Florida Senate - 2011 (PROPOSED COMMITTEE BILL) SPB 7104
FOR CONSIDERATION By the Committee on Budget
576-02135B-11 20117104__
1 A bill to be entitled
2 An act relating to the Auditor General; amending s.
3 11.45, F.S.; redefining the term “financial audit” to
4 conform with applicable auditing standards; defining
5 the term “operational audit” to provide the objectives
6 of such audits; clarifying the requirement for the
7 Auditor General to conduct financial audits of the
8 accounts and records of all district school boards in
9 counties of a specified size once every 3 years;
10 revising duties and responsibilities of the Auditor
11 General; requiring that the Auditor General conduct
12 operational audits at least every 3 years of certain
13 additional state entities and district school boards
14 and report on the activities of the ad valorem tax
15 program of the Department of Revenue; amending ss.
16 25.075 and 28.35, F.S.; revising the duties of the
17 Auditor General with respect to responsibilities for
18 auditing certain reports made to the State Supreme
19 Court and the operations of the Florida Clerks of
20 Court Operations Corporation, respectively; repealing
21 s. 195.096(7), F.S., relating to the Auditor General’s
22 responsibility for conducting a performance audit of
23 the Department of Revenue’s administration of ad
24 valorem tax laws; amending s. 218.31, F.S.; redefining
25 the term ”financial audit” to conform with applicable
26 auditing standards; amending s. 273.05, F.S.; revising
27 requirements to issue rules for surplus property;
28 repealing ss. 365.173(3) and 943.25(3), F.S., relating
29 to the Auditor General’s responsibilities for auditing
30 the Emergency Communications Number E911 System Fund
31 and criminal justice trust funds, respectively;
32 amending s. 1002.36, F.S.; conforming provisions to
33 changes made by the act; amending s. 1009.53, F.S.;
34 requiring colleges and universities that receive
35 Florida Bright Futures Scholarship Program moneys to
36 submit to the Department of Education a financial
37 audit prepared by an independent certified public
38 accountant or the Auditor General if the college or
39 university expended more than a specified amount of
40 program money; requiring that the audit include an
41 examination of the institute’s administration of the
42 program; providing that the audit be submitted to the
43 department within a certain time; requiring any
44 institution that is not subject to the audit to
45 attest, under penalty of perjury, that the moneys were
46 used in compliance with the law; providing for the
47 attestation be made annually in a form and format
48 determined by the Department of Education; reenacting
49 s. 11.40(3), F.S., relating to the Legislative
50 Auditing Committee, to incorporate the amendments made
51 to s. 11.45, F.S., in a reference thereto; providing
52 an effective date.
53
54 Be It Enacted by the Legislature of the State of Florida:
55
56 Section 1. Section 11.45, Florida Statutes, is amended to
57 read:
58 11.45 Definitions; duties; authorities; reports; rules.—
59 (1) DEFINITIONS.—As used in ss. 11.40-11.513, the term:
60 (a) “Audit” means a financial audit, operational audit, or
61 performance audit.
62 (b) “County agency” means a board of county commissioners
63 or other legislative and governing body of a county, however
64 styled, including that of a consolidated or metropolitan
65 government, a clerk of the circuit court, a separate or ex
66 officio clerk of the county court, a sheriff, a property
67 appraiser, a tax collector, a supervisor of elections, or any
68 other officer in whom any portion of the fiscal duties of the
69 above are under law separately placed.
70 (c) “Financial audit” means an examination of financial
71 statements in order to express an opinion on the fairness with
72 which they are presented in conformity with generally accepted
73 accounting principles and an examination to determine whether
74 operations are properly conducted in accordance with legal and
75 regulatory requirements. Financial audits must be conducted in
76 accordance with auditing standards generally accepted in the
77 United States auditing standards and government auditing
78 standards as adopted by the Board of Accountancy. When
79 applicable, the scope of financial audits shall encompass the
80 additional activities necessary to establish compliance with the
81 Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and
82 other applicable federal law.
83 (d) “Governmental entity” means a state agency, a county
84 agency, or any other entity, however styled, that independently
85 exercises any type of state or local governmental function.
