Thirty-Fourth Judicial District - Judicial Expense Fund...financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the

9 ^ ^

JUDICIAL CLERK'S FUND OF THE THIRTY-FOURTH JUDICIAL DISTRICT COURT

CHALfiAETTE, LOUISIANA

ANNUAL FINANCIAL STATEMENTS

Asof and forthe Year Ended December 3 L 2011

Under provisions of state law, this report is a puDiic document. A copy of the report has been submitted to the entity and otherappropriate public officiais. The report is available for public inspection at the Baton Rouge office of the Legislative Auditor and, v /here appropriate, at the office of the parish clerk of court.

,„_„3,eJUL18 2012


TABLE OF CONTENTS

December 3h 2011

PAGE

INDEPENDENT AUDITORS'REPORT 1-2

BASIC FINANCIAL STATEMENTS Government-wide Financial Statements:

Statement of Net Assets 3

Statement of Activities... 4

Fund Financial Statements:

Govemmentai Fund Balance Sheet 5

Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Assets 6

Statement of Revenues, Expenditures, and Changes in Fund Balance -Governmental Fund Types ..;... 7

Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities 8

Notes to Financial Statements 9-17

REQUIRED SUPPLEMENTAL INFORMATION

General Fund - Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual 18

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE ; ^ D OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 19-20

SCHEDULE OF FINDINGS 22-25

SCHEDULE OF PRIOR YEAR FINDINGS 26

MANAGEMENTS CORRECTIVE ACTION PLAN 27-31

ner L.jLa

CERTinSD PUBUC ACCOUmANTS AND CONSULTANTS

S. DAVID KUSHNER. CPA CrFA* WILSON A, LaGRAtZE. JR.. CPA. CfFA OFF ERNEST G. GELPI, CPA. CGFM CRAIG M. FABACHER. CPA DOUGLAS W. FINEGAN. CPA, CVA MARY ANNE GARCiA. CPA 'A Professional Accounting Corporation

WILLIAM B. HAMILTON, CPA KATHARINE M. LASSITER. CPA RICHARD J. RUMNEY. CPA

Memoers Amertcc^ imitrvjte of CPA"s Soc!9 y of loui^na CPA's

INDEPENDENT AUDITORS' REPORT

The Honorable Kirk A. Vaughn and Honorable Judges Thirty-Fourth Judicial District Court Chalmette, Louisiana

We have audited the accompanying financial statements of the govemmentai activities and each major fund of the Judicial Qerk's Fund of the Thirty-Fourth Judicial District Court (the Court), a component unit of St. Bemard Parish govemment. as of and for the year ended December 31, 2011. which collectively comprise the Court's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the Court's management. Our responsibility is to express an opinion on ese 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 finandal 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 welt as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions.

The financial statements do not include finandal data for the Court's legally separate component units. Accounting principles generally accepted in the United States of America require the financial data for those component units to be reported with the financial data of the Court's primary government unless the Court also Issues financial statements for the financial reporting entity that include the financial data for its component units. The Court has not issued such reporting entity finandal statements. Because of this departure from accounting principles generally accepted in the United States of America, the assets, liabilities, net assets, revenues, and expenses of the aggregately discretely presented component units are indeterminable. In addition, the increase in the assets, liabilities, fund balances, revenues, and expenditures of the aggregate remaining fund information is indeterminable.

In our opinion, because of the omission of the discretely presented component units, as discussed previously, the financial statements referred to previously do not present fairly, inconformhy with accounting prindples generally accepted in the United States of America, the finandal position of the aggregate discretely presented component units of the Court, as of December 31. 2011, or the changes In financial position thereof for the year then ended.

SUITE 100 3330 WEST ESPLANADE AVENUE METAIRIE. LOUISIANA 70002

(504) 838-9991 FAX (504) 833-7971 www.kl-cpa.com

http://www.kl-cpa.com

Further, in our opinion, except for the effects of omitting the discretely presented component units as discussed previously, the financial statements referred to previously present fairiy. In all material r^pects, the respective financial position of the governmental activities and each major fund of the Court as of December 31, 20I I , and the respective changes in financial position thereof 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 our report dated June 11, 2012, on our consideration of the Thirty-Fourth Judicial District Court's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulatior^, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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.

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 finandal 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 18 be presented to supplement the basic finandal statements. Such information, although not a part of the basic financial statements. Is required by the Govemmentai 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 inquires, the basic finandal 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.

^«<j4if*e^ ^ a ^ u U ^ . 4.4.$'

Metalrie, Louisiana June 11,2012

JUDICIAL CLERK'S FUND OF THE THIRTY'FOURTH JUDICIAL DISTRICT COURT

. STATEMENT OF NET ASSETS

December 31,2011

Governmental Activities

ASSETS Cash and cash equivalents Investments Accounts receivable Due from other govemmentai units Capital assets, net of accumulated depreciation

317,744 176,684 10,896 55.917 5.183

TOTAL ASSETS 566.424

LIABILITIES Accounts payable Due to other governments Payroll liabilities payable

3.965 36.956 2.432

TOTAL LIABILITIES 43.353

NET ASSETS Invested in capital assets Unrestricted

5.183 517.888

TOTAL NET ASSETS $ 523.071

The accompanying notes ore an integral pait o f this statement


STATEMENT OF ACTIVITIES

Year Er\ded December 3 L 2011

Governmental Activities:

General governmental units

Total govemmentai activities

General revenues: Other income

Total general revenues

Change in net assets

Net assets - Beginning of the Year

Net assets - End of the Year

Expenses

$ 607.536

$ 607,536

Program Charges for

Services

S 362.365

$ 362,365

Revenues Operating

Grants

$ 279.918

$ 279,918

Net Revenue and Changes in

Net Assets Governmental

Activities

$ 34.747

34,747

1.044

1.044

35.79!

