Florida Senate - 2017 SB 880
By Senator Stargel
1 A bill to be entitled
2 An act relating to government accountability; amending
3 s. 11.40, F.S.; specifying that the Governor, the
4 Commissioner of Education, or the designee of the
5 Governor or of the commissioner may notify the
6 Legislative Auditing Committee of an entity’s failure
7 to comply with certain auditing and financial
8 reporting requirements; amending s. 11.45, F.S.;
9 defining the terms “abuse,” “fraud,” and “waste”;
10 revising definitions; removing a cross-reference;
11 authorizing the Auditor General to conduct audits of
12 tourist development councils and county tourism
13 promotion agencies; revising reporting requirements
14 applicable to the Auditor General; amending s. 43.16,
15 F.S.; revising the responsibilities of the Justice
16 Administrative Commission, each state attorney, each
17 public defender, the criminal conflict and civil
18 regional counsel, the capital collateral regional
19 counsel, and the Guardian Ad Litem Program to include
20 the establishment and maintenance of certain internal
21 controls; amending ss. 129.03, 129.06, and 166.241,
22 F.S.; requiring counties and municipalities to
23 maintain certain budget documents on the entities’
24 websites for a specified period; amending s. 215.86,
25 F.S.; revising the purposes for which management
26 systems and internal controls must be established and
27 maintained by each state agency and the judicial
28 branch; amending s. 215.97, F.S.; revising certain
29 audit threshold requirements; amending s. 215.985,
30 F.S.; revising the requirements for a monthly
31 financial statement provided by a water management
32 district; amending s. 218.32, F.S.; revising the
33 requirements of the annual financial audit report of a
34 local governmental entity; authorizing the Department
35 of Financial Services to request additional
36 information from a local governmental entity;
37 requiring a local governmental entity to respond to
38 such requests within a specified timeframe; requiring
39 the department to notify the Legislative Auditing
40 Committee of noncompliance; amending s. 218.33, F.S.;
41 requiring local governmental entities to establish and
42 maintain internal controls to achieve specified
43 purposes; amending s. 218.39, F.S.; requiring an
44 audited entity to respond to audit recommendations
45 under specified circumstances; amending s. 286.0114,
46 F.S.; prohibiting a board or commission from requiring
47 an advance copy of testimony or comments from a member
48 of the public as a precondition to being given the
49 opportunity to be heard at a public meeting; amending
50 s. 373.536, F.S.; deleting obsolete language;
51 requiring water management districts to maintain
52 certain budget documents on the districts’ websites
53 for a specified period; amending s. 1001.42, F.S.;
54 authorizing additional internal audits as directed by
55 the district school board; amending s. 1002.33, F.S.;
56 revising the responsibilities of the governing board
57 of a charter school to include the establishment and
58 maintenance of internal controls; amending s. 1010.01,
59 F.S.; requiring each school district, Florida College
60 System institution, and state university to establish
61 and maintain certain internal controls; amending s.
62 1010.30, F.S.; requiring a district school board,
63 Florida College System institution board of trustees,
64 or university board of trustees to respond to audit
65 recommendations under certain circumstances; declaring
66 that the act fulfills an important state interest;
67 providing an effective date.
69 Be It Enacted by the Legislature of the State of Florida:
71 Section 1. Subsection (2) of section 11.40, Florida
72 Statutes, is amended to read:
73 11.40 Legislative Auditing Committee.—
74 (2) Following notification by the Auditor General, the
75 Department of Financial Services,
or the Division of Bond
76 Finance of the State Board of Administration, the Governor or
77 his or her designee, or the Commissioner of Education or his or
78 her designee of the failure of a local governmental entity,
79 district school board, charter school, or charter technical
80 career center to comply with the applicable provisions within s.
