TWENTY -FOURTHJUDICIAL DISTRICT COURT I CAN DRUG COURT PROGRAM FUND

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1 7377 INDEPENDENT AUDITORS 9 REPORT ON BASIC FINANCIAL STATEMENTS, COMPLIANCE, AND INTERNAL CONTROLS OF TWENTYFOURTH JUDICIAL DISTRICT COURT FOR THE PARISH OFJEFFERSON, LOUISIANA December 31, 2007 HJS co <m 71 < 5 2S Wt CO :"^ J Release

2 TWENTY FOURTHJUDICIAL DISTRICT COURT TABLE OF CONTENTS December 31, 2007 PAGE INDEPENDENT AUDITORS' REPORT 12 MANAGEMENTS DISCUSSION AND ANALYSIS 37 BASIC FINANCIAL STATEMENTS Governmentwide Financial Statements: Statement of Net Assets 8 Statement of Activities 9 Fund Financial Statements: Governmental Fund Balance Sheet 10 Reconciliation of the Governmental Fund Balance Sheet to the Statement of Net Assets II Statement of Revenues, Expenditures, and Changes in Fund Balance Governmental Fund Type 1213 Reconciliation of the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Fund Type to the Statement of Activities 14 Notes to Financial Statements 1519 Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual 2022 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 2324 SCHEDULE OF FINDINGS, SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND MANAGEMENT'S CORRECTIVE ACTION PLAN AND SUMMARY OF PRIOR YEAR FINDINGS 2629

3 ner CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS S DAVID KUSHNER, CPA, CrFA* WILLIAM B. HAMILTON, CPA WILSON A. LaGRAIZE, JR., CPA, CrFA KATHARINE M. LASSITER, CPA ERNEST G. GELPI. CPA, CGFM RICHARD J. RUMNEY, CPA CRAIG M. FABACHER, CPA DOUGLAS W. FINEGAN, CPA Members MARY ANNE GARCIA, CPA American Institute of CPA's *A Professional Accounting Corporation Society of Louisiana CPA's INDEPENDENT AUDITORS' REPORT To the I CAN Drug Court Program Fund TwentyFourth Judicial District Court Gretna, Louisiana We have audited the accompanying basic financial statements of the I CAN Drug Court Program Fund of the TwentyFourth Judicial District Court (the Fund) as of and for the year ended December 31, These basic financial statements are the responsibility of the Fund's management. Our responsibility is to express an opinion on these basic 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 basic financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the basic 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 basic financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of December 31,2007 and the results of its operations for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued a report dated April 10,2008 on our consideration of the Fund's internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations and contracts. 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 read in conjunction with this report in considering the results of our audit. SUITE WEST ESPLANADE AVENUE METAIRIE, LOUISIANA (504) FAX (504) info@klcpa.com

4 The Management's Discussion and Analysis and the budgetary information on pages 3 through 7 and pages 2022, respectively, is not a required part of the basic financial statements, but are supplementary information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. KUSHNER LAGRAIZE, LLC. Metairie, Louisiana April 10,2008

5 TWENTYFOURTH JUDICIAL DISTRICT COURT Management's Discussion and Analysis December The Management's Discussion and Analysis (MD&A) of the TwentyFourth Judicial District Court I CAN Drug Court Program Fund's (the Fund's) annual financial report provides important background information and management's analysis of the Fund's financial performance during the fiscal year that ended on December 31,2007. Please read this section in conjunction with the basic financial statements and the notes to the financial statements beginning on page 15 of this report. The MD&A is an element of the Required Supplementary Information specified in the Governmental Accounting Standards Board's (GASB) Statement No. 34 Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments issued in June Certain comparative information between the current year (2007) and the prior year (2006) is required to be presented in the MD&A. FINANCIAL HIGHLIGHTS The net assets of the Fund at the close of 2007 were $560,590 of which $27,853 is invested in capital assets. The remainder is considered unrestricted and may be used for any lawful purpose. The Fund's total net assets increased by $ 135,266 in 2007 because total revenues exceeded total expenses by that amount. The total cost of the Fund's programs increased by $72,314 due to the increase in treatment services as a result of a significant increase in program participants in 2007 as well as the purchase of a new telephone system. The Fund's operating revenues increased by $64,374 primarily due to an increase in the assessment fees collected due to the significant increase in program participants in 2007.

