Florida Senate - 2017 COMMITTEE AMENDMENT
Bill No. SB 1478
Ì112248*Î112248
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/17/2017 .
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The Committee on Governmental Oversight and Accountability
(Baxley) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. Subsection (1) of section 14.32, Florida
6 Statutes, is amended, and paragraph (l) is added to subsection
7 (2) of that section, to read:
8 14.32 Office of Chief Inspector General.—
9 (1) There is created in the Executive Office of the
10 Governor the Office of Chief Inspector General. The Chief
11 Inspector General is responsible for promoting accountability,
12 integrity, and efficiency in the agencies under the jurisdiction
13 of the Governor. The Chief Inspector General shall be appointed
14 by and serve at the pleasure of the Governor and must meet the
15 qualifications specified in s. 20.055(4). However, upon a change
16 in Governors or reelection of the Governor, the Governor shall
17 appoint, or may reappoint, a Chief Inspector General before
18 adjournment sine die of the first regular session of the
19 Legislature that convenes after such change in Governors or
20 reelection of the Governor. The Chief Inspector General shall,
21 at all times, have open and direct access to the Governor.
22 (2) The Chief Inspector General shall:
23 (l) Prepare an annual report that summarizes the activities
24 performed in compliance with this section and includes an
25 aggregate of significant budgetary or administrative changes
26 contained in annual reports prepared by inspectors general for
27 state agencies under the jurisdiction of the Governor pursuant
28 to s. 20.055(8).
29 Section 2. Subsections (4), (6), and (7), paragraph (c) of
30 subsection (8), and subsection (10) of section 20.055, Florida
31 Statutes, are amended to read:
32 20.055 Agency inspectors general.—
33 (4)(a) To ensure that state agency audits are performed in
34 accordance with applicable auditing standards, the inspector
35 general or the director of auditing within the inspector
36 general’s office shall possess the following qualifications:
37 1. A bachelor’s degree from an accredited college or
38 university with a major in accounting, or with a major in
39 business which includes five courses in accounting, and 5 years
40 of experience as an internal auditor or independent postauditor,
41 information technology electronic data processing auditor,
42 accountant, or any combination thereof. The experience shall at
43 a minimum consist of audits of units of government or private
44 business enterprises, operating for profit or not for profit; or
45 2. A master’s degree in accounting, business
46 administration, or public administration from an accredited
47 college or university and 4 years of experience as required in
48 subparagraph 1.; or
49 3. A certified public accountant license issued pursuant to
50 chapter 473 or a certified internal audit certificate issued by
51 the Institute of Internal Auditors or earned by examination, and
52 4 years of experience as required in subparagraph 1.
53 (b) For agencies under the jurisdiction of the Governor,
54 the inspector general shall be selected on the basis of
55 integrity, leadership capability, and experience in accounting,
56 auditing, fraud examination, financial analysis, law, management
57 analysis, program evaluation, public administration,
58 investigation, criminal justice administration, or other closely
59 related field. The inspector general is subject to a level 2
60 background screening pursuant to chapter 435. The inspector
61 general shall have a 4-year degree from an accredited
62 institution of higher learning or have at least 5 years of
63 experience in at least one of the following areas:
64 1. Inspector general.
65 2. Supervisory experience in an office of inspector general
66 or an investigative public agency similar to an office of
67 inspector general.
68 3. Local, state, or federal law enforcement officer.
69 4. Local, state, or federal court judge.
70 5. Senior-level auditor or comptroller.
71 6. The administration and management of complex audits and
72 investigations.
73 7. Managing programs for information security, prevention,
74 examination, detection, elimination of fraud, waste, abuse,
75 mismanagement, malfeasance, or misconduct in government or other
76 organizations.
77
78 An advanced degree in law, accounting, public administration, or
79 other relevant field may substitute for 1 year of required
80 experience.
81 (c) The inspector general shall possess at appointment, or
82 obtain within the first year after appointment, a certification
83 from the Association of Inspectors General as a certified
84 inspector general. The inspector general must have one or more
85 other professional certifications, such as certified inspector
86 general investigator, certified inspector general auditor,
87 certified public accountant, certified internal auditor,
88 certified governmental financial manager, or certified fraud
89 examiner, certified financial crimes investigator or other
90 related certification, or be a licensed attorney.
91 (d) The inspector general may not hold, or be a candidate
92 for, an elective office of the state or a municipality, county,
93 or other political subdivision of the state while inspector
94 general, and a current officer or employee of an office of
95 inspector general may not hold, or be a candidate for, an
96 elective office of the state or a municipality, county, or other
97 political subdivision of the state. The inspector general shall
98 be appointed without regard to political affiliation. The
99 inspector general may not hold office in a political party or
100 political committee. An employee of an office of inspector
101 general may not hold office in a political party or political
102 committee while employed in the office of inspector general.
