Florida Senate - 2014                             CS for SB 1628
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senator Bean
       
       
       
       
       585-03742-14                                          20141628c1
    1                        A bill to be entitled                      
    2         An act relating to government accountability; amending
    3         s. 11.45, F.S.; excluding water management districts
    4         from certain audit requirements; expanding certain
    5         audit provisions to include district school boards;
    6         amending ss. 20.05, 25.382, 28.35, 43.16, 218.33, and
    7         1002.33, F.S.; revising the responsibilities of a
    8         department head, the Justice Administrative
    9         Commission, a state attorney, a public defender, a
   10         criminal conflict and civil regional counsel, a
   11         capital collateral counsel, the guardian ad litem
   12         program, the State Supreme Court as it relates to the
   13         state courts system, the Florida Clerks of Court
   14         Operations Corporation, a local governmental entity,
   15         and the governing body of a charter school to include
   16         the responsibility of establishing certain internal
   17         controls; amending s. 20.055, F.S.; revising the
   18         definition of the term “agency head”; amending s.
   19         215.985, F.S.; specifying requirements for a monthly
   20         financial statement provided by a water management
   21         district; amending s. 373.536, F.S.; removing an
   22         obsolete provision; amending s. 1001.42, F.S.;
   23         revising the responsibilities of a district school
   24         board’s internal auditor to perform certain audits and
   25         reviews; amending s. 1010.01, F.S.; requiring each
   26         Florida College System institution to file certain
   27         annual financial statements with the State Board of
   28         Education; requiring each school district, Florida
   29         College System institution, and state university to
   30         establish certain internal controls; providing that
   31         the act fulfills an important state interest;
   32         providing an effective date.
   33          
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Paragraph (j) of subsection (2) and paragraph
   37  (j) of subsection (7) of section 11.45, Florida Statutes, are
   38  amended to read:
   39         11.45 Definitions; duties; authorities; reports; rules.—
   40         (2) DUTIES.—The Auditor General shall:
   41         (j) Conduct audits of local governmental entities when
   42  determined to be necessary by the Auditor General, when directed
   43  by the Legislative Auditing Committee, or when otherwise
   44  required by law. No later than 18 months after the release of
   45  the audit report, the Auditor General shall perform such
   46  appropriate followup procedures as he or she deems necessary to
   47  determine the audited entity’s progress in addressing the
   48  findings and recommendations contained within the Auditor
   49  General’s previous report. The Auditor General shall notify each
   50  member of the audited entity’s governing body and the
   51  Legislative Auditing Committee of the results of his or her
   52  determination. For purposes of this paragraph, local
   53  governmental entities do not include water management districts.
   54  
   55  The Auditor General shall perform his or her duties
   56  independently but under the general policies established by the
   57  Legislative Auditing Committee. This subsection does not limit
   58  the Auditor General’s discretionary authority to conduct other
   59  audits or engagements of governmental entities as authorized in
   60  subsection (3).
   61         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
   62         (j) The Auditor General shall notify the Legislative
   63  Auditing Committee of any financial or operational audit report
   64  prepared pursuant to this section which indicates that a
   65  district school board, state university, or Florida College
   66  System institution has failed to take full corrective action in
   67  response to a recommendation that was included in the two
   68  preceding financial or operational audit reports.
   69         1. The committee may direct the governing body of the
   70  district school board, state university, or Florida College
   71  System institution to provide a written statement to the
   72  committee explaining why full corrective action has not been
   73  taken or, if the governing body intends to take full corrective
   74  action, describing the corrective action to be taken and when it
   75  will occur.
   76         2. If the committee determines that the written statement
   77  is not sufficient, the committee may require the chair of the
   78  governing body of the district school board, state university,
   79  or Florida College System institution, or the chair’s designee,
   80  to appear before the committee.
   81         3. If the committee determines that the district school
   82  board, state university, or Florida College System institution
   83  has failed to take full corrective action for which there is no
   84  justifiable reason or has failed to comply with committee
   85  requests made pursuant to this section, the committee shall
   86  refer the matter to the State Board of Education or the Board of
   87  Governors, as appropriate, to proceed in accordance with s.
   88  1008.32 or s. 1008.322, respectively.
