NEW ORLEANS MULTICULTURAL TOURISM NETWORK, INC. FINANCIAL AND COMPLIANCE AUDIT TOGETHER WITH INDEPENDENT AUDITORS' REPORT

Transcription

1 NEW ORLEANS MULTICULTURAL TOURISM NETWORK, INC. FINANCIAL AND COMPLIANCE AUDIT TOGETHER WITH INDEPENDENT AUDITORS' REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 Under provisions of state law, this report is a public document. Acopy of the report has ^ f* the entity and other appropriate public officials^ The report is available for public inspection at the Baton Rouge office of the Legislative Audito and where appropriate, at the office othe Rpnsh clerk of court. Release Date *runo& Tervalon m> ^Certified Public Accountants

2 TABLE OF CONTENTS PAGE INDEPENDENT AUDITORS' REPORT 1 STATEMENT OF FINANCIAL POSITION 3 STATEMENT OF ACTIVITIES 4 STATEMENT OF'CASH FLOWS < 5 NOTES TO THE FINANCIAL STATEMENTS..., 6 SUPPLEMENTARY INFORMATION: Schedule of Functional Expenses 10 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 12 SCHEDULE OF FINDINGS 15 SCHEDULE OF PRIOR YEAR FINDINGS 21

3 /Bruno & Tervalon LLP 7 Certified Public Accountants Member American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants Michael B. Bruno, CPA Alcide J. Tervalon, Jr., CPA Waldo J. Moret, Jr., CPA Paul K. Andoh, Sr., CPA Joseph A. Akanjl, CPA INDEPENDENT AUDITORS 1 REPORT To the Board of Directors of New Orleans Multicultural Tourism Network, Inc. We have audited the accompanying statement of financial position of New Orleans Multicultural Tourism Network, Inc. (NOMTN) as of December 31,2007, and the related statements of activities and cash flows for the year then ended. These financial statements are the responsibility of NOMTN's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the financial position of New Orleans Multicultural Tourism Network, Inc. as of December 31,2007 and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America ELYSIAN FIELDS AVENUE ' NEW ORLEANS, LA (504) FAX (504) LAKEOVER RD., SUITE A JACKSON, MS (601) FAX (601)

4 INDEPENDENT AUDITORS' REPORT (CONTINUED) To the Board of Directors of New Orleans Multicultural i Tourism Network, Inc. Page 2 In accordance with Government Auditing Standards, we have also issued a report dated July 25, 2008, on our consideration of NOMTN's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. Our audit was made for the purpose of forming an opinion on the basic financial statements of NOMTN taken as a whole. The accompanying Schedule of Functional Expenses is presented for purposes of additional analysis and is not a required part of the basic financial statements of New Orleans Multicultural Tourism Network, Inc. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. BRUNO & TERVALON LLP CERTIFIED PUBLIC ACCOUNTANTS July 25, 2008 /Bruno & Tervalon LLP ^Certified Public Accountants

5 STATEMENT OF FINANCIAL POSITION DECEMBER31, 2007 ASSETS Cash and cash equivalents. $259,428 Due from New Orleans Tourism Marketing Corporation 102,291 Office furniture and equipment, net of accumulated depreciation of $19,509 (NOTE 4) 7,322 Other assets 4,075 Total assets $ LIABILITIES AND NET ASSETS Accounts payable and accrued expenses $ 15,887 Deferred revenue Total liabilities 31,887 Unrestricted net assets Total liabilities and net assets. S The accompanying notes are an integral part of this statement.

6 STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31,2007 Support and Revenue; Grant - NOTMC (NOTE 5) $325,620 Other! 4 Total support and revenue 325,624 Expenses: Administrative: Personnel 57,029 Operating Total administrative expenses Convention sales and marketing expenses ' 209J69 Total expenses 352,043 Changes in net assets (26,419) Net assets, beginning of year Net assets, end of year $341,229 The accompanying notes are an integral part of this statement.