487.280

$ 523.071

The accompanying notes ore an integral pan of this statement


GOVERNMENTAL FUND BALANCE SHEET

ASSETS

Cash and cash equivalents Investments Accounts receivable Due from other govemmentai units

December 31. 2011

General Fund

$ 264,383 176.684

-55.888

Juvenile Probation

$ 3,941 $ --•

FINS Fund

29.374 ---

Pre-Trial Drue Testing

$ 20.046 -

10.896 29

Total

$ 317.744 176.684 10,896 55.917

TOTAL ASSETS $ 496.955 $ 3.941 $ 29.374 $ 30.971 $ 561.241

LIABIUTIES AND FUND BALANCES

LIABIUTIES

Accounts payable $ - $ - $ - $ 3.965 $ 3,965 36,956

; : 1.113 2.432 Due to other govemments Payroll liabilities payable

TOTAL LIABIUTIES

FUND BAUiJsJCES

Assigned Unassigned

TOTAL FUND BALANCES

36,956 1.319

38.275

458.680

458.680

TOTAL LIABILITIES AND FUND BALANCES $ 496.955

5.078 43.353

3,941 29.374 25.893 59,208 z - 2 458.680

3.941 29.374 25.893 517.888

3 M i $ 29.374 $ 30.971 $ 561.241

The accompanying notes are an integral part of this statement


RECONCIUATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE GOVERNMENT-WIDE STATEMENT OF NET ASSETS

December 31,2011

Total Fund Balances, Governmental Funds $ 517,888

Amounts reported for govemmentai activities In the statement of net assets are different because:

Capital assets used In gover'nmental activities are not financial resources and therefore are not reported in the funds. These assets consist of:

Governmental capital assets, net of depreciation 5.183

Net Assets of Govemmentai Activities $ 523.071

The accompanying notes are an integral part o f this statement


STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCE - GOVERNMENTAL FUND TYPES

Year Ended December 31,2011

Revenues Court costs Probation supervision fees Intergovemmental grants State drug court grants Drug testing fees Other revenues

Total Revenues

Expenditures General office expenditures Salaries & related benefits Legal & professional services Transfer to drug court corporations Drug testing supplies Contract labor

Total Expenditures

Excess (Deficiency) of Revenues Over Expenditures

Fund Balance Beginning of Year

End of Year

General Fund

$ 281.631 . -

254.934 -

869

537.434

5,824 193.812 18.100

254,934 --

472.670

64,764

393.916

$ 458680

Juvenile Probation

FINS Fund

$ - $ 4,400

---1

4,401

2,743 .

525 ---

3.268

1.133

2,808

$ 3.941 i

-24.984

-•B

81

25.065

4.938 -

20.500 -

--.

25.438

(373)

29.747

i 29.374

Pre-Trial Drup Testing

$ 341 $ --- •

75,993 93

76.427

9,500 62.812

800 -

31,605 . 460

105.177

(28,750)

54.643

$ 25.893 $

Total

281,972 4.400

24.984 254.934

75,993 1.044

643.327

23.005 256.624 39.925

254,934 31,605

460

606.553

36,774

481.114

517.888

The accompanying notes are an integral part of this statement


RECONCILIATION OF THE GOVEMMENTAL FUNDS STATEMENT OF REVENUES, EXPENDTfURES AND

CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTMT/ES

For the Year Ended December 31.2011

Net Change in Fund Balances. Governmental Funds

Amounts reported for governmental activities in the statement of activities are different because:

36,774

Capital outlays are reported In govemmentai funds as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This difference consists of:

Depredation expense 19831

Change in Net Assets of Governmental Activities 35.791

The accompanying notes are an integral part o f this statement


NOTES TO FINANCIAL STATEMENTS

December 31.2011

NARRATIVE PROFILE

The Judidal Clerk's Fund of the Thirty-Fourth Judldal District Court (the "District Court") was created by Act No. 47. Regular Session, 1986, R.S. 13:996.48. This Act provides for the collection of fees or costs in addition to all other fees or costs now or hereafter provided by law.

The Judges may appoint law clerks, clerical, administrative, or other personnel as they deem necessary for the operation of the District Court In addition, the Judges may use collected revenues forthe purpose of establishing or maintaining a law library forthe District Court, or for buying, leasing, or maintaining any type of equipment, supplies, or other items necessary for the operation of the Court, or any other expenditure necessary for the proper operation of the court.

NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying financial statements of the District Court have been prepared in conformity with governmental accounting principles generally accepted in the United States of America. The Govemmentai Accounting Standards Board (GASB) is the accepted standard-setting body for establishing govemmentai accounting and financial reporting prindples.

Financial Reporting Enttty

As the goveming authority of the Parish, for reporting purposes, the St. Bemard Parish Council Is the finandal reporting entity for the Parish. The financial reporting entity consists of (a) primary govemment. (b) organizations for which the primary govemment is financially accountable, and (c) other oi ganlzatlons for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Because the Parish Council provides for office space, courtrooms, and approval authority over its capital budget and therefore is fiscally dependent on the Council, the District Court was determined to be a component unit of the St. Bemard Parish Council, the financial reporting entity.

The accompanying financial statements present Information only on the funds maintained by the District Court and do not present information on the Parish Council, the general government services provided by that govemmentai unit, or the other governmental units that comprise the financial reporting entity.