81 11.45(5)-(7), s. 218.32(1), s. 218.38, or s. 218.503(3), the
82 Legislative Auditing Committee may schedule a hearing to
83 determine if the entity should be subject to further state
84 action. If the committee determines that the entity should be
85 subject to further state action, the committee shall:
86 (a) In the case of a local governmental entity or district
87 school board, direct the Department of Revenue and the
88 Department of Financial Services to withhold any funds not
89 pledged for bond debt service satisfaction which are payable to
90 such entity until the entity complies with the law. The
91 committee shall specify the date that such action must shall
92 begin, and the directive must be received by the Department of
93 Revenue and the Department of Financial Services 30 days before
94 the date of the distribution mandated by law. The Department of
95 Revenue and the Department of Financial Services may implement
96 the provisions of this paragraph.
97 (b) In the case of a special district created by:
98 1. A special act, notify the President of the Senate, the
99 Speaker of the House of Representatives, the standing committees
100 of the Senate and the House of Representatives charged with
101 special district oversight as determined by the presiding
102 officers of each respective chamber, the legislators who
103 represent a portion of the geographical jurisdiction of the
104 special district, and the Department of Economic Opportunity
105 that the special district has failed to comply with the law.
106 Upon receipt of notification, the Department of Economic
107 Opportunity shall proceed pursuant to s. 189.062 or s. 189.067.
108 If the special district remains in noncompliance after the
109 process set forth in s. 189.0651, or if a public hearing is not
110 held, the Legislative Auditing Committee may request the
111 department to proceed pursuant to s. 189.067(3).
112 2. A local ordinance, notify the chair or equivalent of the
113 local general-purpose government pursuant to s. 189.0652 and the
114 Department of Economic Opportunity that the special district has
115 failed to comply with the law. Upon receipt of notification, the
116 department shall proceed pursuant to s. 189.062 or s. 189.067.
117 If the special district remains in noncompliance after the
118 process set forth in s. 189.0652, or if a public hearing is not
119 held, the Legislative Auditing Committee may request the
120 department to proceed pursuant to s. 189.067(3).
121 3. Any manner other than a special act or local ordinance,
122 notify the Department of Economic Opportunity that the special
123 district has failed to comply with the law. Upon receipt of
124 notification, the department shall proceed pursuant to s.
125 189.062 or s. 189.067(3).
126 (c) In the case of a charter school or charter technical
127 career center, notify the appropriate sponsoring entity, which
128 may terminate the charter pursuant to ss. 1002.33 and 1002.34.
129 Section 2. Subsection (1), paragraph (u) of subsection (3),
130 and paragraph (i) of subsection (7) of section 11.45, Florida
131 Statutes, are amended, and paragraph (x) is added to subsection
132 (3) of that section, to read:
133 11.45 Definitions; duties; authorities; reports; rules.—
134 (1) DEFINITIONS.—As used in ss. 11.40-11.51, the term:
135 (a) “Abuse” means behavior that is deficient or improper
136 when compared with behavior that a prudent person would consider
137 a reasonable and necessary operational practice given the facts
138 and circumstances. The term includes the misuse of authority or
139 position for personal gain.
140 (b) (a) “Audit” means a financial audit, operational audit,
141 or performance audit.
142 (c) (b) “County agency” means a board of county
143 commissioners or other legislative and governing body of a
144 county, however styled, including that of a consolidated or
145 metropolitan government, a clerk of the circuit court, a
146 separate or ex officio clerk of the county court, a sheriff, a
147 property appraiser, a tax collector, a supervisor of elections,
148 or any other officer in whom any portion of the fiscal duties of
149 a body or officer expressly stated in this paragraph are the
150 above are under law separately placed by law.
151 (d) (c) “Financial audit” means an examination of financial
152 statements in order to express an opinion on the fairness with
153 which they are presented in conformity with generally accepted
154 accounting principles and an examination to determine whether
155 operations are properly conducted in accordance with legal and
156 regulatory requirements. Financial audits must be conducted in
157 accordance with auditing standards generally accepted in the
158 United States and government auditing standards as adopted by
159 the Board of Accountancy. When applicable, the scope of
160 financial audits must shall encompass the additional activities
161 necessary to establish compliance with the Single Audit Act
162 Amendments of 1996, 31 U.S.C. ss. 7501-7507, and other
163 applicable federal law.