86 (e) “Local governmental entity” means a county agency,
87 municipality, or special district as defined in s. 189.403, but
88 does not include any housing authority established under chapter
89 421.
90 (f) “Management letter” means a statement of the auditor’s
91 comments and recommendations.
92 (g) “Operational audit” means an a financial-related audit
93 whose purpose is to evaluate management’s performance in
94 establishing and maintaining internal controls, including
95 controls designed to prevent and detect fraud, waste, and abuse,
96 and in administering assigned responsibilities in accordance
97 with applicable laws, administrative rules, contracts, grant
98 agreements and other guidelines. Operational audits must be
99 conducted in accordance with government auditing standards. Such
100 audits examine and to determine the extent to which the internal
101 controls that are control, as designed and placed in operation
102 to promote, promotes and encourage encourages the achievement of
103 management’s control objectives in the categories of compliance,
104 economic and efficient operations, reliability of financial
105 records and reports, and safeguarding of assets, and identify
106 weaknesses in those internal controls.
107 (h) “Performance audit” means an examination of a program,
108 activity, or function of a governmental entity, conducted in
109 accordance with applicable government auditing standards or
110 auditing and evaluation standards of other appropriate
111 authoritative bodies. The term includes an examination of issues
112 related to:
113 1. Economy, efficiency, or effectiveness of the program.
114 2. Structure or design of the program to accomplish its
115 goals and objectives.
116 3. Adequacy of the program to meet the needs identified by
117 the Legislature or governing body.
118 4. Alternative methods of providing program services or
119 products.
120 5. Goals, objectives, and performance measures used by the
121 agency to monitor and report program accomplishments.
122 6. The accuracy or adequacy of public documents, reports,
123 or requests prepared under the program by state agencies.
124 7. Compliance of the program with appropriate policies,
125 rules, or laws.
126 8. Any other issues related to governmental entities as
127 directed by the Legislative Auditing Committee.
128 (i) “Political subdivision” means a separate agency or unit
129 of local government created or established by law and includes,
130 but is not limited to, the following and the officers thereof:
131 authority, board, branch, bureau, city, commission, consolidated
132 government, county, department, district, institution,
133 metropolitan government, municipality, office, officer, public
134 corporation, town, or village.
135 (j) “State agency” means a separate agency or unit of state
136 government created or established by law and includes, but is
137 not limited to, the following and the officers thereof:
138 authority, board, branch, bureau, commission, department,
139 division, institution, office, officer, or public corporation,
140 as the case may be, except any such agency or unit within the
141 legislative branch of state government other than the Florida
142 Public Service Commission.
143 (2) DUTIES.—The Auditor General shall:
144 (a) Conduct audits of records and perform related duties as
145 prescribed by law, concurrent resolution of the Legislature, or
146 as directed by the Legislative Auditing Committee.
147 (b) Annually conduct a financial audit of state government.
148 (c) Annually conduct financial audits of all state
149 universities and state district boards of trustees of community
150 colleges.
151 (d) Annually conduct financial audits of the accounts and
152 records of all district school boards in counties with
153 populations of fewer than 150,000, according to the most recent
154 federal decennial statewide census.
155 (e) Once every 3 years, conduct financial audits of the
156 accounts and records of all district school boards in counties
157 that have populations of 150,000 or more, according to the most
158 recent federal decennial statewide census. Through fiscal year
159 2008-2009, annually conduct an audit of the Wireless Emergency
160 Telephone System Fund as described in s. 365.173.
161 (f) Annually conduct audits of the accounts and records of
162 the Florida School for the Deaf and the Blind.
163 (f)(g) At least every 3 2 years, conduct operational audits
164 of the accounts and records of state agencies, state and
165 universities, state colleges, district school boards, the
166 Florida Clerks of Court Operations Corporation, water management
167 districts, and the Florida School for the Deaf and the Blind. In
168 connection with these audits, the Auditor General shall give
169 appropriate consideration to reports issued by state agencies’
170 inspectors general or universities’ inspectors general and the
171 resolution of findings therein.