NOTES TO FINMCIAL STATEMENTS - Continued

December 31,2011

NOTE I -SUMMARY OF SIGNIFICANTACCOUNTING POLICIES-Continued

Financial Reporting Enthy - Continued

GASB Statement No. 14 established criteria for determining which component units should be considered part of the District Court for financial reporting purposes. The basic criterion for including a potential component unit within the reporting entity Is financial accountability. The GASB has set forth criteria to be considered in determining financial accountability. These criteria include:

1. Appointing a voting majority of an organization's governing body, and

a. The ability of the District Court to impose its will on that organization and t or

b. The potential for die organization to provide specific finandal benefits to or impose specific financial burdens on the District Court.

2. Organizations for which the District Court does not appoint a voting majority but are fiscally dependent on the District Court.

3. Organizations for which the reporting entity's financial statements would be misleading If data of the organization is not Included because of the nature or significance of the relationship.

Based on the previous criteria, the District Court has determined that the St. Bernard Parish Adult Drug Court. Inc. and the St. Bernard Parish Juvenile Drug Court, Inc. are part of the reporting entity. These component units are not included in the accompanying finandal statements. Their finandal statements may be obtained by request to the District Court at (504) 278-4433,

Fund Accounting

The District Court uses fund accounting to maintain its financial records and the results of its operatior^. Fund accounting is designed to demonstrate legal compliance and to aid management by segregating transactions related to certain District Court functions and activities. A fund is defined as a separate fiscal and accounting entity with a self-balancing set of accounts.

Governmental Funds

Govemmentai funds account for all of the District Court's general activities. These funds focus on the sources, uses, and balances of current financial resources. Expendable assets are assigned to the various govemmentai funds according to the purposes for which they may be used. Current liabilities are assigned to the fund from which they will be paid.

10


NOTES TO FINANCIAL STATEMB4TS - Contmued

December 31,2011

NOTE I - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES - Continued

Fund Accounting - Continued

Governmental Funds - (continued)

The difference between a govemmentai fund's assets and liabilities is reported as fund balance. In general, fund balance represents the accumulated expendable resources that may be used to finance future period programs or operations of the District Court. The following are the District Court's governmental funds:

General Fund - the primary operating fund of the District Court, which accounts for all the operations of the District Court, except for those required to be accounted for in other funds.

Juvenile Probation Supervision Fee Special Revenue Fund - accounts for the receipt and disbursement of funds collected for juvenile probation supervision fees.

Families in Need of Services (FINS^ Special Revenue Fund - accounts for the receipt and disbursement of funds collected for reducing the number of children who enter the juvenile justice system or the foster care system.

Pre-Trial Dmg Testing Program Special Revenue Fund - accounts for the receipt and disbursement of funds collected for drug tests administered by the District Court.

Measurement Focus I Basis of Accounting

Basic Financial Statements - Government - Wide Financial Statements

The statement of net assets and the statement of activities display Information about the District Court as a whole. These statements include all the finandal activities of the District Court with most of the interfund activities removed. Information contained in these columns refiects the economic resources measurement focus and the accrual basis of accounting. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange or exchange-like transactions are recognized when the exchange occurs (regardless of when cash is received or disbursed). Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33, Accounting and Financial Reporting for Nonexchange Transactions,

The statement of activities demonstrates the degree to which the direct expenses of a given function or segments are offeet by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues Indude (I) chaises to customers or applicants who purchase, use, or direaly 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. Interest earnings and other revenues not properly included among program revenues are reported instead as general revenues.

n


NOTES TO FINANCIAL STATEMENTS - Continued

December 31,2011

NOTE I - SUMMARY OF SIGNIFICANTACCOUNTING POLICIES - Continued

Measurement Focus / Basis of Accounting - Continued

The District Court does not allocate indirect expenses.

Basic Financial Statements - Governmental Funds

The amounts reflected in the General Fund, the Juvenile Probation Supervision Fee Special Revenue Fund, the Families in Need of Services (FINS) Special Revenue Fund and the Pre-Trial Drug Testing Program Special Revenue Fund 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 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 finandal resources. This approach is then reconciled, through adjustment, to a govemment-wide view of the District Court's operations.

The amounts reflected in the General Fund, the Juvenile Probation Supervision Fee Special Revenue Fund, the Families in Need of Services (FINS) Special Revenue Fund and the Pre-Trial Drug Testing Program Special Revenue Fund use the modifled accrual basis of accounting. Under this 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 District Court considers all revenues available if they are collected within 60 days after the fiscal year end. Expenditures are recorded when the related liability is incurred, except for any claims and judgments which are recognized when the obligations are expected to be liquidated with expendable available financial resources. The governmental funds use the following practices in recording revenues and expenditures:

Revenues - Revenues are generally recognized when they become measurable and available as net current assets. Court costs, intergovemmental grants and interdtt revenue are recorded when due. Substantially all other revenues are recorded when received.

Expenditures - Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred.

Reconciliation - Explanation of differences between the govemmentai funds balance sheet and the govemment-wide statement of net assets is presented on page 6 of the basic financial statements. Explanation of differences between the governmental funds statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities is presented on page 8 of the basic financial statements.

12



December 31,2011

NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued

Budgets and Budgetary Accounting

Budgetary procedures applicable to the District Court are defined in state law. Revised Statutes 39: 1301 -15. The Judges, as allowed by state law, did not adopt a budget for its non-judicial Special Revenue Funds. The major requirements of the Local Govemment Budget Act are summarized as follovt/s:

1. The District Court adopts a budget each year for the general fund. The budget for this fund is adopted on the cash basis of accounting which is a comprehensive basis of accounting other than generally accepted accounting principles (GAAP).

2. The Chief Judge prepares a proposed budget and submits it to the Judges of the District Court for their review.

3. A meeting is then held to review the proposed budget and formal adoption is made by majority vote of the Judges of the District Court.