6 TWENTYFOURTH JUDICIAL DISTRICT COURT Management's Discussion and Analysis Continued December 31, 2007 OVERVIEW OF THE FINANCIAL STATEMENTS This financial report consists of the following basic parts: management's discussion and analysis (this section) the basic financial statements, the notes to the financial statements and supplementary information. The basic financial statements contained in this report are presented using Governmental Accounting Standards Board (GASB) accounting principles. These financial statements provide overall information about the Fund's financial activities on both a shortterm and longterm basis. The statement of net assets presents information about its assets (resources) and liabilities (the amounts obligated to its creditors). The statement of activities presents information about the current years' revenues and expenses. This statement can be used to measure operating improvements or deterioration. The statement also provides useful information for determining whether the Fund's revenues were sufficient to allow the Fund to recover all its costs. The notes to financial statements are also an integral part of this report. FINANCIAL ANALYSIS OF THE FUND The statement of net assets and the statement of activities report information about the Fund's activities. These two statements report the net assets of the Fund and changes in them. Increases or decreases in the Fund's net assets are one of a number of indicators of whether its overall financial health is improving or deteriorating. However, other nonfinancial factors such as the number of drug court participants should also be considered.

7 TWENTYFOURTH JUDICIAL DISTRICT COURT Management's Discussion and Analysis Continued December 31, 2007 Net Assets A summary of the Fund's statements of net assets is presented in Table I below. TABLE I Condensed Statements of Net Assets as of December 31, 2007 and Change Current assets $ 581,590 $ 445,695 $ 135,895 NonCurrent assets: Capital assetsnet Total Assets Current liabilities Total Liabilities ,394 Net assets: Invested in capital assets 27,853 15,088 12,765 Unrestricted ,501 Total net assets $ $ $ As shown in Table I, total assets increased by $148,660 from $460,783 in 2006 to $609,443 at December 31,2007. Liabilities increased by $ 13,394 from $35,459 in 2006 to $48,853 at December 31,2007.

8 TWENTYFOURTH JUDICIAL DISTRICT COURT Management's Discussion and Analysis Continued December 31, 2007 Changes in Net Assets The Fund's net assets increased $ 135,266 to $560,590 in fiscal year 2007, from $425,324 at the end of fiscal year The change resulted primarily from an increase in funds received from the Louisiana State Supreme Court due to an increase in program participants. Summary of Statement of Activities The following table presents a summary of the Fund's historical revenues and expenses for the fiscal years ended December 31, 2007 and 2006: TABLE 2 Condensed Statement of Activities For the Years Ended December 31, 2007 and Change Operating revenues $ 363,155 $ 298,781 $ 64,374 Operating expenses Operating income (loss) ( ) ( ^ (7.940) Nonoperating revenues Intergovernmental 403, , ,338 Miscellaneous Change in net assets 135,266 (38,005) 173,271 Total net assets, beginning of year f38.005^ Total net assets, end of year $ $ 425,324 $ Operating loss increased by $7,940 in Total net assets were $560,590 and $425,324 at the end of 2007 and 2006, respectively. The $135,266 increase in assets is due to the factors noted above.

9 TWENTYFOURTH JUDICIAL DISTRICT COURT Management's Discussion and Analysis Continued December Contacting the Fund's Financial Management This financial report is designed to provide all interested parties with a general overview of the Fund's finances and to demonstrate the Fund's accountability for money it receives. If you have questions about this report or need additional financial information, contact the Drug Court Administrator's Office at (504)

10 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF NET ASSETS December 31, 2007 Governmental Activities ASSETS Cash Due from Louisiana State Supreme Court Capital assets (net of accumulated depreciation) TOTAL ASSETS LIABILITIES Accounts payable TOTAL LIABILITIES NET ASSETS Invested in capital assets Unrestricted TOTAL NET ASSETS $ 548,698 32, , $ The occompony/ng notes ore on integral port of this statement.