172 (g)(h) At least every 3 2 years, conduct a performance
173 audit of the local government financial reporting system, which,
174 for the purpose of this chapter, means any statutory provision
175 provisions related to local government financial reporting. The
176 purpose of such an audit is to determine the accuracy,
177 efficiency, and effectiveness of the reporting system in
178 achieving its goals and to make recommendations to the local
179 governments, the Governor, and the Legislature as to how the
180 reporting system can be improved and how program costs can be
181 reduced. The Auditor General shall determine the scope of the
182 such audits. The local government financial reporting system
183 should provide for the timely, accurate, uniform, and cost
184 effective accumulation of financial and other information that
185 can be used by the members of the Legislature and other
186 appropriate officials to accomplish the following goals:
187 1. Enhance citizen participation in local government;
188 2. Improve the financial condition of local governments;
189 3. Provide essential government services in an efficient
190 and effective manner; and
191 4. Improve decisionmaking on the part of the Legislature,
192 state agencies, and local government officials on matters
193 relating to local government.
194 (h)(i) At least Once every 3 years, conduct a performance
195 audit audits of the Department of Revenue’s administration of
196 the ad valorem tax laws as described in s. 195.096. The audit
197 report shall report on the activities of the ad valorem tax
198 program of the Department of Revenue related to the ad valorem
199 tax rolls. The Auditor General shall include, for at least four
200 counties reviewed, findings as to the accuracy of assessment
201 procedures, projections, and computations made by the
202 department, using the same generally accepted appraisal
203 standards and procedures to which the department and the
204 property appraisers are required to adhere. However, the report
205 may not include any findings or statistics related to any ad
206 valorem tax roll that is in litigation between the state and
207 county officials at the time the report is issued.
208 (j) Once every 3 years, conduct financial audits of the
209 accounts and records of all district school boards in counties
210 with populations of 125,000 or more, according to the most
211 recent federal decennial statewide census.
212 (i)(k) Once every 3 years, review a sample of each state
213 agency’s internal audit reports at each state agency, as defined
214 in s. 20.055(1), to determine compliance with current Standards
215 for the Professional Practice of Internal Auditing or, if
216 appropriate, government auditing standards.
217 (j)(l) Conduct audits of local governmental entities when
218 determined to be necessary by the Auditor General, when directed
219 by the Legislative Auditing Committee, or when otherwise
220 required by law. No later than 18 months after the release of
221 the audit report, the Auditor General shall perform such
222 appropriate followup procedures as he or she deems necessary to
223 determine the audited entity’s progress in addressing the
224 findings and recommendations contained within the Auditor
225 General’s previous report. The Auditor General shall notify
226 provide a copy of his or her determination to each member of the
227 audited entity’s governing body and to the Legislative Auditing
228 Committee of the results of his or her determination.
229
230 The Auditor General shall perform his or her duties
231 independently but under the general policies established by the
232 Legislative Auditing Committee. This subsection does not limit
233 the Auditor General’s discretionary authority to conduct other
234 audits or engagements of governmental entities as authorized in
235 subsection (3).
236 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
237 General may, pursuant to his or her own authority, or at the
238 direction of the Legislative Auditing Committee, conduct audits
239 or other engagements as determined appropriate by the Auditor
240 General of:
241 (a) The accounts and records of any governmental entity
242 created or established by law.
243 (b) The information technology programs, activities,
244 functions, or systems of any governmental entity created or
245 established by law.
246 (c) The accounts and records of any charter school created
247 or established by law.
248 (d) The accounts and records of any direct-support
249 organization or citizen support organization created or
250 established by law. The Auditor General is authorized to require
251 and receive any records from the direct-support organization or
252 citizen support organization, or from its independent auditor.
253 (e) The public records associated with any appropriation
254 made by the Legislature to a nongovernmental agency,
255 corporation, or person. All records of a nongovernmental agency,
256 corporation, or person with respect to the receipt and
257 expenditure of such an appropriation shall be public records and
258 shall be treated in the same manner as other public records are
259 under general law.
260 (f) State financial assistance provided to any nonstate
261 entity as defined by s. 215.97.
262 (g) The Tobacco Settlement Financing Corporation created
263 pursuant to s. 215.56005.
