~'omponentUnit),CityofNew Orleans,isresponsibleforestablishingandmaintainingJnternalcontrol.In fulfilingth~sresponsibility,estimatesandudgmentsbymanagementare requiredtoasesthexpectedbenefitsandrelaedcostsofinternalcentre] po]:iciesandprocedures.theobjectivesofint6rnalcontrolaretoprovide managementwithreasonable,but~otabsolute,iasurancethatasetsare safeguardedagainstlosfromunauthorjzeduseordisposition,andthat transactionsareexecutedinacordancewithmallagement'sauthorizationand recordedproperlytopermithepreparationofinalcialstatementsinacordance

11 Thereportableconditionsnotedareasfolows: 1.Acountinqforeceivablesandrevenue Condltio_n-TheCoroner,soficemanualypreparesinvoicesforbilingto Parishes,otherthanOrleans,fortheuseof itsfac;~litiesonautopsies performedforthoseparishes.thefinancialinfor~lationinthismanualacounts receivablesystemdoesnotreflect,atanypointintime,thecurentoracurate amountofreceivablesandtherelatedrevenuedue doesitproperlyensuretheamountsbj]ledor recordedintotheacountingsystem. romthoseotherparishes,no~ anyrelatedcolectionsare Cri'$eria-Acuratereceivableandrevenuedataresentialtopreparereliable financialstatements~ Cause-Therearenuraerouscausesofth~sproblem.Theseinclude:(I)failure touseconsecutjvely,pre-numberedinvoices;(2)failuretoretainand systematicalyfileinvoices;(3)lackofproperlytrainedemployesasignedto thisduty;and(4)failuretoperjodjcalyeconcilebothbilingsand colectionswithinvoicesandacountingsystem~cords. Efect-Extensivesubstantiveauditestsofunre9rdedbilingsandtherelated revenuecolectionsalowedestimatestobem~deforfinancialreporting purposes.ourincreasedsubstantivetestsoft~eseestimatesindicatedthey preventedthefinancialstatementsfrombeingmaterialymis~<;tated;therefore, weconsiderthistobeonlyareportableconditiol. Recomendation-The,Coroner'sofJceshouldu~epre-numberedinvoicesand i maintainacopyofinvoicesinumericalorder. TheCoroner'soficeshould! considertrainingitsemployestomaintainap~operinvoiceandreceivable systemandthemployeshouldreconcilethereceivablesmonthly.! Response-TheCoroner'soficeisintheproceso~instalingacomputersystem forbilingandreceivableswhichwl]lberesponsivetothisrecomendation. 2.Misinqinvoicesorothersuportof i cashdisb#rsements I Cond_ition-Duringourtestsofcashdisbursementtransactions,wefound7 disbursementsoutof:[14forwhichtheinvoiceor~thersuportingdocumentation wasmisingo~incomplete. Criteria-Alcashdisbursementshouldbesuportedbytheoriginalinvoiceor otherdocumentatjon. Cause-TheCoroner'systemrequiresinvoicesoriothersuport:tobeatached tothefilecopyofthechecks.managementbeli~vesthesesevenweresimply misplaced. Efect-Thetotalofthese7disbursementswasimaterialandthecanceled checkswereavailableforexamination;therefore,thereisnomaterialefecton thefinancialstatements. Recomendations detailedinvoices I TheCoronershouldremphasizeUheimportanceofmaintaining orothersuportforcashdisbursements. 10

12 Response-TheCoroner'soficewilremphasize~heimportanceof invoicesorothersuport.! AmaterialweaknesisareportableconditioninrWhichthedesignoroperation ofthespecificinternalcontrolelementsdoesd~treducetoarelativelylow leveltheriskthaterorsoriregularitiesinamountsthatwouldbematerial inrelationtothefinancialstatementsbeing~uditedmayocurandnotb6 detectedwithinatimelyperiodbyemployesinbhenormalcourseofperformjncj theirasignedfunctions. Ourconsiderationofinternalcontrolwou].dnotne]esarilydisclosealmaters ininternalcontrolthatmightbereportablecond:tionsand,acordingly,would notnecesarilydisclosealreportablecondjtion~thatarealsoconsideredto bematerialweaknesesasdefinedabove.how6ver,wenotedthefolowing reportablecondjtior~sthatwebe]ievetobenaterialweakneses.these conditionswereconsideredindeterminingthenatlre,timing,andextentofthe procedurestobeperformedinourauditofthe,financialstatementsofthe OrleansParishCoronerfortheyearendedJune l 3.[Lackofse_gy~ationofduties l Condition-TheCoroner'soficemploysoneboke~-perwhoinitiatesexpenditure transactionsandprocesesalfinancialdata,exceptforthebilingo~ receivables,whichisperformedbyanon-acountin~typemploye.thislimited numberofpersoneldoesnotalowforpropersegregationofdutieswhich l contributestothelackofadequateinternalcontrol. l Criteria-Acuraterecording,procesing,reviewing,andaprovalofal financialdataresentialtopreparereliable~inancia]statements. Cause-Theprima1:ycausesare(i)thesmalsizeofthentity,(2)thelackof qualificationsandtrainingofpersonelperforminglacountingfunctions,and(3) thelackofreviewandaprovaloftransactions.' Efect-Weincreasedthextentofsubstantivetestsofthefinancialdata, whereaplicable,whichdidnotrevealanyinstancesofmaterialmistatemento thefinancialstatements.however,duetoits~gnificance,weconsiderthis conditiontobeamaterialweaknesjninternalcqntrol. Recomendation-Althoughthesizeofthentity;doesnot:alowforaprope~ segregationofduties,othercompensatingcontrols]maybeimplementedtoimprove internalcontrol. Re~,onse-TheCoroner'soficeiscurentlyevaluatingthisrecomendationand wilimplementnewcontrolpolicesandproceduresiasconsiderednecesary. 4.Reimbursementstoemoloves Condition-TheCororLereimbursesemployesfor~laterialsandsuplieswhich theypurchaseforusebythecoroner'soficewith~heirpersonalfundsorcredit cards.asignificantnumberofchecks,71,werep~idtoacertainemployefor thispurposetotaling$1,50.infiveoftheseca>es,thedocumentationofthe itemspurchasedwasnotinsuficientdetailtodeterminethepurposeofthe purchase.thesefivetotaled$1,0. i Criteria-Suficientdocumentationshouldbemai~1%ainedonalexpenditureso l. thetypeandpurposeofitemspurchasedcanbedet.ermlned. :1