11 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF ACTIVITIES December 31, 2007 Program Revenues Functions/Programs Expenses Charges for Services Net (Expense) Revenue Governmental Activities: I CAN Drug Court Program Fund Total Governmental Activities $ $ $ ( ^ $ ( ^ General revenues: Intergovernmental Contributions & donations Total general revenues 403, Increase in net assets 135,266 Net assets January 1, Net assets December 31, 2007 $ The accompanying notes are on integral pan of this statement.

12 TWENTYFOURTH JUDICIAL DISTRICT COURT GOVERNMENTAL FUND BALANCE SHEET December 31, 2007 Governmental Fund Type General Fund ASSETS Cash Due from Louisiana State Supreme Court TOTAL ASSETS $ 548, $ LIABILITIES AND FUND EQUITY LIABILITIES Accounts payable $ 48,853 FUND EQUITY Fund balance TOTAL FUND EQUITY TOTAL LIABILITIES AND FUND EQUITY $ The accompanying notes are an integral pan of this statement. 10

13 TWENTYFOURTH JUDICIAL DISTRICT COURT RECONCILIATION OF THE GOVERNMENTAL FUND BALANCE SHEET TO THE STATEMENT OF NET ASSETS December 31, 2007 Total fund balance at December 31, 2007 Governmental fund $ 532,737 Cost of capital assets at December 31, ,120 Less accumulated depreciation as of December 31,2007 (24.267) Net Assets at December 31, 2007 $ The accompanying notes ore an integral pan of this statement. //

14 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND TYPE Year Ended December 31, 2007 General Fund Revenues Charges for services Assessment fees $ 170,856 Probation fees Total Revenues 363,155 Expenditures Current General government Advertising 433 Auto expense 58 Building 11,500 Central telephone service 2,103 Computer services 2,610 Contract personnel 20,000 Drug tests 132 Dues/subscriptions 100 Electricity 2,818 Expense allowance 6,097 PICA 301 Food 596 Health current 16,707 Health retirement 9,721 Janitorial 1,011 JPRS 4,159 Life current 322 Life retirement 173 Medicare 3,873 Office equipment rent 2,919 Office supply 5,616 Other miscellaneous expense 7,490 Par employee 33,103 Pension factor 625 The accompanying notes ore an integral pan of this statement. 12

15 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE GOVERNMENTAL FUND TYPE Continued Year Ended December 31, 2007 Expenditures Current General Government Professional services Radio equipment Retirement DA Salaries Salary DA Small office equipment Training & travel Total Current Expenditures Excess (Deficiency) of Revenues over Expenditures Other Financing Sources Intergovernmental Contributions & donations Excess (Deficiency) of Revenues and Other Financing Sources over Expenditures Fund Balance Beginning of Year 246,946 1, ,055 14,615 14, (307,213) 403, , End of Year The accompanying notes ore on integral part of this statement. 13

16 TWENTYFOURTH JUDICIAL DISTRICT COURT RECONCILIATION OF THE GOVERNMENTAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES December 31, 2007 Total net increase in fund balancegovernmental fund $ 122,501 Amounts reported for governmental activities in the Statement of Activities are different because: Capital outlay 20,291 Depreciation expense (7.526) Increase in net assets of governmental activities $ The accompanying notes ore on integral pan of this statement. 14

17 TWENTYFOURTH JUDICIAL DISTRICT COURT NOTES TO FINANCIAL STATEMENTS December 31, 2007 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the TwentyFourth Judicial District Court I CAN Drug Court Program Fund (the Fund) conform to U.S. generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies. Reporting Entity As provided by Revised Statutes 13:5304, the Fund was created for the purpose or purposes related to the establishment and proper administration of a probation program of the TwentyFourth Judicial District Court to be administered by the presiding judge or judges thereof or by an employee designated by the Court of the TwentyFourth Judicial District Court. As required by U. S. generally accepted accounting principles, the financial statements of the reporting entity present the primary government and its component units. The accompanying financial statements present the Fund as the primary government. No other organization was determined to be a component unit of the Fund. Therefore, no blended or discretely presented component units are presented in the accompanying financial statements. Basis of Presentation The accompanying financial statements of the Fund have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The financial report has been prepared in conformity with GASB Statement No. 34, Basic Financial Statementsand Management's Discussion and Analysisfor State and Local Governments, issued in June 1999.