264 (h) Any purchases of federal surplus lands for use as sites
265 for correctional facilities as described in s. 253.037.
266 (i) Enterprise Florida, Inc., including any of its boards,
267 advisory committees, or similar groups created by Enterprise
268 Florida, Inc., and programs. The audit report may not reveal the
269 identity of any person who has anonymously made a donation to
270 Enterprise Florida, Inc., pursuant to this paragraph. The
271 identity of a donor or prospective donor to Enterprise Florida,
272 Inc., who desires to remain anonymous and all information
273 identifying such donor or prospective donor are confidential and
274 exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
275 of the State Constitution. Such anonymity shall be maintained in
276 the auditor’s report.
277 (j) The Florida Development Finance Corporation or the
278 capital development board or the programs or entities created by
279 the board. The audit or report may not reveal the identity of
280 any person who has anonymously made a donation to the board
281 pursuant to this paragraph. The identity of a donor or
282 prospective donor to the board who desires to remain anonymous
283 and all information identifying such donor or prospective donor
284 are confidential and exempt from the provisions of s. 119.07(1)
285 and s. 24(a), Art. I of the State Constitution. Such anonymity
286 shall be maintained in the auditor’s report.
287 (k) The records pertaining to the use of funds from
288 voluntary contributions on a motor vehicle registration
289 application or on a driver’s license application authorized
290 pursuant to ss. 320.023 and 322.081.
291 (l) The records pertaining to the use of funds from the
292 sale of specialty license plates described in chapter 320.
293 (m) The transportation corporations under contract with the
294 Department of Transportation that are acting on behalf of the
295 state to secure and obtain rights-of-way for urgently needed
296 transportation systems and to assist in the planning and design
297 of such systems pursuant to ss. 339.401-339.421.
298 (n) The acquisitions and divestitures related to the
299 Florida Communities Trust Program created pursuant to chapter
300 380.
301 (o) The Florida Water Pollution Control Financing
302 Corporation created pursuant to s. 403.1837.
303 (p) The school readiness system, including the early
304 learning coalitions, created under s. 411.01.
305 (q) The Florida Special Disability Trust Fund Financing
306 Corporation created pursuant to s. 440.49.
307 (r) Workforce Florida, Inc., or the programs or entities
308 created by Workforce Florida, Inc., created pursuant to s.
309 445.004.
310 (s) The corporation defined in s. 455.32 that is under
311 contract with the Department of Business and Professional
312 Regulation to provide administrative, investigative,
313 examination, licensing, and prosecutorial support services in
314 accordance with the provisions of s. 455.32 and the practice act
315 of the relevant profession.
316 (t) The Florida Engineers Management Corporation created
317 pursuant to chapter 471.
318 (u) The Investment Fraud Restoration Financing Corporation
319 created pursuant to chapter 517.
320 (u)(v) The books and records of any permitholder that
321 conducts race meetings or jai alai exhibitions under chapter
322 550.
323 (v)(w) The corporation defined in part II of chapter 946,
324 known as the Prison Rehabilitative Industries and Diversified
325 Enterprises, Inc., or PRIDE Enterprises.
326 (w)(x) The Florida Virtual School pursuant to s. 1002.37.
327 (4) SCHEDULING AND STAFFING OF AUDITS.—
328 (a) Each financial audit required or authorized by this
329 section, when practicable, shall be made and completed within
330 not more than 9 months following the end of each audited fiscal
331 year of the state agency or political subdivision, or at such
332 lesser time which may be provided by law or concurrent
333 resolution or directed by the Legislative Auditing Committee.
334 When the Auditor General determines that conducting any audit or
335 engagement otherwise required by law would not be possible due
336 to workload or would not be an efficient or effective use of his
337 or her resources based on an assessment of risk, then, in his or
338 her discretion, the Auditor General may temporarily or
339 indefinitely postpone such audits or other engagements for such
340 period or any portion thereof, unless otherwise directed by the
341 committee.
342 (b) The Auditor General may, when in his or her judgment it
343 is necessary, designate and direct any auditor employed by the
344 Auditor General to audit any accounts or records within the
345 authority of the Auditor General to audit. The auditor shall
346 report his or her findings for review by the Auditor General,
347 who shall prepare the audit report.
