Florida Senate - 2017 COMMITTEE AMENDMENT
Bill No. SB 880
Senate . House
Comm: RCS .
The Committee on Community Affairs (Stargel) recommended the
1 Senate Amendment (with title amendment)
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsection (2) of section 11.40, Florida
6 Statutes, is amended to read:
7 11.40 Legislative Auditing Committee.—
8 (2) Following notification by the Auditor General, the
9 Department of Financial Services,
or the Division of Bond
10 Finance of the State Board of Administration, the Governor or
11 his or her designee, or the Commissioner of Education or his or
12 her designee of the failure of a local governmental entity,
13 district school board, charter school, or charter technical
14 career center to comply with the applicable provisions within s.
15 11.45(5)-(7), s. 218.32(1), s. 218.38, or s. 218.503(3), the
16 Legislative Auditing Committee may schedule a hearing to
17 determine if the entity should be subject to further state
18 action. If the committee determines that the entity should be
19 subject to further state action, the committee shall:
20 (a) In the case of a local governmental entity or district
21 school board, direct the Department of Revenue and the
22 Department of Financial Services to withhold any funds not
23 pledged for bond debt service satisfaction which are payable to
24 such entity until the entity complies with the law. The
25 committee shall specify the date that such action must shall
26 begin, and the directive must be received by the Department of
27 Revenue and the Department of Financial Services 30 days before
28 the date of the distribution mandated by law. The Department of
29 Revenue and the Department of Financial Services may implement
30 the provisions of this paragraph.
31 (b) In the case of a special district created by:
32 1. A special act, notify the President of the Senate, the
33 Speaker of the House of Representatives, the standing committees
34 of the Senate and the House of Representatives charged with
35 special district oversight as determined by the presiding
36 officers of each respective chamber, the legislators who
37 represent a portion of the geographical jurisdiction of the
38 special district, and the Department of Economic Opportunity
39 that the special district has failed to comply with the law.
40 Upon receipt of notification, the Department of Economic
41 Opportunity shall proceed pursuant to s. 189.062 or s. 189.067.
42 If the special district remains in noncompliance after the
43 process set forth in s. 189.0651, or if a public hearing is not
44 held, the Legislative Auditing Committee may request the
45 department to proceed pursuant to s. 189.067(3).
46 2. A local ordinance, notify the chair or equivalent of the
47 local general-purpose government pursuant to s. 189.0652 and the
48 Department of Economic Opportunity that the special district has
49 failed to comply with the law. Upon receipt of notification, the
50 department shall proceed pursuant to s. 189.062 or s. 189.067.
51 If the special district remains in noncompliance after the
52 process set forth in s. 189.0652, or if a public hearing is not
53 held, the Legislative Auditing Committee may request the
54 department to proceed pursuant to s. 189.067(3).
55 3. Any manner other than a special act or local ordinance,
56 notify the Department of Economic Opportunity that the special
57 district has failed to comply with the law. Upon receipt of
58 notification, the department shall proceed pursuant to s.
59 189.062 or s. 189.067(3).
60 (c) In the case of a charter school or charter technical
61 career center, notify the appropriate sponsoring entity, which
62 may terminate the charter pursuant to ss. 1002.33 and 1002.34.
63 Section 2. Subsection (1), paragraph (j) of subsection (2),
64 paragraph (u) of subsection (3), and paragraph (i) of subsection
65 (7) of section 11.45, Florida Statutes, are amended, and
66 paragraph (x) is added to subsection (3) of that section, to
68 11.45 Definitions; duties; authorities; reports; rules.—
69 (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
70 (a) “Abuse” means behavior that is deficient or improper
71 when compared with behavior that a prudent person would consider
72 a reasonable and necessary operational practice given the facts
73 and circumstances. The term includes the misuse of authority or
74 position for personal gain.
75 (b) (a) “Audit” means a financial audit, operational audit,
76 or performance audit.
77 (c) (b) “County agency” means a board of county
78 commissioners or other legislative and governing body of a
79 county, however styled, including that of a consolidated or
80 metropolitan government, a clerk of the circuit court, a
81 separate or ex officio clerk of the county court, a sheriff, a
82 property appraiser, a tax collector, a supervisor of elections,
83 or any other officer in whom any portion of the fiscal duties of
84 a body or officer expressly stated in this paragraph the above
85 are under law separately placed by law.
86 (d) (c) “Financial audit” means an examination of financial
87 statements in order to express an opinion on the fairness with
88 which they are presented in conformity with generally accepted
89 accounting principles and an examination to determine whether
90 operations are properly conducted in accordance with legal and
91 regulatory requirements. Financial audits must be conducted in
92 accordance with auditing standards generally accepted in the
93 United States and government auditing standards as adopted by
94 the Board of Accountancy. When applicable, the scope of
95 financial audits must shall encompass the additional activities
96 necessary to establish compliance with the Single Audit Act
97 Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other
98 applicable federal law.
99 (e) “Fraud” means obtaining something of value through
100 willful misrepresentation, including, but not limited to, the
101 intentional misstatements or intentional omissions of amounts or
102 disclosures in financial statements to deceive users of
103 financial statements, theft of an entity’s assets, bribery, or
104 the use of one’s position for personal enrichment through the
105 deliberate misuse or misapplication of an organization’s
107 (f) (d) “Governmental entity” means a state agency, a county
108 agency, or any other entity, however styled, that independently
109 exercises any type of state or local governmental function.
110 (g) (e) “Local governmental entity” means a county agency,
111 municipality, tourist development council, county tourism
112 promotion agency, or special district as defined in s. 189.012.