18 TWENTYFOURTH JUDICIAL DISTRICT COURT NOTES TO FINANCIAL STATEMENTS CONTINUED December 31, 2007 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESContinued Basis of Accounting GovernmentWide Financial Statements The Statement of Net Assets and Statement of Activities display information about the reporting government as a whole. Activities are presented using the economic resources method. The accounting objective of this measurement focus is the determination of operating income, changes in net assets and financial position. All assets and liabilities (whether current or noncurrent) associated with the government's activities are reported. Fund equity is classified as net assets. Government activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, the Statement of Net Assets and Statement of Activities present revenues, expenses and fixed asset acquisitions as follows: Revenues Revenues are recognized in the accounting period in which they are earned. Expenses Expenses are recorded when the liability is incurred or economic asset used. Fixed Assets Fixed assets are accounted for as capital assets. All fixed assets are valued at historical cost, except for donated fixed assets which are recorded at their estimated fair value at the date of donation. Fund Financial Statements The Fund uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain government functions or activities. A fund is a separate accounting entity with a selfbalancing set of accounts. Funds are typically classified into three categories: governmental, proprietary and fiduciary. Each category, in turn, is divided into separate "fund types." 16

19 TWENTYFOURTH JUDICIAL DISTRICT COURT NOTES TO FINANCIAL STATEMENTS CONTINUED December 31, 2007 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fund Financial Statements Continued The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for using a current financial resource measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. The modified accrual basis of accounting is used by governmental funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Fees collected and held by intermediary collecting governments at yearend on behalf of the Fund are considered susceptible to accrual and are recognized as revenues. Cosh All of the Fund's deposits, including cash, money market accounts, and certificates of deposit are carried at cost. The Fund's bank deposits are held at the same financial institutions as other funds of Jefferson Parish (the Parish), thus sharing in the maximum amount of federal depository insurance of that institution. At yearend, the carrying amount of these deposits were $548,698. All of the bank balance was covered by federal depository insurance or by collateral held by the pledging financial institutions trust department or agent in the Parish's name. 17

20 TWENTYFOURTH JUDICIAL DISTRICT COURT NOTES TO FINANCIAL STATEMENTS CONTINUED December 31, 2007 NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Capital Assets and Depreciation For the governmentwide financial statements, capital assets are recorded at cost in the statement of net assets. Donated assets are valued at their estimated fair market value on the date received. The Fund does not have any infrastructure assets. Depreciation is computed using the straight line method over the following useful lives: Description Furniture and Equipment Estimated Lives 57 years For fund financial statements, capital acquisitions are reflected as expenditures in the governmental funds at the time purchased. NOTE 2 ACCOUNTS RECEIVABLE This amount consists of the fees due from the Louisiana State Supreme Court for services administered to participants through December 31 ( 2007 and not yet remitted to the I CAN Drug Court Program Fund. NOTE 3 FIXED ASSETS A summary of changes in Fixed Assets during the year is as follows: Balance Balance 01/01/07 Additions Retirements 12/31/07 Furniture and equipment $ $ $ $ Total at historical cost Total accumulated depreciation : Capital Assets, net $ $ $ $ 27,853 18

21 TWENTYFOURTHJUDICIAL DISTRICT COURT NOTES TO FINANCIAL STATEMENTS CONTINUED December 31, 2007 NOTE 4 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY The statutes which created the Fund place certain limitations and restrictions on the collections and disbursements of the Fund. The Fund is in compliance with all significant limitations and restrictions for

