CITY OF NEW ORLEANS MUNICIPAL COURT. Audit of Financial Statements. December 31, LAPORTE CPAs «BUSINESS AOVISONS

Transcription

1 Audit of Financial Statements December 31, 2013 LAPORTE CPAs «BUSINESS AOVISONS

2 Contents Independent Auditor's Report 1-2 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 4 Statement of Activities 5 Fund Financial Statements Governmental Funds Balance Sheet 7 Statement of Revenues, Expenditures and Changes in Fund Balances 8 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 9 Fiduciary Funds Statement of Fiduciary Net Position 10 Notes to Financial Statements Required Supplementary Information Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Judicial Expense Fund 19 Other Supplementary Information Combining and Individual Fund Statements and Schedules Fiduciary Fund Type - Agency Funds Combining Statement of Changes in Assets and Liabilities 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 Schedule of Findings and Responses 25-26

3 ' LAPORTE LaPorte, APAC 111 Veterans Blvd. I Suite 600 CPA. a BUSINESS AOVISOBS Metaific, LA I Fax LaPortc.com Independent Auditor's Report To the J udges of the City of New Orleans Municipal Court New Orleans, Louisiana Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of New Orleans Municipal Court (the Court), as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the Court's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility 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 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. NEW ORLEANS HOUSTON BATON ROUGE COVINGTON An Independently Owned Member, McGladrey Alliance The McGladrey Alliance Is a premier affillaticxi of independent accountlrrg and consuldng firms. The McGladrey Alliance member firms maintaii their name, autonomy and independenoe and are responsible for tbeir own client fee arrangements, delivery of services and maintenance of ^ client relationships.

4 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of New Orleans Municipal Court, as of December 31, 2013, and the respective changes in financial position for the year then ended in accordance with the accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Management has omitted the management's discussion and analysis that 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 19 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 23, 2014, on our consideration of the City of New Orleans Municipal Court'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 Government Auditing Standards and should be considered in assessing the results of our audit. A Professional Accounting Corporation Metairie, l_a May 23, 2014

5 BASIC FINANCIAL STATEMENTS GOVERNMENT WIDE FINANCIAL STATEMENTS

6 Statement of Net Position December 31, 2013 Governmental Activities Assets Cash and Cash Equivalents $ 1,011,226 Short-Term Investments 535,829 Due from Agency Fund 36,761 Due from Other Governments 12,305 Total Assets 1,596,121 Liabilities Accounts Payable 23,202 Due to Agency Fund 150 Due to Other Governments 915,323 Total Liabilities 938,675 Net Position Unrestricted 657,446 Total Net Position $ 657,446 The accompanying notes are an integral part of these financial statements.

7 Statement of Activities For the Year Ended December 31, 2013 Governmental Activities Program Expenses Public Safety - Court System City of New Orleans Payroll Expense $ 1,220,505 Professional Services 190,563 Contract Labor 107,455 Supplies 55,916 Other 26,832 Equipment/Computers 24,209 Conferences/Meetings 23,425 Repairs and Maintenance 13,003 Automobile 9,269 Insurance 6,304 Telephone 5,607 Dues and Subscriptions 4,020 Lease Expense 2,800 Bank Charges 176 Total Program Expenses 1,690,084 Program Revenues Charges for Services 974,710 Net Program Expenses 715,374 General Revenues and Special Items Other Revenues 6,536 Interest Earned 3,638 Total General Revenues and Special Items 10,174 Decrease in Net Position (705,200) Net Position, Beginning of Year 1,362,646 Net Position, End of Year $ 657,446 The accompanying notes are an integral part of these financial statements.