113 The term , but does not include any housing authority established
114 under chapter 421.
115 (h) (f) “Management letter” means a statement of the
116 auditor’s comments and recommendations.
117 (i) (g) “Operational audit” means an audit whose purpose is
118 to evaluate management’s performance in establishing and
119 maintaining internal controls, including controls designed to
120 prevent and detect fraud, waste, and abuse, and in administering
121 assigned responsibilities in accordance with applicable laws,
122 administrative rules, contracts, grant agreements, and other
123 guidelines. Operational audits must be conducted in accordance
124 with government auditing standards. Such audits examine internal
125 controls that are designed and placed in operation to promote
126 and encourage the achievement of management’s control objectives
127 in the categories of compliance, economic and efficient
128 operations, reliability of financial records and reports, and
129 safeguarding of assets, and identify weaknesses in those
130 internal controls.
131 (j) (h) “Performance audit” means an examination of a
132 program, activity, or function of a governmental entity,
133 conducted in accordance with applicable government auditing
134 standards or auditing and evaluation standards of other
135 appropriate authoritative bodies. The term includes an
136 examination of issues related to:
137 1. Economy, efficiency, or effectiveness of the program.
138 2. Structure or design of the program to accomplish its
139 goals and objectives.
140 3. Adequacy of the program to meet the needs identified by
141 the Legislature or governing body.
142 4. Alternative methods of providing program services or
144 5. Goals, objectives, and performance measures used by the
145 agency to monitor and report program accomplishments.
146 6. The accuracy or adequacy of public documents, reports,
147 or requests prepared under the program by state agencies.
148 7. Compliance of the program with appropriate policies,
149 rules, or laws.
150 8. Any other issues related to governmental entities as
151 directed by the Legislative Auditing Committee.
152 (k) (i) “Political subdivision” means a separate agency or
153 unit of local government created or established by law and
154 includes, but is not limited to, the following and the officers
155 thereof: authority, board, branch, bureau, city, commission,
156 consolidated government, county, department, district,
157 institution, metropolitan government, municipality, office,
158 officer, public corporation, town, or village.
159 (l) (j) “State agency” means a separate agency or unit of
160 state government created or established by law and includes, but
161 is not limited to, the following and the officers thereof:
162 authority, board, branch, bureau, commission, department,
163 division, institution, office, officer, or public corporation,
164 as the case may be, except any such agency or unit within the
165 legislative branch of state government other than the Florida
166 Public Service Commission.
167 (m) “Waste” means the act of using or expending resources
168 unreasonably, carelessly, extravagantly, or for no useful
170 (2) DUTIES.—The Auditor General shall:
171 (j) Conduct audits of local governmental entities when
172 determined to be necessary by the Auditor General, when directed
173 by the Legislative Auditing Committee, or when otherwise
174 required by law. No later than 18 months after the release of
175 the audit report, the Auditor General shall perform such
176 appropriate followup procedures as he or she deems necessary to
177 determine the audited entity’s progress in addressing the
178 findings and recommendations contained within the Auditor
179 General’s previous report. The Auditor General shall notify each
180 member of the audited entity’s governing body and the
181 Legislative Auditing Committee of the results of his or her
182 determination. For purposes of this paragraph, local
183 governmental entities do not include water management districts.
185 The Auditor General shall perform his or her duties
186 independently but under the general policies established by the
187 Legislative Auditing Committee. This subsection does not limit
188 the Auditor General’s discretionary authority to conduct other
189 audits or engagements of governmental entities as authorized in
190 subsection (3).
191 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
192 General may, pursuant to his or her own authority, or at the
193 direction of the Legislative Auditing Committee, conduct audits
194 or other engagements as determined appropriate by the Auditor
195 General of:
196 (u) The Florida Virtual School pursuant to s. 1002.37.
197 (x) Tourist development councils and county tourism
198 promotion agencies.
199 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
200 (i) The Auditor General shall annually transmit by July 15,
201 to the President of the Senate, the Speaker of the House of
202 Representatives, and the Department of Financial Services, a
203 list of all school districts, charter schools, charter technical
204 career centers, Florida College System institutions, state
205 universities, and local governmental entities water management
206 districts that have failed to comply with the transparency
207 requirements as identified in the audit reports reviewed
208 pursuant to paragraph (b) and those conducted pursuant to
209 subsection (2).
210 Section 3. Paragraph (d) of subsection (2) of section
211 28.35, Florida Statutes, is amended to read:
