HB 399

1	A bill to be entitled
2	An act relating to financial management by local
3	governments; amending s. 116.07, F.S.; revising a
4	requirement that the sheriff and the clerk of the circuit
5	court keep financial statements and books of accounts in
6	accordance with part III of ch. 218, F.S.; amending s.
7	136.05, F.S.; providing that the clerk of the circuit
8	court is the accountant to the board of county
9	commissioners; amending s. 218.31, F.S.; revising
10	definitions; amending s. 218.32, F.S.; requiring county
11	auditors to prepare the annual financial report for the
12	county; authorizing county auditors to perform certain
13	audits and tests; amending ss. 75.04, 215.555, 380.0662,
14	and 420.503, F.S.; correcting cross-references; providing
15	an effective date.
16
17	Be It Enacted by the Legislature of the State of Florida:
18
19	Section 1.  Section 116.07, Florida Statutes, is amended to
20	read:
21	116.07  Account books to be kept by sheriffs and
22	clerks.--All sheriffs and clerks of the circuit court and ex
23	officio clerks of the boards of county commissioners of this
24	state shall keep financial statements and books of account and
25	of record in accordance with part III of chapter 218 s. 218.33.
26	Section 2.  Section 136.05, Florida Statutes, is amended to
27	read:
28	136.05  County board to keep set of books; overdrawing
29	prohibited.--The clerk of the circuit court, as accountant of
30	the board of county commissioners, shall keep an accurate and
31	complete set of books showing the amount on hand, amount
32	received, amount expended, and the balances thereof at the end
33	of each month for each and every fund carried by the said board.
34	A, and no check or warrant may not shall ever be drawn in excess
35	of the known balances to the credit of a that fund as kept by
36	the said board.
37	Section 3.  Section 218.31, Florida Statutes, is amended to
38	read:
39	218.31  Definitions.--As used in this part, except where
40	the context clearly indicates a different meaning:
41	(1)(15)  "Auditor" means an independent certified public
42	accountant licensed pursuant to chapter 473 and retained by a
43	local governmental entity to perform a financial audit.
44	(2)(16)  "County agency" means a board of county
45	commissioners or other legislative and governing body of a
46	county, however styled, including that of a consolidated or
47	metropolitan government, a clerk of the circuit court, a
48	separate or ex officio clerk of the county court, a sheriff, a
49	property appraiser, a tax collector, a supervisor of elections,
50	or any other officer in whom any portion of the fiscal duties of
51	the above are under law separately placed.
52	(3)  "County auditor" means the clerk of the circuit court.
53	(4)(8)  "County fee officers" means those county officials
54	who are assigned specialized functions within county government
55	and whose budgets are established independently of the local
56	governing body, even though said budgets may be reported to the
57	local governing body or may be composed of funds either
58	generally or specially available to a local governing authority
59	involved.
60	(5)(4)  "Department" means the Department of Financial
61	Services.
62	(6)  "Dependent special district" means a dependent special
63	district as defined in s. 189.403(2).
64	(7)(17)  "Financial audit" means an examination of
65	financial statements in order to express an opinion on the
66	fairness with which they are presented in conformity with
67	generally accepted accounting principles and an examination to
68	determine whether operations are properly conducted in
69	accordance with legal and regulatory requirements. Financial
70	audits must be conducted in accordance with generally accepted
71	auditing standards and government auditing standards as adopted
72	by the Board of Accountancy and as prescribed by rules
73	promulgated by the Auditor General.
74	(8)(14)  "Generally accepted accounting principles" means
75	those accounting principles adopted by rule of the Board of
76	Accountancy under chapter 473.
77	(9)(7)  "Independent special district" means an independent
78	special district as defined in s. 189.403(3).
79	(10)(13)  "Industrial development bond" means any
80	obligation the interest on which is exempt from income taxes
81	under the provisions of s. 103(b) of the United States Internal
82	Revenue Code and the payment of the principal or interest on
83	which under the terms of such obligation or any underlying
84	arrangement is, in whole or in major part:
85	(a)  Secured by any interest in property used or to be used
86	in a trade or business or in payments in respect of such
87	property.