4. Copies of the adopted budget are kept on file for public inspection.

5. Budgetary amendments due to Increase or decrease In revenues or expenditures over amounts estimated require the approval of the Judges of the District Court. The general fund budget for the year ended December 31.2011 was amended.

6. All budgetary appropriations lapse at the end of each year.

7. Formal budgetary integration is not employed. Budgeted amounts included in the accompanying financial statements include the originally adopted budget amounts. The amounts are reconciled to the amounts reflected on the budget comparison statements as follows:

General Fund

Excess (deficiency) of revenues Over expenditures

Add: Prior year receivables Current year payables

Less: Current year receivables Prior year payables

Excess (deficiency) of revenues Over expenditures - cash basis

$

1.

64,764

34,585 38,275

(55,888) r24.226^

57.510

13



December 31.2011

NOTE I - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- Continued

Cash, Cash Equivalents, and Investments

The District Court's cash and cash equivalents are considered to be cash on hand, demand deposits, [nterest bearing demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition.

Under state law, the District Court may deposit funds in demand deposits, interest bearing demand deposits, money market accounts, or time deposits with state banks or ganlzed under Louisiana law and national banks having their principal offices in Louisiana. In addition, the District Court may Invest in United States bonds, treasury notes, or certificates. These are classified as Investments If their original maturities are 90 days or less; however, if the original maturities are 90 days or less, they are classified as cash equivalents. Investments forthe DIstria Court are stated at cost.

Capital Assets

Capital assets are capitalized at historical cost or estimated cost if historical cost is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The District Court maintains a threshold level of $ 100 or more for capitalizing assets.

Capital assets are recorded in the statement of net assets and statement of activities. Since surplus assets are sold for an Immaterial amount when declared as no longer needed for public purposes, no sahê value is taken into consideration for depreciation purposes. All capital assets, other than land, are depreciated using the straight-line method over the useful life of the asset. Capital assets in this report are comprised primarily of various types of equipment, which have an estimated useful life of 5 to 15 years,

Contpensated Absences

There Is no written policy for compensated absences. All full-time employees eam one week of annual leave. This leave Is taken when the Judges take their leave. Sick leave and annual leave is noncumulative. In the govemmentai funds, the cost of sick leave and annual leave Is recognized when payments are made to employees.

Fund Balances

On January 1.2011. the Court adopted GASB No. 54, Fund Balance Reporting arid Governmental Fund Type Definitions, which significantiy changed the reporting of fund balance in the balance sheets of governmental fund type funds.

In the governmental fund financial statements, fund balances are classified as follows:

14



December 31, 2011

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES- Continued

Fund Balances - Continued

1. Non-Spendable Fund Balances - amounts that cannot be spent either because they are in a non-spendable form or because they are legally or contractually required to be maintained intact.

2. Restricted Fund Balance - amounts that can be spent only for specific purposes because of state or federal lav^. or extemally imposed conditions by grantors, creditors, or citizens.

3. Committed Fund Balance - amounts that can be used only for specific purposes determined by formal action by the Judges.

4. Assigned Fund Balance - amounts that are constrained by the District Court's intent that they will be used for specific purposes.

5. Unassigned Fund Balance - all amounts not included in the other spendable classifications.

The District Court considers restricted fund balances to be spent for govemmentai expenditures first when both restriaed and unrestricted resources are available. The District Court also considers committed fund balances to be spent first when other unrestricted fund balance classifications are available for use.

Estimates

The preparation of financial statements in conformity with accounting prindples generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenditures, and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 2 - CASH, CASH EQUIVALENTS. AND INVESTMENTS

At December 31, 2011, the carrying amount of the District Court*s cash deposits was $317,744 and the bank balance was $326,832, of which $307,372 was insured from loss by federal deposit insurance and $19,460 was uninsured and uncollateralized. The District Court did not comply v dth all provisions of state law which require that bank balances not insured from loss through federal deposit insurance be secured from loss at all time through the pledge of bank securities.

IS



December 31,2011

NOTE 3 - RISK MANAGEMENT

The District 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 District Court has obtained liability Insurance for the Judges.

NOTE 4 - CAPITAL ASSETS

Capital assets and depreciation activity as of and for the year ended December 31.2011 are as follows:

Capital assets: Equipment

Total capital assets

Less accumulated dq>redation: Equipment

Total accumulated depredation:

Totals

—

1

—

i

Balance OI/OI/II

48.415 48,415

42,249 42.249

6.166

Increases

$ -

983 983

$ m i )

Decreases

$

$ _ _

9,144 9,144

f9.l44^ (9,144)

.

L

1

Balance 12/31/11

39,271 39.271

34.088 34.088

5.183

NOTE 5 - DUE FROM OTHER GOVERNMENTAL UNITS

Due from other governmental units represent amounts collected in 2011 and received in 2012.

St. Bemard Parish Clerk of Court St. Bemard Parish Sheriff Louisiana Supreme Court - Adult Drug Court Louisiana Supreme Court - Juvenile Drug Court St. Bemard Parish Juvenile Drug Court, Inc.

Total

No allovyonce for uncollectible receivables is required at December 31.2011.

$

$

3,000 15,932 19,104 17.852

29

55.917

16



December 31. 2011 -

NOTE 6 - DUE TO OTHER GOVERNMENTS

Due to other governments at December 31» 2011 included amounts due to the St. Bemard Parish Juvenile Drug Court. Inc. and the St. Bemard Parish Adult Drug Court, Inc.. totaled $36,956.

