House Bill 0469
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    Florida House of Representatives - 2000                 HB 469
        By the Committee on Education Innovation and
    Representative Melvin
  1                      A bill to be entitled
  2         An act relating to school district best
  3         financial management practices reviews;
  4         amending s. 11.51, F.S.; requiring the Office
  5         of Program Policy Analysis and Government
  6         Accountability to conduct or contract for best
  7         financial management practices reviews of
  8         school districts; correcting a cross reference;
  9         amending s. 11.515, F.S.; revising references
10         to "performance reviews" to "best financial
11         management practices reviews"; clarifying and
12         conforming the authorization for contracting
13         for reviews; revising the scope of such
14         reviews; amending s. 230.23025, F.S.; providing
15         the purpose of a best financial management
16         practices review; clarifying the procedure for
17         revising best financial management practices
18         adopted by the commissioner; authorizing OPPAGA
19         to develop certain additional best practices
20         for review and adoption by the Commissioner of
21         Education; revising areas addressed by the
22         review; establishing a timeframe for school
23         district review; requiring districts to be
24         reviewed to be specified in the General
25         Appropriations Act; providing funding
26         requirements; revising reporting requirements;
27         revising provisions relating to the "Seal of
28         Best Financial Management"; amending s.
29         230.23026, F.S.; conforming terminology;
30         conforming funding requirements; amending s.
31         235.2197, F.S.; correcting a cross reference;
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    Florida House of Representatives - 2000                 HB 469
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  1         repealing s. 230.2302, F.S., relating to
  2         performance reviews; providing an effective
  3         date.
  4
  5  Be It Enacted by the Legislature of the State of Florida:
  6
  7         Section 1.  Subsection (1) of section 11.51, Florida
  8  Statutes, is amended to read:
  9         11.51  Office of Program Policy Analysis and Government
10  Accountability.--
11         (1)  There is hereby created the Office of Program
12  Policy Analysis and Government Accountability as a unit of the
13  Office of the Auditor General appointed pursuant to s. 11.42.
14  Such office shall perform program evaluation and justification
15  reviews as required by s. 11.513 and performance audits as
16  defined in s. 11.45 and shall conduct or contract for best
17  financial management practices performance reviews of school
18  districts pursuant to ss. 11.515 and 230.23025 230.2302.
19         Section 2.  Section 11.515, Florida Statutes, is
20  amended to read:
21         11.515  School district best financial management
22  practices performance review.--
23         (1)  Any best financial management practices
24  performance review of a school district pursuant to this
25  section shall be conducted by a private firm selected by the
26  Office of Program Policy Analysis and Government
27  Accountability. The director of the Office of Program Policy
28  Analysis and Government Accountability may, at his or her
29  discretion, contract with a private consultant selected
30  through a formal request for proposal process to perform part
31  or all of the review of any district.
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  1         (2)  In developing the scope of the review, the Office
  2  of Program Policy Analysis and Government Accountability shall
  3  seek input from the school district subject to a review.  The
  4  scope of the review shall include, but not be limited to:
  5         (a)  School district organization and Management
  6  structures.
  7         (b)  Educational service delivery.
  8         (c)  Community involvement.
  9         (d)  Facilities use and management.
10         (e)  Personnel systems and benefits management.
11         (f)  Asset and risk management.
12         (g)  Financial management.
13         (h)  Purchasing.
14         (f)(i)  Student transportation.
15         (g)(j)  Food service operations.
16         (h)(k)  Safety and security.
17         (i)  Performance accountability.
18         (j)  Use of lottery proceeds.
19         (k)  Cost control systems.
20         (l)  Instructional and administrative technology.
21         Section 3.  Section 230.23025, Florida Statutes, as
22  amended by chapters 97-384 and 98-225, Laws of Florida, is
23  amended to read:
24         230.23025  Best financial management practices;
25  standards; reviews; designation of districts.--
26         (1)  The purpose of a best financial management
27  practices review is to improve a school district's management
28  and use of resources, and to identify cost savings. The Office
29  of Program Policy Analysis and Government Accountability
30  (OPPAGA) and the Office of the Auditor General are directed to
31  develop a system for reviewing the financial management
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    Florida House of Representatives - 2000                 HB 469
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  1  practices of school districts. In this system, OPPAGA and the
  2  Auditor General shall jointly examine district operations to
  3  determine whether they meet "best financial management
  4  practices." The best financial management practices adopted by
  5  the Commissioner of Education may be updated periodically
  6  After consultation with the Legislature, the Governor, the
  7  SMART Schools Clearinghouse, OPPAGA, and the Auditor General,
  8  OPPAGA may submit proposed revisions to the best financial
  9  management practices to the Commissioner of Education for
10  review and adoption. In areas for which the commissioner has
11  not adopted best practices, OPPAGA may develop additional best
12  practices, with input from a broad range of stakeholders.
