The Florida Senate

230.23025  Best financial management practices; standards; reviews; designation of districts.--

(1)  The Office of Program Policy Analysis and Government Accountability (OPPAGA) and the Office of the Auditor General are directed to develop a system for reviewing the financial management practices of school districts. In this system, OPPAGA and the Auditor General shall jointly examine district operations to determine whether they meet "best financial management practices." The best financial management practices adopted by the Commissioner of Education may be updated periodically after consultation with the Legislature, the Governor, the SMART Schools Clearinghouse, OPPAGA, and the Auditor General. The best financial management practices, at a minimum, must instill public confidence by addressing the following areas:

(a)  Efficient use of resources, use of lottery proceeds, student transportation and food service operations, management structures, and personnel systems and benefits;

(b)  Compliance with generally accepted accounting principles and state and federal laws relating to financial management;

(c)  Performance accountability systems, including performance measurement reports to the public, internal auditing, financial auditing, and information made available to support decisionmaking;

(d)  Cost control systems, including asset, risk, and financial management, purchasing, and information system controls.

¹(2)  School districts may, by a unanimous vote of the membership of the school board, apply to OPPAGA for a complete best financial management practice review or a review of components of the best financial management practices, including management, personnel, transportation, and food and nutrition services. OPPAGA shall prioritize districts for review based on their growth rates and demonstrated need for review. The director of OPPAGA may, at his or her discretion, contract with private consultants to perform part or all of the review of any district. Districts applying for a complete review shall contribute 50 percent of review costs, unless funding for the entire cost of the review is specifically provided by the Legislature. Districts applying for a review of a component shall contribute 75 percent of the review cost. All moneys contributed by any school district under this section toward the cost of a complete or component best financial management practices review of the district shall be deposited into the Florida School District Review Trust Fund administered by OPPAGA.

(3)  District reviews conducted under this section must be completed within 6 months after commencement. OPPAGA shall issue a report to the district regarding its financial management practices and cost savings recommendations within 60 days after completing the reviews. If the district is found not to conform to best financial management practices, the report must contain a plan of action detailing how the district could meet the best practices within 2 years.

(4)  District school boards that agree by a majority plus one vote to institute the action plan shall submit an annual report to the Legislature, the Governor, the SMART Schools Clearinghouse, OPPAGA, the Auditor General, and the Commissioner of Education on progress made towards implementing the plan and whether changes have occurred in other areas of operation which would affect compliance with the best practices. Such districts shall be reviewed annually by OPPAGA, in addition to the annual financial audit required under s. 11.45, to determine whether they have attained compliance with the best financial management practices in the areas covered by the plan. Districts that are found to comply with the best financial management practices shall receive a "Seal of Best Financial Management" by the State Board of Education certifying that the district is adhering to the state's best financial management practices. This designation shall be effective for a 5-year period, after which the district school board may reapply for the designation to be granted after another financial management practice review. During the designation period, the district school board shall annually notify the SMART Schools Clearinghouse, OPPAGA, the Auditor General, and the State Board of Education of any changes in policies or operations or any other situations that would not conform to the state's best financial management practices. The State Board of Education may revoke the designation of a district at any time if it determines that a district is no longer complying with the state's best financial management practices.

(5)  Any audit or performance review of one or more of the designated components conducted or supervised by OPPAGA or the Department of Management Services, and completed within 2 years before the date of application to OPPAGA for a best financial practices review, may serve as all or part of the audit or review required as the examination of district operations necessary for a determination of whether a district meets the "best financial management practices" designation. The cost contribution requirements of subsection (2) do not apply to any such audit or performance review.

History.--s. 11, ch. 97-265; s. 22, ch. 97-384; s. 4, ch. 98-225.

¹Note.--The amendment to subsection (2) by s. 4, ch. 98-225, failed to incorporate the amendment by s. 22, ch. 97-384. Absent affirmative evidence that the Legislature intended to omit those changes, they are included here pending further clarification by the Legislature. As amended by s. 4, ch. 98-225, only, subsection (2) reads:

(2)  School districts may, by a unanimous vote of the membership of the school board, apply to OPPAGA for financial management practice reviews. OPPAGA shall prioritize districts for review based on their growth rates and demonstrated need for review. The director of OPPAGA may, at his or her discretion, contract with private consultants to perform part or all of the review of any district. Districts applying for review shall contribute 50 percent of review costs, unless funding for the entire cost of the review is specifically provided by the Legislature or the district has had a performance review pursuant to ss. 11.515 and 230.2302. All moneys contributed by any school district under this section toward the cost of a complete or component best financial management practices review of the district shall be deposited into the Florida School District Review Trust Fund administered by OPPAGA.