212 28.35 Florida Clerks of Court Operations Corporation.—
213 (2) The duties of the corporation shall include the
215 (d) Developing and certifying a uniform system of workload
216 measures and applicable workload standards for court-related
217 functions as developed by the corporation and clerk workload
218 performance in meeting the workload performance standards. These
219 workload measures and workload performance standards shall be
220 designed to facilitate an objective determination of the
221 performance of each clerk in accordance with minimum standards
222 for fiscal management, operational efficiency, and effective
223 collection of fines, fees, service charges, and court costs. The
224 corporation shall develop the workload measures and workload
225 performance standards in consultation with the Legislature. When
226 the corporation finds a clerk has not met the workload
227 performance standards, the corporation shall identify the nature
228 of each deficiency and any corrective action recommended and
229 taken by the affected clerk of the court. For quarterly periods
230 ending on the last day of March, June, September, and December
231 of each year, the corporation shall notify the Legislature of
232 any clerk not meeting workload performance standards and provide
233 a copy of any corrective action plans. Such notifications shall
234 be submitted no later than 45 days after the end of the
235 preceding quarterly period. As used in this subsection, the
237 1. “Workload measures” means the measurement of the
238 activities and frequency of the work required for the clerk to
239 adequately perform the court-related duties of the office as
240 defined by the membership of the Florida Clerks of Court
241 Operations Corporation.
242 2. “Workload performance standards” means the standards
243 developed to measure the timeliness and effectiveness of the
244 activities that are accomplished by the clerk in the performance
245 of the court-related duties of the office as defined by the
246 membership of the Florida Clerks of Court Operations
248 Section 4. Present subsections (6) and (7) of section
249 43.16, Florida Statutes, are renumbered as subsections (7) and
250 (8), respectively, and a new subsection (6) is added to that
251 section to read:
252 43.16 Justice Administrative Commission; membership, powers
253 and duties.—
254 (6) The commission, each state attorney, each public
255 defender, the criminal conflict and civil regional counsel, the
256 capital collateral regional counsel, and the Guardian Ad Litem
257 Program shall establish and maintain internal controls designed
259 (a) Prevent and detect fraud, waste, and abuse as defined
260 in s. 11.45(1).
261 (b) Promote and encourage compliance with applicable laws,
262 rules, contracts, grant agreements, and best practices.
263 (c) Support economical and efficient operations.
264 (d) Ensure reliability of financial records and reports.
265 (e) Safeguard assets.
266 Section 5. Subsection (6) of section 112.061, Florida
267 Statutes, is amended to read:
268 112.061 Per diem and travel expenses of public officers,
269 employees, and authorized persons.—
270 (6) RATES OF PER DIEM AND SUBSISTENCE ALLOWANCE.—For
271 purposes of reimbursement rates and methods of calculation, per
272 diem and subsistence allowances are provided as follows:
273 (a) All travelers shall be allowed for subsistence when
274 traveling to a convention or conference or when traveling within
275 or outside the state in order to conduct bona fide state
276 business, which convention, conference, or business serves a
277 direct and lawful public purpose with relation to the public
278 agency served by the person attending such meeting or conducting
279 such business, either of the following for each day of such
280 travel at the option of the traveler:
281 1. Eighty dollars per diem; or
282 2. If actual expenses exceed $80, the amounts permitted in
283 paragraph (b) for subsistence, plus actual expenses for lodging
284 at a single-occupancy rate, except as provided in paragraph (c),
285 to be substantiated by paid bills therefor.
287 When lodging or meals are provided at a state institution, the
288 traveler shall be reimbursed only for the actual expenses of
289 such lodging or meals, not to exceed the maximum provided for in
290 this subsection.
291 (b) All travelers shall be allowed the following amounts
292 for subsistence while on Class C travel on official business as
293 provided in paragraph (5)(b):
294 1. Breakfast $6
295 2. Lunch $11
296 3. Dinner $19
297 (c) Actual expenses for lodging associated with the
298 attendance of an employee of a state agency or the judicial
299 branch at a meeting, conference, or convention organized or
300 sponsored in whole or in part by a state agency or the judicial
301 branch may not exceed $150 per day. However, an employee may
302 expend his or her own funds for any lodging expenses that exceed
303 $150 per day.
304 (d) (c) No one, whether traveling out of state or in state,
305 shall be reimbursed for any meal or lodging included in a
306 convention or conference registration fee paid by the state.
307 Section 6. Paragraph (c) of subsection (3) of section
308 129.03, Florida Statutes, is amended to read:
309 129.03 Preparation and adoption of budget.—
310 (3) The county budget officer, after tentatively
311 ascertaining the proposed fiscal policies of the board for the
312 next fiscal year, shall prepare and present to the board a
313 tentative budget for the next fiscal year for each of the funds
314 provided in this chapter, including all estimated receipts,
315 taxes to be levied, and balances expected to be brought forward
316 and all estimated expenditures, reserves, and balances to be
317 carried over at the end of the year.
318 (c) The board shall hold public hearings to adopt tentative
319 and final budgets pursuant to s. 200.065. The hearings shall be
320 primarily for the purpose of hearing requests and complaints
321 from the public regarding the budgets and the proposed tax
322 levies and for explaining the budget and any proposed or adopted
323 amendments. The tentative budget must be posted on the county’s
324 official website at least 2 days before the public hearing to
325 consider such budget and must remain on the website for at least
326 45 days. The final budget must be posted on the website within
327 30 days after adoption and must remain on the website for at
328 least 2 years. The tentative budgets, adopted tentative budgets,
329 and final budgets shall be filed in the office of the county
330 auditor as a public record. Sufficient reference in words and
331 figures to identify the particular transactions must shall be
332 made in the minutes of the board to record its actions with
333 reference to the budgets.
334 Section 7. Paragraph (f) of subsection (2) of section
335 129.06, Florida Statutes, is amended to read:
336 129.06 Execution and amendment of budget.—
337 (2) The board at any time within a fiscal year may amend a
338 budget for that year, and may within the first 60 days of a
339 fiscal year amend the budget for the prior fiscal year, as
341 (f) Unless otherwise prohibited by law, if an amendment to
342 a budget is required for a purpose not specifically authorized
343 in paragraphs (a)-(e), the amendment may be authorized by
344 resolution or ordinance of the board of county commissioners
345 adopted following a public hearing.
346 1. The public hearing must be advertised at least 2 days,
347 but not more than 5 days, before the date of the hearing. The
348 advertisement must appear in a newspaper of paid general
349 circulation and must identify the name of the taxing authority,
350 the date, place, and time of the hearing, and the purpose of the
351 hearing. The advertisement must also identify each budgetary
352 fund to be amended, the source of the funds, the use of the
353 funds, and the total amount of each fund’s appropriations.