13  OPPAGA shall present any additional best practices to the
14  commissioner for review and adoption. The best financial
15  management practices adopted by the commissioner must be used
16  in a school district review conducted according to this
17  section. The best financial management practices, at a
18  minimum, must instill public confidence by addressing the
19  following areas:
20         (a)  Efficient use of resources, use of lottery
21  proceeds, student transportation and food service operations,
22  management structures, and personnel systems and benefits,
23  educational service delivery, community involvement, safety
24  and security, facilities, and administrative and instructional
25  technology;
26         (b)  Compliance with generally accepted accounting
27  principles and state and federal laws relating to financial
28  management;
29         (c)  Performance accountability systems, including
30  performance measurement reports to the public, internal
31
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  1  auditing, financial auditing, and information made available
  2  to support decisionmaking;
  3         (d)  Cost control systems, including asset, risk, and
  4  financial management, purchasing, and information system
  5  controls.
  6         (2)  It is the intent of the Legislature that each
  7  school district shall be subject to a best financial
  8  management practices review. OPPAGA shall recommend a schedule
  9  to review all school districts on a 10-year cycle which shall
10  be subject to approval by the Legislature in the General
11  Appropriations Act. No later than December 31 of each year,
12  OPPAGA shall recommend to the President of the Senate and the
13  Speaker of the House of Representatives districts proposed to
14  undergo review during the next fiscal year. The Legislature
15  shall annually designate in the General Appropriations Act
16  those school districts that will receive a fully funded best
17  financial management practices review. School districts may,
18  by a unanimous vote of the membership of the school board,
19  apply to OPPAGA for a complete best financial management
20  practice review or a review of components of the best
21  financial management practices, including management,
22  personnel, transportation, and food and nutrition services.
23  OPPAGA shall prioritize districts for review based on their
24  growth rates and demonstrated need for review. The director of
25  OPPAGA may, at his or her discretion, contract with private
26  consultants to perform part or all of the review of any
27  district. Districts applying for a complete review shall
28  contribute 50 percent of review costs, unless funding for the
29  entire cost of the review is specifically provided by the
30  Legislature. Districts applying for a review of a component
31  shall contribute 75 percent of the review cost.  All moneys
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  1  contributed by any school district under this section toward
  2  the cost of a complete or component best financial management
  3  practices review of the district shall be deposited into the
  4  Florida School District Review Trust Fund administered by
  5  OPPAGA.
  6         (3)  District reviews conducted under this section must
  7  be completed within 6 months after commencement. OPPAGA shall
  8  issue a report to the district regarding its financial
  9  management practices and cost savings recommendations within
10  60 days after completing the reviews.
11         (4)  If the district is found not to conform to best
12  financial management practices, the report must contain an
13  action a plan of action detailing how the district could meet
14  the best practices within 2 years and be eligible for a "Seal
15  of Best Financial Management." The school board must vote,
16  within 90 days after receipt of the final report, to implement
17  or not to implement the action plan. In order to be eligible
18  to receive the seal, the school board must vote by a majority
19  plus one to implement the action plan.
20         (5)(4)  No later than 1 year after receipt of the
21  report, district school boards that agree by a majority plus
22  one vote to institute the action plan must shall submit an
23  initial annual report to the Legislature, the Governor, the
24  SMART Schools Clearinghouse, OPPAGA, the Auditor General, and
25  the Commissioner of Education on progress made towards
26  implementing the plan and whether changes have occurred in
27  other areas of operation which would affect compliance with
28  the best practices. A second report must be submitted no later
29  than one year after the initial report. These reports shall be
30  Such districts shall be reviewed annually by OPPAGA, in
31  addition to the annual financial audit required under s.
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  1  11.45, to determine whether they have attained compliance with
  2  the best financial management practices in the areas covered
  3  by the plan.
