Florida Senate - 2011                                    SB 2110
       
       
       
       By the Committee on Budget
       
       
       
       
       576-03642-11                                          20112110__
    1                        A bill to be entitled                      
    2         An act relating to the Auditor General; amending s.
    3         11.45, F.S.; redefining the term “financial audit” to
    4         conform with applicable auditing standards; defining
    5         the term “operational audit” to provide the objectives
    6         of such audits; clarifying the requirement for the
    7         Auditor General to conduct financial audits of the
    8         accounts and records of all district school boards in
    9         counties of a specified size once every 3 years;
   10         revising duties and responsibilities of the Auditor
   11         General; requiring that the Auditor General conduct
   12         operational audits at least every 3 years of certain
   13         additional state entities and district school boards
   14         and report on the activities of the ad valorem tax
   15         program of the Department of Revenue; amending ss.
   16         25.075 and 28.35, F.S.; revising the duties of the
   17         Auditor General with respect to responsibilities for
   18         auditing certain reports made to the State Supreme
   19         Court and the operations of the Florida Clerks of
   20         Court Operations Corporation, respectively; repealing
   21         s. 195.096(7), F.S., relating to the Auditor General’s
   22         responsibility for conducting a performance audit of
   23         the Department of Revenue’s administration of ad
   24         valorem tax laws; amending s. 218.31, F.S.; redefining
   25         the term ”financial audit” to conform with applicable
   26         auditing standards; amending s. 273.05, F.S.; revising
   27         requirements to issue rules for surplus property;
   28         repealing ss. 365.173(3) and 943.25(3), F.S., relating
   29         to the Auditor General’s responsibilities for auditing
   30         the Emergency Communications Number E911 System Fund
   31         and criminal justice trust funds, respectively;
   32         amending s. 1002.36, F.S.; conforming provisions to
   33         changes made by the act; amending s. 1009.53, F.S.;
   34         requiring colleges and universities that receive
   35         Florida Bright Futures Scholarship Program moneys to
   36         submit to the Department of Education a financial
   37         audit prepared by an independent certified public
   38         accountant or the Auditor General if the college or
   39         university expended more than a specified amount of
   40         program money; requiring that the audit include an
   41         examination of the institute’s administration of the
   42         program; providing that the audit be submitted to the
   43         department within a certain time; requiring any
   44         institution that is not subject to the audit to
   45         attest, under penalty of perjury, that the moneys were
   46         used in compliance with the law; providing for the
   47         attestation be made annually in a form and format
   48         determined by the Department of Education; reenacting
   49         s. 11.40(3), F.S., relating to the Legislative
   50         Auditing Committee, to incorporate the amendments made
   51         to s. 11.45, F.S., in a reference thereto; providing
   52         an effective date.
   53  
   54  Be It Enacted by the Legislature of the State of Florida:
   55  
   56         Section 1. Section 11.45, Florida Statutes, is amended to
   57  read:
   58         11.45 Definitions; duties; authorities; reports; rules.—
   59         (1) DEFINITIONS.—As used in ss. 11.40-11.513, the term:
   60         (a) “Audit” means a financial audit, operational audit, or
   61  performance audit.
   62         (b) “County agency” means a board of county commissioners
   63  or other legislative and governing body of a county, however
   64  styled, including that of a consolidated or metropolitan
   65  government, a clerk of the circuit court, a separate or ex
   66  officio clerk of the county court, a sheriff, a property
   67  appraiser, a tax collector, a supervisor of elections, or any
   68  other officer in whom any portion of the fiscal duties of the
   69  above are under law separately placed.
   70         (c) “Financial audit” means an examination of financial
   71  statements in order to express an opinion on the fairness with
   72  which they are presented in conformity with generally accepted
   73  accounting principles and an examination to determine whether
   74  operations are properly conducted in accordance with legal and
   75  regulatory requirements. Financial audits must be conducted in
   76  accordance with auditing standards generally accepted in the
   77  United States auditing standards and government auditing
   78  standards as adopted by the Board of Accountancy. When
   79  applicable, the scope of financial audits shall encompass the
   80  additional activities necessary to establish compliance with the
   81  Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and
   82  other applicable federal law.
   83         (d) “Governmental entity” means a state agency, a county
   84  agency, or any other entity, however styled, that independently
   85  exercises any type of state or local governmental function.