13 Cause-Documentationwasnotproperlyfiled Efect-Weincreasedthextentofsubstantivetestswhereaplicable,whichdid notrevealanyinstancesofmaterialmistatement.however,weconsiderthist< beamaterialweaknesininternalcontrol. Recomendation-Detailedreceiptsorotherdocumentationshou]dbeproperly maintained~ora]expenditures.also,thecoroiershouldstrivetopurchase itemsdirectlyfromvendorswheneverposibleto~voidexcesivereimbursements toemployes. Re~sponse-TheCoroner'soficewilmaint:ainap<opriate,documentationfora] futurexpenditures. 5.Relatedemployes I Condition statedin Also,two -TheCoroner'soficemploysalimitednumberofpersonel.As Coroner's mater3above,thisdoesnota]lowfor~ropersegregationofduties. ofthemployesaremariedtoeachotherwhichfurtherlimitsthe Criteria abilitytoproperlysegregateduties.i financial dataresentialtopreparereliablefinancia]statements. Acuraterecording,procesing,reviewing,andaprovalofa] I Cause-Smalsizeofentity Efect-Weincreasedthextentofsubstantivetestswhereaplicablewhichdid notrevealanyinstancesofmaterialmistatement." However,weconsiderthisto beamateria]weaknesininternalcontrol.! Recomendation-Althoughthesizeofthentityldoesnotalowforaprope~ segregationofduties,thecoronershouldstriveionothavemployeswhoare i relstedtoeachotherwhichmakesthis(;onditionwo[sẹalso,thecoronershould makesurethatneitherofthesemployeswhoiaremariedtoeachother supervisestheotherwhichmaynotbealowedund4rstatelaw. I Response-TheCoroner'soficeiscurentlyevaluatingthisrecomendationand wilimplementnewcontrolsasconsiderednecesary. Maters1,2,and[3reportedabove,werealsoreportedinthepreviousauditor's reportfortheyearendedjune30,196~ i Thisl-eportisintendedfortheinformationofmanagementandtheOrleansParish Coroner.Thisrestrictionisnotintendedtofinithedistributionofthis report,whichisamaterofpub]icrecord. January8,198 ].2

14 Kelton&Company OneOakSquare,.~,?e1 A~brporat,onof(~,t,/, P.O.Box4053 publicatcoutdutd~ ftouma,la70361 IndependentAuditors'ReportonC(,mpliancewith (504) FaxNo.(504) FinancialStatementsPerformedin~ceordancewith LawsandRegulationsBasedonnAuditof GovernmentAuditingStaniLards TOtheOrleansParishCoroner WehaveauditedtheacompanyingflnancJa]stat Coroner(AComponentUnit),CityofNewOrleans, June30,]97,andhaveisuedoureporthereon meritsoftheorleansparish asofandiortheyearended datedjanuary8,198. I.Inventoryofproperty ConditJon:A year completephysicalinventoryofpropertywasnotakenthisflsca] Criteria:LSA-R.S.39:324requiresphysicalinventoryofpropertyeveryfisca] year. Efect:NOknown]materialefectonfJ.nancia],statements.Atestofalitems costingreaterthan$70wasperformedurlngtheaudit. Cause:Managementoversight Recomendation:Physicalinventoryofasetshouldbetaker*eachyear Re~,onse:PhysJca]inventoryofixedasetswilbetaker,eachyearbegining inthefiscalyearendingjune30,198. ].3

15 2.Budqet Condition:Tota]actualexpendituresexcedto~albudgetedexpendituresby 37.8%.ThebudgetforthefiscalyearendedJunel30,19"7wasnotamended. Criteria:La.Rev.Statute39:310requiresaniamendmenttothebudgetif expendituresare.expectedtoexcedfivepercent~fbudgetedexpenditures. Efect:Noknownmaterialefectolfinancia]st~tements. i!

16 Thisreport,isintendedfortheinformationofman~gementandtheOrleansParish Coroner.Thisrestrictionisnotintendedto]~ithedistributionofthis report,whichisamaterofpublicrecord. January8,198 ]5

17 TableofContents IndependentAuditors"Report BalanceShetAlFundTypesandAcountGroUps,StatementofRevenues,Expenditures,andChangq~sinFundBalance StatementofRevenues,Expenditures,andChangesinFundBalance GovernmentalFun(]Type-GeneralFund NotestoFinancialStatements BudgetandActual-GovernmentalFundType-GeneralFund IndependentAuditors'ReportonInternalContr(,lBased onanauditoffinancialstatementsperformed IndependentAuditors'ReportonCompliancewit]LawsandRegulations inacordancewithgovernmentauditingstanda]'ds, BasedonanAudit:ofFinancia]StatementsPerJormed inacordancewithgovernmentaud]tin<jstandalds!: