Senate Bill sb0708c2
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Florida Senate - 2004 CS for CS for SB 708
By the Committees on Finance and Taxation; Education; and
Senator Atwater
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1 A bill to be entitled
2 An act relating to local government
3 accountability; amending s. 11.40, F.S.;
4 revising duties of the Legislative Auditing
5 Committee; amending s. 11.45, F.S.; specifying
6 requirements for a petition for a municipal
7 audit; revising reporting requirements of the
8 Auditor General; providing for technical advice
9 by the Auditor General; amending s. 11.51,
10 F.S.; conforming provisions to changes made by
11 the act; amending s. 61.181, F.S.; correcting a
12 cross-reference; amending s. 75.05, F.S.;
13 deleting a requirement for an independent
14 special district to submit a copy of a
15 complaint to the Division of Bond Finance of
16 the State Board of Administration; amending s.
17 112.08, F.S.; clarifying that local governments
18 are authorized to provide health insurance;
19 amending s. 112.625, F.S.; revising the
20 definition of "governmental entity" to include
21 counties and district school boards; amending
22 s. 112.63, F.S.; providing for additional
23 material information to be provided to the
24 Department of Management Services in actuarial
25 reports with regard to retirement systems and
26 plans and providing procedures therefor;
27 providing for notification of the Department of
28 Revenue and the Department of Financial
29 Services in cases of noncompliance and
30 authorizing the withholding of certain funds;
31 requiring the Department of Management Services
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1 to notify the Department of Community Affairs
2 in the case of affected special districts;
3 amending s. 130.04, F.S.; revising provisions
4 governing notice of bids and disposition of
5 bonds; amending s. 132.02, F.S.; revising
6 provisions relating to the authorization to
7 issue refund bonds; amending s. 132.09, F.S.;
8 revising provisions relating to the notice of
9 sale, bids, and awards and private sale of
10 bonds; amending s. 163.05, F.S.; revising
11 provisions governing the Small County Technical
12 Assistance Program; amending s. 166.121, F.S.;
13 revising provisions governing the issuance of
14 bonds by a municipality; amending s. 166.241,
15 F.S.; providing a municipal budget amendment
16 process and requirements; amending ss. 175.261
17 and 185.221, F.S.; conforming provisions to
18 changes made by the act; amending s. 189.4044,
19 F.S.; revising special procedures for
20 determination of inactive special districts;
21 amending s. 189.412, F.S.; revising duties of
22 the Special District Information Program of the
23 Department of Community Affairs; amending s.
24 189.418, F.S.; revising reporting requirements
25 of newly created special districts; authorizing
26 the governing body of a special district to
27 amend its budget; amending s. 189.419, F.S.;
28 revising provisions relating to the failure of
29 special districts to file required reports;
30 amending s. 189.421, F.S.; revising provisions
31 governing the failure of special districts to
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1 disclose financial reports; providing for
2 extension of time for the filing of the
3 reports; providing remedies for noncompliance;
4 providing for attorney's fees and costs;
5 amending s. 189.428, F.S.; revising provisions
6 governing the special district oversight review
7 process; amending s. 189.439, F.S.; revising
8 provisions governing the issuance of bonds by
9 special districts; amending s. 191.005, F.S.;
10 exempting a candidate from campaign
11 requirements under specified conditions;
12 providing for the removal of a board member
13 upon becoming unqualified; amending s. 218.075,
14 F.S.; revising provisions governing the
15 reduction or waiver of permit processing fees
16 for certain counties; amending s. 218.32, F.S.,
17 relating to annual financial reports; requiring
18 the Department of Financial Services to notify
19 the Speaker of the House of Representatives and
20 the President of the Senate of any municipality
21 that has not had financial activity for a
22 specified period of time; providing that such
23 notice is sufficient to initiate dissolution
24 procedures; repealing s. 218.321, F.S.,
25 relating to annual financial statements of
26 local governmental entities; amending s.
27 218.39, F.S.; providing reporting requirements
28 for certain special districts; amending s.
29 218.36, F.S.; revising reporting requirements
30 for boards of county commissioners relating to
31 the failure of a county officer to comply with
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1 the provisions of the section; amending s.
2 218.369, F.S.; revising the definition of "unit
3 of local government" to include district school
4 boards; renaming pt. V of ch. 218, F.S., as
5 "Local Governmental Entity and District School
6 Board Financial Emergencies"; amending s.
7 218.50, F.S.; renaming ss. 218.50-218.504,
8 F.S., as the "Local Governmental Entity and
9 District School Board Act"; amending s.
10 218.501, F.S.; revising the stated purposes of
11 pt. V of ch. 218, F.S.; amending s. 218.502,
12 F.S.; revising the definition of "local
13 governmental entity"; amending s. 218.503,
14 F.S.; revising provisions governing the
15 determination of a financial emergency for
16 local governments and district school boards;
17 amending s. 218.504, F.S.; revising provisions
18 relating to the authority of the Governor and
19 authorizing the Commissioner of Education to
20 terminate all state actions pursuant to ss.
21 218.50-218.504, F.S.; repealing ch. 131, F.S.,
22 consisting of ss. 131.01, 131.02, 131.03,
23 131.04, 131.05, and 131.06, F.S., relating to
24 refunding bonds of counties, municipalities,
25 and special districts; repealing s. 132.10,
26 F.S., relating to minimum sale price of bonds;
27 repealing s. 165.052, F.S., relating to special
28 dissolution procedures for municipalities;
29 repealing s. 189.409, F.S., relating to
30 determination of financial emergencies of
31 special districts; repealing s. 189.422, F.S.,
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1 relating to actions of the Department of
2 Community Affairs and special districts;
3 repealing s. 200.0684, F.S., relating to an
4 annual compliance report of the Department of
5 Community Affairs regarding special districts;
6 repealing s. 218.37(1)(h), F.S., relating to
7 the requirement that the Division of Bond
8 Finance use a served copy of the complaint for
9 bond validation to verify compliance by special
10 districts with the requirements in s. 218.38,
11 F.S.; amending s. 215.195, F.S., relating to
12 the Statewide Cost Allocation Plan; providing
13 that the Department of Financial Services is
14 responsible for the plan's preparation and the
15 monitoring of agency compliance; amending s.
16 215.97, F.S., relating to the Florida Single
17 Audit Act; revising and providing definitions;
18 revising the uniform state audit requirements
19 for state financial assistance that is provided
20 by state agencies to nonstate entities;
21 requiring the Department of Financial Services
22 to adopt rules and perform additional duties
23 with respect to the provision of financial
24 assistance to carry out state projects;
25 specifying duties of coordinating agencies;
26 amending s. 1010.47, F.S.; providing that
27 school districts must sell bonds; deleting
28 obsolete provisions relating to the sale of
29 bonds by a school district; amending s.
30 288.9610, F.S.; correcting a cross-reference;
31 transferring a position from the Executive
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1 Office of the Governor to the Department of
2 Financial Services; repealing s. 373.556, F.S.,
3 relating to the investment of funds by the
4 governing board of a water management district;
5 providing an effective date.
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7 Be It Enacted by the Legislature of the State of Florida:
8
9 Section 1. Paragraphs (a) and (b) of subsection (5) of
10 section 11.40, Florida Statutes, are amended to read:
11 11.40 Legislative Auditing Committee.--
12 (5) Following notification by the Auditor General, the
13 Department of Financial Services, or the Division of Bond
14 Finance of the State Board of Administration of the failure of
15 a local governmental entity, district school board, charter
16 school, or charter technical career center to comply with the
17 applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or
18 s. 218.38, the Legislative Auditing Committee may schedule a
19 hearing. If a hearing is scheduled, the committee shall
20 determine if the entity should be subject to further state
21 action. If the committee determines that the entity should be
22 subject to further state action, the committee shall:
23 (a) In the case of a local governmental entity or
24 district school board, direct request the Department of
25 Revenue and the Department of Financial Services to withhold
26 any funds not pledged for bond debt service satisfaction which
27 are payable to such entity until the entity complies with the
28 law. The committee, in its request, shall specify the date
29 such action shall begin, and the directive request must be
30 received by the Department of Revenue and the Department of
31 Financial Services 30 days before the date of the distribution
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1 mandated by law. The Department of Revenue and the Department
2 of Financial Services may implement the provisions of this
3 paragraph.
4 (b) In the case of a special district, notify the
5 Department of Community Affairs that the special district has
6 failed to comply with the law. Upon receipt of notification,
7 the Department of Community Affairs shall proceed pursuant to
8 the provisions specified in s. ss. 189.421 and 189.422.
9 Section 2. Paragraph (g) of subsection (2),
10 subsections (3) and (5), paragraph (e) of subsection (7), and
11 subsections (8) and (9) of section 11.45, Florida Statutes,
12 are amended to read:
13 11.45 Definitions; duties; authorities; reports;
14 rules.--
15 (2) DUTIES.--The Auditor General shall:
16 (g) At least every 2 years, conduct a performance
17 audit of the local government financial reporting system,
18 which, for the purpose of this chapter, means any statutory
19 provisions related to local government financial reporting.
20 The purpose of such an audit is to determine the accuracy,
21 efficiency, and effectiveness of the reporting system in
22 achieving its goals and to make recommendations to the local
23 governments, the Governor, and the Legislature as to how the
24 reporting system can be improved and how program costs can be
25 reduced. The Auditor General shall determine the scope of such
26 audits. The local government financial reporting system should
27 provide for the timely, accurate, uniform, and cost-effective
28 accumulation of financial and other information that can be
29 used by the members of the Legislature and other appropriate
30 officials to accomplish the following goals:
31 1. Enhance citizen participation in local government;
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1 2. Improve the financial condition of local
2 governments;
3 3. Provide essential government services in an
4 efficient and effective manner; and
5 4. Improve decisionmaking on the part of the
6 Legislature, state agencies, and local government officials on
7 matters relating to local government.
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9 The Auditor General shall perform his or her duties
10 independently but under the general policies established by
11 the Legislative Auditing Committee. This subsection does not
12 limit the Auditor General's discretionary authority to conduct
13 other audits or engagements of governmental entities as
14 authorized in subsection (3).
15 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.--
16 (a) The Auditor General may, pursuant to his or her
17 own authority, or at the direction of the Legislative Auditing
18 Committee, conduct audits or other engagements as determined
19 appropriate by the Auditor General of:
20 (a)1. The accounts and records of any governmental
21 entity created or established by law.
22 (b)2. The information technology programs, activities,
23 functions, or systems of any governmental entity created or
24 established by law.
25 (c)3. The accounts and records of any charter school
26 created or established by law.
27 (d)4. The accounts and records of any direct-support
28 organization or citizen support organization created or
29 established by law. The Auditor General is authorized to
30 require and receive any records from the direct-support
31
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1 organization or citizen support organization, or from its
2 independent auditor.
3 (e)5. The public records associated with any
4 appropriation made by the Legislature General Appropriations
5 Act to a nongovernmental agency, corporation, or person. All
6 records of a nongovernmental agency, corporation, or person
7 with respect to the receipt and expenditure of such an
8 appropriation shall be public records and shall be treated in
9 the same manner as other public records are under general law.
10 (f)6. State financial assistance provided to any
11 nonstate entity as defined by s. 215.97.
12 (g)7. The Tobacco Settlement Financing Corporation
13 created pursuant to s. 215.56005.
14 8. The Florida Virtual School created pursuant to s.
15 1002.37.
16 (h)9. Any purchases of federal surplus lands for use
17 as sites for correctional facilities as described in s.
18 253.037.
19 (i)10. Enterprise Florida, Inc., including any of its
20 boards, advisory committees, or similar groups created by
21 Enterprise Florida, Inc., and programs. The audit report may
22 not reveal the identity of any person who has anonymously made
23 a donation to Enterprise Florida, Inc., pursuant to this
24 subparagraph. The identity of a donor or prospective donor to
25 Enterprise Florida, Inc., who desires to remain anonymous and
26 all information identifying such donor or prospective donor
27 are confidential and exempt from the provisions of s.
28 119.07(1) and s. 24(a), Art. I of the State Constitution. Such
29 anonymity shall be maintained in the auditor's report.
30 (j)11. The Florida Development Finance Corporation or
31 the capital development board or the programs or entities
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1 created by the board. The audit or report may not reveal the
2 identity of any person who has anonymously made a donation to
3 the board pursuant to this subparagraph. The identity of a
4 donor or prospective donor to the board who desires to remain
5 anonymous and all information identifying such donor or
6 prospective donor are confidential and exempt from the
7 provisions of s. 119.07(1) and s. 24(a), Art. I of the State
8 Constitution. Such anonymity shall be maintained in the
9 auditor's report.