22 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Year Ended December 3 /, 2007 BUDGETED AMOUNTS Original Budget Final Budget General Fund Variance with Final Budget Positive (Negatived Revenues Charges for services Assessment fees Probation fees $ 90,000 $ 90, $ 170, $ 80,856 (7.701) TOTAL REVENUES 290, , ,155 73,155 Expenditures Current General government Advertising Auto expense Building & Structure Building Central telephone service Computer services Contract personnel Drug tests Dues/subscriptions Electricity Expense allowance FICA Food Health current Health retirement Insurance janitorial JPRS Life current Life retirement , , ,465 10,377 4, ,315 4,000 4,510 3,012 20, ,548 1, ,465 10,377 3,600 2,481 4, ,500 2,103 2,610 20, ,818 6, ,707 9,721 1,011 4, ,315 (7,500) 2, (1,270) (4,297) (301) 4 6, ,600 1,470 (5)

23 TWENTYFOURTH JUDICIAL DISTRICT COURT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Continued Year Ended December 31, 2007 BUDGETED AMOUNTS Original Budget Final Budget General Fund Variance with Final Budget Positive (Negatived Expenditures Current General government Medicare Office equipment rent Office supply Other miscellaneous expense Par employee Pension factor Pest & rodent control Professional services Radio equipment Retirement DA Salaries Salary DA Security alarm Security guard Small office equipment Training & travel Water Workmen's Compensation 4,191 10,000 18,575 33, ,400 2, ,595 20,000 14, ,191 3,140 10,466 12,775 33, ,745 2, ,595 20,000 V ,029 15,000 18, ,873 2,919 5,616 7,490 33, ,946 U ,055 14,615 14,921 17, ,850 5, ,799 1, ,540 5, , TOTAL CURRENT EXPENDITURES $ $ $ $

24 TWENTYFOURTH JUDICIAL DISTRICT COURT / CAN DRUG COURT PROGRAM FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL Continued Year Ended December 31, 2007 BUDGETED AMOUNTS Excess (Deficiency) of Revenues over Expenditures Original Budget Final Budget General Fund Variance with Final Budget Positive (Negative) $ (510,212) $ (570,318) $ (307,213) $ 263,105 Other Financing Sources Intergovernmental Contributions & donations 458, , , (54,684) (47.401) Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures (33,097) (93,203) 122, ,704 Fund Balance Beginning of Year End of Year $ $ $

25 L.L.C. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS S DAVID KUSHNER. CPA, CtFA* WILLIAM B. HAMILTON, CPA WILSON A. LaGRAIZE, JR., CPA, CrFA KATHARINE M. LASSITER, CPA ERNEST G. GELPI, CPA, CGFM RICHARD J. RUMNEY, CPA CRAIG M. FABACHER, CPA DOUGLAS W. FINEGAN. CPA Members MARY ANNE GARCIA, CPA American Institute of CPA's *A Professional Accounting Corporation Society of Louisiana CPA's INDEPENDENT AUDITORS' REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the I CAN Drug Court Program Fund TwentyFourth Judicial District Court Gretna, Louisiana We have audited the basic financial statements of the TwentyFourth Judicial District Court I CAN Drug Court Program Fund (the Fund) as of and for the year ended December 31, 2007, and have issued our report thereon dated April 10, 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 the Fund'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 the Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Fund's internal control over financial reporting. 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 the Fund'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 the Fund's financial statements that is more than inconsequential will not be prevented or detected by the Fund's internal control. 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 the entity'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 or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above. SUITE WEST ESPLANADE AVENUE METAIRIE. LOUISIANA (504) FAX (504) into@klcpa.com 23

26 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Fund's basic financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations and contracts, 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, accordingly, we do not express such an opinion. The results of our tests disclosed one instance of noncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings Item The Fund's response to the finding identified in our audit is described in the accompanying Schedule of Findings and Responses. We did not audit the Fund's response and accordingly, we express no opinion on it. This report is intended solely for the information and use of the TwentyFourth Judicial District Court Judges, the Drug Court Administrator and the Legislative Auditor of the State of Louisiana and is not intended to be and should not be used by anyone other than those specific parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document. KUSHNERLAGRAIZE, LLC. Metaihe, Louisiana April 10,