8 BASIC FINANCIAL STATEMENTS FUND FINANCIAL STATEMENTS GOVERNMENTAL FUNDS

9 Balance Sheet Governmental Funds December 31, 2013 Assets Cash and Cash Equivalents Short-Term Investments Due from Other Funds Due from Other Governments General Fund Judicial Expense Fund $ 211,143 10,019 12,305 Special Revenue Funds Building and Municipal Maintenance Probation Court Criminal Fund Fund Fee Fund Total 132,078 $ 662,107 $ 5, ,829 20,987 5,755 1,011, ,829 36,761 12,305 Total Assets $ 233, ,907 $ 683,094 $ 11,653 $ 1,596,121 Liabilities Accounts Payable Due to Other Funds Due to Other Governments 15, ,572 4,661 $ 3,193 26,751 23, ,323 Total Liabilities 904,070 4,661 29, ,675 Fund Balances Restricted Unasslgned (670,603) 663, ,150 11,653 1,328,049 (670,603) Total Fund Balances (670,603) 663, ,150 11, ,446 Total Liabilities and Fund Balances 233,467 $ 667,907 $ 683,094 $ 11,653 Differences between the amounts reported for governmental activities In the statement of net position Net Position of Governmental Activities 657,446 The accompanying notes are an integral part of these financial statements.

10 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds For the Year Ended December 31, 2013 General Fund Special Revenue Funds Building and Municipal Judicial Maintenance Probation Court Criminal Expense Fund Fund Fund Fee Fund Total Revenues Forfeitures and Fees $ 477,561 $ 17,268 $ 254,196 $ - $ 749,025 Traffic Collections 183, ,247 Unclaimed Bonds 30, ,785 Criminal Court Fees ,653 11,653 Interest Earned 1,744 1,894-3,638 Other Revenues 6, ,536 Total Operating Revenues 699,873 19, ,196 11, ,884 Expenditures Public Safety - Court System Professional Services 190, ,563 Contract Laba 107, ,455 Supplies 55, ,916 Equipment/Computers 14,580 6,436 3,193 24,209 Conferences/Meetings 23, ,425 Dues and Subscriptions 4, ,020 Lease Expense 2, ,800 Repairs and Maintenance 8,937 4,066-13,003 Telephone 5, ,607 Insurance 6, ,304 Other 25,543-1,289 26,832 Ajtomobile 9, ,269 Bank Charges City of New Orleans Payroll Expense 940, ,713 1,220,505 Total Expenditures 1,394,981 10, ,601 1,690,084 Net Change In Fund Balances (695,108) 8,660 (30,405) 11,653 (705,200) Fund Balance, Beginning of Year 24, , ,555 1,362,646 Fund Balance, End of Year $ (670,603) $ 663,246 $ 653,150 $ 11,653 $ 657,446 The accompanying notes are an integral part of these financial statements.

11 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2013 Net Change in Fund Balance - Total Governmental Funds $ (705,200) Reconciling Items - Change in Net Position of Governmental Activities $ (705,200) The accompanying notes are an integral part of these financial statements.

12 Statement of Fiduciary Net Position Fiduciary Funds December 31, 2013 Agency Funds Assets Cash and Cash Equivalents $ 278,305 Due from Other Funds 150 Total Assets 278,455 Liabilities Accounts Payable 194,972 Due to Other Governments 46,722 Due to Other Funds 36,761 Total Liabilities 278,455 Net Position Held in Trust for Various Purposes The accompanying notes are an integral part of these financial statements. 10

13 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. The accompanying financial statements present information only on the New Orleans Municipal Court administered by the Court, and do not present information on the City of New Orleans or the general governmental services provided by the governmental unit that comprises the financial reporting entity. Basis of Presentation The New Orleans Municipal Court (the Court) financial statements are prepared in accordance with generally accepted accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The more significant accounting policies established in GAAP and used by the Court are discussed below. Government-Wide Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all of the non-fiduciary activities of the Court. For the most part, the effect of inter-fund activity has been removed from these statements. Governmental activities, which normally are supported by intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. 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. 11

14 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) 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 liabilities 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 government-wide financial statements. The amounts reflected in the Court's financial statements are accounted for using the modified accrual basis of accounting. 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 pay liabilities of the current period. The Court records all monies, forfeitures and miscellaneous other revenues generated as revenues when received in cash because they are generally not measurable or available until actually received. Investment earnings are recorded as earned since they are measurable and available. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. The Court reports the following as major governmental funds: Judicial Expense Fund The Judicial Expense Fund of the Court was established under the provisions of the Louisiana Legislative Act 553 in The Act specifies that the clerks of court and the sheriffs of the City of New Orleans shall collect a fee, limited by laws as to the amount, for each civil suit and criminal case filed with the Court's jurisdiction. The clerks of court and the sheriffs of the City of New Orleans shall place all sums collected or received under this Act in a separate account to be designated as the Judicial Expense Fund for the Court in depositories to be designated by the Judges of the Court, en banc. The Judges, en banc, shall have control over the fund and all disbursements made thereafter. They shall cause to be conducted annually an audit of the fund and the books and the accounts relating thereto, and shall file the same with the Office of the Louisiana Legislative Auditor, where it shall be available for public inspection. In general, the Judicial Expense Fund was established and may be used for any purposes connected with, incidental to, or related to the proper administration or function of the Court or the office of the individual judges and is in addition to any all other funds, salaries, expenses, or other monies that are now or hereafter provided, authorized or established by law for any of the aforementioned purposes. 12