10 (k)12. The records pertaining to the use of funds from
11 voluntary contributions on a motor vehicle registration
12 application or on a driver's license application authorized
13 pursuant to ss. 320.023 and 322.081.
14 (l)13. The records pertaining to the use of funds from
15 the sale of specialty license plates described in chapter 320.
16 (m)14. The transportation corporations under contract
17 with the Department of Transportation that are acting on
18 behalf of the state to secure and obtain rights-of-way for
19 urgently needed transportation systems and to assist in the
20 planning and design of such systems pursuant to ss.
21 339.401-339.421.
22 (n)15. The acquisitions and divestitures related to
23 the Florida Communities Trust Program created pursuant to
24 chapter 380.
25 (o)16. The Florida Water Pollution Control Financing
26 Corporation created pursuant to s. 403.1837.
27 (p)17. The Florida Partnership for School Readiness
28 created pursuant to s. 411.01.
29 (q)18. The Florida Special Disability Trust Fund
30 Financing Corporation created pursuant to s. 440.49.
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1 (r)19. Workforce Florida, Inc., or the programs or
2 entities created by Workforce Florida, Inc., created pursuant
3 to s. 445.004.
4 (s)20. The corporation defined in s. 455.32 that is
5 under contract with the Department of Business and
6 Professional Regulation to provide administrative,
7 investigative, examination, licensing, and prosecutorial
8 support services in accordance with the provisions of s.
9 455.32 and the practice act of the relevant profession.
10 (t)21. The Florida Engineers Management Corporation
11 created pursuant to chapter 471.
12 (u)22. The Investment Fraud Restoration Financing
13 Corporation created pursuant to chapter 517.
14 (v)23. The books and records of any permitholder that
15 conducts race meetings or jai alai exhibitions under chapter
16 550.
17 (w)24. The corporation defined in part II of chapter
18 946, known as the Prison Rehabilitative Industries and
19 Diversified Enterprises, Inc., or PRIDE Enterprises.
20 (x) The Florida Virtual School pursuant to s. 1002.37.
21 (b) The Auditor General is also authorized to:
22 1. Promote the building of competent and efficient
23 accounting and internal audit organizations in the offices
24 administered by governmental entities.
25 2. Provide consultation services to governmental
26 entities on their financial and accounting systems,
27 procedures, and related matters.
28 (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.--
29 (a) The Legislative Auditing Committee shall direct
30 the Auditor General to make an a financial audit of any
31 municipality whenever petitioned to do so by at least 20
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1 percent of the registered electors in the last general
2 election of that municipality pursuant to this subsection. The
3 supervisor of elections of the county in which the
4 municipality is located shall certify whether or not the
5 petition contains the signatures of at least 20 percent of the
6 registered electors of the municipality. After the completion
7 of the audit, the Auditor General shall determine whether the
8 municipality has the fiscal resources necessary to pay the
9 cost of the audit. The municipality shall pay the cost of the
10 audit within 90 days after the Auditor General's determination
11 that the municipality has the available resources. If the
12 municipality fails to pay the cost of the audit, the
13 Department of Revenue shall, upon certification of the Auditor
14 General, withhold from that portion of the distribution
15 pursuant to s. 212.20(6)(d)6. which is distributable to such
16 municipality, a sum sufficient to pay the cost of the audit
17 and shall deposit that sum into the General Revenue Fund of
18 the state.
19 (b) At least one registered elector in the most recent
20 general election must file a letter of intent with the
21 municipal clerk prior to any petition of the electors of that
22 municipality for the purpose of an audit. Each petition must
23 be submitted to the supervisor of elections and contain, at a
24 minimum:
25 1. The elector's printed name;
26 2. The signature of the elector;
27 3. The elector's residence address;
28 4. The elector's date of birth; and
29 5. The date signed.
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1 All petitions must be submitted for verification within 1
2 calendar year after the audit petition origination by the
3 municipal electors.
4 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.--
5 (e) The Auditor General shall notify the Governor or
6 the Commissioner of Education, as appropriate, and the
7 Legislative Auditing Committee of any audit report reviewed by
8 the Auditor General pursuant to paragraph (b) which contains a
9 statement that a the local governmental entity or district
10 school board has met one or more of the conditions specified
11 is in a state of financial emergency as provided in s.
12 218.503. If the Auditor General requests a clarification
13 regarding information included in an audit report to determine
14 whether a local governmental entity or district school board
15 has met one or more of the conditions specified in s. 218.503
16 is in a state of financial emergency, the requested
17 clarification must be provided within 45 days after the date
18 of the request. If the local governmental entity or district
19 school board does not comply with the Auditor General's
20 request, the Auditor General shall notify the Legislative
21 Auditing Committee. If, after obtaining the requested
22 clarification, the Auditor General determines that the local
23 governmental entity or district school board has met one or
24 more of the conditions specified in s. 218.503 is in a state
25 of financial emergency, he or she shall notify the Governor or
26 the Commissioner of Education, as appropriate, and the
27 Legislative Auditing Committee.
28 (8) RULES OF THE AUDITOR GENERAL.--The Auditor
29 General, in consultation with the Board of Accountancy, shall
30 adopt rules for the form and conduct of all financial audits
31 performed by independent certified public accountants pursuant
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1 to ss. 215.981, 218.39, 1001.453, 1004.28, and 1004.70. The
2 rules for audits of local governmental entities and district
3 school boards must include, but are not limited to,
4 requirements for the reporting of information necessary to
5 carry out the purposes of the Local Governmental Entity and
6 District School Board Government Financial Emergencies Act as
7 stated in s. 218.501.
8 (9) TECHNICAL ADVICE OTHER GUIDANCE PROVIDED BY THE
9 AUDITOR GENERAL.--The Auditor General may provide technical
10 advice to:, in consultation with
11 (a) The Department of Education in the development of,
12 shall develop a compliance supplement for the financial audit
13 of a district school board conducted by an independent
14 certified public accountant.
15 (b) Governmental entities on their financial and
16 accounting systems, procedures, and related matters.
17 (c) Governmental entities on promoting the building of
18 competent and efficient accounting and internal audit
19 organizations in their offices.
20 Section 3. Subsection (4) of section 11.51, Florida
21 Statutes, is amended to read:
22 11.51 Office of Program Policy Analysis and Government
23 Accountability.--
24 (4) The Office of Program Policy Analysis and
25 Government Accountability is authorized to examine all
26 entities and records listed in s. 11.45(3) s. 11.45(3)(a).
27 Section 4. Subsection (10) of section 61.181, Florida
28 Statutes, is amended to read:
29 61.181 Depository for alimony transactions, support,
30 maintenance, and support payments; fees.--
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1 (10) Compliance with the requirements of this section
2 shall be included as part of the annual county audit required
3 pursuant to s. 218.39 11.45.
4 Section 5. Subsection (3) of section 75.05, Florida
5 Statutes, is amended to read:
6 75.05 Order and service.--
7 (3) In the case of independent special districts as
8 defined in s. 218.31(7), a copy of the complaint shall be
9 served on the Division of Bond Finance of the State Board of
10 Administration. Notwithstanding any other provision of law,
11 whether a general law or special act, validation of bonds to
12 be issued by a special district, other than a community
13 development district established pursuant to chapter 190, as
14 provided in s. 190.016(12), is not mandatory, but is at the
15 option of the issuer. However, the validation of bonds issued
16 by such community development districts shall not be required
17 on refunding issues.
18 Section 6. Paragraph (a) of subsection (2) of section
19 112.08, Florida Statutes, is amended to read:
20 112.08 Group insurance for public officers, employees,
21 and certain volunteers; physical examinations.--
22 (2)(a) Notwithstanding any general law or special act
23 to the contrary, every local governmental unit is authorized
24 to provide and pay out of its available funds for all or part
25 of the premium for life, health, accident, hospitalization,
26 legal expense, or annuity insurance, or all or any kinds of
27 such insurance, for the officers and employees of the local
28 governmental unit and for health, accident, hospitalization,
29 and legal expense insurance for the dependents of such
30 officers and employees upon a group insurance plan and, to
31 that end, to enter into contracts with insurance companies or
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1 professional administrators to provide such insurance. Before
2 entering any contract for insurance, the local governmental
3 unit shall advertise for competitive bids; and such contract
4 shall be let upon the basis of such bids. If a contracting
5 health insurance provider becomes financially impaired as
6 determined by the Office of Insurance Regulation of the
7 Financial Services Commission or otherwise fails or refuses to
8 provide the contracted-for coverage or coverages, the local
9 government may purchase insurance, enter into risk management
10 programs, or contract with third-party administrators and may
11 make such acquisitions by advertising for competitive bids or
12 by direct negotiations and contract. The local governmental
13 unit may undertake simultaneous negotiations with those
14 companies which have submitted reasonable and timely bids and
15 are found by the local governmental unit to be fully qualified
16 and capable of meeting all servicing requirements. Each local
17 governmental unit may self-insure any plan for health,
18 accident, and hospitalization coverage or enter into a risk
19 management consortium to provide such coverage, subject to
20 approval based on actuarial soundness by the Office of
21 Insurance Regulation; and each shall contract with an
22 insurance company or professional administrator qualified and
23 approved by the office to administer such a plan.
24 Section 7. Subsection (5) of section 112.625, Florida
25 Statutes, is amended to read:
26 112.625 Definitions.--As used in this act:
27 (5) "Governmental entity" means the state, for the
28 Florida Retirement System, and the county, municipality, or
29 special district, or district school board which is the
30 employer of the member of a local retirement system or plan.
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1 Section 8. Subsection (4) of section 112.63, Florida
2 Statutes, is amended to read:
3 112.63 Actuarial reports and statements of actuarial
4 impact; review.--
5 (4) Upon receipt, pursuant to subsection (2), of an
6 actuarial report, or upon receipt, pursuant to subsection (3),
7 of a statement of actuarial impact, the Department of
8 Management Services shall acknowledge such receipt, but shall
9 only review and comment on each retirement system's or plan's
10 actuarial valuations at least on a triennial basis. If the
11 department finds that the actuarial valuation is not complete,
12 accurate, or based on reasonable assumptions or otherwise
13 materially fails to satisfy the requirements of this part, if
14 the department requires additional material information
15 necessary to complete its review of the actuarial valuation of
16 a system or plan or material information necessary to satisfy
17 the duties of the department pursuant to s. 112.665(1), or if
18 the department does not receive the actuarial report or
19 statement of actuarial impact, the department shall notify the
20 administrator of the affected retirement system or plan and
21 the affected governmental entity local government and request
22 appropriate adjustment, the additional material information,
23 or the required report or statement. The notification must
24 inform the administrator of the affected retirement system or
25 plan and the affected governmental entity of the consequences
26 for failure to comply with the requirements of this
27 subsection. If, after a reasonable period of time, a
28 satisfactory adjustment is not made or the report, statement,
29 or additional material information is not provided, the
30 department may notify the Department of Revenue and the
31 Department of Financial Services of such noncompliance, in
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1 which case the Department of Revenue and the Department of
2 Financial Services shall withhold any funds not pledged for
3 satisfaction of bond debt service which are payable to the
4 affected governmental entity until the adjustment is made or
5 the report, statement, or additional material information is
6 provided to the department. The department shall specify the
7 date such action is to begin, and notification by the
8 department must be received by the Department of Revenue, the
9 Department of Financial Services, and the affected
10 governmental entity 30 days before the date the action begins.
11 (a) Within 21 days after receipt of the notice, the
12 affected governmental entity local government or the
13 department may petition for a hearing under the provisions of
14 ss. 120.569 and 120.57 with the Department of Management
15 Services. The Department of Revenue and the Department of
16 Financial Services may not be parties to any such hearing, but
17 may request to intervene if requested by the Department of
18 Management Services or if the Department of Revenue or the
19 Department of Financial Services determines its interests may
20 be adversely affected by the hearing. If the administrative
21 law judge recommends in favor of the department, the
22 department shall perform an actuarial review, or prepare the
23 statement of actuarial impact, or collect the requested
24 material information. The cost to the department of performing
25 such actuarial review, or preparing the such statement, or
26 collecting the requested material information shall be charged
27 to the affected governmental entity of which the employees are
28 covered by the retirement system or plan. If payment of such
29 costs is not received by the department within 60 days after
30 receipt by the affected governmental entity of the request for
31 payment, the department shall certify to the Department of
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1 Revenue and the Department of Financial Services Chief
2 Financial Officer the amount due, and the Department of
3 Revenue and the Department of Financial Services Chief
4 Financial Officer shall pay such amount to the Department of
5 Management Services from any funds not pledged for
6 satisfaction of bond debt service which are payable to the
7 affected governmental entity of which the employees are
8 covered by the retirement system or plan. If the
9 administrative law judge recommends in favor of the affected
10 governmental entity local retirement system and the department
11 performs an actuarial review, prepares the statement of
12 actuarial impact, or collects the requested material
13 information, the cost to the department of performing the
14 actuarial review, preparing the statement, or collecting the
15 requested material information shall be paid by the Department
16 of Management Services.
17 (b) In the case of an affected special district, the
18 Department of Management Services shall also notify the
19 Department of Community Affairs. Upon receipt of notification,
20 the Department of Community Affairs shall proceed pursuant to
21 the provisions of s. 189.421 with regard to the special
22 district.
23 Section 9. Section 130.04, Florida Statutes, is
24 amended to read:
25 130.04 Sale Notice for bids and disposition of
26 bonds.--In case the issuing of bonds shall be authorized by
27 the result of such election, the county commissioners shall
28 sell the bonds in the manner provided in s. 218.385. cause
29 notice to be given by publication in a newspaper published in
30 the county, or in some newspaper published in the same
31 judicial circuit, if there be none published in the county,
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1 that they will receive bids for the purchase of county bonds
2 at the clerk's office, on a date not less than 10 days nor
3 more than 60 days from the first publication of such notice.
4 The notice shall specify the amount of bonds offered for sale,
5 the rate of interest, and the time when principal and
6 installments of interest shall be due and payable. Any and all
7 bids shall be rejected if the commissioners shall deem it to
8 the best interest for the county so to do, and they may cause
9 a new notice to be given in like manner inviting other bids
10 for said bonds; provided, that when the rate of interest on
11 said bonds exceeds 5 percent per annum, said bonds shall not
12 be sold for less than 95 cents on the dollar, but when any
13 bonds have heretofore been provided for by election, and the
14 rate of interest is 5 percent per annum, or less, that in such
15 cases the county commissioners may accept less than 95 cents
16 upon the dollar, in the sale of said bonds, or for any portion
17 of said bonds not already sold; provided, however, no bonds
18 shall be sold for less than 90 cents on the dollar.
19 Section 10. Subsection (1) of section 132.02, Florida
20 Statutes, is amended to read:
21 132.02 Taxing units may refund obligations.--
22 (1) Each county, municipality, city, town, special
23 road and bridge district, special tax school district, or and
24 other taxing district districts in this state, herein
25 sometimes called a unit, may issue, pursuant to a resolution
26 or resolutions of the governing body thereof (meaning thereby
27 the board or body vested with the power of determining the
28 amount of tax levies required for taxing the taxable property
29 of such unit for the purpose of such unit) and either with or
30 without the approval of such bonds at an election, except as
31 may be required by the Constitution of the state, bonds of
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1 such unit for the purpose of refunding any or all bonds,
2 coupons, or interest on any such bonds, or coupons or paving
3 certificates of indebtedness or interest on any such paving
4 certificates of indebtedness, now or hereafter outstanding, or
5 any other funded debt, all of which are herein referred to as
6 bonds, whether such unit created such indebtedness or has
7 assumed, or may become liable therefor, and whether
8 indebtedness to be refunded has matured or to thereafter
9 become matured.
10 Section 11. Section 132.09, Florida Statutes, is
11 amended to read:
12 132.09 Sale of bonds Notice of sale; bids and award;
13 private sale.--When sold, the refunding bonds (except as
14 otherwise expressly provided) shall be sold in the manner
15 provided in s. 218.385 pursuant to the terms of a notice of
16 sale which shall be published at least twice. The first
17 publication to be not less than 7 days before the date fixed
18 for the sale and to be published in a newspaper published in
19 the unit, or if no newspaper is published in the unit, then in
20 a newspaper published in the county, or if no newspaper is
21 published in the county, then in a newspaper published in
22 Tallahassee, and in the discretion of the governing body of
23 the unit may be published in a financial newspaper in the City
24 of New York. Such notices shall state the time and place and
25 when and where sealed bids will be received, shall state the
26 amount of bonds, their dates, maturities, denominations and
27 interest rate or rates (which may be a maximum rate), interest
28 payment dates, an outline of the terms, if any, on which they
29 are redeemable or become payable before maturity, the amount
30 which must be deposited with the bid to secure its performance
31 if accepted, and such other pertinent information as the
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1 governing body of the unit may determine. The notice of sale
2 may require the bidders to fix the interest rate or rates that
3 the bonds are to bear subject to the terms of the notice and
4 the maximum rate permitted by this chapter. The award of the
5 bonds shall be made by the governing body of the unit to the
6 bidder making the most advantageous bid which shall be
7 determined by the governing body in its absolute and
8 uncontrolled discretion. The right to reject all bids shall
9 be reserved to the governing body of the unit. If no bids are
10 received at such public sale, or if all bids are rejected, the
11 bonds may be sold without notice at private sale at any time
12 within one year thereafter, but such bonds shall not be sold
13 at private sale on terms less favorable to the unit than were
14 contained in the best bid at the prior public sale.
15 Section 12. Paragraph (a) of subsection (2) of section
16 163.05, Florida Statutes, is amended to read:
17 163.05 Small County Technical Assistance Program.--
18 (2) Recognizing the findings in subsection (1), the
19 Legislature declares that:
20 (a) The financial difficulties fiscal emergencies
21 confronting small counties require an investment that will
22 facilitate efforts to improve the productivity and efficiency
23 of small counties' structures and operating procedures.
24 Section 13. Subsection (2) of section 166.121, Florida
25 Statutes, is amended to read:
26 166.121 Issuance of bonds.--
27 (2) The governing body of a municipality shall
28 determine the terms and manner of sale and distribution or
29 other disposition of any and all bonds it may issue,
30 consistent with the provisions of s. 218.385, and shall have
31
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1 any and all powers necessary or convenient to such
2 disposition.
3 Section 14. Section 166.241, Florida Statutes, is
4 amended to read:
5 166.241 Fiscal years, financial reports,
6 appropriations, and budgets, and budget amendments.--
7 (1) Each municipality shall report its finances
8 annually as provided by general law.
9 (1)(2) Each municipality shall make provision for
10 establishing a fiscal year beginning October 1 of each year
11 and ending September 30 of the following year.
12 (2)(3) The governing body of each municipality shall
13 adopt a budget each fiscal year. The budget must be adopted by
14 ordinance or resolution unless otherwise specified in the
15 respective municipality's charter. The amount available from
16 taxation and other sources, including amounts carried over
17 from prior fiscal years, must equal the total appropriations
18 for expenditures and reserves. The budget must regulate
19 expenditures of the municipality, and it is unlawful for any
20 officer of a municipal government to expend or contract for
21 expenditures in any fiscal year except in pursuance of
22 budgeted appropriations.
23 (3) The governing body of each municipality at any
24 time within a fiscal year or within up to 60 days following
25 the end of the fiscal year may amend a budget for that year as
26 follows:
27 (a) Appropriations for expenditures within a fund may
28 be decreased or increased by motion recorded in the minutes,
29 provided that the total of the appropriations of the fund is
30 not changed.
31
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1 (b) The governing body may establish procedures by
2 which the designated budget officer may authorize certain
3 budget amendments within a department, provided that the total
4 of the appropriations of the department is not changed.
5 (c) If a budget amendment is required for a purpose
6 not specifically authorized in paragraph (a) or paragraph (b),
7 the budget amendment must be adopted in the same manner as the
8 original budget unless otherwise specified in the charter of
9 the respective municipality.
10 Section 15. Paragraph (b) of subsection (1) of section
11 175.261, Florida Statutes, is amended to read:
12 175.261 Annual report to Division of Retirement;
13 actuarial valuations.--For any municipality, special fire
14 control district, chapter plan, local law municipality, local
15 law special fire control district, or local law plan under
16 this chapter, the board of trustees for every chapter plan and
17 local law plan shall submit the following reports to the
18 division:
19 (1) With respect to chapter plans:
20 (b) In addition to annual reports provided under
21 paragraph (a), by February 1 of each triennial year, an
22 actuarial valuation of the chapter plan must be made by the
23 division at least once every 3 years, as provided in s.
24 112.63, commencing 3 years from the last actuarial valuation
25 of the plan or system for existing plans, or commencing 3
26 years from issuance of the initial actuarial impact statement
27 submitted under s. 112.63 for newly created plans. To that
28 end, the chair of the board of trustees for each firefighters'
29 pension trust fund operating under a chapter plan shall report
30 to the division such data as it needs to complete an actuarial
31 valuation of each fund. The forms for each municipality and
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1 special fire control district shall be supplied by the
2 division. The expense of this actuarial valuation shall be
3 borne by the firefighters' pension trust fund established by
4 ss. 175.041 and 175.121. The requirements of this section are
5 supplemental to the actuarial valuations necessary to comply
6 with s. ss. 218.321 and 218.39.
7 Section 16. Paragraph (b) of subsection (1) of section
8 185.221, Florida Statutes, is amended to read:
9 185.221 Annual report to Division of Retirement;
10 actuarial valuations.--For any municipality, chapter plan,
11 local law municipality, or local law plan under this chapter,
12 the board of trustees for every chapter plan and local law
13 plan shall submit the following reports to the division:
14 (1) With respect to chapter plans:
15 (b) In addition to annual reports provided under
16 paragraph (a), by February 1 of each triennial year, an
17 actuarial valuation of the chapter plan must be made by the
18 division at least once every 3 years, as provided in s.
19 112.63, commencing 3 years from the last actuarial valuation
20 of the plan or system for existing plans, or commencing 3
21 years from the issuance of the initial actuarial impact
22 statement submitted under s. 112.63 for newly created plans.
23 To that end, the chair of the board of trustees for each
24 municipal police officers' retirement trust fund operating
25 under a chapter plan shall report to the division such data as
26 the division needs to complete an actuarial valuation of each
27 fund. The forms for each municipality shall be supplied by
28 the division. The expense of the actuarial valuation shall be
29 borne by the municipal police officers' retirement trust fund
30 established by s. 185.10. The requirements of this section are
31
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1 supplemental to the actuarial valuations necessary to comply
2 with s. ss. 218.321 and 218.39.
3 Section 17. Section 189.4044, Florida Statutes, is
4 amended to read:
5 189.4044 Special procedures for inactive districts.--
6 (1) The department shall declare inactive any special
7 district in this state by documenting that filing a report
8 with the Speaker of the House of Representatives and the
9 President of the Senate which shows that such special district
10 is no longer active. The inactive status of the special
11 district must be based upon a finding:
12 (a) That The special district meets one of the
13 following criteria:
14 1. The registered agent of the district, the chair of
15 the governing body of the district, or the governing body of
16 the appropriate local general-purpose government notifies the
17 department in writing that the district has taken no action
18 for 2 or more calendar years;
19 2. Following an inquiry from the department, the
20 registered agent of the district, the chair of the governing
21 body of the district, or the governing body of the appropriate
22 local general-purpose government notifies the department in
23 writing that the district has not had a governing board or a
24 sufficient number of governing board members to constitute a
25 quorum for 2 or more years or the registered agent of the
26 district, the chair of the governing body of the district, or
27 the governing body of the appropriate local general-purpose
28 government fails to respond to the department's inquiry within
29 21 days; or 18 or more months;
30
31
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1 3. The department determines, pursuant to s. 189.421,
2 that the district has failed to file or make a good faith
3 effort to file any of the reports listed in s. 189.419.; or
4 4. The district has failed, for 2 consecutive fiscal
5 years, to pay fees assessed by the Special District
6 Information Program pursuant to this chapter.
7 (b) The department, special district, or local
8 general-purpose government published That a notice of the
9 proposed declaration of inactive status has been published
10 once a week for 2 weeks in a newspaper of general circulation
11 in within the county or municipality in which wherein the
12 territory of the special district is located and sent a copy
13 of such notice by certified mail to the registered agent or
14 chair of the board, if any. Such notice must include, stating
15 the name of the said special district, the law under which it
16 was organized and operating, a general description of the
17 territory included in the said special district, and a
18 statement stating that any objections must be filed pursuant
19 to chapter 120 within 21 days after the publication date to
20 the proposed declaration or to any claims against the assets
21 of said special district shall be filed not later than 60 days
22 following the date of last publication with the department;
23 and
24 (c) Twenty-one That 60 days have elapsed from the last
25 publication date of the notice of proposed declaration of
26 inactive status and no administrative appeals were sustained
27 objections have been filed.