NOTE 7 - SUBSEQUENT EVENTS

Subsequent events were evaluated through June 11, 2012, which Is the date the financial statements were available to be issued. No material subsequent events have occurred since December 31,2011 that required recognition or disclosure In these financial statements.

17


GB4B{AL FUND - STATEMENT OF REVENUES. EXPENDITURES. AND CHANGES IN FUND BALANCE - BUDGET (NON-GAAP BASIS) AND AaUAL

For the Year Ended December 31.2011

Revenues Court costs State drug court grants Other

Total Revenues

Expenditures General office expenditures Salaries & related benefits Legal & professional services Transfers to. drug court corporations

Total Expenditures

BUDGETED AMOUNTS

Original Final Budget Budeet

$ 230.000 246.000

UOO

477.100

6,300 193.950 13.000

246.000

459.250

$ 286.500 261.578

850

548.928

5,845 193,850 18.100

261.578

479.373

Actual Amounts Budgetary

Basis

$ 280,513 234.749

869

516,131

9,982 195.790

18.100 234.749

458.621

Variance v* th Final Budget-Favorable/

(Unfavorable^

$ (5.987) (26.829)

19

(32,797)

(4,137) (1.940)

26.829

20.752

Excess (Deficiency) of Revenues Over Expenditures 17,850 69.555 57.510 (12.045)

Cash - beginning of year

Cash transfer to investments

Cash -end of year L

332,110

_

349,960 L

332,110

.

401.665 L

332.110

025.237^

_264.383 i=

-

n 25.237^

n37.282V

18

ner rm^, t.L.a

CERTIFIBD PUBUC ACCOUNTANTS AND CONSULTANTS

S. OAVID KUSHNER. CPA, OFA' WILSON A. LaGRAfZE, JR., CPA. CrFA, CFF ERNEST G. GELPI. CPA. CGFM CRAIG M. FABACHER. CPA DOUGLAS W. FINEGAN, CPA, CVA MARY ANNE GARCIA. CPA 'A Professionai Accounting Cofporotton

WtLUAM B. HAMILTON, CPA KATHARINE M. LASSITER. CPA RICHARD J. RUMNEV, CPA

Membets /^ner tan InstilulQ Of CPA's Society o i Louisiono CPA'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

The Honorable Kirk A. Vaughn and Honorable Judges Thirty-Fourth Judicial District Court Chalmette, Louisiana

We have audited the financial statements of the Judicial Clerk's Fund of the Thirty-Fourth Judicial District Court as of and for the year ended December 31. 2011, and have issued our report thereon dated June I I , 2012. We conducted our audit In accordance vîth 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 intemal 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 expre^lng an opinion on the effectiveness of the Fund's intemal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Fund's Internal control over financial reporting.

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.

Our consideration of intemal 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 consider the deficiency described In the accompanying schedule of findings as item 2011 -01 to be a material weakness.

SUITE 100 3330 WEST ESPUNADE AVENUE METAIRIE. LOUISIANA 70002

(504) 838-9991 • FAX (50^} 833-7971

www.kt-cpa.com

http://www.kt-cpa.com

A significant deficiency Is a deficiency, or combination of deficiencies. In intemal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies in the accompanying schedule of findings as items 2011 -02 through 2011 -03 to be significant deficiencies.

Compliance and Other Matters

As part of obtaining reasonable assurance about whether the Fund's financial statements are free of material misstatement, we performed tests of its compHwce 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 objealve of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed three instances of noncompliance or other matters that are required to be reported under Government Auditing Standards and are described in the accompanying schedule of findings as Itemis 2011 -04 dtrough 2011-06.

We noted certain matters that were reported to management of the Judicial Clerk's Fund of the Thirty-Fourth Judicial District Court in a separate letter dated June 11,2012.

This report is intended solely for the Information and use of the Thirty-Fourth judicial District Court Judges, the Judicial 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 L^lslative Auditor as a public document.

li^M^M^ â^0ia<^. A.4.e-

Metalrie. Louisiana June 11,2012

SCHEDULE OF FINDINGS


SCHEDULE OF FINDINGS

For The Year Ended December 31.2011

SEaiON I -SUMMARY OF AUDIT RESULTS

1. The auditors' report expresses an adverse opinion due to omitted component units on the basic financial statements of the Thirty-Fourth Judicial District Court.

2. One deficiency in intemal control over financial reporting that we consider to be a material weakness is reported in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Fmancial Statements Performed in Accordance with Government Auditing Standards and Is shown below as finding 2011 -01.

3. Two deficiencies in internal control over financial reporting that we consider to be significant deficiencies are reported in the Report on Internal Control Oêr Financial Reporting and on Compliance and Od\er Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards and are shown below as findings 2011 -02 and 2011 -03.

4. Three instances of noncompliance or other matters material to the financial statements of the Fund is reported in the Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Governrnent Auditing Standards and are shown below as findings 2011 -04 throMgh 2011 -06.

SEaiON II - FINANCIAL STATEMENT FINDINGS

Material Weakness

2011-01

During our testing of cash expenditures, we noted that the Pre-Trial Drug Testing Program Special Revenue Fund is paying for expenditures of the St. Bernard Parish Adult and Juvenile Drug Court Programs.

Recomnfiendation

We recommend that management review current policies and procedures over cash disbursements and implement changes to ensure payment for expenditures made from the Pre-Trial Drug Testir^ Pr<^ram Special Revenue Fund are for expenditures Incurred by the Pre-Trial Drug Testing Program Special Revenue Fund only.

Management's Response

See Management's Corrective Action Plan.