354 2. If the board amends the budget pursuant to this
355 paragraph, the adopted amendment must be posted on the county’s
356 official website within 5 days after adoption and must remain on
357 the website for at least 2 years.
358 Section 8. Subsections (3) and (5) of section 166.241,
359 Florida Statutes, are amended to read:
360 166.241 Fiscal years, budgets, and budget amendments.—
361 (3) The tentative budget must be posted on the
362 municipality’s official website at least 2 days before the
363 budget hearing, held pursuant to s. 200.065 or other law, to
364 consider such budget and must remain on the website for at least
365 45 days. The final adopted budget must be posted on the
366 municipality’s official website within 30 days after adoption
367 and must remain on the website for at least 2 years. If the
368 municipality does not operate an official website, the
369 municipality must, within a reasonable period of time as
370 established by the county or counties in which the municipality
371 is located, transmit the tentative budget and final budget to
372 the manager or administrator of such county or counties who
373 shall post the budgets on the county’s website.
374 (5) If the governing body of a municipality amends the
375 budget pursuant to paragraph (4)(c), the adopted amendment must
376 be posted on the official website of the municipality within 5
377 days after adoption and must remain on the website for at least
378 2 years. If the municipality does not operate an official
379 website, the municipality must, within a reasonable period of
380 time as established by the county or counties in which the
381 municipality is located, transmit the adopted amendment to the
382 manager or administrator of such county or counties who shall
383 post the adopted amendment on the county’s website.
384 Section 9. Section 215.86, Florida Statutes, is amended to
386 215.86 Management systems and controls.—Each state agency
387 and the judicial branch as defined in s. 216.011 shall establish
388 and maintain management systems and internal controls designed
390 (1) Prevent and detect fraud, waste, and abuse as defined
391 in s. 11.45(1). that
392 (2) Promote and encourage compliance with applicable laws,
393 rules, contracts, and grant agreements. ;
394 (3) Support economical and economic, efficient , and
395 effective operations. ;
396 (4) Ensure reliability of financial records and reports. ;
397 (5) Safeguard and safeguarding of assets. Accounting
398 systems and procedures shall be designed to fulfill the
399 requirements of generally accepted accounting principles.
400 Section 10. Paragraph (a) of subsection (2) of section
401 215.97, Florida Statutes, is amended to read:
402 215.97 Florida Single Audit Act.—
403 (2) As used in this section, the term:
404 (a) “Audit threshold” means the threshold amount used to
405 determine when a state single audit or project-specific audit of
406 a nonstate entity shall be conducted in accordance with this
407 section. Each nonstate entity that expends a total amount of
408 state financial assistance equal to or in excess of $750,000 in
409 any fiscal year of such nonstate entity shall be required to
410 have a state single audit , or a project-specific audit , for such
411 fiscal year in accordance with the requirements of this section.
412 Every 2 years the Auditor General, After consulting with the
413 Executive Office of the Governor, the Department of Financial
414 Services, and all state awarding agencies, the Auditor General
415 shall periodically review the threshold amount for requiring
416 audits under this section and may recommend any appropriate
417 statutory change to revise the threshold amount in the annual
418 report submitted pursuant to s. 11.45(7)(h) to the Legislature
419 adjust such threshold amount consistent with the purposes of
420 this section.
421 Section 11. Subsection (11) of section 215.985, Florida
422 Statutes, is amended to read:
423 215.985 Transparency in government spending.—
424 (11) Each water management district shall provide a monthly
425 financial statement in the form and manner prescribed by the
426 Department of Financial Services to the district’s its governing
427 board and make such monthly financial statement available for
428 public access on its website.
429 Section 12. Paragraph (d) of subsection (1) and subsection
430 (2) of section 218.32, Florida Statutes, are amended to read:
431 218.32 Annual financial reports; local governmental
434 (d) Each local governmental entity that is required to
435 provide for an audit under s. 218.39(1) must submit a copy of
436 the audit report and annual financial report to the department
437 within 45 days after the completion of the audit report but no
438 later than 9 months after the end of the fiscal year. In
439 conducting an audit of a local governmental entity pursuant to
440 s. 218.39, an independent certified public accountant shall
441 determine whether the entity’s annual financial report is in
442 agreement with the audited financial statements. If the audited
443 financial statements are not in agreement with the annual
444 financial report, the accountant shall specify and explain the
445 significant differences that exist between the audited financial
446 statements and the annual financial report.
447 (2) The department shall annually by December 1 file a
448 verified report with the Governor, the Legislature, the Auditor
449 General, and the Special District Accountability Program of the
450 Department of Economic Opportunity showing the revenues, both
451 locally derived and derived from intergovernmental transfers,
452 and the expenditures of each local governmental entity, regional
453 planning council, local government finance commission, and
454 municipal power corporation that is required to submit an annual
455 financial report. In preparing the verified report, the
456 department may request additional information from the local
457 governmental entity. The information requested must be provided
458 to the department within 45 days after the request. If the local
459 governmental entity does not comply with the request, the
460 department shall notify the Legislative Auditing Committee,
461 which may take action pursuant to s. 11.40(2). The report must
462 include, but is not limited to:
463 (a) The total revenues and expenditures of each local
464 governmental entity that is a component unit included in the
465 annual financial report of the reporting entity.
466 (b) The amount of outstanding long-term debt by each local
467 governmental entity. For purposes of this paragraph, the term
468 “long-term debt” means any agreement or series of agreements to
469 pay money, which, at inception, contemplate terms of payment
470 exceeding 1 year in duration.