28 (2) If any special district is declared inactive
29 pursuant to this section, the property or assets of the
30 special district are subject to legal process for payment of
31 any debts of the district. After the payment of all the debts
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1 of said inactive special district, the remainder of its
2 property or assets shall escheat to the county or municipality
3 wherein located. If, however, it shall be necessary, in order
4 to pay any such debt, to levy any tax or taxes on the property
5 in the territory or limits of the inactive special district,
6 the same may be assessed and levied by order of the local
7 general-purpose government wherein the same is situated and
8 shall be assessed by the county property appraiser and
9 collected by the county tax collector.
10 (3) In the case of a district created by special act
11 of the Legislature, the department shall send a notice of
12 declaration of inactive status to notify the Speaker of the
13 House of Representatives and the President of the Senate. The
14 notice of declaration of inactive status shall reference of
15 each known special act creating or amending the charter of any
16 special district declared to be inactive under this
17 section. The declaration of inactive status shall be
18 sufficient notice as required by s. 10, Art. III of the State
19 Constitution to authorize the Legislature to repeal any
20 special laws so reported. In the case of a district created by
21 one or more local general-purpose governments, the department
22 shall send a notice of declaration of inactive status to the
23 chair of the governing body of each local general-purpose
24 government that created the district. In the case of a
25 district created by interlocal agreement, the department shall
26 send a notice of declaration of inactive status to the chair
27 of the governing body of each local general-purpose government
28 which entered into the interlocal agreement.
29 (4) The entity that created a special district
30 declared inactive under this section must dissolve the special
31
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1 district be dissolved by repealing repeal of its enabling laws
2 or by other appropriate means.
3 Section 18. Subsection (1) of section 189.412, Florida
4 Statutes, is amended, and subsection (8) is added to that
5 section, to read:
6 189.412 Special District Information Program; duties
7 and responsibilities.--The Special District Information
8 Program of the Department of Community Affairs is created and
9 has the following special duties:
10 (1) The collection and maintenance of special district
11 noncompliance compliance status reports from the Department of
12 Management Services Auditor General, the Department of
13 Financial Services, the Division of Bond Finance of the State
14 Board of Administration, and the Auditor General the
15 Department of Management Services, the Department of Revenue,
16 and the Commission on Ethics for the reporting required in ss.
17 112.3144, 112.3145, 112.3148, 112.3149, 112.63, 200.068,
18 218.32, 218.38, and 218.39, and 280.17 and chapter 121 and
19 from state agencies administering programs that distribute
20 money to special districts. The noncompliance special district
21 compliance status reports must list those consist of a list of
22 special districts used in that state agency and a list of
23 which special districts that did not comply with the statutory
24 reporting requirements statutorily required by that agency.
25 (8) Providing assistance to local general-purpose
26 governments and certain state agencies in collecting
27 delinquent reports or information, helping special districts
28 comply with reporting requirements, declaring special
29 districts inactive when appropriate, and, when directed by the
30 Legislative Auditing Committee, initiating enforcement
31 provisions as provided in ss. 189.4044, 189.419, and 189.421.
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1 Section 19. Subsections (1) and (2) of section
2 189.418, Florida Statutes, are amended, subsection (5) is
3 renumbered as subsection (6), present subsection (6) is
4 renumbered as subsection (7) and amended, and a new subsection
5 (5) is added to that section, to read:
6 189.418 Reports; budgets; audits.--
7 (1) When a new special district is created, the
8 district must forward to the department, within 30 days after
9 the adoption of the special act, rule, ordinance, resolution,
10 or other document that provides for the creation of the
11 district, a copy of the document and a written statement that
12 includes a reference to the status of the special district as
13 dependent or independent and the basis for such
14 classification. In addition to the document or documents that
15 create the district, the district must also submit a map of
16 the district, showing any municipal boundaries that cross the
17 district's boundaries, and any county lines if the district is
18 located in more than one county. The department must notify
19 the local government or other entity and the district within
20 30 days after receipt of the document or documents that create
21 the district as to whether the district has been determined to
22 be dependent or independent.
23 (2) Any amendment, modification, or update of the
24 document by which the district was created, including changes
25 in boundaries, must be filed with the department within 30
26 days after adoption. The department may initiate proceedings
27 against special districts as provided in s. ss. 189.421 and
28 189.422 for failure to file the information required by this
29 subsection.
30 (5) The governing body of each special district at any
31 time within a fiscal year or within up to 60 days following
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1 the end of the fiscal year may amend a budget for that
2 year. The budget amendment must be adopted by resolution.
3 (7)(6) All reports or information required to be filed
4 with a local governing authority under ss. 189.415, 189.416,
5 and 189.417, 218.32, and 218.39 and this section shall:
6 (a) When the local governing authority is a county, be
7 filed with the clerk of the board of county commissioners.
8 (b) When the district is a multicounty district, be
9 filed with the clerk of the county commission in each county.
10 (c) When the local governing authority is a
11 municipality, be filed at the place designated by the
12 municipal governing body.
13 Section 20. Section 189.419, Florida Statutes, is
14 amended to read:
15 189.419 Effect of failure to file certain reports or
16 information.--
17 (1) If a special district fails to file the reports or
18 information required under s. 189.415, s. 189.416, or s.
19 189.417, s. 189.418, s. 218.32, or s. 218.39 and a description
20 of all new bonds as provided in s. 218.38(1) with the local
21 governing authority, the person authorized to receive and read
22 the reports or information shall notify the district's
23 registered agent and the appropriate local governing authority
24 or authorities. If requested by the district At any time, the
25 governing authority shall may grant an extension of time of up
26 to 30 days for filing the required reports or information,
27 except that an extension may not exceed 30 days.
28 (2) If at any time the local governing authority or
29 authorities or the board of county commissioners determines
30 that there has been an unjustified failure to file the reports
31 or information described in subsection (1), it may notify
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1 petition the department and the department may proceed
2 pursuant to initiate proceedings against the special district
3 in the manner provided in s. 189.421.
4 (3) If a special district fails to file the reports or
5 information required under s. 112.63, s. 218.32, s. 218.38, or
6 s. 218.39 with the appropriate state agency, the agency shall
7 notify the department, and the department shall proceed
8 pursuant to s. 189.421 may initiate proceedings against the
9 special district in the manner provided in s. 189.421 or
10 assess fines of not more than $25, with an aggregate total not
11 to exceed $50, when formal inquiries do not resolve the
12 noncompliance.
13 Section 21. Section 189.421, Florida Statutes, is
14 amended to read:
15 (Substantial rewording of section. See
16 s. 189.421, F.S., for present text.)
17 189.421 Failure of district to disclose financial
18 reports.--
19 (1) When notified pursuant to s. 189.419, the
20 department shall attempt to assist a special district to
21 comply with its financial reporting requirements by sending a
22 certified letter to the special district, and a copy of the
23 letter to the chair of the governing body of the local
24 general-purpose government, which includes the following: a
25 description of the required report, including statutory
26 submission deadlines, a contact telephone number for technical
27 assistance to help the special district comply, a 60-day
28 extension of time for filing the required report with the
29 appropriate entity, the address where the report must be
30 filed, and an explanation of the penalties for
31 noncompliance. The department may grant an additional 30-day
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1 extension of time if requested to do so in writing by the
2 special district. The department shall notify the appropriate
3 entity of the new extension of time. In the case of a special
4 district that did not timely file the reports or information
5 required by s. 218.38, the department shall send a certified
6 technical assistance letter to the special district which
7 summarizes the requirements and encourages the special
8 district to take steps to prevent the noncompliance from
9 reoccurring.
10 (2) Failure of a special district to comply with the
11 financial reporting requirements after the procedures of
12 subsection (1) are exhausted shall be deemed final action of
13 the special district. The financial reporting requirements
14 are declared to be essential requirements of law. Remedy for
15 noncompliance shall be by writ of certiorari as set forth in
16 subsection (3).
17 (3) Pursuant to s. 11.40(5)(b), the Legislative
18 Auditing Committee shall notify the department of those
19 districts that failed to file the required report. Within 30
20 days after receiving this notice or within 30 days after the
21 extension date provided in subsection (1), whichever occurs
22 later, the department shall proceed as follows:
23 notwithstanding the provisions of chapter 120, the department
24 shall file a petition for writ of certiorari with the circuit
25 court. Venue for all actions pursuant to this subsection shall
26 be in Leon County. The court shall award the prevailing party
27 attorney's fees and costs in all cases filed pursuant to this
28 section unless affirmatively waived by all parties. A writ of
29 certiorari shall be issued unless a respondent establishes
30 that the notification of the Legislative Auditing Committee
31 was issued as a result of material error. Proceedings under
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1 this subsection shall otherwise be governed by the Rules of
2 Appellate Procedure.
3 Section 22. Subsection (5) of section 189.428, Florida
4 Statutes, is amended to read:
5 189.428 Special districts; oversight review process.--
6 (5) Those conducting the oversight review process
7 shall, at a minimum, consider the listed criteria for
8 evaluating the special district, but may also consider any
9 additional factors relating to the district and its
10 performance. If any of the listed criteria does do not apply
11 to the special district being reviewed, it they need not be
12 considered. The criteria to be considered by the reviewer
13 include:
14 (a) The degree to which the service or services
15 offered by the special district are essential or contribute to
16 the well-being of the community.
17 (b) The extent of continuing need for the service or
18 services currently provided by the special district.
19 (c) The extent of municipal annexation or
20 incorporation activity occurring or likely to occur within the
21 boundaries of the special district and its impact on the
22 delivery of services by the special district.
23 (d) Whether there is a less costly alternative method
24 of delivering the service or services that would adequately
25 provide the district residents with the services provided by
26 the district.
27 (e) Whether transfer of the responsibility for
28 delivery of the service or services to an entity other than
29 the special district being reviewed could be accomplished
30 without jeopardizing the district's existing contracts, bonds,
31 or outstanding indebtedness.
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1 (f) Whether the Auditor General has notified the
2 Legislative Auditing Committee that the special district's
3 audit report, reviewed pursuant to s. 11.45(7), indicates that
4 the district has met any of the conditions specified in s.
5 218.503(1) or that a deteriorating financial condition exists
6 that may cause a condition described in s. 218.503(1) to occur
7 if actions are not taken to address such condition.
8 (g) Whether the Auditor General has determined that
9 the special district is in a state of financial emergency as
10 provided in s. 218.503(1), and has notified the Governor and
11 the Legislative Auditing Committee.
12 (g)(h) Whether the district is inactive according to
13 the official list of special districts, and whether the
14 district is meeting and discharging its responsibilities as
15 required by its charter, as well as projected increases or
16 decreases in district activity.
17 (h)(i) Whether the special district has failed to
18 comply with any of the reporting requirements in this chapter,
19 including preparation of the public facilities report.
20 (i)(j) Whether the special district has designated a
21 registered office and agent as required by s. 189.416, and has
22 complied with all open public records and meeting
23 requirements.
24 Section 23. Paragraph (a) of subsection (1) of section
25 189.439, Florida Statutes, is amended to read:
26 189.439 Bonds.--
27 (1) AUTHORIZATION AND FORM OF BONDS.--
28 (a) The authority may issue and sell bonds for any
29 purpose for which the authority has the power to expend money,
30 including, without limitation, the power to obtain working
31 capital loans to finance the costs of any project and to
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1 refund any bonds or other indebtedness at the time outstanding
2 at or before maturity. Bonds may be sold in the manner
3 provided in s. 218.385 and by public or negotiated sale after
4 advertisement, if any, as the board considers
5 advisable. Bonds may be authorized by resolution of the
6 board.