164 (e) “Fraud” means obtaining something of value through
165 willful misrepresentation, including, but not limited to, the
166 intentional misstatements or omissions of amounts or disclosures
167 in financial statements to deceive users of financial
168 statements, theft of an entity’s assets, bribery, or the use of
169 one’s position for personal enrichment through the deliberate
170 misuse or misapplication of an organization’s resources.
171 (f) (d) “Governmental entity” means a state agency, a county
172 agency, or any other entity, however styled, that independently
173 exercises any type of state or local governmental function.
174 (g) (e) “Local governmental entity” means a county agency,
175 municipality, tourist development council, county tourism
176 promotion agency, or special district as defined in s. 189.012.
177 The term , but does not include any housing authority established
178 under chapter 421.
179 (h) (f) “Management letter” means a statement of the
180 auditor’s comments and recommendations.
181 (i) (g) “Operational audit” means an audit whose purpose is
182 to evaluate management’s performance in establishing and
183 maintaining internal controls, including controls designed to
184 prevent and detect fraud, waste, and abuse, and in administering
185 assigned responsibilities in accordance with applicable laws,
186 administrative rules, contracts, grant agreements, and other
187 guidelines. Operational audits must be conducted in accordance
188 with government auditing standards. Such audits examine internal
189 controls that are designed and placed in operation to promote
190 and encourage the achievement of management’s control objectives
191 in the categories of compliance, economic and efficient
192 operations, reliability of financial records and reports, and
193 safeguarding of assets, and identify weaknesses in those
194 internal controls.
195 (j) (h) “Performance audit” means an examination of a
196 program, activity, or function of a governmental entity,
197 conducted in accordance with applicable government auditing
198 standards or auditing and evaluation standards of other
199 appropriate authoritative bodies. The term includes an
200 examination of issues related to:
201 1. Economy, efficiency, or effectiveness of the program.
202 2. Structure or design of the program to accomplish its
203 goals and objectives.
204 3. Adequacy of the program to meet the needs identified by
205 the Legislature or governing body.
206 4. Alternative methods of providing program services or
208 5. Goals, objectives, and performance measures used by the
209 agency to monitor and report program accomplishments.
210 6. The accuracy or adequacy of public documents, reports,
211 or requests prepared under the program by state agencies.
212 7. Compliance of the program with appropriate policies,
213 rules, or laws.
214 8. Any other issues related to governmental entities as
215 directed by the Legislative Auditing Committee.
216 (k) (i) “Political subdivision” means a separate agency or
217 unit of local government created or established by law and
218 includes, but is not limited to, the following and the officers
219 thereof: authority, board, branch, bureau, city, commission,
220 consolidated government, county, department, district,
221 institution, metropolitan government, municipality, office,
222 officer, public corporation, town, or village.
223 (l) (j) “State agency” means a separate agency or unit of
224 state government created or established by law and includes, but
225 is not limited to, the following and the officers thereof:
226 authority, board, branch, bureau, commission, department,
227 division, institution, office, officer, or public corporation,
228 as the case may be, except any such agency or unit within the
229 legislative branch of state government other than the Florida
230 Public Service Commission.
231 (m) “Waste” means the act of using or expending resources
232 unreasonably, carelessly, extravagantly, or for no useful
234 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor
235 General may, pursuant to his or her own authority, or at the
236 direction of the Legislative Auditing Committee, conduct audits
237 or other engagements as determined appropriate by the Auditor
238 General of:
239 (u) The Florida Virtual School pursuant to s. 1002.37.
240 (x) Tourist development councils and county tourism
241 promotion agencies.
242 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.—
243 (i) The Auditor General shall annually transmit by July 15,
244 to the President of the Senate, the Speaker of the House of
245 Representatives, and the Department of Financial Services, a
246 list of all school districts, charter schools, charter technical
247 career centers, Florida College System institutions, state
248 universities, and local governmental entities water management
249 districts that have failed to comply with the transparency
250 requirements as identified in the audit reports reviewed
251 pursuant to paragraph (b) and those conducted pursuant to
252 subsection (2).