   86         (e) “Local governmental entity” means a county agency,
   87  municipality, or special district as defined in s. 189.403, but
   88  does not include any housing authority established under chapter
   89  421.
   90         (f) “Management letter” means a statement of the auditor’s
   91  comments and recommendations.
   92         (g) “Operational audit” means an a financial-related audit
   93  whose purpose is to evaluate management’s performance in
   94  establishing and maintaining internal controls, including
   95  controls designed to prevent and detect fraud, waste, and abuse,
   96  and in administering assigned responsibilities in accordance
   97  with applicable laws, administrative rules, contracts, grant
   98  agreements and other guidelines. Operational audits must be
   99  conducted in accordance with government auditing standards. Such
  100  audits examine and to determine the extent to which the internal
  101  controls that are control, as designed and placed in operation
  102  to promote, promotes and encourage encourages the achievement of
  103  management’s control objectives in the categories of compliance,
  104  economic and efficient operations, reliability of financial
  105  records and reports, and safeguarding of assets, and identify
  106  weaknesses in those internal controls.
  107         (h) “Performance audit” means an examination of a program,
  108  activity, or function of a governmental entity, conducted in
  109  accordance with applicable government auditing standards or
  110  auditing and evaluation standards of other appropriate
  111  authoritative bodies. The term includes an examination of issues
  112  related to:
  113         1. Economy, efficiency, or effectiveness of the program.
  114         2. Structure or design of the program to accomplish its
  115  goals and objectives.
  116         3. Adequacy of the program to meet the needs identified by
  117  the Legislature or governing body.
  118         4. Alternative methods of providing program services or
  119  products.
  120         5. Goals, objectives, and performance measures used by the
  121  agency to monitor and report program accomplishments.
  122         6. The accuracy or adequacy of public documents, reports,
  123  or requests prepared under the program by state agencies.
  124         7. Compliance of the program with appropriate policies,
  125  rules, or laws.
  126         8. Any other issues related to governmental entities as
  127  directed by the Legislative Auditing Committee.
  128         (i) “Political subdivision” means a separate agency or unit
  129  of local government created or established by law and includes,
  130  but is not limited to, the following and the officers thereof:
  131  authority, board, branch, bureau, city, commission, consolidated
  132  government, county, department, district, institution,
  133  metropolitan government, municipality, office, officer, public
  134  corporation, town, or village.
  135         (j) “State agency” means a separate agency or unit of state
  136  government created or established by law and includes, but is
  137  not limited to, the following and the officers thereof:
  138  authority, board, branch, bureau, commission, department,
  139  division, institution, office, officer, or public corporation,
  140  as the case may be, except any such agency or unit within the
  141  legislative branch of state government other than the Florida
  142  Public Service Commission.
  143         (2) DUTIES.—The Auditor General shall:
  144         (a) Conduct audits of records and perform related duties as
  145  prescribed by law, concurrent resolution of the Legislature, or
  146  as directed by the Legislative Auditing Committee.
  147         (b) Annually conduct a financial audit of state government.
  148         (c) Annually conduct financial audits of all state
  149  universities and state district boards of trustees of community
  150  colleges.
  151         (d) Annually conduct financial audits of the accounts and
  152  records of all district school boards in counties with
  153  populations of fewer than 150,000, according to the most recent
  154  federal decennial statewide census.
  155         (e) Once every 3 years, conduct financial audits of the
  156  accounts and records of all district school boards in counties
  157  that have populations of 150,000 or more, according to the most
  158  recent federal decennial statewide census. Through fiscal year
  159  2008-2009, annually conduct an audit of the Wireless Emergency
  160  Telephone System Fund as described in s. 365.173.
  161         (f) Annually conduct audits of the accounts and records of
  162  the Florida School for the Deaf and the Blind.
  163         (f)(g) At least every 3 2 years, conduct operational audits
  164  of the accounts and records of state agencies, state and
  165  universities, state colleges, district school boards, the
  166  Florida Clerks of Court Operations Corporation, water management
  167  districts, and the Florida School for the Deaf and the Blind. In
  168  connection with these audits, the Auditor General shall give
  169  appropriate consideration to reports issued by state agencies’
  170  inspectors general or universities’ inspectors general and the
  171  resolution of findings therein.
