Revenue Management in the Traffic and Municipal Courts - September 2004
Revenue Management in the Traffic and Municipal Courts
Released September 2004
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This audit was requested by the chief judge of the City ("Traffic") Court and the city administration to review processes in the City and Municipal Courts. Our office also became aware of concerns regarding financial management within the Traffic Court. These concerns warranted our attention because of the significant revenue generated by the court and the high risk associated with bank accounts outside the central control of the Department of Finance.
- The Municipal Court generally had sufficient controls to assure accurate and complete revenue collections and reporting, and it has transferred revenues promptly to the city treasury.
- The Traffic Court had control weaknesses that were so extensive that it could not ensure the revenues were collected and reported accurately and completely, or that they were promptly transferred to the city treasury.
- Control weaknesses were primarily the result of an unreliable and inadequate financial information system and the court’s management of bank accounts that it had set up without authorization and outside the control of the Department of Finance.
- Delays in transferring revenues to the city resulted in lost interest earnings and noncompliance with state requirements for submission of earmarked fees and fines to the appropriate state agencies.