253 Section 3. Subsections (6) and (7) of section 43.16,
254 Florida Statutes, are renumbered as subsections (7) and (8),
255 respectively, and a new subsection (6) is added to that section,
256 to read:
257 43.16 Justice Administrative Commission; membership, powers
258 and duties.—
259 (6) The commission, each state attorney, each public
260 defender, the criminal conflict and civil regional counsel, the
261 capital collateral regional counsel, and the Guardian Ad Litem
262 Program shall establish and maintain internal controls designed
264 (a) Prevent and detect fraud, waste, and abuse.
265 (b) Promote and encourage compliance with applicable laws,
266 rules, contracts, grant agreements, and best practices.
267 (c) Support economical and efficient operations.
268 (d) Ensure reliability of financial records and reports.
269 (e) Safeguard assets.
270 Section 4. Paragraph (c) of subsection (3) of section
271 129.03, Florida Statutes, is amended to read:
272 129.03 Preparation and adoption of budget.—
273 (3) The county budget officer, after tentatively
274 ascertaining the proposed fiscal policies of the board for the
275 next fiscal year, shall prepare and present to the board a
276 tentative budget for the next fiscal year for each of the funds
277 provided in this chapter, including all estimated receipts,
278 taxes to be levied, and balances expected to be brought forward
279 and all estimated expenditures, reserves, and balances to be
280 carried over at the end of the year.
281 (c) The board shall hold public hearings to adopt tentative
282 and final budgets pursuant to s. 200.065. The hearings shall be
283 primarily for the purpose of hearing requests and complaints
284 from the public regarding the budgets and the proposed tax
285 levies and for explaining the budget and any proposed or adopted
286 amendments. The tentative budget must be posted on the county’s
287 official website at least 2 days before the public hearing to
288 consider such budget and must remain on the website for at least
289 45 days. The final budget must be posted on the website within
290 30 days after adoption and must remain on the website for at
291 least 2 years. The tentative budgets, adopted tentative budgets,
292 and final budgets shall be filed in the office of the county
293 auditor as a public record. Sufficient reference in words and
294 figures to identify the particular transactions must shall be
295 made in the minutes of the board to record its actions with
296 reference to the budgets.
297 Section 5. Paragraph (f) of subsection (2) of section
298 129.06, Florida Statutes, is amended to read:
299 129.06 Execution and amendment of budget.—
300 (2) The board at any time within a fiscal year may amend a
301 budget for that year, and may within the first 60 days of a
302 fiscal year amend the budget for the prior fiscal year, as
304 (f) Unless otherwise prohibited by law, if an amendment to
305 a budget is required for a purpose not specifically authorized
306 in paragraphs (a)-(e), the amendment may be authorized by
307 resolution or ordinance of the board of county commissioners
308 adopted following a public hearing.
309 1. The public hearing must be advertised at least 2 days,
310 but not more than 5 days, before the date of the hearing. The
311 advertisement must appear in a newspaper of paid general
312 circulation and must identify the name of the taxing authority,
313 the date, place, and time of the hearing, and the purpose of the
314 hearing. The advertisement must also identify each budgetary
315 fund to be amended, the source of the funds, the use of the
316 funds, and the total amount of each fund’s appropriations.
317 2. If the board amends the budget pursuant to this
318 paragraph, the adopted amendment must be posted on the county’s
319 official website within 5 days after adoption and must remain on
320 the website for at least 2 years.
321 Section 6. Subsections (3) and (5) of section 166.241,
322 Florida Statutes, are amended to read:
323 166.241 Fiscal years, budgets, and budget amendments.—
324 (3) The tentative budget must be posted on the
325 municipality’s official website at least 2 days before the
326 budget hearing, held pursuant to s. 200.065 or other law, to
327 consider such budget and must remain on the website for at least
328 45 days. The final adopted budget must be posted on the
329 municipality’s official website within 30 days after adoption
330 and must remain on the website for at least 2 years. If the
331 municipality does not operate an official website, the
332 municipality must, within a reasonable period of time as
333 established by the county or counties in which the municipality
334 is located, transmit the tentative budget and final budget to
335 the manager or administrator of such county or counties who
336 shall post the budgets on the county’s website.