348 (c) The audit report when final shall be a public record.
349 The audit workpapers and notes are not a public record; however,
350 those workpapers necessary to support the computations in the
351 final audit report may be made available by a majority vote of
352 the Legislative Auditing Committee after a public hearing
353 showing proper cause. The audit workpapers and notes shall be
354 retained by the Auditor General until no longer useful in his or
355 her proper functions, after which time they may be destroyed.
356 (d) At the conclusion of the audit, the Auditor General or
357 the Auditor General’s designated representative shall discuss
358 the audit with the official whose office is subject to audit and
359 submit to that official a list of the Auditor General’s findings
360 which may be included in the audit report. If the official is
361 not available for receipt of the list of audit findings, then
362 delivery is presumed to be made when it is delivered to his or
363 her office. The official shall submit to the Auditor General or
364 the designated representative, within 30 days after the receipt
365 of the list of findings, his or her written statement of
366 explanation or rebuttal concerning all of the findings,
367 including corrective action to be taken to preclude a recurrence
368 of all findings.
369 (e) The Auditor General shall provide the successor
370 independent certified public accountant of a district school
371 board with access to the prior year’s working papers in
372 accordance with the Statements on Auditing Standards, including
373 documentation of planning, internal control, audit results, and
374 other matters of continuing accounting and auditing
375 significance, such as the working paper analysis of balance
376 sheet accounts and those relating to contingencies.
377 (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.—
378 (a) The Legislative Auditing Committee shall direct the
379 Auditor General to make an audit of any municipality whenever
380 petitioned to do so by at least 20 percent of the registered
381 electors in the last general election of that municipality
382 pursuant to this subsection. The supervisor of elections of the
383 county in which the municipality is located shall certify
384 whether or not the petition contains the signatures of at least
385 20 percent of the registered electors of the municipality. After
386 the completion of the audit, the Auditor General shall determine
387 whether the municipality has the fiscal resources necessary to
388 pay the cost of the audit. The municipality shall pay the cost
389 of the audit within 90 days after the Auditor General’s
390 determination that the municipality has the available resources.
391 If the municipality fails to pay the cost of the audit, the
392 Department of Revenue shall, upon certification of the Auditor
393 General, withhold from that portion of the distribution pursuant
394 to s. 212.20(6)(d)5. which is distributable to such
395 municipality, a sum sufficient to pay the cost of the audit and
396 shall deposit that sum into the General Revenue Fund of the
397 state.
398 (b) At least one registered elector in the most recent
399 general election must file a letter of intent with the municipal
400 clerk prior to any petition of the electors of that municipality
401 for the purpose of an audit. Each petition must be submitted to
402 the supervisor of elections and contain, at a minimum:
403 1. The elector’s printed name;
404 2. The signature of the elector;
405 3. The elector’s residence address;
406 4. The elector’s date of birth; and
407 5. The date signed.
408
409 All petitions must be submitted for verification within 1
410 calendar year after the audit petition origination by the
411 municipal electors.
412 (6) REQUEST BY A LOCAL GOVERNMENTAL ENTITY FOR AN AUDIT BY
413 THE AUDITOR GENERAL.—Whenever a local governmental entity
414 requests the Auditor General to conduct an audit of all or part
415 of its operations and the Auditor General conducts the audit
416 under his or her own authority or at the direction of the
417 Legislative Auditing Committee, the expenses of the audit shall
418 be paid by the local governmental entity. The Auditor General
419 shall estimate the cost of the audit. Fifty percent of the cost
420 estimate shall be paid by the local governmental entity before
421 the initiation of the audit and deposited into the General
422 Revenue Fund of the state. After the completion of the audit,
423 the Auditor General shall notify the local governmental entity
424 of the actual cost of the audit. The local governmental entity
425 shall remit the remainder of the cost of the audit to the
426 Auditor General for deposit into the General Revenue Fund of the
427 state. If the local governmental entity fails to comply with
428 paying the remaining cost of the audit, the Auditor General
429 shall notify the Legislative Auditing Committee. The committee
430 shall proceed in accordance with s. 11.40(5).