15 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Building and Maintenance Special Revenue Fund The Building and Maintenance Fund was established by the City of New Orleans Municipal Code A fee of $5 shall be levied on each conviction. This fund is to be used for the maintenance, upkeep and security of the Municipal Court building. Probation Special Revenue Fund The Probation Fund was established by the Louisiana Revised Statute 13: A fee of $15 shall be levied on each conviction and bond forfeiture. All fees for alternative sentencing program shall also be assessed. This fund is to be used for the staffing of the probation department. Municipal Court Criminal Fee Fund The Municipal Court Criminal Fee Fund was established by the Louisiana Code of Criminal Procedure B, (2). When a court suspends the imposition or the execution of a sentence and places the defendant on probation, it may, in its discretion, as a condition of probation, deem an amount of money to be paid by the defendant. This fund is to be used to defray the costs of operation of the court. Budget Policies The Court had adopted annual budgets for its Judicial Expense Fund on a basis consistent with generally accepted accounting principles for all governmental funds. The budgetary practices include notice of the proposed budget, public inspection of the proposed budget and public hearings on the budget prior to adoption. Any amendment involving increase in expenditures must be approved by the court. Budgeted amounts in the accompanying financial statements include all amendments. Encumbrances Encumbrance accounting is not utilized by the New Orleans Municipal Court as the Court does not incur significant purchases that would require to be encumbered. 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 time deposits and those investments with original maturities of 90 days or less. Under state law, the Court 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 Court may invest in United States 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 The Court adopted GASB 63, Financial Reporting of Deferred Outflows of Resources, Deferred inflows of Resources, and Net Position, and GASB 65, items Previously Reported as Assets and Liabiiities. As the Court does not report any deferred inflows or outflows, the effect of the implementation was to replace the term "net assets" with "net position". 13

16 Notes to Financial Statements Note 1. Summary of Significant Accounting Policies (Continued) Equity Classifications (Continued) Government-wide net position is divided into three components: 1. Net Investment in Capital Assets - consists of the historical cost of capital assets, including any restricted capital assets, net of accumulated depreciation. The Court has no net position deemed invested in capital assets. 2. Restricted - this component of net position consists of assets that have constraints that are externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. The Court has no net position deemed restricted. 3. Unrestricted - all other net position is reported in this category. In the governmental fund financial statements, fund balances are classified as follows: 1. Restricted Fund Balance - consists of amounts that can be spent only for specific purposes because of state or federal laws or externally imposed conditions by grantors, creditors, or citizens. 2. Unassigned Fund Balance - consists of all amounts not included in other spendable classifications. When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the Court's policy is to apply restricted net position first. The Court considers restricted fund balances to be spent for governmental expenditures first when both restricted and unrestricted resources are available. Interfund Transactions Permanent re-allocation of resources between funds of the reporting entity are reclassified as interfund transfers. For the purposes of the Statement of Activities, all interfund transfers between individual governmental funds have been eliminated. 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. 14