337 (5) If the governing body of a municipality amends the
338 budget pursuant to paragraph (4)(c), the adopted amendment must
339 be posted on the official website of the municipality within 5
340 days after adoption and must remain on the website for at least
341 2 years. If the municipality does not operate an official
342 website, the municipality must, within a reasonable period of
343 time as established by the county or counties in which the
344 municipality is located, transmit the adopted amendment to the
345 manager or administrator of such county or counties who shall
346 post the adopted amendment on the county’s website.
347 Section 7. Section 215.86, Florida Statutes, is amended to
349 215.86 Management systems and controls.—Each state agency
350 and the judicial branch as defined in s. 216.011 shall establish
351 and maintain management systems and internal controls designed
353 (1) Prevent and detect fraud, waste, and abuse. that
354 (2) Promote and encourage compliance with applicable laws,
355 rules, contracts, and grant agreements. ;
356 (3) Support economical and economic, efficient , and
357 effective operations. ;
358 (4) Ensure reliability of financial records and reports. ;
359 (5) Safeguard and safeguarding of assets. Accounting
360 systems and procedures shall be designed to fulfill the
361 requirements of generally accepted accounting principles.
362 Section 8. Paragraph (a) of subsection (2) of section
363 215.97, Florida Statutes, is amended to read:
364 215.97 Florida Single Audit Act.—
365 (2) As used in this section, the term:
366 (a) “Audit threshold” means the threshold amount used to
367 determine when a state single audit or project-specific audit of
368 a nonstate entity shall be conducted in accordance with this
369 section. Each nonstate entity that expends a total amount of
370 state financial assistance equal to or in excess of $750,000 in
371 any fiscal year of such nonstate entity shall be required to
372 have a state single audit , or a project-specific audit , for such
373 fiscal year in accordance with the requirements of this section.
374 Every 2 years the Auditor General, After consulting with the
375 Executive Office of the Governor, the Department of Financial
376 Services, and all state awarding agencies, the Auditor General
377 shall periodically review the threshold amount for requiring
378 audits under this section and may recommend any appropriate
379 statutory change to revise the threshold amount in the annual
380 report submitted pursuant to s. 11.45(7)(h) to the Legislature
381 adjust such threshold amount consistent with the purposes of
382 this section.
383 Section 9. Subsection (11) of section 215.985, Florida
384 Statutes, is amended to read:
385 215.985 Transparency in government spending.—
386 (11) Each water management district shall provide a monthly
387 financial statement in the form and manner prescribed by the
388 Department of Financial Services to the district’s its governing
389 board and make such monthly financial statement available for
390 public access on its website.
391 Section 10. Paragraph (d) of subsection (1) and subsection
392 (2) of section 218.32, Florida Statutes, are amended to read:
393 218.32 Annual financial reports; local governmental
396 (d) Each local governmental entity that is required to
397 provide for an audit under s. 218.39(1) must submit a copy of
398 the audit report and annual financial report to the department
399 within 45 days after the completion of the audit report but no
400 later than 9 months after the end of the fiscal year. In
401 conducting an audit of a local governmental entity pursuant to
402 s. 218.39, an independent certified public accountant shall
403 determine whether the entity’s annual financial report is in
404 agreement with the audited financial statements. The
405 accountant’s audit report must be supported by the same level of
406 detail as required for the annual financial report. If the
407 accountant’s audit report is not in agreement with the annual
408 financial report, the accountant shall specify and explain the
409 significant differences that exist between the annual financial
410 report and the audit report.
411 (2) The department shall annually by December 1 file a
412 verified report with the Governor, the Legislature, the Auditor
413 General, and the Special District Accountability Program of the
414 Department of Economic Opportunity showing the revenues, both
415 locally derived and derived from intergovernmental transfers,
416 and the expenditures of each local governmental entity, regional
417 planning council, local government finance commission, and
418 municipal power corporation that is required to submit an annual
419 financial report. In preparing the verified report, the
420 department may request additional information from the local
421 governmental entity. The information requested must be provided
422 to the department within 45 days after the request. If the local
423 governmental entity does not comply with the request, the
424 department shall notify the Legislative Auditing Committee,
425 which may take action pursuant to s. 11.40(2). The report must
426 include, but is not limited to:
427 (a) The total revenues and expenditures of each local
428 governmental entity that is a component unit included in the
429 annual financial report of the reporting entity.
