NEW ORLEANS MUNICIPAL COURT JUDICIAL EXPENSE FUND. Audit of Financial Statements. December 31, 2011

Transcription

1 /W53 NEW ORLEANS MUNICIPAL COURT Audit of Financial Statements December 31, 2011 Underprovisions of state law, this report is a public document. Acopy of the report has been submitted to the entity and other appropriate public officials. The report is available for public inspection at the Baton Rouge office of the LegislativeAuditor and, where appropnate, at the office of the parish clerk of court. Release Date NOV

2 Contents Independent Auditor's Report 1 2 Basic Financial Statements GovernmentWide Financial Statements Statement of Net Assets 4 Statement of Activities 5 Fund Financial Statements Judicial Expense Fund Balance Sheet 7 Statement of Revenues, Expenditures and Changes in Fund Balance 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities 9 Notes to Financial Statements 1014 Required Supplemental Information Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Judicial Expense Fund 16 Independent Auditor's 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 1718 Schedule of Findings and Responses 1920

3 "*'V T^ LaPortc, APAC LAPORTE ^' Veterans Blvd. I Suite600 CPA. k SUSINEB9 ADVISORS MetalHe, LA I Fax LaPorte.com Independent Auditor's Report To the Chief Judge and Judges of the New Orleans Municipal Court New Orleans, Louisiana We have audited the accompanying financial statements of the New Orleans Municipal Court Judicial Expense Fund (the Fund), as of and for the year ended December 31, 2011, which collectively comprise the Fund's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Fund's management. Our responsibility is to express opinions 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 Govemment 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 opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of the New Orleans Municipal Court Judicial Expense Fund as of December 31, 2011, and the respective changes in financial position, as of the year then ended in conformity with the accounting principles generally accepted in the United States of America. In accordance with Govemment Auditing Standards, we have also issued our report dated May 9, 2012, on our consideration of the New Orleans Municipal Court Judicial Expense Fund's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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 Govemment Auditing Standards and should be considered in assessing the results of our audit. NRW ORLEANS HOUSTON RATON ROUGE COVINGTON An Independently OwnitJ Merahcr, McGhdrcy Alliance The h/ctiuny Maitx is a pnnncr afnbnrn ot mrpardnn txcartir^ jnci ovist ITncj tirm. iho U<rCitx>ev ASnnca rmmbntoma mntm thcv rvmo. lutsrcny and tiacptrktetrx ami MS '«n>onflttt lor V*t own deni fm K'tnonmiriti, (Klvary o) Mn«m.vxl mamanrica ol

4 Management has not presented the management's discussion and analysis that governmental accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the budgetary comparison information on page 16 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. A Professional Accounting Corporation May 9, 2012

5 BASIC FINANCIAL STATEMENTS GOVERNMENT WIDE FINANCIAL STATEMENTS

6 Statement of Net Assets December 31, 2011 Assets Cash ShortTerm Investments Accounts Receivable Due from City of New Orleans Grants Receivable Intergovernmental Prepaid Expenses Governmental Activities ,529 22,638 27,713 1,387 Total Assets 1.658,686 Liabilities Accounts Payable Due to the City of New Orleans 16, ,350 Total Liabilities 979,018 Net Assets Unrestricted 679,668 Total Net Assets 679,668 The accompanying notes are an integral part of these financial statements.

7 Statement of Activities For the Year Ended December 31, 2011 Expenses Public Safety Court System Professional Sendees City of New Orleans Income Split Contract Labor Supplies Equipment/Computers Conferences/Meetings Dues and Subscriptions Lease Expense Repairs and Maintenance Telephone Insurance Other Automobile Total Expenses Program Revenues Charges for Sen/ices Operating Grants and Contributions Net Program Revenue General Revenues and Special Items Other Revenues Interest Earned Transfer to the City of New Orleans Total General Revenues and Special Items Decrease in Net Assets Changes in Net Assets Net Assets. Beginning of Year Prior Period Adjustment Net Assets. Beginning of Year as Restated Net Assets. End of Year Governmental Activities , ,637 60, ,316 11,060 7,698 6,182 5,544 5, ,802 26,888 (169,898) ( ) ( ) ( ) 1, ( ) ,668 The accompanying notes are an integral part of these financial statements.