27 SCHEDULE OF FINDINGS

28 TWENTYFOURTH JUDICIAL DISTRICT COURT SCHEDULE OF FINDINGS For The Year Ended December 31, 2007 SECTION I SUMMARY OF AUDIT RESULTS The auditors' report expresses an unqualified opinion on the basic financial statements of the Twenty Fourth Judicial District Court I CAN Drug Court Program Fund (the Fund). 1. No reportable conditions in internal control relating to the audit of the financial statements is reported in the Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards. 2. One instance of noncompliance material to the financial statements of the Fund is reported in the Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards. SECTION 11 FINANCIAL STATEMENT FINDINGS Finding During our audit, we noted the budget, which consisted of expenditures over $500,000, was not advertised or made available for public inspection as required by State Statute L.R.S. #39:1307. Recommendation We suggest the Court comply with the rules and regulations as required by state law. Response See Management's Corrective Action Plan. 26

29 TWENTYFOURTH JUDICIAL DISTRICT COURT SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS For The Year Ended December 31, 2007 SECTION I FINDINGS RELATED TO THE FINANCIAL STATEMENTS The auditors' report expresses an unqualified opinion on the basic financial statements of the Twenty Fourth Judicial District Court I CAN Drug Court Program Fund (the Fund). 1. No reportable conditions in internal control relating to the audit of the financial statements is reported in the Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards. 2. One instance of noncompliance material to the financial statements of the Fund is reported in the Report on Compliance and on Internal Control Over Financial Reporting Based on an Audit of Financial Statements Performed in Accordance with Governmental Auditing Standards. SECTION 11 FINANCIAL STATEMENT FINDINGS Finding During our audit, we noted the budget, which consisted of expenditures over $500,000, was not advertised or made available for public inspection as required by State Statute LR.S. #39:1307. Recom mendation We suggest the Court comply with the rules and regulations as required by state law. Status For 2008, the Court complied with the rules and regulations as required by state law. 27

30 V^nrV^Y Or LQ^X Jfnr^,.,. :U>" C JEFFERSON PARISH "I CAN" DRUG COURT 24 JUDICIAL DISTRICT PARISH OF JEFFERSON BELINDA CAMBRE CONSTANT /^r»r TKI A i /\i nei A K. * DRUO COURT ADMtN,STHATOH GRETNA, LOUISIANA CORRECTIVE ACTION PLAN April 10, 2008 Louisiana Legislative Auditor The I CAN Drug Court of the TwentyFourth Judicial District respectfully submits the following corrective active plan /explanation for the year ended December 31, Independent Public Accounting Firm: Kushner, LaGraize, L.L.C 3330 West Esplanade Avenue, Suite 100 Metairie, Louisiana Audit Period: January 1, 2007 through December 31, 2007 Finding During our audit, we noted the budget, which consisted of expenditures over $500,000, was not advertised or made available for public inspection as required by State Statute L.R.S.# 39:1307. Recommendation We suggest the Court comply with the rules and regulations as required by state law. Response This finding has been corrected as the 2008 budget was advertised and made available for public inspection as required by State Statute L.R.S. #39: I I SECOND STREET GRETNA, LOUISIANA 7OO53

31 JEFFERSON PARISH "I CAN" DRUG COURT 24 JUDICIAL DISTRICT PARISH OF JEFFERSON BELINDA CAMBRE CONSTANT.., _...._ DRUOCOU^ADM.M.STRATOR GRCTNA, LOUISIANA CORRECTIVE ACTION PLAN CONTINUED SUMMARY OF PRIOR YEAR FINDINGS April 10,2008 Louisiana Legislative Auditor The I CAN Drug Court of the TwentyFourth Judicial District respectfully submits the following corrective active plan /explanation for the year ended December 31, Independent Public Accounting Firm: Kushner, LaGraize, L.L.C 3330 West Esplanade Avenue, Suite 100 Metairie, Louisiana Audit Period: January 1, 2006 through December 31, 2006 Finding During our audit, we noted the budget, which consisted of expenditures over $500,000, was not advertised or made available for public inspection as required by State Statute L.R.S. #39:1307. Current Status The 2006 budget was prepared prior to December 2005 year end. The 2006 audit was performed during June of At that time we were made aware of the necessity to advertise according to L.R.S. #39:1307. SECOND STREET GRETNA, LOUISIANA 7OO53