   89         Section 2. Subsection (1) of section 20.05, Florida
   90  Statutes, is amended to read:
   91         20.05 Heads of departments; powers and duties.—
   92         (1) Each head of a department, subject to the allotment of
   93  executive power under Article IV of the State Constitution, and
   94  except as otherwise provided by law, must:
   95         (a) Plan, direct, coordinate, and execute the powers,
   96  duties, and functions vested in that department or vested in a
   97  division, bureau, or section of that department; powers and
   98  duties assigned or transferred to a division, bureau, or section
   99  of the department must not be construed to limit this authority
  100  and this responsibility;
  101         (b) Have authority, without being relieved of
  102  responsibility, to execute any of the powers, duties, and
  103  functions vested in the department or in any administrative unit
  104  thereof through administrative units and through assistants and
  105  deputies designated by the head of the department from time to
  106  time, unless the head of the department is explicitly required
  107  by law to perform the same without delegation;
  108         (c) Compile annually a comprehensive program budget
  109  reporting all program and fiscal matters related to the
  110  operation of his or her department, including each program,
  111  subprogram, and activity, and other matters as required by law;
  112         (d) Reimburse the members of advisory bodies, commissions,
  113  and boards of trustees for their actual and necessary expenses
  114  incurred in the performance of their duties in accordance with
  115  s. 112.061;
  116         (e) Subject to the requirements of chapter 120, exercise
  117  existing authority to adopt rules pursuant and limited to the
  118  powers, duties, and functions transferred to the department;
  119         (f) Exercise authority on behalf of the department to
  120  accept gifts, grants, bequests, loans, and endowments for
  121  purposes consistent with the powers, duties, and functions of
  122  the department. All such funds must be deposited in the State
  123  Treasury and appropriated by the Legislature for the purposes
  124  for which they were received by the department;
  125         (g) If a department is under the direct supervision of a
  126  board, including a board consisting of the Governor and Cabinet,
  127  however designated, employ an executive director to serve at its
  128  pleasure; and
  129         (h) Make recommendations concerning more effective internal
  130  structuring of the department to the Legislature. Unless
  131  otherwise required by law, such recommendations must be provided
  132  to the Legislature at least 30 days before the first day of the
  133  regular session at which they are to be considered, when
  134  practicable; and
  135         (i) Establish and maintain internal controls designed to
  136  prevent and detect fraud, waste, and abuse; to ensure the
  137  administration of assigned public duties and responsibilities in
  138  accordance with applicable laws, rules, contracts, grant
  139  agreements, and best practices; to promote and encourage
  140  economic and efficient operations; to ensure the reliability of
  141  financial records and reports; and to safeguard assets.
  142         Section 3. Paragraph (b) of subsection (1) of section
  143  20.055, Florida Statutes, is amended to read:
  144         20.055 Agency inspectors general.—
  145         (1) For the purposes of this section:
  146         (b) “Agency head” means the Governor, a Cabinet officer, a
  147  secretary as defined in s. 20.03(5), or an executive director as
  148  defined in s. 20.03(6). It also includes the chair of the Public
  149  Service Commission, the Director of the Office of Insurance
  150  Regulation of the Financial Services Commission, the Director of
  151  the Office of Financial Regulation of the Financial Services
  152  Commission, the chair of the board of directors of the Florida
  153  Housing Finance Corporation, and the Chief Justice of the State
  154  Supreme Court.
  155         Section 4. Subsection (5) is added to section 25.382,
  156  Florida Statutes, to read:
  157         25.382 State courts system.—
  158         (5) The Supreme Court shall ensure that the state courts
  159  system establishes and maintains internal controls designed to
  160  prevent and detect fraud, waste, and abuse; to ensure the
  161  administration of assigned public duties and responsibilities in
  162  accordance with applicable laws, rules, contracts, grant
  163  agreements, and best practices; to promote and encourage
  164  economic and efficient operations; to ensure the reliability of
  165  financial records and reports; and to safeguard assets.
  166         Section 5. Paragraph (i) is added to subsection (2) of
  167  section 28.35, Florida Statutes, to read:
  168         28.35 Florida Clerks of Court Operations Corporation.—
  169         (2) The duties of the corporation shall include the
  170  following:
  171         (i) Establishing and maintaining internal controls designed
  172  to prevent and detect fraud, waste, and abuse; to ensure the
  173  administration of assigned public duties and responsibilities in
  174  accordance with applicable laws, rules, contracts, grant
  175  agreements, and best practices; to promote and encourage
  176  economic and efficient operations; to ensure the reliability of
  177  records and reports; and to safeguard assets.
  178         Section 6. Present subsections (6) and (7) of section
  179  43.16, Florida Statutes, are renumbered as subsections (7) and
  180  (8), respectively, and a new subsection (6) is added to that
  181  section, to read:
  182         43.16 Justice Administrative Commission; membership, powers
  183  and duties.—
  184         (6) The commission, each state attorney, each public
  185  defender, each criminal conflict and civil regional counsel,
  186  each capital collateral regional counsel, and the guardian ad
  187  litem program must establish and maintain internal controls
  188  designed to prevent and detect fraud, waste, and abuse; to
  189  ensure the administration of assigned public duties and
  190  responsibilities in accordance with applicable laws, rules,
  191  contracts, grant agreements, and best practices; to promote and
  192  encourage economic and efficient operations; to ensure the
  193  reliability of financial records and reports; and to safeguard
  194  assets.
  195         Section 7. Subsection (11) of section 215.985, Florida
  196  Statutes, is amended to read:
  197         215.985 Transparency in government spending.—
  198         (11) Each water management district shall provide a monthly
  199  financial statement in the form and manner prescribed by the
  200  Department of Financial Services to the district’s its governing
  201  board and make such monthly financial statement available for
  202  public access on its website.