8 BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS

9 Balance Sheet Judicial Expense Fund December 31, 2011 Assets Cash Short Term Investments Accounts Receivable Due from City of New Orteans Grants Receivable Intergovernmental Prepaid Expenses Total Assets $ $ 577,941 1,020,478 8,529 22,638 27,713 1,387 1,658,686 Liabilities Accounts Payable Due to the City of New Orleans Total Liabilities Fund Balance Unreserved Undesignated Unreserved Designated Total Fund Balance $ 16, , ,018 4, , ,668 Total Liabilities and Fund Balance $ 1,658,686 The accompanying notes are an integral part of thesefinancialstatements.

10 Statement of Revenues, Expenditures and Changes in Fund Balance Judicial Expense Fund For the Year Ended December 31, 2011 Revenues Forfeitures and Fees Traffic Collections Unclaimed Bonds Interest Earned Grant Revenues Building and Maintenance Fees Other Revenues Total Operating Revenues Expenditures Public Safety Court System Professional Services City of New Orleans Income Split Contract Labor Supplies Equipment/Computers Conferences/Meetings Dues and Subscriptions Lease Expense Repairs and Maintenance Telephone Insurance Other Automobile Intergovernmental Total Expenditures Net Change in Fund Balances Fund Balance, Beginning of Year Prior Period Adjustment Fund Balance, Beginning of Year as Restated Fund Balance, End of Year $ 527, ,244 40,450 29,137 26,888 23, , ,189 90,349 67,637 60, ,698 6,182 5,544 5, ,000 1, (800,043) 1,656,168 (176,457) 1,479,711 $ 679,668 The accompanying notes are an integral part of these financial statements.

11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2011 Net Change in Fund Balance Total Governmental Funds $ (800,043) Reconciling Items Change in Net Assets of Governmental Activities $ (800,043) The accompanying notes are an integral part of these financial statements.

12 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies Reporting Entity The Municipal Court of New Orleans administers justice in cases involving alleged violations of the City of New Orleans Ordinances, except traffic violations. The Judges of the Municipal Court of the City of New Orleans (the Court) are independently elected officials; however, the City of New Orleans maintains and operates the courthouse in which the Court is located and provides funds for salaries of the Judges and other employees of the Court. The accompanying financial statements present information only on the New Orleans Municipal Court Judicial Expense Fund administered by the Court Judges for expenses relating to the operation of the Court, and do not present information on other funds that may be administered by the Court Judges. Basis of Presentation The accompanying basic financial statements of the New Orleans Municipal Court Judicial Expense Fund (the Fund) have been prepared in confonnity with governmental accounting principles generally accepted in the United States of America, as applied to governmental units. The Governmental Accounfing Standards Board (GASB), is the accepted standard setting body for establishing governmental accounting and financial principles. Privatesector standards of accounfing and financial reporting issued prior to December 1, generally are followed in both the governmentwide financial statements and the fund financlals statements to the extent those standards do not conflict with or contradict guidance of the GASB, Governments also have the option of following subsequent privatesector guidance for their funds, subject to the same limitafion. The New Orleans Municipal Court Judicial Expense Fund has elected not to follow subsequent privatesector guidance. GovernmentWide Financial Statements The GovernmentWide Financial Statements were prepared using the economic resources measurement focus and the accrual basis of accounfing. Revenues are recorded when earned and expenses are recorded when a liability has been incurred, regardless of the timing of the related cash flows. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. 10