431 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
432 (a) The Auditor General shall notify the Legislative
433 Auditing Committee of any local governmental entity, district
434 school board, charter school, or charter technical career center
435 that does not comply with the reporting requirements of s.
436 218.39. The committee shall proceed in accordance with s.
437 11.40(5).
438 (b) The Auditor General, in consultation with the Board of
439 Accountancy, shall review all audit reports submitted pursuant
440 to s. 218.39. The Auditor General shall request any significant
441 items that were omitted in violation of a rule adopted by the
442 Auditor General. The items must be provided within 45 days after
443 the date of the request. If the governmental entity does not
444 comply with the Auditor General’s request, the Auditor General
445 shall notify the Legislative Auditing Committee. The committee
446 shall proceed in accordance with s. 11.40(5).
447 (c) The Auditor General shall provide annually a list of
448 those special districts which are not in compliance with s.
449 218.39 to the Special District Information Program of the
450 Department of Community Affairs.
451 (d) During the Auditor General’s review of audit reports,
452 he or she shall contact those units of local government, as
453 defined in s. 218.403, that are not in compliance with s.
454 218.415 and request evidence of corrective action. The unit of
455 local government shall provide the Auditor General with evidence
456 of corrective action within 45 days after the date it is
457 requested by the Auditor General. If the unit of local
458 government fails to comply with the Auditor General’s request,
459 the Auditor General shall notify the Legislative Auditing
460 Committee. The committee shall proceed in accordance with s.
461 11.40(5).
462 (e) The Auditor General shall notify the Governor or the
463 Commissioner of Education, as appropriate, and the Legislative
464 Auditing Committee of any audit report reviewed by the Auditor
465 General pursuant to paragraph (b) which contains a statement
466 that a local governmental entity, charter school, charter
467 technical career center, or district school board has met one or
468 more of the conditions specified in s. 218.503. If the Auditor
469 General requests a clarification regarding information included
470 in an audit report to determine whether a local governmental
471 entity, charter school, charter technical career center, or
472 district school board has met one or more of the conditions
473 specified in s. 218.503, the requested clarification must be
474 provided within 45 days after the date of the request. If the
475 local governmental entity, charter school, charter technical
476 career center, or district school board does not comply with the
477 Auditor General’s request, the Auditor General shall notify the
478 Legislative Auditing Committee. If, after obtaining the
479 requested clarification, the Auditor General determines that the
480 local governmental entity, charter school, charter technical
481 career center, or district school board has met one or more of
482 the conditions specified in s. 218.503, he or she shall notify
483 the Governor or the Commissioner of Education, as appropriate,
484 and the Legislative Auditing Committee.
485 (f) The Auditor General shall annually compile and transmit
486 to the President of the Senate, the Speaker of the House of
487 Representatives, and the Legislative Auditing Committee a
488 summary of significant findings and financial trends identified
489 in audit reports reviewed in paragraph (b) or otherwise
490 identified by the Auditor General’s review of such audit reports
491 and financial information, and identified in audits of district
492 school boards conducted by the Auditor General. The Auditor
493 General shall include financial information provided pursuant to
494 s. 218.32(1)(e) for entities with fiscal years ending on or
495 after June 30, 2003, within his or her reports submitted
496 pursuant to this paragraph.
497 (g) If the Auditor General discovers significant errors,
498 improper practices, or other significant discrepancies in
499 connection with his or her audits of a state agency or state
500 officer, the Auditor General shall notify the President of the
501 Senate, the Speaker of the House of Representatives, and the
502 Legislative Auditing Committee. The President of the Senate and
503 the Speaker of the House of Representatives shall promptly
504 forward a copy of the notification to the chairs of the
505 respective legislative committees, which in the judgment of the
506 President of the Senate and the Speaker of the House of
507 Representatives are substantially concerned with the functions
508 of the state agency or state officer involved. Thereafter, and
509 in no event later than the 10th day of the next succeeding
510 legislative session, the person in charge of the state agency
511 involved, or the state officer involved, as the case may be,
512 shall explain in writing to the President of the Senate, the
513 Speaker of the House of Representatives, and to the Legislative
514 Auditing Committee the reasons or justifications for such
515 errors, improper practices, or other significant discrepancies
516 and the corrective measures, if any, taken by the agency.