  203         Section 8. Present subsection (3) of section 218.33,
  204  Florida Statutes, is renumbered as subsection (4), and a new
  205  subsection (3) is added to that section, to read:
  206         218.33 Local governmental entities; establishment of
  207  uniform fiscal years and accounting practices and procedures.—
  208         (3) Each local governmental entity must establish and
  209  maintain internal controls designed to prevent and detect fraud,
  210  waste, and abuse; to ensure the administration of assigned
  211  public duties and responsibilities in accordance with applicable
  212  laws, rules, contracts, grant agreements, and best practices; to
  213  promote and encourage economic and efficient operations; to
  214  ensure the reliability of financial records and reports; and to
  215  safeguard assets.
  216         Section 9. Paragraph (e) of subsection (4) of section
  217  373.536, Florida Statutes, is amended to read:
  218         373.536 District budget and hearing thereon.—
  219         (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
  220         (e) By September 1, 2012, Each district shall provide a
  221  monthly financial statement in the form and manner prescribed by
  222  the Department of Financial Services to the district’s governing
  223  board and make such monthly financial statement available for
  224  public access on its website.
  225         Section 10. Paragraph (l) of subsection (12) of section
  226  1001.42, Florida Statutes, is amended to read:
  227         1001.42 Powers and duties of district school board.—The
  228  district school board, acting as a board, shall exercise all
  229  powers and perform all duties listed below:
  230         (12) FINANCE.—Take steps to assure students adequate
  231  educational facilities through the financial procedure
  232  authorized in chapters 1010 and 1011 and as prescribed below:
  233         (l) Internal auditor.—May employ an internal auditor to
  234  perform ongoing financial verification of the financial records
  235  of the school district and such other audits and reviews as the
  236  district school board directs for the purpose of establishing
  237  and maintaining internal controls designed to prevent and detect
  238  fraud, waste, and abuse; to ensure the administration of
  239  assigned public duties and responsibilities in accordance with
  240  applicable laws, rules, contracts, grant agreements, school
  241  board-approved policies, and best practices; to promote and
  242  encourage economic and efficient operations; to ensure the
  243  reliability of financial records and reports; and to safeguard
  244  assets. The internal auditor shall report directly to the
  245  district school board or its designee.
  246         Section 11. Paragraph (j) of subsection (9) of section
  247  1002.33, Florida Statutes, is amended to read:
  248         1002.33 Charter schools.—
  249         (9) CHARTER SCHOOL REQUIREMENTS.—
  250         (j) The governing body of the charter school shall be
  251  responsible for:
  252         1. Establishing and maintaining internal controls designed
  253  to prevent and detect fraud, waste, and abuse; to ensure the
  254  administration of assigned public duties and responsibilities in
  255  accordance with applicable laws, rules, contracts, grant
  256  agreements, and best practices; to promote and encourage
  257  economic and efficient operations; to ensure the reliability of
  258  financial records and reports; and to safeguard assets.
  259         2.1. Ensuring that the charter school has retained the
  260  services of a certified public accountant or auditor for the
  261  annual financial audit, pursuant to s. 1002.345(2), who shall
  262  submit the report to the governing body.
  263         3.2. Reviewing and approving the audit report, including
  264  audit findings and recommendations for the financial recovery
  265  plan.
  266         4.a.3.a. Performing the duties in s. 1002.345, including
  267  monitoring a corrective action plan.
  268         b. Monitoring a financial recovery plan in order to ensure
  269  compliance.
  270         5.4. Participating in governance training approved by the
  271  department which must include government in the sunshine,
  272  conflicts of interest, ethics, and financial responsibility.
  273         Section 12. Present subsections (3) and (4) of section
  274  1010.01, Florida Statutes, are renumbered as subsections (4) and
  275  (5), respectively, and a new subsection (3) and subsection (6)
  276  are added to that section, to read:
  277         1010.01 Uniform records and accounts.—
  278         (3) Each Florida College System institution shall annually
  279  file with the State Board of Education financial statements
  280  prepared in conformity with accounting principles generally
  281  accepted in the United States and the uniform classification of
  282  accounts prescribed by the State Board of Education. The State
  283  Board of Education’s rules shall prescribe the filing deadline
  284  for the financial statements.
  285         (6) Each school district, Florida College System
  286  institution, and state university shall establish and maintain
  287  internal controls designed to prevent and detect fraud, waste,
  288  and abuse; to ensure the administration of assigned public
  289  duties and responsibilities in accordance with applicable laws,
  290  rules, contracts, grant agreements, and best practices; to
  291  promote and encourage economic and efficient operations; to
  292  ensure the reliability of financial records and reports; and to
  293  safeguard assets.
  294         Section 13. The Legislature finds that a proper and
  295  legitimate state purpose is served when internal controls are
  296  established to prevent and detect fraud, waste, and abuse, and
  297  to safeguard and account for government funds and property.
  298  Therefore, the Legislature determines and declares that this act
  299  fulfills an important state interest.
  300         Section 14. This act shall take effect July 1, 2014.