13 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) GovernmentWide Financial Statements (Continued) The Statement of Net Assets and the Statement of Activities were prepared using the economic resources measurement focus and the accrual basis of accounfing. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by the program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Other items not included among program revenues are reported instead as general revenues. Separate financial statements are provided for the governmental funds. Fund Financial Statements The amounts reflected in the governmental fund financial statements are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilifies are generally included on the Balance Sheet. The Statement of Revenues. Expenditures and Changes in Fund Balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach is then reconciled, through adjustment, to the governmentwide financial statements. The amounts refiected in the Fund's financial statements are accounted for using the modified accrual basis of accounfing. Under the modified accrual basis of accounfing, revenues are recognized when suscepfible 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 pay liabilities of the current period. The Fund records all monies, forfeitures and miscellaneous other revenues generated as revenues when received in cash because they are generally not measurable or available unfil actually received. Investment earnings are recorded as earned since they are measurable and available. Expenditures are generally recognized under the modified accrual basis of accounfing when the related fund liability is incurred. Encumbrances Encumbrance accounting Is not utilized by the New Orleans Municipal Court Judicial Expense Fund as the Fund does not incur significant purchases that would require to be encumbered. 11

14 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Cash, Cash Equivalents and Investments Cash includes all amounts in demand deposits, interest bearing demand deposits, and money market accounts. Cash equivalents include amounts in fime deposits and those investments with original maturities of 90 days or less. Under state law, the Fund may deposit funds in demand deposits, interest bearing deposits, money market accounts, or time deposits with state banks organized under Louisiana law and national banks having their principal offices in Louisiana. The Fund may invest in United Stated bonds, treasury notes, repurchase agreements, or certificates and time deposits of state banks organized under Louisiana law and national banks having principal offices in Louisiana. Equity Classifications In the governmentwide financial statements, equity is classified as net assets and displayed in three components: a. Invested in capital assets consist of capital assets including restricted assets, net of accumulated depreciation. The Fund has no net assets deemed invested in capital assets. b. Restricted net assets consist of net assets with constraints placed on their use either by external groups or law. The Fund has no net assets deemed restricted. c. Unrestricted net assets consist of all other net assets that do not meet the definition of "restricted" or "invested in capital assets." When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the Fund's policy is to apply restricted net assets first. In the fund financial statements, governmental funds report reservations of fund balance for amounts not available for appropriation or that are legally restricted by outside parties for use for a specific purpose. Designations of fund balances represent tentative management plans that are subject to change. Use of 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 the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Accordingly, actual results could differ from those estimates. 12

15 Notes to Financial Statements Note 2. Deposits and Investments The fair value of deposits and investments as of December 31, 2011 is as follows: Deposit Type Amount Cash Demand Deposits (noninterest bearing) $ 577,941 Certificates of Deposit 1,020,478 Total $ 1,598,419 These deposits and investments are stated at cost, which approximates fair market value. Custodial Credit Risk Deposits and Investments. Custodial credit risk is the risk that in the event of a bank failure, the Fund's deposits may not be returned to it. Under state law, all deposits are secured by federal depository insurance or the pledge of securities held by the pledging banks agent in the Fund's name. As of December the Fund's demand deposits were covered under the City of New Orteans' pledged collateral. The Fund's certificates of deposits were covered under the New Orleans Municipal Court's pledged collateral. Note 3. Receivables The receivables at December 31, 2011, are summarized below: Class of Receivable Amount Accounts Receivable $ 8,529 Grants Receivable 22,638 Court Costs and Fees Total $ Note 4. Operating Lease The amount of lease expense recognized for the year ended December 31, 2011 was $ The Fund has no leases outstanding at December 31, 2011 which have future noncancelable lease payments. 13

16 Notes to Financial Statements Note 5. Amounts due to the City of New Orleans Certain operating expenditures of the Court's office are paid by the City of New Orleans and are not included in the accompanying financial statements. These expenditures are as follows: The City of New Orleans maintains and operates the courthouse in which the Court is located and pays for the upkeep and maintenance of the, courthouse. The City also pays for the salaries of the Judges and employees of the Court within the City's appropriated amount. These expenditures are not reflected in the accompanying financial statements. Although the New Orleans Municipal Court Judicial Expense Fund payroll is paid through the City of New Orleans, during the past the City has often not appropriated sufficient funds to cover the total salaries expense of the Court. As a result, the Court has had to reimburse the City of New Orieans for the total payroll expense paid by the City which exceeds the appropriated amount During the year ended December 31, 2011, the City of New Orleans appropriated sufficient funds to cover the total salaries expense of the court. The Fund and City are under agreement to split the adjusted excess of revenues over expenditures of the Fund at the end of its fiscal year. The excess of revenues over expenditures of the Fund is adjusted for items that do not pertain to the Court's operations for the period. The total due to the City as of December 31, 2011 was approximately $962,000. This amount includes approximately $149,000 of income payable to the City for revenues which exceeded expenditures for the year ended December 31, The total due to the City also includes approximately $813,000 of 2008 payroll reimbursements which are being disputed by the Judges of the Court Note 6. Prior Period Adjustment The Fund recorded a prior period adjustment decreasing fund balance by $176,457. The adjustment is related to a restatement to correct expenditures and liabiiities not recognized in prior years. 14