517 (h) The Auditor General shall annually compile and transmit
518 to the President of the Senate, the Speaker of the House of
519 Representatives, and the Legislative Auditing Committee by
520 December 1 of each year a report that includes a projected 2
521 year work plan identifying the audit and other accountability
522 activities to be undertaken and a list of statutory and fiscal
523 changes recommended by the Auditor General. The Auditor General
524 may also transmit recommendations at other times of the year
525 when the information would be timely and useful for the
526 Legislature.
527 (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
528 consultation with the Board of Accountancy, shall adopt rules
529 for the form and conduct of all financial audits performed by
530 independent certified public accountants pursuant to ss.
531 215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
532 audits of local governmental entities, charter schools, charter
533 technical career centers, and district school boards must
534 include, but are not limited to, requirements for the reporting
535 of information necessary to carry out the purposes of the Local
536 Governmental Entity, Charter School, Charter Technical Career
537 Center, and District School Board Financial Emergencies Act as
538 stated in s. 218.501.
539 (9) TECHNICAL ADVICE PROVIDED BY THE AUDITOR GENERAL.—The
540 Auditor General may provide technical advice to:
541 (a) The Department of Education in the development of a
542 compliance supplement for the financial audit of a district
543 school board conducted by an independent certified public
544 accountant.
545 (b) Governmental entities on their financial and accounting
546 systems, procedures, and related matters.
547 (c) Governmental entities on promoting the building of
548 competent and efficient accounting and internal audit
549 organizations in their offices.
550 Section 2. Section 25.075, Florida Statutes, is amended to
551 read:
552 25.075 Uniform case reporting system.—
553 (1) The Supreme Court shall develop a uniform case
554 reporting system, including a uniform means of reporting
555 categories of cases, time required in the disposition of cases,
556 and manner of disposition of cases.
557 (2) If any clerk shall willfully fails fail to report to
558 the Supreme Court as directed by the court, the clerk shall be
559 guilty of misfeasance in office.
560 (3) The Auditor General shall audit the reports made to the
561 Supreme Court in accordance with the uniform system established
562 by the Supreme Court.
563 Section 3. Subsection (5) of section 28.35, Florida
564 Statutes, is amended to read:
565 28.35 Florida Clerks of Court Operations Corporation.—
566 (5)(a) The corporation shall submit an annual audited
567 financial statement to the Auditor General in a form and manner
568 prescribed by the Auditor General. The Auditor General shall
569 conduct an annual audit of the operations of the corporation,
570 including the use of funds and compliance with the provisions of
571 this section and ss. 28.36 and 28.37.
572 (b) Certified public accountants conducting audits of
573 counties pursuant to s. 218.39 shall report, as part of the
574 audit, whether or not the clerks of the courts have complied
575 with the requirements of this section and s. 28.36. In addition,
576 each clerk of court shall forward a copy of the portion of the
577 financial audit relating to the court-related duties of the
578 clerk of court to the Supreme Court. The Auditor General shall
579 develop a compliance supplement for the audit of compliance with
580 the budgets and applicable performance standards certified by
581 the corporation.
582 Section 4. Subsection (7) of section 195.096, Florida
583 Statutes, is repealed.
584 Section 5. Subsection (17) of section 218.31, Florida
585 Statutes, is amended to read:
586 218.31 Definitions.—As used in this part, except where the
587 context clearly indicates a different meaning:
588 (17) “Financial audit” means an examination of financial
589 statements in order to express an opinion on the fairness with
590 which they are presented in conformity with generally accepted
591 accounting principles and an examination to determine whether
592 operations are properly conducted in accordance with legal and
593 regulatory requirements. Financial audits must be conducted in
594 accordance with auditing standards generally accepted in the
595 United States auditing standards and government auditing
596 standards as adopted by the Board of Accountancy and as
597 prescribed by rules promulgated by the Auditor General. When
598 applicable, the scope of financial audits shall encompass the
599 additional activities necessary to establish compliance with the
600 Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and
601 other applicable federal law.