17 Notes to Financial Statements Note 2. Deposits and Short-term Investments The Court's deposits and short-term investments consist of demand deposits and certificates of deposit held by financial institutions. These deposits are stated at cost, which approximates fair market value. Deposit Type Amount Cash - Demand Deposits (non-interest bearing) $ 1,011,226 Certificates of Deposit 535,829 Total $ 1,547,055 Custodial Credit Risk - Deposits and Investments. Custodial credit risk is the risk that in the event of a bank failure, the Court's deposits may not be returned. The Court does not have a deposit policy for custodial risk. Under state law, all deposits are secured by federal depository insurance or the pledge of securities held by the pledging banks agent in the Court's name. As of December 31, 2013, the Court's demand deposits were covered under the City of New Orleans' pledged collateral. The Court's certificates of deposits were covered under the New Orleans Municipal Court's pledged collateral. Note 3. Operating Lease The Court pays a monthly fee for the use of a certified mail postage system. The amount of lease expense recognized for the year ended December 31, 2013 was $2,800. The Court has no leases outstanding at December 31, 2013 which have future non-cancelable lease payments. Note 4. 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. 15

18 Notes to Financial Statements Note 4. Amounts due to the City of New Orleans (Continued) 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 Orleans for the total payroll expense paid by the City which exceeds the appropriated amount. The Court and City are under agreement to split the adjusted excess of revenues over expenditures of the Judicial Expense Fund at the end of its fiscal year. The excess of revenues over expenditures of the Judicial Expense Fund is adjusted for items that do not pertain to the Court's operations for the period. There was no excess of revenues over expenditures for the year ended December 31, The total due to the City as of December 31, 2013 was approximately $915,000. This amount includes approximately $102,000 of reimbursements payable to the City for 2013 payroll expenses. 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 5. Risk Management The Court is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. The Court has obtained liability insurance for the Judges and other supporting staff, as well as for employee dishonesty. Losses associated with the destruction or damage to assets are covered through the City of New Orleans. Note 6. Changes in Agency Funds - Deposits due Others Balance at Balance at December 31, Agency Fund January 1, 2013 Additions Deductions 2013 Escrow Fund $ 77,348 $ 1,122,143 $ 1,116,008 $ 83,483 Cash Bond Fund 100, , , ,470 Bond Fee Fund 123,832 9,531 45,861 87,502 Total $ 301,391 $ 1,633,485 $ 1,656,421 $ 278,455 16

19 Notes to Financial Statements Note 7. Interfund Receivables/Payables The primary reason for interfund receivables/payables are transfers/distributions of prior months collections. Individual balances due from/to other funds as of December 31, 2013, are as follows: Due From Due To Judicial Expense Fund Escrow Agency Fund $ 10,019 $ 150 Probation Fund Escrow Agency Fund 20,987 Municipal Court Criminal Fee Fund Escrow Agency Fund 5,755 Escrow Agency Fund Judicial Expense Fund Probation Fund Municipal Court Criminal Fee Fund ,019 20,987 5,755 Total All Funds $ 36,911 $ 36,911 Note 8. Subsequent Events Management has evaluated subsequent events through the date that the financial statements were available to be issued. May 23, 2014, and determined that there were no events which occurred which require disclosure. No subsequent events occurring after the date above have been evaluated for inclusion in these financial statements. 17

20 REQUIRED SUPPLEMENTARY INFORMATION 18

21 Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - Judicial Expense Fund December 31, 2013 Variance with Actual- Final Budget Budgetary Amounts Budgetary Favorable Original Final Basis (Un^vorable) Revenues Forfeitures and Fees $ 450,000 $ 450,000 $ 477,561 $ 27,561 Traffic Collections 185, , ,247 (1,753) Unclaimed Bonds ,785 30,785 Other Revenues 5,000 5,000 6,536 1,536 Interest Earned - - 1,744 1,744 Total Operating Revenues 640, , ,873 59,873 Expenditures Public Safety - Court System Professional Services 312, , ,018 13,982 City of New Orleans Payroll Expense 1,080,000 1,080, , ,208 Office Supplies, Printing and Uniforms 70,000 70,000 55,624 14,376 Conferences/Meetings 25,000 25,000 23,425 1,575 Equipment and Leases 35,000 35,000 17,380 17,620 Dues and Subscriptions 10,000 10,000 4,020 5,980 Drug Testing of Defendants 1,300 1, ,043 Repairs and Maintenance 6,000 6,000 8,937 (2,937) Telephone 6,000 6,000 5, Insurance 8,000 8,000 6,304 1,696 Miscellaneous ,130 (24,630) Reimbursable Employee Expenses 3,000 3,000 9,269 (6,269) Postage 1,000 1, Advertising 1,000 1, Bank Charges Intergovernmental Total Expenditures 1,559,100 1,559,100 1,394, ,119 Net Change in Fund Balance $ (919,100) $ (919,100) (695,108) $ 223,992 Fund Balance, Beginning of Year 24,505 Fund Balance, End of Year $ (670,603) 19