471 Section 13. Present subsection (3) of section 218.33,
472 Florida Statutes, is renumbered as subsection (4), and a new
473 subsection (3) is added to that section to read:
474 218.33 Local governmental entities; establishment of
475 uniform fiscal years and accounting practices and procedures.—
476 (3) Each local governmental entity shall establish and
477 maintain internal controls designed to:
478 (a) Prevent and detect fraud, waste, and abuse as defined
479 in s. 11.45(1).
480 (b) Promote and encourage compliance with applicable laws,
481 rules, contracts, grant agreements, and best practices.
482 (c) Support economical and efficient operations.
483 (d) Ensure reliability of financial records and reports.
484 (e) Safeguard assets.
485 Section 14. Present subsections (8) through (12) of section
486 218.39, Florida Statutes, are renumbered as subsections (9)
487 through (13), respectively, and a new subsection (8) is added to
488 that section to read:
489 218.39 Annual financial audit reports.—
490 (8) If the audit report includes a recommendation that was
491 included in the preceding financial audit report but remains
492 unaddressed, the governing body of the audited entity, within 60
493 days after the delivery of the audit report to the governing
494 body, shall indicate during a regularly scheduled public meeting
495 whether it intends to take corrective action, the intended
496 corrective action, and the timeframe for the corrective action.
497 If the governing body indicates that it does not intend to take
498 corrective action, it must explain its decision at the public
500 Section 15. Subsection (2) of section 218.391, Florida
501 Statutes, is amended to read:
502 218.391 Auditor selection procedures.—
503 (2) The governing body of a charter county, municipality,
504 special district, district school board, charter school, or
505 charter technical career center shall establish an audit
507 (a) The audit committee for a county Each noncharter county
508 shall establish an audit committee that, at a minimum, shall
509 consist of each of the county officers elected pursuant to the
510 county charter or s. 1(d), Art. VIII of the State Constitution ,
511 or their respective designees a designee, and one member of the
512 board of county commissioners or its designee.
513 (b) The audit committee for a municipality, special
514 district, district school board, charter school, or charter
515 technical career center shall consist of at least three members.
516 One member of the audit committee must be a member of the
517 governing body of an entity specified in this paragraph, who
518 shall also serve as the chair of the committee.
519 (c) An employee, the chief executive officer, or the chief
520 financial officer of the county, municipality, special district,
521 district school board, charter school, or charter technical
522 career center may not serve as a member of an audit committee
523 established under this subsection.
524 (d) The primary purpose of the audit committee is to assist
525 the governing body in selecting an auditor to conduct the annual
526 financial audit required in s. 218.39; however, the audit
527 committee may serve other audit oversight purposes as determined
528 by the entity’s governing body. The public may shall not be
529 excluded from the proceedings under this section.
530 Section 16. Subsection (2) of section 286.0114, Florida
531 Statutes, is amended to read:
532 286.0114 Public meetings; reasonable opportunity to be
533 heard; attorney fees.—
534 (2) Members of the public shall be given a reasonable
535 opportunity to be heard on a proposition before a board or
536 commission. The opportunity to be heard need not occur at the
537 same meeting at which the board or commission takes official
538 action on the proposition if the opportunity occurs at a meeting
539 that is during the decisionmaking process and is within
540 reasonable proximity in time before the meeting at which the
541 board or commission takes the official action. A board or
542 commission may not require a member of the public to provide an
543 advance written copy of his or her testimony or comments as a
544 condition of being given the opportunity to be heard at a
545 meeting. This section does not prohibit a board or commission
546 from maintaining orderly conduct or proper decorum in a public
547 meeting. The opportunity to be heard is subject to rules or
548 policies adopted by the board or commission, as provided in
549 subsection (4).
550 Section 17. Paragraph (e) of subsection (4), paragraph (d)
551 of subsection (5), and paragraph (d) of subsection (6) of
552 section 373.536, Florida Statutes, are amended to read:
553 373.536 District budget and hearing thereon.—
554 (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
555 (e) By September 1, 2012, Each district shall provide a
556 monthly financial statement in the form and manner prescribed by
557 the Department of Financial Services to the district’s governing
558 board and make such monthly financial statement available for
559 public access on its website.
560 (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
562 (d) Each district shall, by August 1 of each year, submit
563 for review a tentative budget and a description of any
564 significant changes from the preliminary budget submitted to the
565 Legislature pursuant to s. 373.535 to the Governor, the
566 President of the Senate, the Speaker of the House of
567 Representatives, the chairs of all legislative committees and
568 subcommittees having substantive or fiscal jurisdiction over
569 water management districts, as determined by the President of
570 the Senate or the Speaker of the House of Representatives, as
571 applicable, the secretary of the department, and the governing
572 body of each county in which the district has jurisdiction or
573 derives any funds for the operations of the district. The
574 tentative budget must be posted on the district’s official
575 website at least 2 days before budget hearings held pursuant to
576 s. 200.065 or other law and must remain on the website for at
577 least 45 days.
578 (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
579 WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
580 (d) The final adopted budget must be posted on the water
581 management district’s official website within 30 days after
582 adoption and must remain on the website for at least 2 years.
583 Section 18. Paragraph (l) of subsection (12) of section
584 1001.42, Florida Statutes, is amended to read:
585 1001.42 Powers and duties of district school board.—The
586 district school board, acting as a board, shall exercise all
587 powers and perform all duties listed below:
588 (12) FINANCE.—Take steps to assure students adequate
589 educational facilities through the financial procedure
590 authorized in chapters 1010 and 1011 and as prescribed below:
591 (l) Internal auditor.—May employ an internal auditor to
592 perform ongoing financial verification of the financial records
593 of the school district and such other audits and reviews as the
594 district school board directs for the purpose of determining:
595 1. The adequacy of internal controls designed to prevent
596 and detect fraud, waste, and abuse as defined in s. 11.45(1).