7 Section 24. Subsections (1) and (2) of section
8 191.005, Florida Statutes, are amended to read:
9 191.005 District boards of commissioners; membership,
10 officers, meetings.--
11 (1)(a) With the exception of districts whose governing
12 boards are appointed collectively by the Governor, the county
13 commission, and any cooperating city within the county, the
14 business affairs of each district shall be conducted and
15 administered by a five-member board. All three-member boards
16 existing on the effective date of this act shall be converted
17 to five-member boards, except those permitted to continue as a
18 three-member board by special act adopted in 1997 or
19 thereafter. The board shall be elected in nonpartisan
20 elections by the electors of the district. Except as provided
21 in this act, such elections shall be held at the time and in
22 the manner prescribed by law for holding general elections in
23 accordance with s. 189.405(2)(a) and (3), and each member
24 shall be elected for a term of 4 years and serve until the
25 member's successor assumes office. Candidates for the board of
26 a district shall qualify with the county supervisor of
27 elections in whose jurisdiction the district is located. If
28 the district is a multicounty district, candidates shall
29 qualify with the Department of State. All candidates may
30 qualify by paying a filing fee of $25 or by obtaining the
31 signatures of at least 25 registered electors of the district
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1 on petition forms provided by the supervisor of elections
2 which petitions shall be submitted and checked in the same
3 manner as petitions filed by nonpartisan judicial candidates
4 pursuant to s. 105.035. Notwithstanding s. 106.021, a
5 candidate who does not collect contributions and whose only
6 expense is the filing fee is not required to appoint a
7 campaign treasurer or designate a primary campaign depository.
8 (b)1. At the next general election following the
9 effective date of this act, or on or after the effective date
10 of a special act or general act of local application creating
11 a new district, the members of the board shall be elected by
12 the electors of the district in the manner provided in this
13 section. The office of each member of the board is designated
14 as being a seat on the board, distinguished from each of the
15 other seats by a numeral: 1, 2, 3, 4, or 5. The numerical
16 seat designation does not designate a geographical subdistrict
17 unless such subdistrict exists on the effective date of this
18 act, in which case the candidates must reside in the
19 subdistrict, and only electors of the subdistrict may vote in
20 the election for the member from that subdistrict. Each
21 candidate for a seat on the board shall designate, at the time
22 the candidate qualifies, the seat on the board for which the
23 candidate is qualifying. The name of each candidate who
24 qualifies for election to a seat on the board shall be
25 included on the ballot in a way that clearly indicates the
26 seat for which the candidate is a candidate. The candidate
27 for each seat who receives the most votes cast for a candidate
28 for the seat shall be elected to the board.
29 2. If, on the effective date of this act, a district
30 presently in existence elects members of its board, the next
31 election shall be conducted in accordance with this section,
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1 but this section does not require the early expiration of any
2 member's term of office by more than 60 days.
3 3. If, on the effective date of this act, a district
4 does not elect the members of its board, the entire board
5 shall be elected in accordance with this section. However, in
6 the first election following the effective date of this act,
7 seats 1, 3, and 5 shall be designated for 4-year terms and
8 seats 2 and 4 shall be designated for 2-year terms.
9 4. If, on the effective date of this act, the district
10 has an elected three-member board, one of the two seats added
11 by this act shall, for the first election following the
12 effective date of this act, be designated for a 4-year term
13 and the other for a 2-year term, unless the terms of the three
14 existing seats all expire within 6 months of the first
15 election following the effective date of this act, in which
16 case seats 1, 3, and 5 shall be designated for 4-year terms
17 and seats 2 and 4 shall be designated for 2-year terms.
18 5. If the district has an elected three-member board
19 designated to remain three members by special act adopted in
20 1997 or thereafter, the terms of the board members shall be
21 staggered. In the first election following the effective date
22 of this act, seats 1 and 3 shall be designated for 4-year
23 terms, and seat 2 for a 2-year term.
24 (c) The board of any district may request the local
25 legislative delegation that represents the area within the
26 district to create by special law geographical subdistricts
27 for board seats. Any board of five members or larger elected
28 on a subdistrict basis as of the effective date of this act
29 shall continue to elect board members from such previously
30 designated subdistricts, and this act shall not require the
31 elimination of board seats from such boards.
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1 (2) Each member of the board must be a qualified
2 elector at the time he or she qualifies and continually
3 throughout his or her term. Any board members who ceases to be
4 a qualified elector is automatically removed pursuant to this
5 act.
6 Section 25. Section 218.075, Florida Statutes, is
7 amended to read:
8 218.075 Reduction or waiver of permit processing
9 fees.--Notwithstanding any other provision of law, the
10 Department of Environmental Protection and the water
11 management districts shall reduce or waive permit processing
12 fees for counties with a population of 50,000 or less on April
13 1, 1994, until such counties exceed a population of 75,000 and
14 municipalities with a population of 25,000 or less, or any
15 county or municipality not included within a metropolitan
16 statistical area. Fee reductions or waivers shall be approved
17 on the basis of fiscal hardship or environmental need for a
18 particular project or activity. The governing body must
19 certify that the cost of the permit processing fee is a fiscal
20 hardship due to one of the following factors:
21 (1) Per capita taxable value is less than the
22 statewide average for the current fiscal year;
23 (2) Percentage of assessed property value that is
24 exempt from ad valorem taxation is higher than the statewide
25 average for the current fiscal year;
26 (3) Any condition specified in s. 218.503(1) which
27 results in the county or municipality being in s. 218.503,
28 that determines a state of financial emergency;
29 (4) Ad valorem operating millage rate for the current
30 fiscal year is greater than 8 mills; or
31
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1 (5) A financial condition that is documented in annual
2 financial statements at the end of the current fiscal year and
3 indicates an inability to pay the permit processing fee during
4 that fiscal year.
5
6 The permit applicant must be the governing body of a county or
7 municipality or a third party under contract with a county or
8 municipality and the project for which the fee reduction or
9 waiver is sought must serve a public purpose. If a permit
10 processing fee is reduced, the total fee shall not exceed
11 $100.
12 Section 26. Subsection (3) is added to section 218.32,
13 Florida Statutes, to read:
14 218.32 Annual financial reports; local governmental
15 entities.--
16 (3) The department shall notify the President of the
17 Senate and the Speaker of the House of Representatives of any
18 municipality that has not reported any financial activity for
19 the last 4 fiscal years. Such notice must be sufficient to
20 initiate dissolution procedures as described in s.
21 165.051(1)(a). Any special law authorizing the incorporation
22 or creation of the municipality must be included within the
23 notification.
24 Section 27. Section 218.321, Florida Statutes, is
25 repealed.
26 Section 28. Subsection (3) of section 218.39, Florida
27 Statutes, is amended to read:
28 218.39 Annual financial audit reports.--
29 (3)(a) A dependent special district may make provision
30 for an annual financial audit by being included within the
31 audit of another local governmental entity upon which it is
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1 dependent. An independent special district may not make
2 provision for an annual financial audit by being included
3 within the audit of another local governmental entity.
4 (b) A special district that is a component unit, as
5 defined by generally accepted accounting principles, of a
6 local government entity shall provide the local governmental
7 entity, within a reasonable time period as established by the
8 local governmental entity, with financial information
9 necessary to comply with this section. The failure of a
10 component unit to provide this financial information must be
11 noted in the annual financial audit report of the local
12 governmental entity.
13 Section 29. Subsection (3) of section 218.36, Florida
14 Statutes, is amended to read:
15 218.36 County officers; record and report of fees and
16 disposition of same.--
17 (3) The board of county commissioners may shall, on
18 the 32nd day following the close of the fiscal year, notify
19 the Governor of the failure of any county officer to comply
20 with the provisions of this section. Such notification shall
21 specify the name of the officer and the office held by him or
22 her at the time of such failure and shall subject said officer
23 to suspension from office at the Governor's discretion.
24 Section 30. Section 218.369, Florida Statutes, is
25 amended to read:
26 218.369 Definitions applicable to ss.
27 218.37-218.386.--As used in this section and in ss. 218.37,
28 218.38, 218.385, and 218.386, the term "unit of local
29 government," except where exception is made, means a county,
30 municipality, special district, district school board, local
31 agency, authority, or consolidated city-county government or
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1 any other local governmental body or public body corporate and
2 politic authorized or created by general or special law and
3 granted the power to issue general obligation or revenue
4 bonds; and the words "general obligation or revenue bonds"
5 shall be interpreted to include within their scope general
6 obligation bonds, revenue bonds, special assessment bonds,
7 limited revenue bonds, special obligation bonds, debentures,
8 and other similar instruments, but not bond anticipation
9 notes.
10 Section 31. Part V of chapter 218, Florida Statutes,
11 entitled "Financial Emergencies" is renamed "Local
12 Governmental Entity and District School Board Financial
13 Emergencies."
14 Section 32. Section 218.50, Florida Statutes, is
15 amended to read:
16 218.50 Short title.--Sections 218.50-218.504 may be
17 cited shall be known as the "Local Governmental Entity and
18 District School Board Government Financial Emergencies Act."
19 Section 33. Section 218.501, Florida Statutes, is
20 amended to read:
21 218.501 Purposes.--The purposes of ss. 218.50-218.504
22 are:
23 (1) To promote preserve and protect the fiscal
24 responsibility solvency of local governmental entities and
25 district school boards.
26 (2) To assist local governmental entities and district
27 school boards in providing essential services without
28 interruption and in meeting their financial obligations.
29 (3) To assist local governmental entities and district
30 school boards through the improvement of local financial
31 management procedures.
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1 Section 34. Section 218.502, Florida Statutes, is
2 amended to read:
3 218.502 Definition.--As used in ss. 218.50-218.504,
4 the term "local governmental entity" means a county,
5 municipality, or special district, or district school board.
6 Section 35. Section 218.503, Florida Statutes, is
7 amended to read:
8 218.503 Determination of financial emergency.--
9 (1) A Local governmental entities and district school
10 boards shall be subject to review and oversight by the
11 Governor or the Commissioner of Education entity is in a state
12 of financial emergency when any one of the following
13 conditions occurs:
14 (a) Failure within the same fiscal year in which due
15 to pay short-term loans from banks or failure to make bond
16 debt service or other long-term debt payments when due, as a
17 result of a lack of funds.
18 (b) Failure to pay uncontested claims from creditors
19 within 90 days after the claim is presented, as a result of a
20 lack of funds.
21 (c)(b) Failure to transfer at the appropriate time,
22 due to lack of funds:
23 1. Taxes withheld on the income of employees; or
24 2. Employer and employee contributions for:
25 a. Federal social security; or
26 b. Any pension, retirement, or benefit plan of an
27 employee.
28 (d)(c) Failure for one pay period to pay, due to lack
29 of funds:
30 1. Wages and salaries owed to employees; or
31 2. Retirement benefits owed to former employees.
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1 (e)(d) An unreserved or total fund balance or retained
2 earnings deficit, or unrestricted or total net assets deficit,
3 as reported on the balance sheet or statement of net assets on
4 the general purpose or basic financial statements, for which
5 sufficient resources of the local governmental entity, as
6 reported on the balance sheet or statement of net assets on
7 the general purpose or basic financial statements, are not
8 available to cover the deficit for 2 successive years.
9 Resources available to cover reported deficits include net
10 assets that are not otherwise restricted by federal, state, or
11 local laws, bond covenants, contractual agreements, or other
12 legal constraints. Fixed or capital assets, the disposal of
13 which would impair the ability of a local governmental entity
14 to carry out its functions, are not considered resources
15 available to cover reported deficits.
16 (e) Noncompliance of the local government retirement
17 system with actuarial conditions provided by law.
18 (2) A local governmental entity shall notify the
19 Governor and the Legislative Auditing Committee, and a
20 district school board shall notify the Commissioner of
21 Education and the Legislative Auditing Committee, when one or
22 more of the conditions specified in subsection (1) have
23 occurred or will occur if action is not taken to assist the
24 local governmental entity or district school board. In
25 addition, any state agency must, within 30 days after a
26 determination that one or more of the conditions specified in
27 subsection (1) have occurred or will occur if action is not
28 taken to assist the local governmental entity or district
29 school board the identification of the financial emergency,
30 notify the Governor or the Commissioner of Education, as
31 appropriate, and the Legislative Auditing Committee when one
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1 or more of the conditions specified in subsection (1) have
2 occurred or will occur if action is not taken to assist a
3 local governmental entity.
4 (3) Upon notification that one or more of the
5 conditions in subsection (1) exist, the Governor or his or her
6 designee shall contact the local governmental entity or the
7 Commissioner of Education or his or her designee shall contact
8 the district school board to determine what actions have been
9 taken by the local governmental entity or the district school
10 board to resolve the condition financial emergency. The
11 Governor or the Commissioner of Education, as appropriate,
12 shall determine whether the local governmental entity or the
13 district school board needs state assistance to resolve the
14 condition. If state assistance is needed, the local
15 governmental entity or district school board is considered to
16 be in a state of financial emergency. The Governor or the
17 Commissioner of Education, as appropriate, has the authority
18 to implement measures as set forth in ss. 218.50-218.504 to
19 assist the local governmental entity or district school board
20 in resolving resolve the financial emergency. Such measures
21 may include, but are not limited to:
22 (a) Requiring approval of the local governmental
23 entity's budget by the Governor or approval of the district
24 school board's budget by the Commissioner of Education.