88	(b)  To be derived from payments in respect of property, or
89	borrowed money, used or to be used in a trade or business.
90	(11)(12)  "Limited revenue bonds" means any obligations
91	issued by a unit to pay the cost of a project or improvement
92	thereof, or combination of one or more projects or improvements
93	thereof, and payable from funds, exclusive of ad valorem taxes,
94	special assessments, or earnings from such projects or
95	improvements.
96	(12)(3)  "Local governing authority" means the governing
97	body of a unit of local general-purpose government.
98	(13)(1)  "Local governmental entity" means a county agency,
99	a municipality, or a special district as defined in s. 189.403.
100	For purposes of s. 218.32, the term also includes a housing
101	authority created under chapter 421.
102	(14)(18)  "Management letter" means a statement of the
103	auditor's comments and recommendations as prescribed by rules
104	adopted by the Auditor General.
105	(15)(11)  "Revenue bonds" means any obligations issued by a
106	unit to pay the cost of a project or improvement thereof, or
107	combination of one or more projects or improvements thereof, and
108	payable from the earnings of such project and any other special
109	funds authorized to be pledged as additional security therefor.
110	(16)(10)  "Short-term debt" means any debt with a maturity
111	of less than 1 year from the date of issuance.
112	(17)(5)  "Special district" means a special district as
113	defined in s. 189.403(1).
114	(18)(2)  "Unit of local general-purpose government" means a
115	county or a municipality established by general or special law.
116	(19)(9)  "Verified report" means a report that has received
117	such test or tests by the department so as to accurately and
118	reliably present the data that have been submitted by the local
119	governmental entities for inclusion in the report.
120	Section 4.  Paragraph (a) of subsection (1) of section
121	218.32, Florida Statutes, is amended to read:
122	218.32  Annual financial reports; local governmental
123	entities.--
124	(1)(a)  Each local governmental entity that is determined
125	to be a reporting entity, as defined by generally accepted
126	accounting principles, and each independent special district as
127	defined in s. 189.403, shall submit to the department a copy of
128	its annual financial report for the previous fiscal year in a
129	format prescribed by the department. The annual financial report
130	must include a list of each local governmental entity included
131	in the report and each local governmental entity that failed to
132	provide financial information as required by paragraph (b). The
133	chair of the governing body and the chief financial officer of
134	each local governmental entity shall sign the annual financial
135	report submitted pursuant to this subsection attesting to the
136	accuracy of the information included in the report. The county
137	auditor shall prepare the annual report of the county and may
138	perform such audits and tests as necessary to determine the
139	adequacy of internal controls and compliance with contracts,
140	applicable laws, and rules. The county annual financial report
141	must be a single document that covers each county agency.
142	Section 5.  Subsection (2) of section 75.04, Florida
143	Statutes, is amended to read:
144	75.04  Complaint.--
145	(2)  In the case of an independent special district as
146	defined in s. 218.31(7), the complaint shall allege the creation
147	of a trust indenture established by the petitioner for a bonded
148	trustee acceptable to the court who shall certify the proper
149	expenditure of the proceeds of the bonds.
150	Section 6.  Paragraph (j) of subsection (2) of section
151	215.555, Florida Statutes, is amended to read:
152	215.555  Florida Hurricane Catastrophe Fund.--
153	(2)  DEFINITIONS.--As used in this section:
154	(j)  "Local government" means a unit of general purpose
155	local government as defined in s. 218.31(2).
156	Section 7.  Subsection (4) of section 380.0662, Florida
157	Statutes, is amended to read:
158	380.0662  Definitions.--As used in this act, unless the
159	context indicates a different meaning or intent:
160	(4)  "Local government" means a unit of local general-
161	purpose government as defined in s. 218.31(2).
162	Section 8.  Subsection (22) of section 420.503, Florida
163	Statutes, is amended to read:
164	420.503  Definitions.--As used in this part, the term:
165	(22)  "Local government" means a unit of local general-
166	purpose government as defined in s. 218.31(2).
167	Section 9.  This act shall take effect July 1, 2008.

CODING: Words stricken are deletions; words underlined are additions.