597 2. Compliance with applicable laws, rules, contracts, grant
598 agreements, district school board-approved policies, and best
600 3. The efficiency of operations.
601 4. The reliability of financial records and reports.
602 5. The safeguarding of assets.
604 The internal auditor shall report directly to the district
605 school board or its designee.
606 Section 19. Paragraph (j) of subsection (9) of section
607 1002.33, Florida Statutes, is amended to read:
608 1002.33 Charter schools.—
609 (9) CHARTER SCHOOL REQUIREMENTS.—
610 (j) The governing body of the charter school shall be
611 responsible for:
612 1. Establishing and maintaining internal controls designed
614 a. Prevent and detect fraud, waste, and abuse as defined in
615 s. 11.45(1).
616 b. Promote and encourage compliance with applicable laws,
617 rules, contracts, grant agreements, and best practices.
618 c. Support economical and efficient operations.
619 d. Ensure reliability of financial records and reports.
620 e. Safeguard assets.
621 2. 1. Ensuring that the charter school has retained the
622 services of a certified public accountant or auditor for the
623 annual financial audit, pursuant to s. 1002.345(2), who shall
624 submit the report to the governing body.
625 3. 2. Reviewing and approving the audit report, including
626 audit findings and recommendations for the financial recovery
628 4.a. 3.a. Performing the duties in s. 1002.345, including
629 monitoring a corrective action plan.
630 b. Monitoring a financial recovery plan in order to ensure
632 5. 4. Participating in governance training approved by the
633 department which must include government in the sunshine,
634 conflicts of interest, ethics, and financial responsibility.
635 Section 20. Present subsections (6) through (10) of section
636 1002.37, Florida Statutes, are renumbered as subsections (7)
637 through (11), respectively, a new subsection (6) is added to
638 that section, and present subsections (6) and (11) of that
639 section are amended, to read:
640 1002.37 The Florida Virtual School.—
641 (6) The Florida Virtual School shall have an annual
642 financial audit of its accounts and records conducted by an
643 independent auditor who is a certified public accountant
644 licensed under chapter 473. The independent auditor shall
645 conduct the audit in accordance with rules adopted by the
646 Auditor General pursuant to s. 11.45 and, upon completion of the
647 audit, shall prepare an audit report in accordance with such
648 rules. The audit report must include a written statement by the
649 board of trustees describing corrective action to be taken in
650 response to each of the recommendations of the independent
651 auditor included in the audit report. The independent auditor
652 shall submit the audit report to the board of trustees and the
653 Auditor General no later than 9 months after the end of the
654 preceding fiscal year.
655 (7) (6) The board of trustees shall annually submit to the
656 Governor, the Legislature, the Commissioner of Education, and
657 the State Board of Education the audit report prepared pursuant
658 to subsection (6) and a complete and detailed report setting
660 (a) The operations and accomplishments of the Florida
661 Virtual School within the state and those occurring outside the
662 state as Florida Virtual School Global.
663 (b) The marketing and operational plan for the Florida
664 Virtual School and Florida Virtual School Global, including
665 recommendations regarding methods for improving the delivery of
666 education through the Internet and other distance learning
668 (c) The assets and liabilities of the Florida Virtual
669 School and Florida Virtual School Global at the end of the
670 fiscal year.
671 (d) A copy of an annual financial audit of the accounts and
672 records of the Florida Virtual School and Florida Virtual School
673 Global, conducted by an independent certified public accountant
674 and performed in accordance with rules adopted by the Auditor
676 (d) (e) Recommendations regarding the unit cost of providing
677 services to students through the Florida Virtual School and
678 Florida Virtual School Global. In order to most effectively
679 develop public policy regarding any future funding of the
680 Florida Virtual School, it is imperative that the cost of the
681 program is accurately identified. The identified cost of the
682 program must be based on reliable data.
683 (e) (f) Recommendations regarding an accountability
684 mechanism to assess the effectiveness of the services provided
685 by the Florida Virtual School and Florida Virtual School Global.
686 (11) The Auditor General shall conduct an operational audit
687 of the Florida Virtual School, including Florida Virtual School
688 Global. The scope of the audit shall include, but not be limited
689 to, the administration of responsibilities relating to
690 personnel; procurement and contracting; revenue production;
691 school funds, including internal funds; student enrollment
692 records; franchise agreements; information technology
693 utilization, assets, and security; performance measures and
694 standards; and accountability. The final report on the audit
695 shall be submitted to the President of the Senate and the
696 Speaker of the House of Representatives no later than January
697 31, 2014.
698 Section 21. Subsection (5) is added to section 1010.01,
699 Florida Statutes, to read:
700 1010.01 Uniform records and accounts.—
701 (5) Each school district, Florida College System
702 institution, and state university shall establish and maintain
703 internal controls designed to:
704 (a) Prevent and detect fraud, waste, and abuse as defined
705 in s. 11.45(1).
706 (b) Promote and encourage compliance with applicable laws,
707 rules, contracts, grant agreements, and best practices.
708 (c) Support economical and efficient operations.
709 (d) Ensure reliability of financial records and reports.
710 (e) Safeguard assets.