17 REQUIRED SUPPLEMENTAL INFORMATION 15

18 Statement of Revenues, Expenditures, and Changes in Fund Balance Budget and Actual Judicial Expense Fund December 31, 2011 Actual Variance with Final Budget Budgetary Original Amounts Final Budgetary Basis Favorable (Unfavorable) Revenues Forfeitures and Fees Traffic Collections Unclaimed Bonds Building and Maintenance Fees Grant Revenues Other Revenues interest Eamed $ ' $ $ , $ ( ) ,493 26, Total Operating Revenues 950, ( ) Expenditures Public Safety Court System Professional Services City of New Orieans Income Split Equipment and Leases Office Supplies. Printing and Unifomis Conferences/Meetings 300, ,000 30, , ( ) (31.964) (7.095) Dues and Subscriptions Repairs and Maintenance Telephone Insurance Miscellaneous Reimbursable Employee Expenses Postage Advertising Bank Charges Intergovernmental ,000 1, ,000 5, , , (316) (2,698) (4.669) ( ) Total Expenditures ( ) Net Change in Fund Balance $ $ 477,300 (800,043) $ ( ) Fund Balance, Beginning of Year as Restated 1.479,711 Fund Balance, End of Year $ 679,668 16

19 r^^^ LaPortc, APAC LAPORTE '' * Veterans Blvd. I Suite 600 CPA. I BUSINESS Aovisons Metairie, LA t Fax LaPorte.com INDEPENDENT AUDITOR'S 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 Chief Judge and Judges of the New Orleans Municipal Court New Orleans, Louisiana We have audited the financial statements of the governmental activities of the New Orleans Municipal Court Judicial Expense Fund, as of and for the year ended December 31, 2011, which collectively comprise the New Orleans Municipal Court Judicial Expense Fund's basic financial statements and have issued our report thereon dated May 9, 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 Govemment Auditing Standards, issued by the Comptroller General of the United States. Internal Control over Financial Reporting Management of the New Orleans Municipal Court Judicial Expense Fund is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit we considered the New Orleans Municipal Court Judicial Expense Fund's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the New Orleans Municipal Court Judicial Expense Fund's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the New Orleans Municipal Court Judicial Expense Fund's internal control over financial reporting. A deficiency in intemal control 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 and correct misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. NEW ORLEANS HOUSTON BATON ROUGE COVINGTON An Iniicpcndcnily Owned Mcmtter, Mc<.ihdrcy Allijncc TTw UCGLK^ Akmco a n pmrm Blftrsxn <t inbipcticlflnt acnnmivt.nt eef»ttix} tim. ^ha McGteftfly AnancQ monbw Vnw mo..wn ihor nonw. ajknixitf ano txhcitniarx and ar«raspcnefaismm Ihoir own dent fm er!(in )nm«ni«.(lehcr>cilmi\<c«sand'nmr«nancnc<. ^

20 Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, 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. However, we identified a deficiency in internal control over financial reporting, described in the accompanying schedule of findings and responses that we consider to be a significant deficiency in internal control over financial reporting. See item A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Compliance and Other Matters As part of obtaining reasonable assurance about whether the New Orleans Municipal Court Judicial Expense Fund's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of taws, 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 no instances of noncompliance or other matters that are required to be reported under Govemment Auditing Standards. We noted a certain matter that we reported to management of the New Orleans Municipal Court Judicial Expense Fund, in a separate letter dated May 9, The New Orleans Municipal Court Judicial Expense 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 New Orleans Municipal Court Judicial Expense Fund's response and, accordingly, we express no opinion on it. This report is intended solely for the information of the New Orleans Municipal Court Judicial Expense Fund, management, and the Legislative Auditor of the State of Louisiana, and it 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 A Professional Accounting Corporation May