22


SCHEDULE OF FINDINGS - Continued

For The Year Ended Decemi>er 3 /. 2011

SEaiON II - FINANCIAL STATEMENT FINDINGS - Continued

Significant Deficiencies

2011-02

During our audit, we noted that the Judicial Clerk's Fund of the Thirty-Fourth Judicial District Court does not have procedures in place to prepare the financial statements, including the year-end adjusting journal entries and notes to the financial statements. The lack of a complete GAAP financial reporting package prepared by the District Court could prevent those charged with governance from identifying misstatements In a timely manner which could result in misstated or incomplete financial statements.

Recommendation

We recommend the District Court put procedures in place that vwll allow the District Court's employees to prepare the annual financial statements, year-end adjusting journal entries and notes to the financial statements.


See Management's Correaive Action Plan.

2011-03

During our testing of cash receipts, we noted that the receipts for the Pre-Trial Drug Testing Program Special Revenue Fund are collected by the same employee who administers the dr i^ tests. This creates the opportunity for the employee to misappropriate assets due to the lack of segregation of duties.

Recommendation

We recommend that the Pre-Trial Drug Testing Program Special Revenue Fund assign the task of collecting payment for drug tests to an individual not responsible for administering the drug tests to reduce the opportunity to misappropriate assets.



23


SCHEDULE OF FINDINGS - Continued

For The Year Ended December 31.2011

SEaiON II - FINANCIAL STATEMENT FINDINGS - Continued

Compliance/Other Matters

2011*04

During our testing of cash receipts, we noted that the Pre-Trial Drug Testing Program Special Revenue Fund does not make daily deposits of cash, as required by Louisiana State Law.

Recommendation

We recommend the Pre-Trial Drug Testing Program Special Revenue Fund start depositing cash daily, as required by Louisiana State Law.



2011-05

During our testing of cash, we noted that the District Court failed to comply with certain provisions of the fiscal agency and cash man^êment requirements of state law, LSA-R.S. 39:1211-45. State law requires the District Court to fully collateralize at all times the cash balances with the fiscal agent bank through FDIC insurance and, if necessary, but requiring the fiscal agent bank to pledge securities for the benefit of the District Court sufficient to cover any uninsured cash balances in the fiscal agent bank. As of December 31. 2011, the uninsured cash balances in the District Court's fiscal agent bank exceeded the amount of FDIC insurance by $19,460 in violation of state law.

Recommendation

We recommend the District Court contact the fiscal agent bank to pledge securities for the benefit of the District Court sufficient enough to cover the uninsured balance.


See Management's Correaive Action Plan.

24


SCHEDULE Of FINDINGS'Continued

For The Year Ended December 31. 2011

SECTION It - FINANCIAL STATEMENT FINDINGS - Contmued

2011-06

During our testing of fixed assets, we noted that the Pre-Trial Drug Testing Program Special Revenue Fund does not maintain records of fixed assets, as required by LSA-R.S. 24:515.

Flecommendatlon

We recommend the Pre-Trial Drug Testing Program Special Revenue Fund maintain fixed asset records, as required by LSA-R.S. 24:515.



2S


SCHEDULE OF PRIOR YEAR FINDINGS

For The Year Ended December 31,2011

RESOLUTION

SECTION 1 - INTERNAL CONTROL AND COMPLIANCE MATERIAL TO THE FINANCIAL STATEMENTS

10-01 Additional Safeguards over Cash Receipts - The Pre-Tri^ Drug Testing Program Special Revenue Fund does not make dally deposits.

10-02 Financial Statement Preparation.

10-03 Compliance with the Local Government Budget Act.

10-04 Failure to Complete Audit Report Within Six Months of the Close of the Fiscal Year.

09-01 Failure to Comply with Fiscal Agency and Cash Management Laws.

Unresolved. See current year finding at 2011-04.


Resolved.

Resolved.


26

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KIRK A VAUGHN

JUDGE DIVISION -D"

PARISH OF ST BERNARD STATE OF LOUISIANA

MaDIng Address: 1100 W.SL Bernard Hwy.

CtÎmeitB, LA 70043

Telephone: 504)278-4433

(504)278-4467

CORRECTIVE ACTION PLAN

June 27.2012 Louiâna Legislattve Auditor 1600 North Third Street P.O. Box 94397 Baton Rouge. LA 70804 - 9397

Kushner LaGraize, LL.C. 3330 W. Esplanade Avenue Suite 100 Metairie, LA 70002

Re: 34* Judicial District Clwk's Fund for the 34* Judicial District Court Response to Schedule of Findings for the year ended Decemb^ 31,2011

The Judicial Clerk's Fund of the Thirty-fourlh Judicial District Court respectfully submits the following corrective action plan in connection with the audit findings for the year ended December 31,2011:

Finding 2011-> 0 1 :

"During our testing of cash expenditures, we noted that the Pre-Trial Drug Testing Fund Is

paying for expenditures of the St Bemard Parish Adult and Juvenile Drug Court Programs.*"

Recomnfiendationz

"We recommend that management review current policies and procedures over cash

disbursements and Implement changes to ensure payment for expenditures made from Pre-

Trial Drug Testing funds are for expenditures incurred by the Pre-Trial Drug Testing Program

only."