7 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED DECEMBER 31, 2007 Cash flows from operating activities: Changes in net assets $(26,419) Adjustments to reconcile changes in net assets to net cash provided by operating activities: Depreciation 6,058 Increase in accounts payable and accrued expenses 5,013 Decrease in due from New Orleans Tourism Marketing Corporation 31,709 Increase in other assets (3.500) Net cash provided by operating activities 12,861 Cash flows from investing activities; Purchase of equipment Net cash used in investing activities H.686) fl,686) Net increase in cash and cash equivalents 11,175 Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year $259,428 Interest paid in cash S -0- The accompanying notes are an integral part of this statement. 5

8 NOTES TO THE FINANCIAL STATEMENTS NOTE 1 - Summary of Significant Accounting Policies: (A) ' Organization i New Orleans Multicultural Tourism Network, Inc. (NOMTN) is a, Louisiana nonprofit corporation chartered on March 5, Its purpose is to attract tourist and convention business from domestic and foreign markets, inclusive of developing minority markets, affected by the tourist industry, to the greater New Orleans metropolitan area. NOMTN is exempt from Federal income tax as an organization described in Section 501(c)(3) of the Internal Revenue Code. (B) Basis of Presentation The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Net assets and revenues, expenses, gains, and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of NOMTN and changes therein are classified as unrestricted net assets that are not subject to donor-imposed stipulations. (C) Support and Revenue Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions. Grants are recorded on the basis of performance under the grant contract. Unconditional promises to give due in the next year are recorded at their net realizable value. At December 31, 2007, there were no unconditional promises to give.

9 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED NOTE 1 - Summary of Significant Accounting Policies, Continued; (D) Office Furniture and Equipment 1 Office furniture and equipment is recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful life of five (5) years. (E) Statement of Cash Flows For the purpose of the Statement of Cash Flows, NOMTN considers all highly liquid instruments purchased with maturities of three months or less to be cash equivalents. (F) Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. (G) Advertising NOMTN uses advertising to promote its mission to attract tourism and convention business to the greater New Orleans area. The costs of advertising are expensed as incurred. For the year ended December 31, 2007, advertising expense was $19,234. NOTE 2 - Functional Allocation of Expenses: i The cost of providing the various programs and supporting services have been summarized on a functional basis in the statement of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefitted.

10 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED NOTE 3 - Donated Services: The value of donated services is not reflected in the accompanying financial statements since there is no objective basis available by which to measure the value of such services. However, a number of volunteers have donated significant amounts of their time in activities and events sponsored by NOMTN, NOTE 4 - Office Furniture and Equipment: Office furniture and equipment, at cost, and accumulated depreciation at December 31, 2007 are summarized as follows; Office furniture and equipment Less: accumulated depreciation $26, $ Depreciation expense for the year ended December 31, 2007 was $6,058. NOTE 5 - Economic Dependency: Under present funding arrangements with New Orleans Tourism Marketing Corporation (NOTMC), a significant part of NOMTN's support is currently derived from that one contributor. By ordinance, NOTMC is required to fund NOMTN annually.

11 NOTES TO THE FINANCIAL STATEMENTS, CONTINUED NOTE 6 - Fair Values of Financial Instruments: The estimated fair value of financial instruments have been determined by utilizing available market information and appropriate valuation methodologies. NOMTN considers the carrying amounts of cash and cash equivalents to approximate fair value. NOTE 7 - Operating Lease: NOMTN leased office space under an operating lease agreement. Lease expense for the year ended December 31,2007 was $ 17,624. At December 31, 2007, NOMTN was a party to a lease only for office space. Future minimum lease payments for this lease are as follows: Year Ending December Total future minimum lease payments' $ 17,376 17,376 17,376 17, $86.880

12 SUPPLEMENTARY INFORMATION

13 SCHEDULE OF FUNCTIONAL EXPENSES FOR THE YEAR ENDED DECEMBER 31,2007 ADMINISTRATIVE: Personnel: Salaries Payroll taxes Fringe benefits $ 51,636 3,723 1,670 Total personnel Operating expenses: Professional services Promotions Rent Travel Depreciation Miscellaneous Office supplies Printing Telephone Postage and deliveries Meetings Insurance Commissions 17,821 2,602 11,750 8,237 6,058 11,072 9,503 1,452 5,875 1,258 2 S 063 6,554 LOOP Total operating expenses Total administrative expenses See Accompanying Independent Auditors' Report. 10