22 OTHER SUPPLEMENTARY INFORMATION 20

23 Combining Statement of Changes in Assets and Liabilities Fiduciary Fund Type Agency Funds December 31, 2013 Escrow Fund /^sets Cash and Cash Equivalents Due from Other Funds Balance at Balance at December31, Januaryl, 2013 Additions Deductions ,348 $ 1,119,385 2,758 1,113,400 2,608 83, Total Assets 77,348 $ 1,122,143 $ 1,116,008 $ 83,483 Liabilities Accounts Payable Due to Other Agencies Due to Other Funds 47,524 29, , , , ,862 46,722 36,761 Total Liabilities 77,348 $ 1,122,143 $ 1,116,008 $ 83,483 Cash Bond Fund Assets Cash and Cash Equivalents Due from Other Funds $ 100,211 $ 501,811 $ 494,552 $ 107,470 Total Assets $ 100,211 $ 501,811 $ 494,552 $ 107,470 Liabilities Accounts Payable Due to Other Governments Due to Other Funds $ 100,211 $ 501,811 $ 494,552 $ 107,470 Total Liabilities $ 100,211 $ 501,811 $ 494,552 $ 107,470 21

24 Combining Statement of Changes in Assets and Liabilities (Continued) Fiduciary Fund Type Agency Funds December 31, 2013 Balance at Balance at December 31, January 1, 2013 Additions Deductions 2013 Bail Bond Fee Fund /^sets Cash and Cash Equivalents $ 123,832 $ 9,531 $ 45,861 $ 87,502 Due from Other Funds... Total Assets $ 123,832 $ 9,531 $ 45,861 $ 87,502 Liabilities Accounts Payable Due to Other Governments Due to Other Funds 123,832 $ 9,531 $ 45,861 $ 87,502 Total Liabilities 123,832 $ 9,531 $ 45,861 $ 87,502 Total Agency Funds /^sets Cash and Cash Equivalents Due from Other Funds 301,391 $ 1,630,727 2,758 1,653,813 2, , Total Assets 301,391 $ 1,633,485 $ 1,656,421 $ 278,455 Liabilities Accounts Payable Due to Other Governments Due to Other Funds 224,043 47,524 29, , , , , , , ,972 46,722 36,761 Total Liabilities 301,391 $ 1,633,485 $ 1,656,421 $ 278,455 22

25 ^ T A T^# LaPorte, APAC I I IJ rvt^t^ 111 Veterans Blvd. I Suite 600 CPA. «BUSINESS ADVISORS Metaifie, LA I Fax LaPorte.com 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 Independent Auditor's Report To the Chief Judge and Judges of the City of New Orleans Municipal Court New Orleans, Louisiana We have audited, in accordance with the 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 United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of New Orleans Municipal Court, as of and for the year ended December 31, 2013, and the related notes to the financial statements, which collectively comprise the City of New Orleans Municipal Court's basic financial statements, and have issued our report thereon dated May 23, Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of New Orleans Municipal Court's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances 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 City of New Orleans Municipal Court's internal control. Accordingly, we do not express an opinion on the effectiveness of the City of New Orleans Municipal Court Judicial Expense Fund's internal control. A deficiency in internal 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. 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. NEW ORLEANS HOUSTON BATON ROUGE COVINGTON An Independently Owned Member, McGladrey Alliance The McGladrey Alliance is a pfemier affiliaticxi of Independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy aid independence and are responsible for their own client fee arrangements, delivery of services arw maintenance of client relationsnips. 23

26 Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of New Orleans Municipal Court'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 no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of the Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. This report is intended solely for the information of the City of New Orleans Municipal Court, 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 Metairie, LA May 23,

27 Schedule of Findings and Responses For the Year Ended December 31, 2013 None 25

28 Schedule of Findings and Responses For the Year Ended December 31, 2012 Finding : Inaccurate Allocation of Fees Condition: Status: In some instances, collected fees were not correctly allocated to other agencies. Resolved. 26