25 (b) Authorizing a state loan to a the local
26 governmental entity and providing for repayment of same.
27 (c) Prohibiting a local governmental entity or
28 district school board from issuing bonds, notes, certificates
29 of indebtedness, or any other form of debt until such time as
30 it is no longer subject to this section.
31
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1 (d) Making such inspections and reviews of records,
2 information, reports, and assets of the local governmental
3 entity or district school board. The appropriate local
4 officials shall cooperate in such, in which inspections and
5 reviews the appropriate local officials shall cooperate.
6 (e) Consulting with the officials and auditors of the
7 local governmental entity or the district school board and the
8 appropriate state officials agency regarding any steps
9 necessary to bring the books of account, accounting systems,
10 financial procedures, and reports into compliance with state
11 requirements.
12 (f) Providing technical assistance to the local
13 governmental entity or the district school board.
14 (g)1. Establishing a financial emergency emergencies
15 board to oversee the activities of the local governmental
16 entity or the district school board. If a financial emergency
17 The board, if is established for a local governmental entity,
18 shall be appointed by the Governor shall appoint board members
19 and select a chair. If a financial emergency board is
20 established for a district school board, the State Board of
21 Education shall appoint board members and select a chair. The
22 Governor shall select a chair and such other officers as are
23 necessary. The financial emergency board shall adopt such
24 rules as are necessary for conducting board business. The
25 board may:
26 a. Make such reviews of records, reports, and assets
27 of the local governmental entity or the district school board
28 as are needed.
29 b. Consult with the officials and auditors of the
30 local governmental entity or the district school board and the
31 appropriate state officials regarding any steps necessary to
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1 bring the books of account, accounting systems, financial
2 procedures, and reports of the local governmental entity or
3 the district school board into compliance with state
4 requirements.
5 c. Review the operations, management, efficiency,
6 productivity, and financing of functions and operations of the
7 local governmental entity or the district school board.
8 2. The recommendations and reports made by the
9 financial emergency board must be submitted to the Governor
10 for local governmental entities or to the Commissioner of
11 Education and the State Board of Education for district school
12 boards for appropriate action.
13 (h) Requiring and approving a plan, to be prepared by
14 officials of the appropriate state agency in conjunction with
15 the local governmental entity or the district school board in
16 consultation with the appropriate state officials, prescribing
17 actions that will cause the local governmental entity or
18 district school board to no longer be subject to this
19 section. The plan must include, but need not be limited to:
20 1. Provision for payment in full of obligations
21 outlined in subsection (1), designated as priority items, that
22 are currently all payments due or will to come due on debt
23 obligations, pension payments, and all payments and charges
24 imposed or mandated by federal or state law and for all
25 judgments and past due accounts, as priority items of
26 expenditures.
27 2. Establishment of a basis of priority budgeting or
28 zero-based budgeting in order, so as to eliminate low-priority
29 items that are not affordable.
30 3. The prohibition of a level of operations which can
31 be sustained only with nonrecurring revenues.
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1 (4) A During the financial emergency period, the local
2 governmental entity or district school board may not seek
3 application of laws under the bankruptcy provisions of the
4 United States Constitution except with the prior approval of
5 the Governor for local governmental entities or the
6 Commissioner of Education for district school boards.
7 (5)(a) The governing authority of any municipality
8 having a resident population of 300,000 or more on or after
9 April 1, 1999, which has been declared in a state of financial
10 emergency pursuant to this section may impose a discretionary
11 per-vehicle surcharge of up to 20 percent on the gross
12 revenues of the sale, lease, or rental of space at parking
13 facilities within the municipality which are open for use to
14 the general public.
15 (b) A municipal governing authority that imposes the
16 surcharge authorized by this subsection may use the proceeds
17 of such surcharge for the following purposes only:
18 1. No less than 60 percent and no more than 80 percent
19 of the surcharge proceeds shall be used by the governing
20 authority to reduce its ad valorem tax millage rate or to
21 reduce or eliminate non-ad valorem assessments.
22 2. A portion of the balance of the surcharge proceeds
23 shall be used by the governing authority to increase its
24 budget reserves; however, the governing authority shall not
25 reduce the amount it allocates for budget reserves from other
26 sources below the amount allocated for reserves in the fiscal
27 year prior to the year in which the surcharge is initially
28 imposed. When a 15-percent budget reserve is achieved, based
29 on the average gross revenue for the most recent 3 prior
30 fiscal years, the remaining proceeds from this subparagraph
31 shall be used for the payment of annual debt service related
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1 to outstanding obligations backed or secured by a covenant to
2 budget and appropriate from non-ad valorem revenues.
3 (c) This subsection expires June 30, 2006.
4 Section 36. Section 218.504, Florida Statutes, is
5 amended to read:
6 218.504 Cessation of state action.--The Governor or
7 the Commissioner of Education, as appropriate, has the
8 authority to terminate all state actions pursuant to ss.
9 218.50-218.504. Cessation of state action must not occur
10 until the Governor or the Commissioner of Education, as
11 appropriate, has determined that:
12 (1) The local governmental entity or district school
13 board:
14 (a) Has established and is operating an effective
15 financial accounting and reporting system.
16 (b) Has resolved corrected or eliminated the fiscal
17 emergency conditions outlined in s. 218.503(1).
18 (2) None of the No new fiscal emergency conditions
19 outlined in s. 218.503(1) exists exist.
20 Section 37. Chapter 131, Florida Statutes, consisting
21 of sections 131.01, 131.02, 131.03, 131.04, 131.05, and
22 131.06, Florida Statutes, is repealed.
23 Section 38. Section 132.10, Florida Statutes, is
24 repealed.
25 Section 39. Section 165.052, Florida Statutes, is
26 repealed.
27 Section 40. Section 189.409, Florida Statutes, is
28 repealed.
29 Section 41. Section 189.422, Florida Statutes, is
30 repealed.
31
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1 Section 42. Section 200.0684, Florida Statutes, is
2 repealed.
3 Section 43. Paragraph (h) of subsection (1) of section
4 218.37, Florida Statutes, is repealed.
5 Section 44. Section 215.195, Florida Statutes, is
6 amended to read:
7 215.195 Agency deposits relating to the Statewide Cost
8 Allocation Plan.--
9 (1) APPLICATION FOR ALLOCABLE STATEWIDE
10 OVERHEAD.--Each state agency, and the judicial branch, making
11 application for federal grant or contract funds shall, in
12 accordance with the Statewide Cost Allocation Plan (SWCAP),
13 include in its application a prorated share of the cost of
14 services provided by state central service agencies which are
15 reimbursable to the state pursuant to the provisions of Office
16 of Management and Budget Circular A-87. Preparation of the
17 Statewide Cost Allocation Plan and coordination thereof with
18 all applicable parties is the responsibility of the Department
19 of Financial Services. The Department of Financial Services
20 shall ensure that the SWCAP presents the most favorable
21 allocation of central services cost allowable to the state by
22 the Federal Government.
23 (2) DEPOSIT OF OVERHEAD IN THE GENERAL REVENUE
24 FUND.--If an application for federal grant or contract funds
25 is approved, the state agency or judicial branch receiving the
26 federal grant or contract shall identify that portion
27 representing reimbursement of allocable statewide overhead and
28 deposit that amount into the General Revenue Fund unallocated
29 as directed by the Department of Financial Services Executive
30 Office of the Governor. The Department of Financial Services
31
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1 shall be responsible for monitoring agency compliance with
2 this section.
3 Section 45. Section 215.97, Florida Statutes, is
4 amended to read:
5 215.97 Florida Single Audit Act.--
6 (1) The purposes of the section are to:
7 (a) Establish uniform state audit requirements for
8 state financial assistance provided by state agencies to
9 nonstate entities to carry out state projects.
10 (b) Promote sound financial management, including
11 effective internal controls, with respect to state financial
12 assistance administered by nonstate entities.
13 (c) Promote audit economy and efficiency by relying to
14 the extent possible on already required audits of federal
15 financial assistance provided to nonstate entities.
16 (d) Provide for identification of state financial
17 assistance transactions in the appropriations act, state
18 accounting records, and recipient organization records.
19 (e) Promote improved coordination and cooperation
20 within and between affected state agencies providing state
21 financial assistance and nonstate entities receiving state
22 assistance.
23 (f) Ensure, to the maximum extent possible, that state
24 agencies monitor, use, and followup on audits of state
25 financial assistance provided to nonstate entities.
26 (2) Definitions; as used in this section, the term:
27 (a) "Audit threshold" means the threshold amount used
28 to determine to use in determining when a state single audit
29 or project-specific audit of a nonstate entity shall be
30 conducted in accordance with this section. Each nonstate
31 entity that expends a total amount of state financial
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1 assistance equal to or in excess of $300,000 in any fiscal
2 year of such nonstate entity shall be required to have a state
3 single audit, or a project-specific audit performed by an
4 independent auditor, for such fiscal year in accordance with
5 the requirements of this section. Every 2 years the Auditor
6 General, after consulting with the Executive Office of the
7 Governor, the Department of Financial Services Chief Financial
8 Officer, and all state awarding agencies that provide state
9 financial assistance to nonstate entities, shall review the
10 threshold amount for requiring audits under this section and
11 may adjust such threshold dollar amount consistent with the
12 purposes purpose of this section.
13 (b) "Auditing standards" means the auditing standards
14 as stated in the rules of the Auditor General as applicable to
15 for-profit organizations, nonprofit organizations, or local
16 governmental entities.
17 (c) "Catalog of State Financial Assistance" means a
18 comprehensive listing of state projects. The Catalog of State
19 Financial Assistance shall be issued by the Department of
20 Financial Services Executive Office of the Governor after
21 conferring with the Chief Financial Officer and all state
22 awarding agencies that provide state financial assistance to
23 nonstate entities. The Catalog of State Financial Assistance
24 shall include for each listed state project: the responsible
25 state awarding agency; standard state project number
26 identifier; official title; legal authorization; and
27 description of the state project, including objectives,
28 restrictions, application and awarding procedures, and other
29 relevant information determined necessary.
30 (d) "Coordinating agency" means the state awarding
31 agency that provides the predominant amount of state financial
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1 assistance expended by a recipient, as determined by the
2 recipient's Schedule of Expenditures of State Financial
3 Assistance. To provide continuity, the determination of the
4 predominant amount of state financial assistance shall be
5 based upon state financial assistance expended in the
6 recipient's fiscal years ending in 2004, 2007, and 2010, and
7 every third year thereafter.
8 (e)(d) "Financial reporting package" means the
9 nonstate entities' financial statements, Schedule of
10 Expenditures of State Financial Assistance, auditor's reports,
11 management letter, auditee's written responses or corrective
12 action plan, correspondence on followup of prior years'
13 corrective actions taken, and such other information
14 determined by the Auditor General to be necessary and
15 consistent with the purposes of this section.
16 (f)(e) "Federal financial assistance" means financial
17 assistance from federal sources passed through the state and
18 provided to nonstate organizations entities to carry out a
19 federal program. "Federal financial assistance" includes all
20 types of federal assistance as defined in applicable United
21 States Office of Management and Budget circulars.
22 (g)(f) "For-profit organization" means any
23 organization or sole proprietor but is not a local
24 governmental entity or a nonprofit organization.
25 (h)(g) "Independent auditor" means an independent
26 external state or local government auditor or a certified
27 public accountant licensed under chapter 473 who meets the
28 independence standards.
29 (i)(h) "Internal control over state projects" means a
30 process, effected by a nonstate an entity's management and
31 other personnel, designed to provide reasonable assurance
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1 regarding the achievement of objectives in the following
2 categories:
3 1. Effectiveness and efficiency of operations.
4 2. Reliability of financial operations.
5 3. Compliance with applicable laws and regulations.
6 (j)(i) "Local governmental entity" means a county
7 agency, municipality, or special district or any other entity
8 excluding (other than a district school board, charter school,
9 or community college), or public university, however styled,
10 which independently exercises any type of governmental
11 function within the state.