103 (6) In carrying out the auditing duties and
104 responsibilities of this section act, each inspector general
105 shall review and evaluate internal controls necessary to ensure
106 the fiscal accountability of the state agency. The inspector
107 general shall conduct financial, compliance, information
108 technology electronic data processing, and performance audits of
109 the agency and prepare audit reports of his or her findings. The
110 scope and assignment of the audits shall be determined by the
111 inspector general; however, the agency head may at any time
112 request the inspector general to perform an audit of a special
113 program, function, or organizational unit. The performance of
114 the audit shall be under the direction of the inspector general,
115 except that if the inspector general does not possess the
116 qualifications specified in subsection (4), the director of
117 auditing shall perform the functions listed in this subsection.
118 (a) Such audits shall be conducted in accordance with the
119 current International Standards for the Professional Practice of
120 Internal Auditing as published by the Institute of Internal
121 Auditors, Inc., or, where appropriate, in accordance with
122 generally accepted governmental auditing standards. All audit
123 reports issued by internal audit staff shall include a statement
124 that the audit was conducted pursuant to the appropriate
125 standards.
126 (b) Audit workpapers and reports shall be public records to
127 the extent that they do not include information which has been
128 made confidential and exempt from the provisions of s. 119.07(1)
129 pursuant to law. However, when the inspector general or a member
130 of the staff receives from an individual a complaint or
131 information that falls within the definition provided in s.
132 112.3187(5), the name or identity of the individual may not be
133 disclosed to anyone else without the written consent of the
134 individual, unless the inspector general determines that such
135 disclosure is unavoidable during the course of the audit or
136 investigation.
137 (c) The inspector general and the staff shall have access
138 to any records, data, and other information of the state agency
139 he or she deems necessary to carry out his or her duties. The
140 inspector general may also request such information or
141 assistance as may be necessary from the state agency or from any
142 federal, state, or local government entity.
143 (d) At the conclusion of each audit, the inspector general
144 shall submit preliminary findings and recommendations to the
145 person responsible for supervision of the program function or
146 operational unit who shall respond to any adverse findings
147 within 20 working days after receipt of the preliminary
148 findings. Such response and the inspector general’s rebuttal to
149 the response shall be included in the final audit report.
150 (e) At the conclusion of an audit in which the subject of
151 the audit is a specific entity contracting with the state or an
152 individual substantially affected, if the audit is not
153 confidential or otherwise exempt from disclosure by law, the
154 inspector general shall, consistent with s. 119.07(1), submit
155 the findings to the entity contracting with the state or the
156 individual substantially affected, who shall be advised in
157 writing that they may submit a written response within 20
158 working days after receipt of the findings. The response and the
159 inspector general’s rebuttal to the response, if any, must be
160 included in the final audit report.
161 (f) The inspector general shall submit the final report to
162 the agency head, the Auditor General, and, for state agencies
163 under the jurisdiction of the Governor, the Chief Inspector
164 General.
165 (g) The Auditor General, in connection with the independent
166 postaudit of the same agency pursuant to s. 11.45, shall give
167 appropriate consideration to internal audit reports and the
168 resolution of findings therein. The Legislative Auditing
169 Committee may inquire into the reasons or justifications for
170 failure of the agency head to correct the deficiencies reported
171 in internal audits that are also reported by the Auditor General
172 and shall take appropriate action.
173 (h) The inspector general shall monitor the implementation
174 of the state agency’s response to any report on the state agency
175 issued by the Auditor General or by the Office of Program Policy
176 Analysis and Government Accountability. No later than 6 months
177 after the Auditor General or the Office of Program Policy
178 Analysis and Government Accountability publishes a report on the
179 state agency, the inspector general shall provide a written
180 response to the agency head or, for state agencies under the
181 jurisdiction of the Governor, the Chief Inspector General on the
182 status of corrective actions taken. The inspector general shall
183 file a copy of such response with the Legislative Auditing
184 Committee.
185 (i) The inspector general shall develop long-term and
186 annual audit plans based on the findings of periodic risk
187 assessments. The plan, where appropriate, should include
188 postaudit samplings of payments and accounts. The plan shall
189 show the individual audits to be conducted during each year and
190 related resources to be devoted to the respective audits. The
191 Chief Financial Officer, to assist in fulfilling the
192 responsibilities for examining, auditing, and settling accounts,
193 claims, and demands pursuant to s. 17.03(1), and examining,
194 auditing, adjusting, and settling accounts pursuant to s. 17.04,
195 may use audits performed by the inspectors general and internal
196 auditors. For state agencies under the jurisdiction of the
197 Governor, the audit plans shall be submitted to the Chief
198 Inspector General. The plan shall be submitted to the agency
199 head for approval. A copy of the approved plan shall be
200 submitted to the Auditor General.
201 (7)(a) In carrying out the investigative duties and
202 responsibilities specified in this section, each inspector
203 general shall initiate, conduct, supervise, and coordinate
204 investigations designed to detect, deter, prevent, and eradicate
205 fraud, waste, mismanagement, misconduct, and other abuses in
206 state government. For these purposes, each inspector general
207 shall:
208 1.(a) Receive complaints and coordinate all activities of
209 the agency as required by the Whistle-blower’s Act pursuant to
210 ss. 112.3187-112.31895.