  4         (6)  Each year during the 2 years after a school board
  5  has voted to implement an action plan, OPPAGA shall review the
  6  district to assess implementation of the action plan and
  7  progress toward utilizing the best financial management
  8  practices in areas covered by the plan.
  9         (7)  Districts that are found to be utilizing comply
10  with the best financial management practices shall receive a
11  "Seal of Best Financial Management" from by the State Board of
12  Education certifying that the district is adhering to the
13  state's best financial management practices. This designation
14  shall be effective for a 5-year period, beginning upon the
15  certification date, after which the district school board may
16  reapply for the designation to be granted after another best
17  financial management practice review. During the designation
18  period, the district school board shall annually notify, not
19  later than the anniversary date of the certification, the
20  SMART Schools Clearinghouse, OPPAGA, the Auditor General, and
21  the State Board of Education of any changes in policies or
22  operations or any other situations that would not conform to
23  the state's best financial management practices. The State
24  Board of Education may revoke the designation of a district at
25  any time if it determines that a district is no longer
26  complying with the state's best financial management
27  practices.
28         (8)(5)  Any audit or performance review of one or more
29  of the designated components conducted or supervised by OPPAGA
30  or the Department of Management Services, and completed within
31  2 years before the district is scheduled in the General
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  1  Appropriations Act date of application to OPPAGA for a best
  2  financial management practices review, may, at the OPPAGA
  3  director's discretion, serve as all or part of the audit or
  4  review required as the examination of district operations
  5  necessary for a determination of whether a district meets the
  6  "best financial management practices" designation. The cost
  7  contribution requirements of subsection (2) do not apply to
  8  any such audit or performance review.
  9         Section 4.  Subsection (2) of section 230.23026,
10  Florida Statutes, is amended to read:
11         230.23026  Florida School District Review Trust Fund.--
12         (2)  OPPAGA shall use the funds deposited in the trust
13  fund to pay costs of conducting best financial management
14  practices reviews, or reviews of components of the best
15  practices, in school districts under s. 230.23025. Funds may
16  be expended to pay the expenses of reviews conducted by
17  OPPAGA, by the Auditor General, or by private consultants at
18  the discretion of the director of OPPAGA. The expenses may
19  include professional services, travel expenses of OPPAGA and
20  the Auditor General, and any other necessary expenses incurred
21  as part of a complete or component best financial management
22  practices review. OPPAGA may refund to a school district any
23  portion of funds contributed by the school district that
24  OPPAGA determines are not needed to conduct the complete or
25  component best practices review requested by the district.
26         Section 5.  Paragraph (a) of subsection (2) of section
27  235.2197, Florida Statutes, is amended to read:
28         235.2197  Florida Frugal Schools Program.--
29         (2)  The "Florida Frugal Schools Program" is created to
30  recognize publicly each district school board that agrees to
31  build frugal yet functional educational facilities and that
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  1  implements "best financial management practices" when
  2  planning, constructing, and operating educational facilities.
  3  The State Board of Education shall recognize a district school
  4  board as having a Florida Frugal Schools Program if the
  5  district requests recognition and satisfies two or more of the
  6  following criteria:
  7         (a)  The district receives a "Seal of Best Financial
  8  Management" as provided in s. 230.23025 or implements best
  9  financial management practices in the area of educational
10  facilities as evidenced by a partial review under s. 230.23025
11  s. 230.2302.
12         Section 6.  Section 230.2302, Florida Statutes, is
13  repealed.
14         Section 7.  This act shall take effect July 1, 2000.
15
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17                          HOUSE SUMMARY
18
      Requires the Office of Program Policy Analysis and
19    Government Accountability to conduct or contract for best
      financial management practices reviews of school
20    districts. Revises terminology regarding performance
      reviews. Clarifies and conforms the authorization for
21    contracting for reviews. Revises the scope of such
      reviews. Provides the purpose of a best financial
22    management practices review. Clarifies the procedure for
      revising best financial management practices adopted by
23    the commissioner. Authorizes OPPAGA to develop certain
      additional best practices for review and adoption by the
24    Commissioner of Education. Revises areas addressed by the
      review. Establishes a timeframe for school district
25    review. Requires districts to be reviewed to be specified
      in the General Appropriations Act. Provides funding
26    requirements. Revises reporting requirements. Revises
      provisions relating to the "Seal of Best Financial
27    Management." Repeals provisions relating to performance
      reviews.
28
29
30
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