  172         (g)(h) At least every 3 2 years, conduct a performance
  173  audit of the local government financial reporting system, which,
  174  for the purpose of this chapter, means any statutory provision
  175  provisions related to local government financial reporting. The
  176  purpose of such an audit is to determine the accuracy,
  177  efficiency, and effectiveness of the reporting system in
  178  achieving its goals and to make recommendations to the local
  179  governments, the Governor, and the Legislature as to how the
  180  reporting system can be improved and how program costs can be
  181  reduced. The Auditor General shall determine the scope of the
  182  such audits. The local government financial reporting system
  183  should provide for the timely, accurate, uniform, and cost
  184  effective accumulation of financial and other information that
  185  can be used by the members of the Legislature and other
  186  appropriate officials to accomplish the following goals:
  187         1. Enhance citizen participation in local government;
  188         2. Improve the financial condition of local governments;
  189         3. Provide essential government services in an efficient
  190  and effective manner; and
  191         4. Improve decisionmaking on the part of the Legislature,
  192  state agencies, and local government officials on matters
  193  relating to local government.
  194         (h)(i)At least Once every 3 years, conduct a performance
  195  audit audits of the Department of Revenue’s administration of
  196  the ad valorem tax laws as described in s. 195.096. The audit
  197  report shall report on the activities of the ad valorem tax
  198  program of the Department of Revenue related to the ad valorem
  199  tax rolls. The Auditor General shall include, for at least four
  200  counties reviewed, findings as to the accuracy of assessment
  201  procedures, projections, and computations made by the
  202  department, using the same generally accepted appraisal
  203  standards and procedures to which the department and the
  204  property appraisers are required to adhere. However, the report
  205  may not include any findings or statistics related to any ad
  206  valorem tax roll that is in litigation between the state and
  207  county officials at the time the report is issued.
  208         (j) Once every 3 years, conduct financial audits of the
  209  accounts and records of all district school boards in counties
  210  with populations of 125,000 or more, according to the most
  211  recent federal decennial statewide census.
  212         (i)(k) Once every 3 years, review a sample of each state
  213  agency’s internal audit reports at each state agency, as defined
  214  in s. 20.055(1), to determine compliance with current Standards
  215  for the Professional Practice of Internal Auditing or, if
  216  appropriate, government auditing standards.
  217         (j)(l) Conduct audits of local governmental entities when
  218  determined to be necessary by the Auditor General, when directed
  219  by the Legislative Auditing Committee, or when otherwise
  220  required by law. No later than 18 months after the release of
  221  the audit report, the Auditor General shall perform such
  222  appropriate followup procedures as he or she deems necessary to
  223  determine the audited entity’s progress in addressing the
  224  findings and recommendations contained within the Auditor
  225  General’s previous report. The Auditor General shall notify
  226  provide a copy of his or her determination to each member of the
  227  audited entity’s governing body and to the Legislative Auditing
  228  Committee of the results of his or her determination.
  229  
  230  The Auditor General shall perform his or her duties
  231  independently but under the general policies established by the
  232  Legislative Auditing Committee. This subsection does not limit
  233  the Auditor General’s discretionary authority to conduct other
  234  audits or engagements of governmental entities as authorized in
  235  subsection (3).
  236         (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
  237  General may, pursuant to his or her own authority, or at the
  238  direction of the Legislative Auditing Committee, conduct audits
  239  or other engagements as determined appropriate by the Auditor
  240  General of:
  241         (a) The accounts and records of any governmental entity
  242  created or established by law.
  243         (b) The information technology programs, activities,
  244  functions, or systems of any governmental entity created or
  245  established by law.
  246         (c) The accounts and records of any charter school created
  247  or established by law.
  248         (d) The accounts and records of any direct-support
  249  organization or citizen support organization created or
  250  established by law. The Auditor General is authorized to require
  251  and receive any records from the direct-support organization or
  252  citizen support organization, or from its independent auditor.
  253         (e) The public records associated with any appropriation
  254  made by the Legislature to a nongovernmental agency,
  255  corporation, or person. All records of a nongovernmental agency,
  256  corporation, or person with respect to the receipt and
  257  expenditure of such an appropriation shall be public records and
  258  shall be treated in the same manner as other public records are
  259  under general law.
  260         (f) State financial assistance provided to any nonstate
  261  entity as defined by s. 215.97.
  262         (g) The Tobacco Settlement Financing Corporation created
  263  pursuant to s. 215.56005.