21 Schedule of Findings and Responses For the Year Ended December 31, 2011 Finding : Inaccurate Allocation of Fees Condition: Cause: Recommendation: Managemenfs Response: In some instances collected fees were not correctly allocated to other agencies. During 2011, management updated fee distribution templates; however, the templates were not properly tested for accuracy before being implemented. Management should implement procedures to review fee distribution template changes before they are utilized to ensure that the allocation of fees to other agencies is performed accurately. Corrective measures have been taken. Prior to any future changes/corrections to Municipal Court's Case Management distribution templates, changes will be reviewed by the appropriate levels of management. 19

22 Schedule of Findings and Responses For the Year Ended December 31, 2010 Finding : Inaccurate Allocation of Fees Condition: In some instances collected fees were not correctly allocated to other agencies. Status: Unresolved. See finding

23 ^^^' ''V LaPorte. APAC J ^ ^ P Q J^^Pg 111 Veterans Blvd. I Suite 600 CPA. a. BUSINESS ADVISORS Metairic, LA S [ Kix LaPorte.com May 9, 2012 Judge Paul N. Sens City of New Orleans Municipal Court In planning and perfomiing our audit of the basic fmancial statements of the New Orleans Municipal Court Judicial Expense Fund (the Fund), for the year ended December 31, 2011, in accordance with auditing standards generally accepted in the United States of America, we considered the Fund's intemal control over financial reporting (intemal control) as a basis for designing our audit 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 intemal control. Accordingly, we do not express such an opinion on the effectiveness of the Fund's intemal control. A deficiency in intemal control 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 material weakness is a deficiency, or combination of deficiencies, in intemal control such that there is a reasonable possibility that a material misstatement of the Fund's financial statements will not be prevented or detected and corrected on a timely basis. Our consideration of intemal control was for the limited purpose described in the first paragraph and was not designed to identify all deficiencies in intemal control that might be deficiencies, significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. We did not identify any deficiencies in intemal control that we consider to be material weaknesses, as defined above. We did, however, become aware of a matter that is an opportunity for strengthening internal controls and operating efficiency, 'fhis comment is included in the attachment to this letter. We have already discussed this comment and suggestions with the Fund persormel, and we will be pleased to discuss them in further detail at your convenience, to perform any additional study of these matters, or to assist you in implementing the recommendations. NEW ORLEANS HOUSTON BATON ROUGE COVINGTON All lnilt'[k[idcriily Owneil Member, MtGlatlrcy Alliana* Th(} ra:gladrta'alliance 6 a p'onif atllin'^nonnflniv^riknt ;v;coijniingac!f1con!iu':i'x)'irrn!; The MoGlndrrr/ Allian^n rn:*iil)i.f fn'is TfiinM'i' tfwif n.ima. Liulono'ny aiiri indckjnfli^nco iind oro rur>pori?;l)le foi '!io!r owi clll;^: 'm ^' ilv]!2^tk^ v.s ti^'livefv o! servcfis atid "'.ijintenanco ct drfirit fo!alkjr.stii;j3.

24 City of New Orleans Municipal Court Judge Paul N. Sens May 9, 2012 Page 2 This communication is intended solely for the use of management and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties. Sincerely, A Professional Accounting Corporation

25 Item : Policies and Procedures for Meal Expenditures Observation: It was noted during our audit that policies and procedures over the purchases of meals for court meetings could be enhanced. Recommendation: A policy should be implemented regarding the documentation requirements for the purchases of meals for court meetings. At a minimum, the policy should require that supporting documentation for meal purchases include the following: Detail listing of items purchased (e.g., invoice or detail receipt). Purpose of the meeting. Individuals participating/benefiting from the meal purchase. Documentation of approval by the appropriate level of management. Management's Response: A written policy will be set by the Judges at the next scheduled En Banc meeting.