430 (b) The amount of outstanding long-term debt by each local
431 governmental entity. For purposes of this paragraph, the term
432 “long-term debt” means any agreement or series of agreements to
433 pay money, which, at inception, contemplate terms of payment
434 exceeding 1 year in duration.
435 Section 11. Present subsection (3) of section 218.33,
436 Florida Statutes, is renumbered as subsection (4), and a new
437 subsection (3) is added to that section, to read:
438 218.33 Local governmental entities; establishment of
439 uniform fiscal years and accounting practices and procedures.—
440 (3) Each local governmental entity shall establish and
441 maintain internal controls designed to:
442 (a) Prevent and detect fraud, waste, and abuse.
443 (b) Promote and encourage compliance with applicable laws,
444 rules, contracts, grant agreements, and best practices.
445 (c) Support economical and efficient operations.
446 (d) Ensure reliability of financial records and reports.
447 (e) Safeguard assets.
448 Section 12. Present subsections (8) through (12) of section
449 218.39, Florida Statutes, are renumbered as subsections (9)
450 through (13), respectively, and a new subsection (8) is added to
451 that section, to read:
452 218.39 Annual financial audit reports.—
453 (8) If the audit report includes a recommendation that was
454 included in the preceding financial audit report but remains
455 unaddressed, the governing body of the audited entity, within 60
456 days after the delivery of the audit report to the governing
457 body, shall indicate during a regularly scheduled public meeting
458 whether it intends to take corrective action, the intended
459 corrective action, and the timeframe for the corrective action.
460 If the governing body indicates that it does not intend to take
461 corrective action, it must explain its decision at the public
463 Section 13. Subsection (2) of section 286.0114, Florida
464 Statutes, is amended to read:
465 286.0114 Public meetings; reasonable opportunity to be
466 heard; attorney fees.—
467 (2) Members of the public shall be given a reasonable
468 opportunity to be heard on a proposition before a board or
469 commission. The opportunity to be heard need not occur at the
470 same meeting at which the board or commission takes official
471 action on the proposition if the opportunity occurs at a meeting
472 that is during the decisionmaking process and is within
473 reasonable proximity in time before the meeting at which the
474 board or commission takes the official action. A board or
475 commission may not require a member of the public to provide an
476 advance written copy of his or her testimony or comments as a
477 condition of being given the opportunity to be heard at a
478 meeting. This section does not prohibit a board or commission
479 from maintaining orderly conduct or proper decorum in a public
480 meeting. The opportunity to be heard is subject to rules or
481 policies adopted by the board or commission, as provided in
482 subsection (4).
483 Section 14. Paragraph (e) of subsection (4), paragraph (d)
484 of subsection (5), and paragraph (d) of subsection (6) of
485 section 373.536, Florida Statutes, are amended to read:
486 373.536 District budget and hearing thereon.—
487 (4) BUDGET CONTROLS; FINANCIAL INFORMATION.—
488 (e) By September 1, 2012, Each district shall provide a
489 monthly financial statement in the form and manner prescribed by
490 the Department of Financial Services to the district’s governing
491 board and make such monthly financial statement available for
492 public access on its website.
493 (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
495 (d) Each district shall, by August 1 of each year, submit
496 for review a tentative budget and a description of any
497 significant changes from the preliminary budget submitted to the
498 Legislature pursuant to s. 373.535 to the Governor, the
499 President of the Senate, the Speaker of the House of
500 Representatives, the chairs of all legislative committees and
501 subcommittees having substantive or fiscal jurisdiction over
502 water management districts, as determined by the President of
503 the Senate or the Speaker of the House of Representatives, as
504 applicable, the secretary of the department, and the governing
505 body of each county in which the district has jurisdiction or
506 derives any funds for the operations of the district. The
507 tentative budget must be posted on the district’s official
508 website at least 2 days before budget hearings held pursuant to
509 s. 200.065 or other law and must remain on the website for at
510 least 45 days.