211 2.(b) Receive and consider the complaints that which do not
212 meet the criteria for an investigation under the Whistle
213 blower’s Act and conduct, supervise, or coordinate such
214 inquiries, investigations, or reviews as the inspector general
215 deems appropriate.
216 3.(c) Report expeditiously to the Department of Law
217 Enforcement or other law enforcement agencies, as appropriate,
218 whenever the inspector general has reasonable grounds to believe
219 that there has been a violation of criminal law.
220 4.(d) Conduct investigations and other inquiries free of
221 actual or perceived impairment to the independence of the
222 inspector general or the inspector general’s office. This shall
223 include freedom from any interference with investigations and
224 timely access to records and other sources of information.
225 5.(e) At the conclusion of each investigation in which the
226 subject of the investigation is a specific entity contracting
227 with the state or an individual substantially affected as
228 defined by this section, and if the investigation is not
229 confidential or otherwise exempt from disclosure by law, the
230 inspector general shall, consistent with s. 119.07(1), submit
231 findings to the subject that is a specific entity contracting
232 with the state or an individual substantially affected, who
233 shall be advised in writing that they may submit a written
234 response within 20 working days after receipt of the findings.
235 Such response and the inspector general’s rebuttal to the
236 response, if any, shall be included in the final investigative
237 report.
238 6.(f) Submit in a timely fashion final reports on
239 investigations conducted by the inspector general to the agency
240 head, except for whistle-blower’s investigations, which shall be
241 conducted and reported pursuant to s. 112.3189.
242 (b) The inspector general and his or her staff may take and
243 record testimony or statements of any person as reasonably
244 necessary for the furtherance of an investigation or a review
245 undertaken by the inspector general.
246 (8)
247 (c) The final reports prepared pursuant to paragraphs (a)
248 and (b) shall be provided to the heads of the respective
249 agencies and, for state agencies under the jurisdiction of the
250 Governor, the Chief Inspector General. Such reports shall
251 include, but need not be limited to:
252 1. A description of activities relating to the development,
253 assessment, and validation of performance measures.
254 2. A description of significant abuses and deficiencies
255 relating to the administration of programs and operations of the
256 agency disclosed by investigations, audits, reviews, or other
257 activities during the reporting period.
258 3. A description of the recommendations for corrective
259 action made by the inspector general during the reporting period
260 with respect to significant problems, abuses, or deficiencies
261 identified.
262 4. The identification of each significant recommendation
263 described in previous annual reports on which corrective action
264 has not been completed.
265 5. A summary of each audit and investigation completed
266 during the reporting period.
267 6. Any increase or decrease in the total allocations or
268 total expenditures in the inspector general’s budget for the
269 preceding state fiscal year compared to the total allocations or
270 total expenditures in the budget for the prior state fiscal year
271 and any increase or decrease in the number of permanent,
272 temporary, loaned, grant-funded, or full-time equivalent staff
273 within the office of the inspector general.
274 (10) Each agency inspector general shall, to the extent
275 both necessary and practicable, include on his or her staff
276 individuals with information technology electronic data
277 processing auditing experience.
278 Section 3. Paragraphs (y) and (z) are added to subsection
279 (2) of section 110.205, Florida Statutes, to read:
280 110.205 Career service; exemptions.—
281 (2) EXEMPT POSITIONS.—The exempt positions that are not
282 covered by this part include the following:
283 (y) All employees of an office of an agency inspector
284 general shall be assigned to the Selected Exempt Service, except
285 for agency inspectors general, who shall be included in the
286 Senior Management Service.
287 (z) Auditors employed within the Division of Accounting and
288 Auditing of the Department of Financial Services. Unless
289 otherwise fixed by law, the Department of Financial Services
290 shall establish the salary and benefits for these positions in
291 accordance with the rules established for the Selected Exempt
292 Service.
293 Section 4. This act shall take effect July 1, 2017.
294
295 ================= T I T L E A M E N D M E N T ================
296 And the title is amended as follows:
297 Delete everything before the enacting clause
298 and insert:
299 A bill to be entitled
300 An act relating to inspectors general and auditors;
301 amending s. 14.32, F.S.; requiring the Chief Inspector
302 General to meet specified qualifications applicable to
303 agency inspectors general, to have open and direct
304 access to the Governor, and to prepare an annual
305 report containing specified information; amending s.
306 20.055, F.S.; revising the qualifications of agency
307 inspectors general; revising the auditing duties and
308 responsibilities of agency inspectors general to
309 include the performance of information technology
310 audits; authorizing an agency inspector general and
311 staff to take and record testimony or statements
312 necessary to conduct an investigation or a review;
313 requiring each agency inspector general to include
314 specified budgetary and staffing information in an
315 annual report; revising terminology; amending s.
316 110.205, F.S.; exempting employees of an office of an
317 agency inspector general and auditors of the Division
318 of Accounting and Auditing of the Department of
319 Financial Services from the Career Service System;
320 providing an effective date.