Page 1 of 5

Management's Response:

The Adult and Juvenile Drug Courts were in existence when the Pre-Trial Drug Toting Program was adopted by local rule of this Judicial District. The Drug Testing Program is mandatory for parishes with a population of 300,000 or more, but permissive for the remainder of the judicial districts of the state (Code of Criminal Procedure Article 336). The day to day operation of the Drug Courts Is contracted by the District court to a Non-Profit Corporation. The Drug Testing program was designed to be and is contractually operated by the same Non Profit Corporation contracted to perform operations for the Drug Courts since the purchase of the same testing supplies, laboratory analysis, equipmait and many supplies could be used in the implementation of the Pre-Trial Drug testing Program, Le., testing, record keeping, reporting, maintenance of the books, and court monitoring. However, separate accounts are kept and maintained. The Drug Court annually prepares and submits a budget for approval which is primarily funded by federal funds and appropriated to the drug courts. Any changes require Louisiana Supreme Court approval for the primary funding source. Since this Drug Court funding does not meet all the needed expenditures of the Drug Courts, the determination was made to utilize the excessive revenues from the Drug Testing Program to supplement Drug Court revenues to cover any potential shortfalls, for enhancement programs (such as reward or incentive), and for unanticipated costs. The funds are audited and accounted for consistent with that purpose. These expenditures would ordinarily be district court expenses without the said contracting arrangement We are not aware of any prohibition in law that restricts the use of these funds in this manner and do not fed the auditor's recommendation restricting the use of these funds to braeficial to the operations of this district's official pri^rams.

Finding 20 M - 0 2 :

"During our audit we noted that the Judicial Clerk's Fund of the Thir^-Fourth Judicial District Court does not have procedures in place to prepare the financial statements, including the year-end adjusting entri^ and notes. This causes the judicial Clerk's Fund of the Thir^-Fourth judicial District Court to not be able to prevent or detect and correct misstatements on a timely basis In the normal course of performing their assigned functions."

Recomnfiendation;

"We recommend the Court put procedures In place that will allow the Court's employees to prepare the annual financial statements, year-end adjusting entries and notes to the financial statements."

Page 2 of 5

Manaffemenfs Response:

The District has a Certified Public Amount that maintains the financial records of the 34*** Judicial District Qerk Fund. This fund has very Ihnited expenditures with is primary use to pay for the salaries of the law derits employed by the District Courts. The District Court Judges have determined that the most cost effective and prudent use of these funds is to engage the auditor to propose year-end adjustments and prepare the financial statements. Accordingly, no action will be taken on the finding at thb time.

Finding 2011-03!

"During our testing of cash receipts, we noted that the receipts for the Pre-Trial Drug Testing Fund are collected by the same employee who administers the drug tests. This creates the opportunity for the employee to misappropriate assets due to the lack of s^regatlon of duties."

Recommendation:

"We recommend that the Fund assign the task of collecting payment for drug tests to an Individual not responsible for administering the drug tests to reduce the opportunity to misappropriate assets."


The ^%-Trial Drug Testing Program has only two (2) employees. Both administer testing. To implemait this recommendation would require the hiring of additional employees. The recommendation may be workable for many larger drug testing programs where staffing is not a proUem, but it is not financially feasible in this district's pr«^rant

Finding 2011-04!

"During our testir^ of cash receipts, we noted that the Pre-Trial Drug Testing Fund does not make daily deposits of cash, as required by Louisiana State Law."

e3of 5

Recommendation;

''We recommend the Pre-Trial Drug Testing Fund start depositing cash dally, as required t^ Louisiana State Law."

Management's Response;

As previously indicated, is a rdatlvely small Pre-Trial Drug testing program. All receipts are logged in with indication of the source, kind, and amount of each receipt Daily cash receipts are usually smaU amounts. Where daily cash deposits are required by state law, management will endeavor to comply and implement that mandate.

Finding 2 0 1 1 - 0 5 ;

"During our testing of cash, we noted that the Court failed to comply with certain provisions of the fiscal agency and cash management requirements of state bw, LSA-R.S. 39:121 MS. State law requires the Court to fully collateralize at all times the cash balances with the fiscal ^gent back through FDIC insurance and, if necessary, but requiring the fiscal ênt bank to pledge securities for the benefit of the Court sufficient to cover any uninsured cash balances in the fiscal agent bank. As of December 31,2011, the uninsured cash balances In the Courtfs fiscal agent bank exceeded the amount of FDIC Insurance by $19,460 in viobtion of state law."

Recommendation;

"We recommend the Court contact the fiscal agent bank to pledge securities for the benefit of the Court sufficient enough to cover the uninsured balance"


Funds have been transferred out of the account to another bank to remedy this situation. The Court with the assistance of Its accountant will monitor the Qerk Fund in an attempt to avoid an under collateralized condition in the future by transferring appropriate funds to another insured bank or by having the fiscal agent bank pledge securities suffident to cover any uninsured balance.

Page4of 5

FiffdJT|g?QII-Q6:

"During our testing of fixed assets, we noted timt the Pre-Trial Drug Testing Fund does not n^ntain records of fixed assets, as required by LSA-RS. 24:515."

Recmnmendation:

"We recommend the PNt-Trial Drug Testing Fund ntaintain fixed asset records, as required by LSArR.S,24JI5."

M a n ^ c m e n f s Response:

Management will steps necessary to implement the requirements of State Law rdatlve to fixed assets of the Pre-IVial Drug Testmg Progranu

Page 5 of 5

tAemorandum of Advisory Comments

JUDICIM. CLERK'S FUND OF THE THIRTY-FOURTH JUDICIAL DISTRICT COURT

December 31, 2011


TABLE OF CONTENTS

December 3 L 2011

PAGE

INTERNAL CONTROL AND RELATED MATTERS

Auditors'Report I

Comments and Suggestions:

General Comments ». 2

Management's Corrective Action Plan 3-4

INTERNAL CONTROL AND RELATED MATTERS

mr L.L.C.

