Florida Senate - 2017                                     SB 880
       
       
        
       By Senator Stargel
       
       22-00793-17                                            2017880__
    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.
   68          
   69  Be It Enacted by the Legislature of the State of Florida:
   70  
   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
  207  products.
  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
  233  purpose.
  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
  263  to:
  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
  303  follows:
  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
  348  read:
  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
  352  to:
  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
  394  entities.—
  395         (1)
  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
  462  meeting.
  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
  494  APPROVAL.—
  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
  532  practices.
  533         3.The efficiency of operations.
  534         4.The reliability of financial records and reports.
  535         5.The safeguarding of assets.
  536  
  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
  546  to:
  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
  559  plan.
  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
  563  compliance.
  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.