12 (k)(j) "Major state project" means any state project
13 meeting the criteria as stated in the rules of the Department
14 of Financial Services Executive Office of the Governor. Such
15 criteria shall be established after consultation with all the
16 Chief Financial Officer and appropriate state awarding
17 agencies that provide state financial assistance and shall
18 consider the amount of state project expenditures and or
19 expenses or inherent risks. Each major state project shall be
20 audited in accordance with the requirements of this section.
21 (l)(k) "Nonprofit organization" means any corporation,
22 trust, association, cooperative, or other organization that:
23 1. Is operated primarily for scientific, educational
24 service, charitable, or similar purpose in the public
25 interest;
26 2. Is not organized primarily for profit;
27 3. Uses net proceeds to maintain, improve, or expand
28 the operations of the organization; and
29 4. Has no part of its income or profit distributable
30 to its members, directors, or officers.
31
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1 (m)(l) "Nonstate entity" means a local governmental
2 entity, nonprofit organization, or for-profit organization
3 that receives state financial assistance resources.
4 (n)(m) "Recipient" means a nonstate entity that
5 receives state financial assistance directly from a state
6 awarding agency.
7 (o)(n) "Schedule of of Expenditures of State Financial
8 Assistance" means a document prepared in accordance with the
9 rules of the Department of Financial Services Chief Financial
10 Officer and included in each financial reporting package
11 required by this section.
12 (p)(o) "State awarding agency" means a the state
13 agency, as defined in s. 216.011, that provides provided state
14 financial assistance to a the nonstate entity.
15 (q)(p) "State financial assistance" means financial
16 assistance from state resources, not including federal
17 financial assistance and state matching on federal programs,
18 provided to a nonstate entity entities to carry out a state
19 project. "State financial assistance" includes the all types
20 of state resources assistance as stated in the rules of the
21 Department of Financial Services Executive Office of the
22 Governor established in consultation with all the Chief
23 Financial Officer and appropriate state awarding agencies that
24 provide state financial assistance. It includes State
25 financial assistance may be provided directly by state
26 awarding agencies or indirectly by nonstate entities
27 recipients of state awards or subrecipients. State financial
28 assistance It does not include procurement contracts used to
29 buy goods or services from vendors and . Audits of such
30 procurement contracts with vendors are outside of the scope of
31 this section. Also, audits of contracts to operate state-owned
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1 state-government-owned and contractor-operated facilities are
2 excluded from the audit requirements of this section.
3 (r)(q) "State matching" means state resources provided
4 to a nonstate entity entities to be used to meet federal
5 financial participation matching requirements of federal
6 programs.
7 (s) "State program" means a set of special purpose
8 activities undertaken to realize identifiable goals and
9 objectives in order to achieve a state agency's mission and
10 legislative intent requiring accountability for state
11 resources.
12 (t)(r) "State project" means a state program that
13 provides all state financial assistance to a nonstate
14 organization and that must be entity assigned a single state
15 project number identifier in the Catalog of State Financial
16 Assistance.
17 (u)(s) "State Projects Compliance Supplement" means a
18 document issued by the Department of Financial Services
19 Executive Office of the Governor, in consultation with the
20 Chief Financial Officer and all state awarding agencies that
21 provide state financial assistance. The State Projects
22 Compliance Supplement shall identify state projects, the
23 significant compliance requirements, eligibility requirements,
24 matching requirements, suggested audit procedures, and other
25 relevant information determined necessary.
26 (v)(t) "State project-specific audit" means an audit
27 of one state project performed in accordance with the
28 requirements of subsection (10) (9).
29 (w)(u) "State single audit" means an audit of a
30 nonstate entity's financial statements and state financial
31 assistance. Such audits shall be conducted in accordance with
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1 the auditing standards as stated in the rules of the Auditor
2 General.
3 (x)(v) "Subrecipient" means a nonstate entity that
4 receives state financial assistance through another nonstate
5 entity.
6 (y)(w) "Vendor" means a dealer, distributor, merchant,
7 or other seller providing goods or services that are required
8 for the conduct of a state project. These goods or services
9 may be for an organization's own use or for the use of
10 beneficiaries of the state project.
11 (3) The Executive Office of the Governor shall be
12 responsible for notifying the Department of Financial Services
13 of any actions during the budgetary process which impact the
14 Catalog of State Financial Assistance.:
15 (a) Upon conferring with the Chief Financial Officer
16 and all state awarding agencies, adopt rules necessary to
17 provide appropriate guidance to state awarding agencies,
18 recipients and subrecipients, and independent auditors of
19 state financial assistance relating to the requirements of
20 this section, including:
21 1. The types or classes of financial assistance
22 considered to be state financial assistance which would be
23 subject to the requirements of this section. This would
24 include guidance to assist in identifying when the state
25 agency or recipient has contracted with a vendor rather than
26 with a recipient or subrecipient.
27 2. The criteria for identifying a major state project.
28 3. The criteria for selecting state projects for
29 audits based on inherent risk.
30 (b) Be responsible for coordinating the initial
31 preparation and subsequent revisions of the Catalog of State
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1 Financial Assistance after consultation with the Chief
2 Financial Officer and all state awarding agencies.
3 (c) Be responsible for coordinating the initial
4 preparation and subsequent revisions of the State Projects
5 Compliance Supplement, after consultation with the Chief
6 Financial Officer and all state awarding agencies.
7 (4) The Department of Financial Services Chief
8 Financial Officer shall:
9 (a) Upon conferring with the Executive Office of the
10 Governor and all state awarding agencies, adopt rules
11 necessary to provide appropriate guidance to state awarding
12 agencies, nonstate entities, and independent auditors of state
13 financial assistance relating to the requirements of this
14 section, including:
15 1. The types or classes of state resources considered
16 to be state financial assistance that would be subject to the
17 requirements of this section. This would include guidance to
18 assist in identifying when the state awarding agency or a
19 nonstate entity has contracted with a vendor rather than with
20 a recipient or subrecipient.
21 2. The criteria for identifying a major state project.
22 3. The criteria for selecting state projects for
23 audits based on inherent risk.
24 (b) Be responsible for coordinating revisions to the
25 Catalog of State Financial Assistance after consultation with
26 the Executive Office of the Governor and all state awarding
27 agencies.
28 (c) Be responsible for coordinating with the Executive
29 Office of the Governor actions affecting the budgetary process
30 under paragraph (b).
31
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1 (d) Be responsible for coordinating revisions to the
2 State Projects Compliance Supplement, after consultation with
3 the Executive Office of the Governor and all state awarding
4 agencies.
5 (e)(a) Make enhancements to the state's accounting
6 system to provide for the:
7 1. Recording of state financial assistance and federal
8 financial assistance appropriations and expenditures within
9 the state awarding agencies' operating funds.
10 2. Recording of state project number identifiers, as
11 provided in the Catalog of State Financial Assistance, for
12 state financial assistance.
13 3. Establishment and recording of an identification
14 code for each financial transaction, including awarding state
15 agencies' disbursements of state financial assistance and
16 federal financial assistance, as to the corresponding type or
17 organization that is party to the transaction (e.g., other
18 governmental agencies, nonprofit organizations, and for-profit
19 organizations), and disbursements of federal financial
20 assistance, as to whether the party to the transaction is or
21 is not a nonstate entity recipient or subrecipient.
22 (f)(b) Upon conferring with the Executive Office of
23 the Governor and all state awarding agencies, adopt rules
24 necessary to provide appropriate guidance to state awarding
25 agencies, nonstate entities recipients and subrecipients, and
26 independent auditors of state financial assistance relating to
27 the format for the Schedule of Expenditures of State Financial
28 Assistance.
29 (g)(c) Perform any inspections, reviews,
30 investigations, or audits of state financial assistance
31 considered necessary in carrying out the Department of
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1 Financial Services Chief Financial Officer's legal
2 responsibilities for state financial assistance or to comply
3 with the requirements of this section.
4 (5) Each state awarding agency shall:
5 (a) Provide to each a recipient information needed by
6 the recipient to comply with the requirements of this section,
7 including:
8 1. The audit and accountability requirements for state
9 projects as stated in this section and applicable rules of the
10 Executive Office of the Governor, rules of the Department of
11 Financial Services Chief Financial Officer, and rules of the
12 Auditor General.
13 2. Information from the Catalog of State Financial
14 Assistance, including the standard state project number
15 identifier; official title; legal authorization; and
16 description of the state project including objectives,
17 restrictions, and other relevant information determined
18 necessary.
19 3. Information from the State Projects Compliance
20 Supplement, including the significant compliance requirements,
21 eligibility requirements, matching requirements, suggested
22 audit procedures, and other relevant information determined
23 necessary.
24 (b) Require the recipient, as a condition of receiving
25 state financial assistance, to allow the state awarding
26 agency, the Department of Financial Services Chief Financial
27 Officer, and the Auditor General access to the recipient's
28 records and the recipient's independent auditor's working
29 papers as necessary for complying with the requirements of
30 this section.
31
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1 (c) Notify the recipient that this section does not
2 limit the authority of the state awarding agency to conduct or
3 arrange for the conduct of additional audits or evaluations of
4 state financial assistance or limit the authority of any state
5 awarding agency inspector general, the Auditor General, or any
6 other state official.
7 (d) Be provided one copy of each financial reporting
8 package prepared in accordance with the requirement of this
9 section.
10 (e) Review the recipient's recipient financial
11 reporting package, including the management letters and
12 corrective action plans, to the extent necessary to determine
13 whether timely and appropriate corrective action has been
14 taken with respect to audit findings and recommendations
15 pertaining to state financial assistance that are specific to
16 provided by the state awarding agency.
17 (f) Designate within the state awarding agency a
18 division, bureau, or other organizational unit that will be
19 responsible for reviewing financial reporting packages
20 pursuant to paragraph (e).
21
22 If the state awarding agency is not the coordinating agency as
23 defined in paragraph (2)(d), the state awarding agency's
24 designated division, bureau, or other organizational unit
25 shall communicate to the coordinating agency the state
26 awarding agency's approval of the recipient's corrective
27 action plan with respect to findings and recommendations that
28 are not specific to the state awarding agency.
29 (6) Each coordinating agency shall:
30 (a) Review the recipient's financial reporting
31 package, including the management letter and corrective action
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1 plan, to identify audit findings and recommendations that
2 affect state financial assistance which are not specific to a
3 particular state awarding agency.
4 (b) For any such findings and recommendations
5 determine:
6 1. Whether timely and appropriate corrective action
7 has been taken.
8 2. Promptly inform the state awarding agency's
9 contact, as provided in paragraph (5)(f), of actions taken by
10 the recipient to comply with the approved corrective action
11 plan.
12 (c) Maintain records of followup actions taken for the
13 use of any succeeding coordinating agency.
14 (7)(6) As a condition of receiving state financial
15 assistance, each nonstate entity recipient that provides state
16 financial assistance to a subrecipient shall:
17 (a) Provide to each a subrecipient information needed
18 by the subrecipient to comply with the requirements of this
19 section, including:
20 1. Identification of the state awarding agency.
21 2. The audit and accountability requirements for state
22 projects as stated in this section and applicable rules of the
23 Executive Office of the Governor, rules of the Department of
24 Financial Services Chief Financial Officer, and rules of the
25 Auditor General.
26 3. Information from the Catalog of State Financial
27 Assistance, including the standard state project number
28 identifier; official title; legal authorization; and
29 description of the state project, including objectives,
30 restrictions, and other relevant information.
31
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1 4. Information from the State Projects Compliance
2 Supplement including the significant compliance requirements,
3 eligibility requirements, matching requirements, and suggested
4 audit procedures, and other relevant information determined
5 necessary.
6 (b) Review the financial reporting package of the
7 subrecipient audit reports, including the management letter
8 and corrective action plan letters, to the extent necessary to
9 determine whether timely and appropriate corrective action has
10 been taken with respect to audit findings and recommendations
11 pertaining to state financial assistance provided by a the
12 state awarding agency or nonstate entity.
13 (c) Perform any such other procedures as specified in
14 terms and conditions of the written agreement with the state
15 awarding agency or nonstate entity, including any required
16 monitoring of the subrecipient's use of state financial
17 assistance through onsite visits, limited scope audits, or
18 other specified procedures.
19 (d) Require subrecipients, as a condition of receiving
20 state financial assistance, to permit the independent auditor
21 of the nonstate entity recipient, the state awarding agency,
22 Department of Financial Services the Chief Financial Officer,
23 and the Auditor General access to the subrecipient's records
24 and the subrecipient's independent auditor's working papers as
25 necessary to comply with the requirements of this section.