711 Section 22. Subsection (2) of section 1010.30, Florida
712 Statutes, is amended to read:
713 1010.30 Audits required.—
714 (2) If a school district, Florida College System
715 institution, or university audit report includes a
716 recommendation that was included in the preceding financial
717 audit report but remains unaddressed an audit contains a
718 significant finding, the district school board, the Florida
719 College System institution board of trustees, or the university
720 board of trustees, within 60 days after the delivery of the
721 audit report to the school district, Florida College System
722 institution, or university, shall indicate conduct an audit
723 overview during a regularly scheduled public meeting whether it
724 intends to take corrective action, the intended corrective
725 action, and the timeframe for the corrective action. If the
726 district school board, Florida College System institution board
727 of trustees, or university board of trustees indicates that it
728 does not intend to take corrective action, it shall explain its
729 decision at the public meeting.
730 Section 23. Subsection (3) of section 218.503, Florida
731 Statutes, is amended to read:
732 218.503 Determination of financial emergency.—
733 (3) Upon notification that one or more of the conditions in
734 subsection (1) have occurred or will occur if action is not
735 taken to assist the local governmental entity or district school
736 board, the Governor or his or her designee shall contact the
737 local governmental entity or the Commissioner of Education or
738 his or her designee shall contact the district school board, as
739 appropriate, to determine what actions have been taken by the
740 local governmental entity or the district school board to
741 resolve or prevent the condition. The information requested must
742 be provided within 45 days after the date of the request. If the
743 local governmental entity or the district school board does not
744 comply with the request, the Governor or his or her designee or
745 the Commissioner of Education or his or her designee shall
746 notify the members of the Legislative Auditing Committee, which
747 who may take action pursuant to s. 11.40(2) 11.40. The Governor
748 or the Commissioner of Education, as appropriate, shall
749 determine whether the local governmental entity or the district
750 school board needs state assistance to resolve or prevent the
751 condition. If state assistance is needed, the local governmental
752 entity or district school board is considered to be in a state
753 of financial emergency. The Governor or the Commissioner of
754 Education, as appropriate, has the authority to implement
755 measures as set forth in ss. 218.50-218.504 to assist the local
756 governmental entity or district school board in resolving the
757 financial emergency. Such measures may include, but are not
758 limited to:
759 (a) Requiring approval of the local governmental entity’s
760 budget by the Governor or approval of the district school
761 board’s budget by the Commissioner of Education.
762 (b) Authorizing a state loan to a local governmental entity
763 and providing for repayment of same.
764 (c) Prohibiting a local governmental entity or district
765 school board from issuing bonds, notes, certificates of
766 indebtedness, or any other form of debt until such time as it is
767 no longer subject to this section.
768 (d) Making such inspections and reviews of records,
769 information, reports, and assets of the local governmental
770 entity or district school board as are needed. The appropriate
771 local officials shall cooperate in such inspections and reviews.
772 (e) Consulting with officials and auditors of the local
773 governmental entity or the district school board and the
774 appropriate state officials regarding any steps necessary to
775 bring the books of account, accounting systems, financial
776 procedures, and reports into compliance with state requirements.
777 (f) Providing technical assistance to the local
778 governmental entity or the district school board.
779 (g)1. Establishing a financial emergency board to oversee
780 the activities of the local governmental entity or the district
781 school board. If a financial emergency board is established for
782 a local governmental entity, the Governor shall appoint board
783 members and select a chair. If a financial emergency board is
784 established for a district school board, the State Board of
785 Education shall appoint board members and select a chair. The
786 financial emergency board shall adopt such rules as are
787 necessary for conducting board business. The board may:
788 a. Make such reviews of records, reports, and assets of the
789 local governmental entity or the district school board as are
791 b. Consult with officials and auditors of the local
792 governmental entity or the district school board and the
793 appropriate state officials regarding any steps necessary to
794 bring the books of account, accounting systems, financial
795 procedures, and reports of the local governmental entity or the
796 district school board into compliance with state requirements.
797 c. Review the operations, management, efficiency,
798 productivity, and financing of functions and operations of the
799 local governmental entity or the district school board.
800 d. Consult with other governmental entities for the
801 consolidation of all administrative direction and support
802 services, including, but not limited to, services for asset
803 sales, economic and community development, building inspections,
804 parks and recreation, facilities management, engineering and
805 construction, insurance coverage, risk management, planning and
806 zoning, information systems, fleet management, and purchasing.
807 2. The recommendations and reports made by the financial
808 emergency board must be submitted to the Governor for local
809 governmental entities or to the Commissioner of Education and
810 the State Board of Education for district school boards for
811 appropriate action.
812 (h) Requiring and approving a plan, to be prepared by
813 officials of the local governmental entity or the district
814 school board in consultation with the appropriate state
815 officials, prescribing actions that will cause the local
816 governmental entity or district school board to no longer be
817 subject to this section. The plan must include, but need not be
818 limited to:
819 1. Provision for payment in full of obligations outlined in
820 subsection (1), designated as priority items, which are
821 currently due or will come due.
822 2. Establishment of priority budgeting or zero-based
823 budgeting in order to eliminate items that are not affordable.
824 3. The prohibition of a level of operations which can be
825 sustained only with nonrecurring revenues.
826 4. Provisions implementing the consolidation, sourcing, or
827 discontinuance of all administrative direction and support
828 services, including, but not limited to, services for asset
829 sales, economic and community development, building inspections,
830 parks and recreation, facilities management, engineering and
831 construction, insurance coverage, risk management, planning and
832 zoning, information systems, fleet management, and purchasing.