14 SCHEDULE OF FUNCTIONAL EXPENSES, CONTINUED FOR THE YEAR ENDED DECEMBER 31,2007 Convention Sales and Marketing Expenses: Salaries $ 51,637 Payroll taxes 3,723 Fringe benefits 1,671 Promotions 27,845 Rent 5,874 Travel 16,191 Office supplies 4,751 Telephone Postage and deliveries 1,928 Meetings 18,567 Insurance 3,277 Special events 33,236 Advertising 19,234 Collaterals 2,567. Website maintenance 9,512 Convention support 5,812 Printing - 1,006 Total convention sales and marketing expenses S2Q9.769 See Accompanying Independent Auditors* Report. 11

15 Member American Institute of Certified Public Accountants Society of Louisiana Certified Public Accountants ibruno & Tervalon LLP ^Certified Public Accountants Michael B. Bruno, CPA Alcide J. Tervalon, Jr., GPA Waldo J. Moret, Jr., CPA Paul K. Andoh, Sr., CPA Joseph A. Akanji, CPA INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH ^ GOVERNMENT AUDITING STANDARDS To the Board of Directors of New Orleans Multicultural Tourism Network, Inc. New Orleans, Louisiana We have audited the financial statements of New Orleans Multicultural Tourism Network, Inc. (NOMTN) as of and for the year ended December 31,2007, and have issued our report thereon dated July 25,2008. We conducted our audit in accordance "with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting In planning and performing our audit, we considered NOMTN's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of NOMTN's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of NOMTN's internal control over financial reporting. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial repotting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies ELYSIAN FIELDS AVENUE NEW ORLEANS, LA (504) FAX (504) LAKEOVER RD.. SUITE A JACKSON, MS (601) FAX (601)

16 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (CONTINUED) A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects NOMTN's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles, such that there is more than a remote likelihood that a misstatement of NOMTN's financial statements that is more than inconsequential will not be prevented or detected by NOMTN's internal control. We consider the deficiencies described in the accompanying schedule of findings as items to to be significant deficiencies in internal control over financial reporting. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by NOMTN's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies described above, we consider items to to be material weaknesses. ^Bruno & Tervalon LLP ^Certified Public Accountants 13

17 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND CJTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS (CONTINUED) Compliance and Other Matters i As part of obtaining reasonable assurance about whether NOMTN's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed an instance of noncompliance or other matters that is required to be reported under Government Auditing Standards as item NOMTN's responses to the findings identified in our audit are described hi a separate document. This report is intended solely for the use of the Board of Directors, its management, grantor agencies and the Louisiana Legislative Auditor and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document. BRUNO & TERVALON LLP CERTIFIED PUBLIC ACCOUNTANTS July 25, 2008 /Bruno & Tervalon LLP ^Certified Public Accountants 14

18 SCHEDULE OF FINDINGS FOR THE YEAR ENDED DECEMBER 31,2007 We have audited the financial statements of New Orleans Multicultural Tourism Network, Inc. as of and for the year ended December 31, 2007, and have issued our report thereon dated July 25,2008< We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our audit of the financial statements as of December 31,2007 resulted in an unqualified opinion. L SUMMARY OF AUDITORS' RESULTS A. Significant deficiencies in internal control were disclosed by the audit of the financial statements: Yes: material weaknesses: Yes. B. Noncompliance which is material to the financial statements: Yes. C. Significant deficiencies in internal control over major programs: N/A Material weaknesses; N/A. D. The type of report issued on compliance for major programs: N/A. E. Any audit findings which are required to be reported under section 5 10 (a) of OMB Circular A-133: N/A. F. Major programs: G. Dollar threshold used to distinguish between Type A and Type B programs: N/A. H. Auditee qualified as a low-risk auditee under section 530 of OMB Circular A-133: N/A. I. A management letter was issued: No. 15

19 SCHEDULE OF FINDINGS, CONTINUED FOR THE YEAR ENDED DECEMBER 31, FINANCIAL STATEMENT FINDINGS \ 07^01- Board of Directors The Board of Directors of NOMTN last meeting occurred January 24, Since that time, NOMTN has been operating without a governing board. Various duties and responsibilities of the board, as it relates to NOMTN's operations, were not performed due to the absence of the Board of Directors. For instance, the active Board was responsible on a periodic basis, for the following duties: o To monitor the operating budget; o To review financial statements; and o To approve disbursements. The above stated duties serve as mitigating internal controls to compensate for the lack of segregation of duties of NOMTN J s accounting staff. We recommend that a new Board of Directors of NOMTN be immediately seated to perform duties of the governing board, as stated in its By Laws Segregation of Duties Witti the decrease level of funding in the current and over the past two (2) fiscal year, NOMTN's staff has also decreased. Accounting duties are now being handled by one (1) individual with the exception of compiling the financial statements and reconciling bank accounts, which are being perform by an external accountant. The basic premise is that no one employee should have access to both the physical assets and the related accounting records or to all phases of the transaction. 16