CERTIFtED PUBUC ACCOUNTANTS AND CONSULTANTS

S. DAVID KUSHNER. CPA. CrFA' WILSON A. LaGRAtZE. JR.. CPA, CrFA; OFF ERNEST G. GELPt. CPA, CGFM CRAIG M. FABACHER. CPA DOUGLAS W. FINEGAN, CPA. CVA MARY ANNE GARCIA. CPA •A Professional Accounting Corporation

WILLIAM fl. HAMILTON. CPA KATHARINE M. LASSITER. CPA RICHARD J. RUMNEY. CPA

Amaifcan Insiihife o( CPA's Society of loislano CPA's

The Honorable Judge Kirk A. Vaughn THIRTY-FOURTH JUDICIAL DISTRICT COURT

We have audited the financial statements of the Judicial Clerk's Fund of the Thirty-Fourth Judicial District Court (the Court), as of and for the year ended December 31, 2011, and have Issued our report thereon dated June 11, 2012. As part of our audit we considered the Court's internal control in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing an opinion on the financial statements and not to provide assurance on the intemal controls.

Our consideration of the internal controls has been reported on in a separately issued report entitled "Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Govemment Auditing Standards. ^

This memorandum summarizes various other matters which have come to our attention. While not Involving significant deficiencies, these matters do present opportunities for strengthening the intemal control and improving the operating efficiency of the Court.

We have discussed our comments and recommendations with various administrative personnel and the Court has completed a corrective action plan. We will be pleased to discuss these comments and suggestions with you in further detail at your convenience, perform any additional study of these matters, or assist you in implementing the recommendations.

' a^dften^ Jla^nîfe. d.ji,e-

Metairie, Louisiana June 11, 2012

SUITE 1 DO 3330 WEST ESPLANADE AVENUE METAIRIE. LOUISIANA 70002

(504) B38-9931 • FAX (504) 833-7971

www.NI-cpa.com

http://www.NI-cpa.com


MANAGEMENT LETTER COMMENTS

December 3 L 2011

COMMENTS

2011-01

During the audit, we noted checks received from the St. Bernard Parish Sheriffs and Clerk's Offices are not accompanied by documentation supporting the check amount. With no supporting documentation for the check amount, the Court does not have the ability to accurately determine what is ultimately due to them.

Recommendation

We recommend that the Court request diat all checks be accompanied with documentation supporting the amount of the check.



2011-02

During our testing of receipts, we noted that the Pre-Trial Drug Testing Fund accepts cash as payment for drug tests. Cash is inherently risky and the acceptance of it creates an opportunity for the misappropriation of assets that could be material to the financial statements.

Recommendation

We recommend that the Pre-Trial Drug Testing Fund only accept money orders and checks as accepteble forms of payment for drug tests.



MWu)^.^ OSffrtrlnurilf Suhicfitl Bistricf €mri

\ : - 3 - : f y /

KIRK A. VAUGHN JUDQE

DIVISION-D"

PARISH OF ST. BERNARD STATE OF LOUISIANA

Mailing Address: 1100 W . S t Bernard Hwy.

ChEdmette. LA 70043 Telephone:

504)278-4433

(504)270-4467

CORRECTIVE ACTION PLAN

June 27,2012 Louiâna Legislative Auditor 1600 North Third Street P.O. Box 94397 Baton Rouge, LA 70804 - 9397

Kuîn^ LaGraize, L.L.C. 3330 W. Esplanade Avenue Suite 100 Metairie, LA 70002

Re: 34*** Judidal District Clark's Fund for the 34* Judicial District Court Response to Schedule of Findings for the year ended December 31,2011

The Judicial Clerk's Fund of the Thirty-fourth Judicial Dbtrict Court respectfully submits the following corrective action plan in connection with the "Management Letter Comments" for the year ended December 31,2011:

Confiment201i •Ôi:

"During the audit we noted checks received from the St Bemard ^rlsh Sheriffs and Clerk's Offices are not accompanied by documentation supporting the check amount With no supporting documentation for the check amount the Fund does not have the ability to accurately determine what Is ultimately due to them."

Page 1 of 2

Recommendation!

''We recommend that the Fund request that all checks be accompanied with documentation supporting the amount of the check."


The Oerk's Fund shaD request supporting documentation for checks received. However, it must be noted that these are two separate and autonomous govemmentai entitrn. The Clerk's Fund has no authority to mandate that they provide such information. Even with such supporting documentation this Court Fund has not way of determining *Srhat is ultimately due**. The proceeds received come for various sources which pay directly to the Shoiff and Clerk of Court without the Oerk Fund's involvement Each are separatdy audited in accordance with law. The Oerk Fund is confident that based on the safeguards currently in place. It is recdving the appropriate funds due.

Comment 20H "> 01:

"During our testing of receipts, we noted that the Pê-Trial Drug Testing Fund accepts cash as payment for drug tests. Cash is inherently rlsl^ and the acceptance of it creates an opportunity for the misappropriation of assets that could be material to the financial statements."

RÔTfT'tn^jfttipn!

"We recommend that the FVe-Trlal Drug Testing Fund only accept money orders and checks as acceptable forms of payment for drug tests."

Manwgem^nf j^ R^^ppoy^;

The 34* Judidal District's Pre-Trial Drug testing is a rdatlvely small program with only 3 employees all of whom are part time In that t h ^ are shared with the Parish Drug Courts. Any and all cash received is logged In with indication of the source, land, and a receipt provided to individual making the payment The individuals involved in making such small cash payments often have no other method of paying. In order to be compensated for this program (as required by biw) the Drug Testing program must accept some cash. The program will continue to apply and implement any recommended safeguards to protect such cash receipts.

Page 2 of 2

Documents

Thirty-Fourth Judicial District - Judicial Expense Fund...financial statements are free of material misstatement An audit includes examining, on a test basis, evidence supporting the