833 Section 24. Subsection (2) of section 1002.455, Florida
834 Statutes, is amended to read:
835 1002.455 Student eligibility for K-12 virtual instruction.—
836 (2) A student is eligible to participate in virtual
837 instruction if:
838 (a) The student spent the prior school year in attendance
839 at a public school in the state and was enrolled and reported by
840 the school district for funding during October and February for
841 purposes of the Florida Education Finance Program surveys;
842 (b) The student is a dependent child of a member of the
843 United States Armed Forces who was transferred within the last
844 12 months to this state from another state or from a foreign
845 country pursuant to a permanent change of station order;
846 (c) The student was enrolled during the prior school year
847 in a virtual instruction program under s. 1002.45 or a full-time
848 Florida Virtual School program under s. 1002.37(9)(a)
850 (d) The student has a sibling who is currently enrolled in
851 a virtual instruction program and the sibling was enrolled in
852 that program at the end of the prior school year;
853 (e) The student is eligible to enter kindergarten or first
854 grade; or
855 (f) The student is eligible to enter grades 2 through 5 and
856 is enrolled full-time in a school district virtual instruction
857 program, virtual charter school, or the Florida Virtual School.
858 Section 25. The Legislature finds that a proper and
859 legitimate state purpose is served when internal controls are
860 established to prevent and detect fraud, waste, and abuse and to
861 safeguard and account for government funds and property.
862 Therefore, the Legislature determines and declares that this act
863 fulfills an important state interest.
864 Section 26. This act shall take effect July 1, 2017.
866 ================= T I T L E A M E N D M E N T ================
867 And the title is amended as follows:
868 Delete everything before the enacting clause
869 and insert:
870 A bill to be entitled
871 An act relating to government accountability; amending
872 s. 11.40, F.S.; specifying that the Governor, the
873 Commissioner of Education, or the designee of the
874 Governor or of the commissioner may notify the
875 Legislative Auditing Committee of an entity’s failure
876 to comply with certain auditing and financial
877 reporting requirements; amending s. 11.45, F.S.;
878 defining the terms “abuse,” “fraud,” and “waste”;
879 revising the definition of the term “local
880 governmental entity”; excluding water management
881 districts from certain audit requirements; removing a
882 cross-reference; authorizing the Auditor General to
883 conduct audits of tourist development councils and
884 county tourism promotion agencies; revising reporting
885 requirements applicable to the Auditor General;
886 amending s. 28.35, F.S.; revising reporting
887 requirements applicable to the Florida Clerks of Court
888 Operations Corporation; amending s. 43.16, F.S.;
889 revising the responsibilities of the Justice
890 Administrative Commission, each state attorney, each
891 public defender, the criminal conflict and civil
892 regional counsel, the capital collateral regional
893 counsel, and the Guardian Ad Litem Program, to include
894 the establishment and maintenance of certain internal
895 controls; amending s. 112.061, F.S.; revising certain
896 lodging rates for the purpose of reimbursement to
897 specified employees; authorizing an employee to expend
898 his or her funds for certain lodging expenses;
899 amending ss. 129.03, 129.06, and 166.241, F.S.;
900 requiring counties and municipalities to maintain
901 certain budget documents on the entities’ websites for
902 a specified period; amending s. 215.86, F.S.; revising
903 the purposes for which management systems and internal
904 controls must be established and maintained by each
905 state agency and the judicial branch; amending s.
906 215.97, F.S.; revising certain audit threshold
907 requirements; amending s. 215.985, F.S.; revising the
908 requirements for a monthly financial statement
909 provided by a water management district; amending s.
910 218.32, F.S.; revising the requirements for the annual
911 financial audit report of a local governmental entity;
912 authorizing the Department of Financial Services to
913 request additional information from a local
914 governmental entity; requiring a local governmental
915 entity to respond to such requests within a specified
916 timeframe; requiring the department to notify the
917 Legislative Auditing Committee of noncompliance;
918 amending s. 218.33, F.S.; requiring local governmental
919 entities to establish and maintain internal controls
920 to achieve specified purposes; amending s. 218.39,
921 F.S.; requiring an audited entity to respond to audit
922 recommendations under specified circumstances;
923 amending s. 218.391, F.S.; revising the membership of
924 the audit committee of certain governing bodies;
925 prohibiting an audit committee member from being an
926 employee, a chief executive officer, or a chief
927 financial officer of the respective governmental
928 entity; amending s. 286.0114, F.S.; prohibiting a
929 board or commission from requiring an advance copy of
930 testimony or comments from a member of the public as a
931 precondition to being given the opportunity to be
932 heard at a public meeting; amending s. 373.536, F.S.;
933 deleting obsolete language; requiring water management
934 districts to maintain certain budget documents on the
935 districts’ websites for a specified period; amending
936 s. 1001.42, F.S.; authorizing additional internal
937 audits as directed by the district school board;
938 amending s. 1002.33, F.S.; revising the
939 responsibilities of the governing board of a charter
940 school to include the establishment and maintenance of
941 internal controls; removing obsolete provisions;
942 amending s. 1002.37, F.S.; requiring completion of an
943 annual financial audit of the Florida Virtual School;
944 specifying audit requirements; requiring an audit
945 report to be submitted to the board of trustees of the
946 Florida Virtual School and the Auditor General;
947 deleting obsolete provisions; amending s. 1010.01,
948 F.S.; requiring each school district, Florida College
949 System institution, and state university to establish
950 and maintain certain internal controls; amending s.
951 1010.30, F.S.; requiring a district school board,
952 Florida College System institution board of trustees,
953 or university board of trustees to respond to audit
954 recommendations under certain circumstances; amending
955 ss. 218.503 and 1002.455, F.S.; conforming provisions
956 and cross-references to changes made by the act;
957 declaring that the act fulfills an important state
958 interest; providing an effective date.