20 NEW ORLEANS 2. FINANCIAL STATEMENT FINDINGS. CONTINUED Segregation of Duties. Continued As recommended in finding 07-01, NOMTN should immediately seat a new Board of Directors to act as the governing body of NOMTN. We recommend that the new board review NOMTN's current assigned accounting duties and implement control procedures to ensure that accounting duties are adequately segregated with available accounting personnel. For activities that are incompatible, additional procedures should be established for the Board of Directors to review and oversee such activities for the purpose of compensating for the lack of adequate segregation of duties Budget Control We noted during our audit that NOMTN did not prepare a budget for the December 31, 2007 fiscal year. In view of the decrease in net assets for the year ended December 31,2007 of $26,419, we believe NOMTN could benefit by preparing budgets and comparing budget information with actual results of operations. A budget is a plan for the future operations of a business. It is based on past experience and management's intentions or expectations of future conditions that will affect the entity. It allows management to plan the actions necessary for achieving desired or anticipated results. i We ;recommend that an annual budget be prepared by the management of NOMTN and adopted by the Board of Directors and that budget information be compared to actual results of operations, and that the cause of significant variations be determined so that corrective action can be taken if necessary. 17

21 SCHEDULE OF FINDINGS, CONTINUED FOR THE YEAR ENDED DECEMBER 31, FINANCIAL STATEMENT FINDINGS. CONTINUED i Financial Reporting The December 31, 2007 fiscal year end internal financial statements of NOMTN were not completed until approximately the middle of July, The performance of key financial reviews, monitoring and other internal control functions as well as the financial decisions making process by NOMTN should be based on reliable and timely financial reporting. Therefore, we recommend that the management of NOMTN review its current financial reporting procedures to ensure that financial statements and other related reports are completed accurately and on a timely basis Submission of Audit Report The December 31,2007 audited financial statements were not submitted to the Legislative Auditor by the. statutory due date of June 30, An approved extension to file the December 31, 2007 audit report with the Legislative Auditor -was not granted to NOMTN due to circumstances surrounding a natural disaster. LSA-RS 24:513 (A)(5)(I) requires audit reports to be completed and submitted to the State of Louisiana Legislative Auditor within six (6) months after year end, unless the Louisiana Legislative Audit Advisory Council approves an extension request, based only on a natural disaster, to file the audit report with the Louisiana Legislative Auditor by a specific date. Am audit report filed with an approved extension from the Legislative Auditor after the six (6) months tirneframe for any reason other than for a natural disaster is a violation of the State audit completion and submission law, as described above. 18

22 SCHEDULE OF FINDINGS, CONTINUED FOR THE YEAR ENDED DECEMBER 31, FINANCIAL STATEMENT FINDINGS. CONTINUED \ i Submission of Audit Report, Continued We recommend that NOMTN review its financial reporting procedures to ensure that audit engagements are submitted to the State of Louisiana Legislative Auditor within the required time frame Invoice Documentation We >noted during our testwork that certain credit card charges were not supported with original'source documentation (invoices). We recommend that each credit card charge be supported by the original purchase invoice. Also, the business purpose of each credit card charge should be clearly documented in the records of NOMTN, preferably prior to or at the time the charge is made Bank Debit Card Transactions We.noted during our audit that NOMTN averaged six (6) debit card transactions per month. According to NOMTN's management, the use of the debit card was necessary to make purchases when the entity's credit card limit was 1 approaching the maximum. During the 2007 fiscal year, the bank debit card was used to purchase various types of items, such as gas, hotels, airline tickets, food, rental cars, etc. as well as two (2) cash withdrawals, noted to be about $600, to pay for such items. We;also noted that NOMTN does not have a written policy for debit card or credit card use. 19

23 ! SCHEDULE OF FINDINGS, CONTINUED! FOR THE YEAR ENDED DECEMBER 31, FINANCIAL STATEMENT FINDINGS. CONTINUED Bank Debit Card Transactions. Continued We recommend that NOMTN prohibit the use of any bank debit card or perform a self-assessment to identify and measure fraud risks associated with the use of the bank debit card and/or credit card use. Based on such assessment, NOMTN should take necessary steps to mitigate identified risks as well as to implement and monitor appropriate preventive and detective internal controls and other deterrent measures. 3. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS Not applicable. 20