602 Section 6. Subsection (5) of section 273.05, Florida
603 Statutes, is amended to read:
604 273.05 Surplus property.—
605 (5) The custodian shall maintain records of property that
606 is certified as surplus with information indicating the value
607 and condition of the property. Agency records for property
608 certified as surplus shall comply with rules issued by the Chief
609 Financial Officer Auditor General.
610 Section 7. Subsection (3) of section 365.173, Florida
611 Statutes, is repealed.
612 Section 8. Subsection (3) of section 943.25, Florida
613 Statutes, is repealed.
614 Section 9. Subsection (3) of section 1002.36, Florida
615 Statutes, is amended to read:
616 1002.36 Florida School for the Deaf and the Blind.—
617 (3) AUDITS.—The Auditor General shall conduct annual audits
618 of the accounts and records of the Florida School for the Deaf
619 and the Blind as provided in s. 11.45. The Department of
620 Education’s Inspector General is authorized to conduct
621 investigations at the school as provided in s. 1001.20(4)(e).
622 Section 10. Subsection (5) of section 1009.53, Florida
623 Statutes, is amended to read:
624 1009.53 Florida Bright Futures Scholarship Program.—
625 (5) The department shall issue awards from the scholarship
626 program annually. Annual awards may be for up to 45 semester
627 credit hours or the equivalent. Before the registration period
628 each semester, the department shall transmit payment for each
629 award to the president or director of the postsecondary
630 education institution, or his or her representative, except that
631 the department may withhold payment if the receiving institution
632 fails to report or to make refunds to the department as required
633 in this section.
634 (a) Within 30 days after the end of regular registration
635 each semester, the educational institution shall certify to the
636 department the eligibility status of each student who receives
637 an award. After the end of the drop and add period, an
638 institution is not required to reevaluate or revise a student’s
639 eligibility status; however, an institution must make a refund
640 to the department within 30 days after the end of the semester
641 of any funds received for courses dropped by a student or
642 courses from which a student has withdrawn after the end of the
643 drop and add period, unless the student has been granted an
644 exception by the department pursuant to subsection (11).
645 (b) An institution that receives funds from the program
646 shall certify to the department the amount of funds disbursed to
647 each student and shall remit to the department any undisbursed
648 advances within 60 days after the end of regular registration.
649 (c) Each institution that receives moneys through this
650 program shall provide for a prepare an annual report that
651 includes an annual financial audit, as defined in s. 11.45,
652 conducted by an independent certified public accountant or the
653 Auditor General for each fiscal year in which the institution
654 expends program moneys in excess of $100,000. At least every 2
655 years, the audit report shall include an examination audit of
656 the institution’s administration of the program and the
657 institution’s a complete accounting of the moneys for the
658 program since the last examination of the institution’s
659 administration of the program. The This report on the audit must
660 be submitted to the department within 9 months after the end of
661 the fiscal year annually by March 1. The department may conduct
662 its own annual audit of an institution’s administration of the
663 program. The department may request a refund of any moneys
664 overpaid to the institution for the program. The department may
665 suspend or revoke an institution’s eligibility to receive future
666 moneys for the program if the department finds that an
667 institution has not complied with this section. The institution
668 must remit within 60 days any refund requested in accordance
669 with this subsection.
670 (d) Any institution that is not subject to an audit
671 pursuant to this subsection shall attest, under penalty of
672 perjury, that the moneys were used in compliance with law. The
673 attestation shall be made annually in a form and format
674 determined by the department.
675 Section 11. For the purpose of incorporating the amendment
676 made by this act to section 11.45, Florida Statutes, in a
677 reference thereto, subsection (3) of section 11.40, Florida
678 Statutes, is reenacted to read:
679 11.40 Legislative Auditing Committee.—
680 (3) The Legislative Auditing Committee may direct the
681 Auditor General or the Office of Program Policy Analysis and
682 Government Accountability to conduct an audit, review, or
683 examination of any entity or record described in s. 11.45(2) or
684 (3).
685 Section 12. This act shall take effect July 1, 2011.