  264         (h) Any purchases of federal surplus lands for use as sites
  265  for correctional facilities as described in s. 253.037.
  266         (i) Enterprise Florida, Inc., including any of its boards,
  267  advisory committees, or similar groups created by Enterprise
  268  Florida, Inc., and programs. The audit report may not reveal the
  269  identity of any person who has anonymously made a donation to
  270  Enterprise Florida, Inc., pursuant to this paragraph. The
  271  identity of a donor or prospective donor to Enterprise Florida,
  272  Inc., who desires to remain anonymous and all information
  273  identifying such donor or prospective donor are confidential and
  274  exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I
  275  of the State Constitution. Such anonymity shall be maintained in
  276  the auditor’s report.
  277         (j) The Florida Development Finance Corporation or the
  278  capital development board or the programs or entities created by
  279  the board. The audit or report may not reveal the identity of
  280  any person who has anonymously made a donation to the board
  281  pursuant to this paragraph. The identity of a donor or
  282  prospective donor to the board who desires to remain anonymous
  283  and all information identifying such donor or prospective donor
  284  are confidential and exempt from the provisions of s. 119.07(1)
  285  and s. 24(a), Art. I of the State Constitution. Such anonymity
  286  shall be maintained in the auditor’s report.
  287         (k) The records pertaining to the use of funds from
  288  voluntary contributions on a motor vehicle registration
  289  application or on a driver’s license application authorized
  290  pursuant to ss. 320.023 and 322.081.
  291         (l) The records pertaining to the use of funds from the
  292  sale of specialty license plates described in chapter 320.
  293         (m) The transportation corporations under contract with the
  294  Department of Transportation that are acting on behalf of the
  295  state to secure and obtain rights-of-way for urgently needed
  296  transportation systems and to assist in the planning and design
  297  of such systems pursuant to ss. 339.401-339.421.
  298         (n) The acquisitions and divestitures related to the
  299  Florida Communities Trust Program created pursuant to chapter
  300  380.
  301         (o) The Florida Water Pollution Control Financing
  302  Corporation created pursuant to s. 403.1837.
  303         (p) The school readiness system, including the early
  304  learning coalitions, created under s. 411.01.
  305         (q) The Florida Special Disability Trust Fund Financing
  306  Corporation created pursuant to s. 440.49.
  307         (r) Workforce Florida, Inc., or the programs or entities
  308  created by Workforce Florida, Inc., created pursuant to s.
  309  445.004.
  310         (s) The corporation defined in s. 455.32 that is under
  311  contract with the Department of Business and Professional
  312  Regulation to provide administrative, investigative,
  313  examination, licensing, and prosecutorial support services in
  314  accordance with the provisions of s. 455.32 and the practice act
  315  of the relevant profession.
  316         (t) The Florida Engineers Management Corporation created
  317  pursuant to chapter 471.
  318         (u) The Investment Fraud Restoration Financing Corporation
  319  created pursuant to chapter 517.
  320         (u)(v) The books and records of any permitholder that
  321  conducts race meetings or jai alai exhibitions under chapter
  322  550.
  323         (v)(w) The corporation defined in part II of chapter 946,
  324  known as the Prison Rehabilitative Industries and Diversified
  325  Enterprises, Inc., or PRIDE Enterprises.
  326         (w)(x) The Florida Virtual School pursuant to s. 1002.37.
  327         (4) SCHEDULING AND STAFFING OF AUDITS.—
  328         (a) Each financial audit required or authorized by this
  329  section, when practicable, shall be made and completed within
  330  not more than 9 months following the end of each audited fiscal
  331  year of the state agency or political subdivision, or at such
  332  lesser time which may be provided by law or concurrent
  333  resolution or directed by the Legislative Auditing Committee.
  334  When the Auditor General determines that conducting any audit or
  335  engagement otherwise required by law would not be possible due
  336  to workload or would not be an efficient or effective use of his
  337  or her resources based on an assessment of risk, then, in his or
  338  her discretion, the Auditor General may temporarily or
  339  indefinitely postpone such audits or other engagements for such
  340  period or any portion thereof, unless otherwise directed by the
  341  committee.
  342         (b) The Auditor General may, when in his or her judgment it
  343  is necessary, designate and direct any auditor employed by the
  344  Auditor General to audit any accounts or records within the
  345  authority of the Auditor General to audit. The auditor shall
  346  report his or her findings for review by the Auditor General,
  347  who shall prepare the audit report.