26 (8)(7) Each recipient or subrecipient of state
27 financial assistance shall comply with the following:
28 (a) Each nonstate entity that receives state financial
29 assistance and meets the audit threshold requirements, in any
30 fiscal year of the nonstate entity, as stated in the rules of
31 the Auditor General, shall have a state single audit conducted
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1 for such fiscal year in accordance with the requirements of
2 this act and with additional requirements established in rules
3 of the Executive Office of the Governor, rules of the
4 Department of Financial Services Chief Financial Officer, and
5 rules of the Auditor General. If only one state project is
6 involved in a nonstate entity's fiscal year, the nonstate
7 entity may elect to have only a state project-specific audit
8 of the state project for that fiscal year.
9 (b) Each nonstate entity that receives state financial
10 assistance and does not meet the audit threshold requirements,
11 in any fiscal year of the nonstate entity, as stated in this
12 law or the rules of the Auditor General is exempt for such
13 fiscal year from the state single audit requirements of this
14 section. However, such nonstate entity must meet terms and
15 conditions specified in the written agreement with the state
16 awarding agency or nonstate entity.
17 (c) Regardless of the amount of the state financial
18 assistance, the provisions of this section do not exempt a
19 nonstate entity from compliance with provisions of law
20 relating to maintaining records concerning state financial
21 assistance to such nonstate entity or allowing access and
22 examination of those records by the state awarding agency,
23 nonstate entity, the Department of Financial Services Chief
24 Financial Officer, or the Auditor General.
25 (d) Audits conducted pursuant to this section shall be
26 performed annually.
27 (e) Audits conducted pursuant to this section shall be
28 conducted by independent auditors in accordance with auditing
29 standards as stated in rules of the Auditor General.
30 (f) Upon completion of the audit as required by this
31 section, a copy of the recipient's financial reporting package
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1 shall be filed with the state awarding agency and the Auditor
2 General. Upon completion of the audit as required by this
3 section, a copy of the subrecipient's financial reporting
4 package shall be filed with the nonstate entity recipient that
5 provided the state financial assistance and the Auditor
6 General. The financial reporting package shall be filed in
7 accordance with the rules of the Auditor General.
8 (g) All financial reporting packages prepared pursuant
9 to the requirements of this section shall be available for
10 public inspection.
11 (h) If an audit conducted pursuant to this section
12 discloses any significant audit findings relating to state
13 financial assistance, including material noncompliance with
14 individual state project compliance requirements or reportable
15 conditions in internal controls of the nonstate entity, the
16 nonstate entity shall submit as part of the financial
17 reporting audit package to the state awarding agency or
18 nonstate entity a plan for corrective action to eliminate such
19 audit findings or a statement describing the reasons that
20 corrective action is not necessary.
21 (i) An audit conducted in accordance with this section
22 is in addition to any audit of federal awards required by the
23 federal Single Audit Act and other federal laws and
24 regulations. To the extent that such federally required audits
25 provide the state awarding agency or nonstate entity with
26 information it requires to carry out its responsibilities
27 under state law or other guidance, the a state awarding agency
28 or nonstate entity shall rely upon and use that information.
29 (j) Unless prohibited by law, the costs cost of audits
30 pursuant to this section are is allowable charges to state
31 projects. However, any charges to state projects should be
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1 limited to those incremental costs incurred as a result of the
2 audit requirements of this section in relation to other audit
3 requirements. The nonstate entity should allocate such
4 incremental costs to all state projects for which it expended
5 state financial assistance.
6 (k) Audit costs may not be charged to state projects
7 when audits required by this section have not been made or
8 have been made but not in accordance with this section. If a
9 nonstate entity fails to have an audit conducted consistent
10 with this section, a state awarding agency or nonstate entity
11 agencies may take appropriate corrective action to enforce
12 compliance.
13 (l) This section does not prohibit the state awarding
14 agency or nonstate entity from including terms and conditions
15 in the written agreement which require additional assurances
16 that state financial assistance meets the applicable
17 requirements of laws, regulations, and other compliance rules.
18 (m) A state awarding agency or nonstate entity that
19 provides state financial assistance to nonstate entities and
20 conducts or arranges for audits of state financial assistance
21 that are in addition to the audits conducted under this act,
22 including audits of nonstate entities that do not meet the
23 audit threshold requirements, shall, consistent with other
24 applicable law, arrange for funding the full cost of such
25 additional audits.
26 (9)(8) The independent auditor when conducting a state
27 single audit of a nonstate entity recipients or subrecipients
28 shall:
29 (a) Determine whether the nonstate entity's financial
30 statements are presented fairly in all material respects in
31 conformity with generally accepted accounting principles.
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1 (b) Determine whether state financial assistance shown
2 on the Schedule of Expenditures of State Financial Assistance
3 is presented fairly in all material respects in relation to
4 the nonstate entity's financial statements taken as a whole.
5 (c) With respect to internal controls pertaining to
6 each major state project:
7 1. Obtain an understanding of internal controls;
8 2. Assess control risk;
9 3. Perform tests of controls unless the controls are
10 deemed to be ineffective; and
11 4. Determine whether the nonstate entity has internal
12 controls in place to provide reasonable assurance of
13 compliance with the provisions of laws and rules pertaining to
14 state financial assistance that have a material effect on each
15 major state project.
16 (d) Determine whether each major state project
17 complied with the provisions of laws, rules, and guidelines as
18 identified in the State Projects Compliance Supplement, or
19 otherwise identified by the state awarding agency, which have
20 a material effect on each major state project. When major
21 state projects are less than 50 percent of the nonstate
22 entity's total expenditures for all state financial
23 assistance, the auditor shall select and test additional state
24 projects as major state projects as necessary to achieve audit
25 coverage of at least 50 percent of the expenditures for all
26 state financial assistance provided to the nonstate entity.
27 Additional state projects needed to meet the 50-percent
28 requirement may be selected on an inherent risk basis as
29 stated in the rules of the Department of Financial Services
30 Executive Office of the Governor.
31
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1 (e) Report on the results of any audit conducted
2 pursuant to this section in accordance with the rules of the
3 Executive Office of the Governor, rules of the Department of
4 Financial Services Chief Financial Officer, and rules of the
5 Auditor General. Financial reporting packages must Audit
6 reports shall include summaries of the auditor's results
7 regarding the nonstate entity's financial statements; Schedule
8 of Expenditures of State Financial Assistance; internal
9 controls; and compliance with laws, rules, and guidelines.
10 (f) Issue a management letter as prescribed in the
11 rules of the Auditor General.
12 (g) Upon notification by the nonstate entity, make
13 available the working papers relating to the audit conducted
14 pursuant to the requirements of this section to the state
15 awarding agency, the Department of Financial Services Chief
16 Financial Officer, or the Auditor General for review or
17 copying.
18 (10)(9) The independent auditor, when conducting a
19 state project-specific audit of a nonstate entity recipients
20 or subrecipients, shall:
21 (a) Determine whether the nonstate entity's Schedule
22 of Expenditure of State Financial Assistance is presented
23 fairly in all material respects in conformity with stated
24 accounting policies.
25 (b) Obtain an understanding of internal controls
26 control and perform tests of internal controls control over
27 the state project consistent with the requirements of a major
28 state project.
29 (c) Determine whether or not the auditee has complied
30 with applicable provisions of laws, rules, and guidelines as
31 identified in the State Projects Compliance Supplement, or
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1 otherwise identified by the state awarding agency, which could
2 have a direct and material effect on the state project.
3 (d) Report on the results of the a state
4 project-specific audit consistent with the requirements of the
5 state single audit and issue a management letter as prescribed
6 in the rules of the Auditor General.
7 (e) Upon notification by the nonstate entity, make
8 available the working papers relating to the audit conducted
9 pursuant to the requirements of this section to the state
10 awarding agency, the Department of Financial Services Chief
11 Financial Officer, or the Auditor General for review or
12 copying.
13 (11)(10) The Auditor General shall:
14 (a) Have the authority to audit state financial
15 assistance provided to any nonstate entity when determined
16 necessary by the Auditor General or when directed by the
17 Legislative Auditing Committee.
18 (b) Adopt rules that state the auditing standards that
19 independent auditors are to follow for audits of nonstate
20 entities required by this section.
21 (c) Adopt rules that describe the contents and the
22 filing deadlines for the financial reporting package.
23 (d) Provide technical advice upon request of the
24 Department of Financial Services Chief Financial Officer,
25 Executive Office of the Governor, and state awarding agencies
26 relating to financial reporting and audit responsibilities
27 contained in this section.
28 (e) Be provided one copy of each financial reporting
29 package prepared in accordance with the requirements of this
30 section.
31
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1 (f) Perform ongoing reviews of a sample of financial
2 reporting packages filed pursuant to the requirements of this
3 section to determine compliance with the reporting
4 requirements of this section and applicable rules of the
5 Executive Office of the Governor, rules of the Department of
6 Financial Services Chief Financial Officer, and rules of the
7 Auditor General.
8 Section 46. Section 1010.47, Florida Statutes, is
9 amended to read:
10 1010.47 Receiving bids and sale of bonds.--
11 (1) If the issuance of bonds is authorized at the
12 election, or if any bonds outstanding against the district are
13 being refunded, the district school board shall sell the bonds
14 in the manner provided in s. 218.385. cause notice to be given
15 by publication in some newspaper published in the district
16 that the board will receive bids for the purchase of the bonds
17 at the office of the district school superintendent. The
18 notice shall be published twice, and the first publication
19 shall be given not less than 30 days prior to the date set for
20 receiving the bids. The notice shall specify the amount of the
21 bonds offered for sale, shall state whether the bids shall be
22 sealed bids or whether the bonds are to be sold at auction,
23 and shall give the schedule of maturities of the proposed
24 bonds and such other pertinent information as may be
25 prescribed by rules of the State Board of Education. Bidders
26 may be invited to name the rate of interest that the bonds are
27 to bear or the district school board may name rates of
28 interest and invite bids thereon. In addition to publication
29 of notice of the proposed sale as set forth in this
30 subsection, the district school board shall notify in writing
31 at least three recognized bond dealers in the state, and, at
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1 the same time, notify the Department of Education concerning
2 the proposed sale and enclose a copy of the advertisement.
3 (2) All bonds and refunding bonds issued as provided
4 by law shall be sold to the highest and best bidder at such
5 public sale unless sold at a better price or yield basis
6 within 30 days after failure to receive an acceptable bid at a
7 duly advertised public sale, provided that at no time shall
8 bonds or refunding bonds be sold or exchanged at less than par
9 value except as specifically authorized by the Department of
10 Education; and provided, further, that the district school
11 board shall have the right to reject all bids and cause a new
12 notice to be given in like manner inviting other bids for such
13 bonds, or to sell all or any part of such bonds to the State
14 Board of Education at a price and yield basis that shall not
15 be less advantageous to the district school board than that
16 represented by the highest and best bid received. In the
17 marketing of the bonds, the district school board shall be
18 entitled to have such assistance as can be rendered by the
19 Division of Bond Finance, the Commissioner of Education, or
20 any other public state officer or agency. In determining the
21 highest and best bidder for bonds offered for sale, the net
22 interest cost to the school board as shown in standard bond
23 tables shall govern, provided that the determination of the
24 district school board as to the highest and best bidder shall
25 be final.
26 Section 47. Subsection (1) of section 288.9610,
27 Florida Statutes, is amended to read:
28 288.9610 Annual reports of Florida Development Finance
29 Corporation.--By December 1 of each year, the Florida
30 Development Finance Corporation shall submit to the Governor,
31 the President of the Senate, the Speaker of the House of
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1 Representatives, the Senate Minority Leader, the House
2 Minority Leader, and the city or county activating the Florida
3 Development Finance Corporation a complete and detailed report
4 setting forth:
5 (1) The evaluation required in s. 11.45(3)(j) s.
6 11.45(3)(a)11.
7 Section 48. Section 373.556, Florida Statutes, is
8 repealed.
9 Section 49. Effective July 1, 2004, one full-time
10 equivalent position is transferred from the Executive Office
11 of the Governor to the Department of Financial Services.
12 Section 50. This act shall take effect upon becoming a
13 law.
14
15 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
16 CS/SB 708
17
18 The committee substitute for committee substitute for SB 708
changes statutory citations to conform with the bill,
19 corrects a cross-reference, and repeals an obsolete section
relating to investment of funds by a water management
20 district.
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