511 (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
512 WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
513 (d) The final adopted budget must be posted on the water
514 management district’s official website within 30 days after
515 adoption and must remain on the website for at least 2 years.
516 Section 15. Paragraph (l) of subsection (12) of section
517 1001.42, Florida Statutes, is amended to read:
518 1001.42 Powers and duties of district school board.—The
519 district school board, acting as a board, shall exercise all
520 powers and perform all duties listed below:
521 (12) FINANCE.—Take steps to assure students adequate
522 educational facilities through the financial procedure
523 authorized in chapters 1010 and 1011 and as prescribed below:
524 (l) Internal auditor.—May employ an internal auditor to
525 perform ongoing financial verification of the financial records
526 of the school district and such other audits and reviews as the
527 district school board directs for the purpose of determining:
528 1. The adequacy of internal controls designed to prevent
529 and detect fraud, waste, and abuse.
530 2. Compliance with applicable laws, rules, contracts, grant
531 agreements, district school board-approved policies, and best
533 3. The efficiency of operations.
534 4. The reliability of financial records and reports.
535 5. The safeguarding of assets.
537 The internal auditor shall report directly to the district
538 school board or its designee.
539 Section 16. Paragraph (j) of subsection (9) of section
540 1002.33, Florida Statutes, is amended to read:
541 1002.33 Charter schools.—
542 (9) CHARTER SCHOOL REQUIREMENTS.—
543 (j) The governing body of the charter school shall be
544 responsible for:
545 1. Establishing and maintaining internal controls designed
547 a. Prevent and detect fraud, waste, and abuse.
548 b. Promote and encourage compliance with applicable laws,
549 rules, contracts, grant agreements, and best practices.
550 c. Support economical and efficient operations.
551 d. Ensure reliability of financial records and reports.
552 e. Safeguard assets.
553 2. 1. Ensuring that the charter school has retained the
554 services of a certified public accountant or auditor for the
555 annual financial audit, pursuant to s. 1002.345(2), who shall
556 submit the report to the governing body.
557 3. 2. Reviewing and approving the audit report, including
558 audit findings and recommendations for the financial recovery
560 4.a. 3.a. Performing the duties in s. 1002.345, including
561 monitoring a corrective action plan.
562 b. Monitoring a financial recovery plan in order to ensure
564 5. 4. Participating in governance training approved by the
565 department which must include government in the sunshine,
566 conflicts of interest, ethics, and financial responsibility.
567 Section 17. Subsection (5) is added to section 1010.01,
568 Florida Statutes, to read:
569 1010.01 Uniform records and accounts.—
570 (5) Each school district, Florida College System
571 institution, and state university shall establish and maintain
572 internal controls designed to:
573 (a) Prevent and detect fraud, waste, and abuse.
574 (b) Promote and encourage compliance with applicable laws,
575 rules, contracts, grant agreements, and best practices.
576 (c) Support economical and efficient operations.
577 (d) Ensure reliability of financial records and reports.
578 (e) Safeguard assets.
579 Section 18. Subsection (2) of section 1010.30, Florida
580 Statutes, is amended to read:
581 1010.30 Audits required.—
582 (2) If a school district, Florida College System
583 institution, or university audit report includes a
584 recommendation that was included in the preceding financial
585 audit report but remains unaddressed an audit contains a
586 significant finding, the district school board, the Florida
587 College System institution board of trustees, or the university
588 board of trustees, within 60 days after the delivery of the
589 audit report to the school district, Florida College System
590 institution, or university, shall indicate conduct an audit
591 overview during a regularly scheduled public meeting whether it
592 intends to take corrective action, the intended corrective
593 action, and the timeframe for the corrective action. If the
594 district school board, Florida College System institution board
595 of trustees, or university board of trustees indicates that it
596 does not intend to take corrective action, it shall explain its
597 decision at the public meeting.
598 Section 19. The Legislature finds that a proper and
599 legitimate state purpose is served when internal controls are
600 established to prevent and detect fraud, waste, and abuse and to
601 safeguard and account for government funds and property.
602 Therefore, the Legislature determines and declares that this act
603 fulfills an important state interest.
604 Section 20. This act shall take effect July 1, 2017.