  348         (c) The audit report when final shall be a public record.
  349  The audit workpapers and notes are not a public record; however,
  350  those workpapers necessary to support the computations in the
  351  final audit report may be made available by a majority vote of
  352  the Legislative Auditing Committee after a public hearing
  353  showing proper cause. The audit workpapers and notes shall be
  354  retained by the Auditor General until no longer useful in his or
  355  her proper functions, after which time they may be destroyed.
  356         (d) At the conclusion of the audit, the Auditor General or
  357  the Auditor General’s designated representative shall discuss
  358  the audit with the official whose office is subject to audit and
  359  submit to that official a list of the Auditor General’s findings
  360  which may be included in the audit report. If the official is
  361  not available for receipt of the list of audit findings, then
  362  delivery is presumed to be made when it is delivered to his or
  363  her office. The official shall submit to the Auditor General or
  364  the designated representative, within 30 days after the receipt
  365  of the list of findings, his or her written statement of
  366  explanation or rebuttal concerning all of the findings,
  367  including corrective action to be taken to preclude a recurrence
  368  of all findings.
  369         (e) The Auditor General shall provide the successor
  370  independent certified public accountant of a district school
  371  board with access to the prior year’s working papers in
  372  accordance with the Statements on Auditing Standards, including
  373  documentation of planning, internal control, audit results, and
  374  other matters of continuing accounting and auditing
  375  significance, such as the working paper analysis of balance
  376  sheet accounts and those relating to contingencies.
  377         (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.—
  378         (a) The Legislative Auditing Committee shall direct the
  379  Auditor General to make an audit of any municipality whenever
  380  petitioned to do so by at least 20 percent of the registered
  381  electors in the last general election of that municipality
  382  pursuant to this subsection. The supervisor of elections of the
  383  county in which the municipality is located shall certify
  384  whether or not the petition contains the signatures of at least
  385  20 percent of the registered electors of the municipality. After
  386  the completion of the audit, the Auditor General shall determine
  387  whether the municipality has the fiscal resources necessary to
  388  pay the cost of the audit. The municipality shall pay the cost
  389  of the audit within 90 days after the Auditor General’s
  390  determination that the municipality has the available resources.
  391  If the municipality fails to pay the cost of the audit, the
  392  Department of Revenue shall, upon certification of the Auditor
  393  General, withhold from that portion of the distribution pursuant
  394  to s. 212.20(6)(d)5. which is distributable to such
  395  municipality, a sum sufficient to pay the cost of the audit and
  396  shall deposit that sum into the General Revenue Fund of the
  397  state.
  398         (b) At least one registered elector in the most recent
  399  general election must file a letter of intent with the municipal
  400  clerk prior to any petition of the electors of that municipality
  401  for the purpose of an audit. Each petition must be submitted to
  402  the supervisor of elections and contain, at a minimum:
  403         1. The elector’s printed name;
  404         2. The signature of the elector;
  405         3. The elector’s residence address;
  406         4. The elector’s date of birth; and
  407         5. The date signed.
  408  
  409  All petitions must be submitted for verification within 1
  410  calendar year after the audit petition origination by the
  411  municipal electors.
  412         (6) REQUEST BY A LOCAL GOVERNMENTAL ENTITY FOR AN AUDIT BY
  413  THE AUDITOR GENERAL.—Whenever a local governmental entity
  414  requests the Auditor General to conduct an audit of all or part
  415  of its operations and the Auditor General conducts the audit
  416  under his or her own authority or at the direction of the
  417  Legislative Auditing Committee, the expenses of the audit shall
  418  be paid by the local governmental entity. The Auditor General
  419  shall estimate the cost of the audit. Fifty percent of the cost
  420  estimate shall be paid by the local governmental entity before
  421  the initiation of the audit and deposited into the General
  422  Revenue Fund of the state. After the completion of the audit,
  423  the Auditor General shall notify the local governmental entity
  424  of the actual cost of the audit. The local governmental entity
  425  shall remit the remainder of the cost of the audit to the
  426  Auditor General for deposit into the General Revenue Fund of the
  427  state. If the local governmental entity fails to comply with
  428  paying the remaining cost of the audit, the Auditor General
  429  shall notify the Legislative Auditing Committee. The committee
  430  shall proceed in accordance with s. 11.40(5).