24 SCHEDULE OF PRIOR YEAR FINDINGS FOR. TOE YEAR ENDED DECEMBER 31, 2007 Section I - Internal Control and Compliance Material to the Financial Statements No findings were reported, Section II-Internal Control and Compliance Material to Federal Awards Not applicable. Section III - Management Letter No matters were reported. 21

25 July 25, 2008 NEW ORLEANS MULTICULTURAL TOURISM NETWORK 2020 ST.CHARLES AVENUE NEW ORLEANS, LA (P) S S (F) Mr, Waldo J. Moret, Jr. Bruno & Tervalon LLP Certified Public Accountants 4298 Elysian Fields Avenue New Orleans, Louisiana Dear Mr. Moret: In conjunction with the Findings related to Section 2. of the Schedule of Findings in financial and compliance of the New Orleans Multicultural Tourism Network, Inc. (NOMTN), for the year ended December 31, 2007, the management of NOMTN appreciates the opportunity to respond to findings. Section 2 - Financial Statement Findings Board of Directors The full Board of Directors of NOMTN has not met since 1/06. In addition, due to term limits and resignations, the board has been entirely restricted and new board members have been installed. The NOMTN board held and official meeting on June 10, 2008, and will hold bi-monthly board meeting from this point forward. All issues addressed in this audit and any other fiscal matters will be presented to the full board at the regularly scheduled meeting in August, Segregation of Duties Pre-Katrina funding level for NOMTN have not been restored, therefore limiting the number of people on staff. Currently NOMTN has one full time administrative assistant, and the president of the organization. NOMTN no longer has a membership base, so we do not received checks and credit card payments. NOMTN receives, one check monthly. The lack of segregation of duties will be discussed at the NOMTN board meeting, and a two person process will be established to monitor transactions and receivables of the organization. udget Control ted a management and marketing plan for the current year and those board at the next meeting. An annual and monthly budget gsults will be monitored and compared to the budget at the corrections or adjustments will be approved at that time. a timely manner, thereby causing a delay in titor. As a result, an extension was requested and rrective action has been taken to ensure that will be completed no later than 8/15/08. Going evious month will be submitted to an external VISIT NEW ORLEANS. SEE THE WORLD.

26 Mr. Waldo J. Moret, Jr. Bruno & Tervalon accountant for processing no later than the 5 th of the month, and completed financials will be returned to NOMTN no later than the 15 th of the month Submission of Audit Report As answered in findings 07-04, controls have been put in place to ensure that all financial materials and compiled by an external accountant and reviewed in a timely. Detailed financial reports will be presented to the board at each regularly scheduled meeting. This process will ensure that NOMTN completes the required audit prior to the audit due date Invoice Documentation NOMTN currently has one credit card issued to the President of the organization. During the course of business, travel, client events, purchases for convention delegates are required. NOMTN has implemented a policy that requires all credit card charges be Supported by documents to ensure that all purchases are supporting NOMTN's activities. Credit card statements will be reconciled monthly and all supporting documentation will be reviewed at bi-monthly board meetings. Any charges for which the supporting documentation is not provided will require the card holder to assume responsibility for payment. Charges for travel and entertainment must be accompanied by supporting documents and the reason for the expense must be fully documented. Any out of pocket expenses that employees must incur will be timely reconciled and reimbursed Bank Debit Card Transactions During the period following Katrina, NOMTN was forced to transfer its funds from Liberty Bank to Chase bank for accessibility. NOMTN had streamlined its operation and there was not access to credit through the then credit card holder. NOMTN obtained a debit card to pay for expenses. Currently NOMTN has established credit with another credit card company and no longer needs the debit card to operate. The card has been destroyed and all charges will be placed on company credit card. Typically NOMTN keeps a small amount of petty cash on hand to pay for expensed such as per diem related to out of town travel, and in particular, reimbursements for parking and lunch for ESSENCE Music Festival volunteers. The two (2) cash withdrawals noted were directly related to these expenses. NOMTN's written policy will prohibit the use of debit cards for any transactions. Sincerely, Toni Rice, President - New Orleans Multicultural Tourism Network