  431         (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
  432         (a) The Auditor General shall notify the Legislative
  433  Auditing Committee of any local governmental entity, district
  434  school board, charter school, or charter technical career center
  435  that does not comply with the reporting requirements of s.
  436  218.39. The committee shall proceed in accordance with s.
  437  11.40(5).
  438         (b) The Auditor General, in consultation with the Board of
  439  Accountancy, shall review all audit reports submitted pursuant
  440  to s. 218.39. The Auditor General shall request any significant
  441  items that were omitted in violation of a rule adopted by the
  442  Auditor General. The items must be provided within 45 days after
  443  the date of the request. If the governmental entity does not
  444  comply with the Auditor General’s request, the Auditor General
  445  shall notify the Legislative Auditing Committee. The committee
  446  shall proceed in accordance with s. 11.40(5).
  447         (c) The Auditor General shall provide annually a list of
  448  those special districts which are not in compliance with s.
  449  218.39 to the Special District Information Program of the
  450  Department of Community Affairs.
  451         (d) During the Auditor General’s review of audit reports,
  452  he or she shall contact those units of local government, as
  453  defined in s. 218.403, that are not in compliance with s.
  454  218.415 and request evidence of corrective action. The unit of
  455  local government shall provide the Auditor General with evidence
  456  of corrective action within 45 days after the date it is
  457  requested by the Auditor General. If the unit of local
  458  government fails to comply with the Auditor General’s request,
  459  the Auditor General shall notify the Legislative Auditing
  460  Committee. The committee shall proceed in accordance with s.
  461  11.40(5).
  462         (e) The Auditor General shall notify the Governor or the
  463  Commissioner of Education, as appropriate, and the Legislative
  464  Auditing Committee of any audit report reviewed by the Auditor
  465  General pursuant to paragraph (b) which contains a statement
  466  that a local governmental entity, charter school, charter
  467  technical career center, or district school board has met one or
  468  more of the conditions specified in s. 218.503. If the Auditor
  469  General requests a clarification regarding information included
  470  in an audit report to determine whether a local governmental
  471  entity, charter school, charter technical career center, or
  472  district school board has met one or more of the conditions
  473  specified in s. 218.503, the requested clarification must be
  474  provided within 45 days after the date of the request. If the
  475  local governmental entity, charter school, charter technical
  476  career center, or district school board does not comply with the
  477  Auditor General’s request, the Auditor General shall notify the
  478  Legislative Auditing Committee. If, after obtaining the
  479  requested clarification, the Auditor General determines that the
  480  local governmental entity, charter school, charter technical
  481  career center, or district school board has met one or more of
  482  the conditions specified in s. 218.503, he or she shall notify
  483  the Governor or the Commissioner of Education, as appropriate,
  484  and the Legislative Auditing Committee.
  485         (f) The Auditor General shall annually compile and transmit
  486  to the President of the Senate, the Speaker of the House of
  487  Representatives, and the Legislative Auditing Committee a
  488  summary of significant findings and financial trends identified
  489  in audit reports reviewed in paragraph (b) or otherwise
  490  identified by the Auditor General’s review of such audit reports
  491  and financial information, and identified in audits of district
  492  school boards conducted by the Auditor General. The Auditor
  493  General shall include financial information provided pursuant to
  494  s. 218.32(1)(e) for entities with fiscal years ending on or
  495  after June 30, 2003, within his or her reports submitted
  496  pursuant to this paragraph.
  497         (g) If the Auditor General discovers significant errors,
  498  improper practices, or other significant discrepancies in
  499  connection with his or her audits of a state agency or state
  500  officer, the Auditor General shall notify the President of the
  501  Senate, the Speaker of the House of Representatives, and the
  502  Legislative Auditing Committee. The President of the Senate and
  503  the Speaker of the House of Representatives shall promptly
  504  forward a copy of the notification to the chairs of the
  505  respective legislative committees, which in the judgment of the
  506  President of the Senate and the Speaker of the House of
  507  Representatives are substantially concerned with the functions
  508  of the state agency or state officer involved. Thereafter, and
  509  in no event later than the 10th day of the next succeeding
  510  legislative session, the person in charge of the state agency
  511  involved, or the state officer involved, as the case may be,
  512  shall explain in writing to the President of the Senate, the
  513  Speaker of the House of Representatives, and to the Legislative
  514  Auditing Committee the reasons or justifications for such
  515  errors, improper practices, or other significant discrepancies
  516  and the corrective measures, if any, taken by the agency.
  517         (h) The Auditor General shall annually compile and transmit
  518  to the President of the Senate, the Speaker of the House of
  519  Representatives, and the Legislative Auditing Committee by
  520  December 1 of each year a report that includes a projected 2
  521  year work plan identifying the audit and other accountability
  522  activities to be undertaken and a list of statutory and fiscal
  523  changes recommended by the Auditor General. The Auditor General
  524  may also transmit recommendations at other times of the year
  525  when the information would be timely and useful for the
  526  Legislature.
  527         (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in
  528  consultation with the Board of Accountancy, shall adopt rules
  529  for the form and conduct of all financial audits performed by
  530  independent certified public accountants pursuant to ss.
  531  215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for
  532  audits of local governmental entities, charter schools, charter
  533  technical career centers, and district school boards must
  534  include, but are not limited to, requirements for the reporting
  535  of information necessary to carry out the purposes of the Local
  536  Governmental Entity, Charter School, Charter Technical Career
  537  Center, and District School Board Financial Emergencies Act as
  538  stated in s. 218.501.
  539         (9) TECHNICAL ADVICE PROVIDED BY THE AUDITOR GENERAL.—The
  540  Auditor General may provide technical advice to:
  541         (a) The Department of Education in the development of a
  542  compliance supplement for the financial audit of a district
  543  school board conducted by an independent certified public
  544  accountant.
  545         (b) Governmental entities on their financial and accounting
  546  systems, procedures, and related matters.
  547         (c) Governmental entities on promoting the building of
  548  competent and efficient accounting and internal audit
  549  organizations in their offices.
  550         Section 2. Section 25.075, Florida Statutes, is amended to
  551  read:
  552         25.075 Uniform case reporting system.—
  553         (1) The Supreme Court shall develop a uniform case
  554  reporting system, including a uniform means of reporting
  555  categories of cases, time required in the disposition of cases,
  556  and manner of disposition of cases.
  557         (2) If any clerk shall willfully fails fail to report to
  558  the Supreme Court as directed by the court, the clerk shall be
  559  guilty of misfeasance in office.
  560         (3) The Auditor General shall audit the reports made to the
  561  Supreme Court in accordance with the uniform system established
  562  by the Supreme Court.
  563         Section 3. Subsection (5) of section 28.35, Florida
  564  Statutes, is amended to read:
  565         28.35 Florida Clerks of Court Operations Corporation.—
  566         (5)(a) The corporation shall submit an annual audited
  567  financial statement to the Auditor General in a form and manner
  568  prescribed by the Auditor General. The Auditor General shall
  569  conduct an annual audit of the operations of the corporation,
  570  including the use of funds and compliance with the provisions of
  571  this section and ss. 28.36 and 28.37.
  572         (b) Certified public accountants conducting audits of
  573  counties pursuant to s. 218.39 shall report, as part of the
  574  audit, whether or not the clerks of the courts have complied
  575  with the requirements of this section and s. 28.36. In addition,
  576  each clerk of court shall forward a copy of the portion of the
  577  financial audit relating to the court-related duties of the
  578  clerk of court to the Supreme Court. The Auditor General shall
  579  develop a compliance supplement for the audit of compliance with
  580  the budgets and applicable performance standards certified by
  581  the corporation.
  582         Section 4. Subsection (7) of section 195.096, Florida
  583  Statutes, is repealed.
  584         Section 5. Subsection (17) of section 218.31, Florida
  585  Statutes, is amended to read:
  586         218.31 Definitions.—As used in this part, except where the
  587  context clearly indicates a different meaning:
  588         (17) “Financial audit” means an examination of financial
  589  statements in order to express an opinion on the fairness with
  590  which they are presented in conformity with generally accepted
  591  accounting principles and an examination to determine whether
  592  operations are properly conducted in accordance with legal and
  593  regulatory requirements. Financial audits must be conducted in
  594  accordance with auditing standards generally accepted in the
  595  United States auditing standards and government auditing
  596  standards as adopted by the Board of Accountancy and as
  597  prescribed by rules promulgated by the Auditor General. When
  598  applicable, the scope of financial audits shall encompass the
  599  additional activities necessary to establish compliance with the
  600  Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and
  601  other applicable federal law.
  602         Section 6. Subsection (5) of section 273.05, Florida
  603  Statutes, is amended to read:
  604         273.05 Surplus property.—
  605         (5) The custodian shall maintain records of property that
  606  is certified as surplus with information indicating the value
  607  and condition of the property. Agency records for property
  608  certified as surplus shall comply with rules issued by the Chief
  609  Financial Officer Auditor General.
  610         Section 7. Subsection (3) of section 365.173, Florida
  611  Statutes, is repealed.
  612         Section 8. Subsection (3) of section 943.25, Florida
  613  Statutes, is repealed.
  614         Section 9. Subsection (3) of section 1002.36, Florida
  615  Statutes, is amended to read:
  616         1002.36 Florida School for the Deaf and the Blind.—
  617         (3) AUDITS.—The Auditor General shall conduct annual audits
  618  of the accounts and records of the Florida School for the Deaf
  619  and the Blind as provided in s. 11.45. The Department of
  620  Education’s Inspector General is authorized to conduct
  621  investigations at the school as provided in s. 1001.20(4)(e).
  622         Section 10. Subsection (5) of section 1009.53, Florida
  623  Statutes, is amended to read:
  624         1009.53 Florida Bright Futures Scholarship Program.—
  625         (5) The department shall issue awards from the scholarship
  626  program annually. Annual awards may be for up to 45 semester
  627  credit hours or the equivalent. Before the registration period
  628  each semester, the department shall transmit payment for each
  629  award to the president or director of the postsecondary
  630  education institution, or his or her representative, except that
  631  the department may withhold payment if the receiving institution
  632  fails to report or to make refunds to the department as required
  633  in this section.
  634         (a) Within 30 days after the end of regular registration
  635  each semester, the educational institution shall certify to the
  636  department the eligibility status of each student who receives
  637  an award. After the end of the drop and add period, an
  638  institution is not required to reevaluate or revise a student’s
  639  eligibility status; however, an institution must make a refund
  640  to the department within 30 days after the end of the semester
  641  of any funds received for courses dropped by a student or
  642  courses from which a student has withdrawn after the end of the
  643  drop and add period, unless the student has been granted an
  644  exception by the department pursuant to subsection (11).
  645         (b) An institution that receives funds from the program
  646  shall certify to the department the amount of funds disbursed to
  647  each student and shall remit to the department any undisbursed
  648  advances within 60 days after the end of regular registration.
  649         (c) Each institution that receives moneys through this
  650  program shall provide for a prepare an annual report that
  651  includes an annual financial audit, as defined in s. 11.45,
  652  conducted by an independent certified public accountant or the
  653  Auditor General for each fiscal year in which the institution
  654  expends program moneys in excess of $100,000. At least every 2
  655  years, the audit report shall include an examination audit of
  656  the institution’s administration of the program and the
  657  institution’s a complete accounting of the moneys for the
  658  program since the last examination of the institution’s
  659  administration of the program. The This report on the audit must
  660  be submitted to the department within 9 months after the end of
  661  the fiscal year annually by March 1. The department may conduct
  662  its own annual audit of an institution’s administration of the
  663  program. The department may request a refund of any moneys
  664  overpaid to the institution for the program. The department may
  665  suspend or revoke an institution’s eligibility to receive future
  666  moneys for the program if the department finds that an
  667  institution has not complied with this section. The institution
  668  must remit within 60 days any refund requested in accordance
  669  with this subsection.
  670         (d) Any institution that is not subject to an audit
  671  pursuant to this subsection shall attest, under penalty of
  672  perjury, that the moneys were used in compliance with law. The
  673  attestation shall be made annually in a form and format
  674  determined by the department.
  675         Section 11. For the purpose of incorporating the amendment
  676  made by this act to section 11.45, Florida Statutes, in a
  677  reference thereto, subsection (3) of section 11.40, Florida
  678  Statutes, is reenacted to read:
  679         11.40 Legislative Auditing Committee.—
  680         (3) The Legislative Auditing Committee may direct the
  681  Auditor General or the Office of Program Policy Analysis and
  682  Government Accountability to conduct an audit, review, or
  683  examination of any entity or record described in s. 11.45(2) or
  684  (3).
  685         Section 12. This act shall take effect July 1, 2011.