House Bill 1853
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Florida House of Representatives - 1999 HB 1853
By the Committee on Education Innovation and
Representatives Melvin and Patterson
1 A bill to be entitled
2 An act relating to school district best
3 financial management practices reviews;
4 amending s. 11.51, F.S.; requiring the Office
5 of Program Policy Analysis and Government
6 Accountability to conduct or contract for best
7 financial management practices reviews of
8 school districts; correcting a cross reference;
9 amending s. 11.515, F.S.; revising references
10 to "performance reviews" to "best financial
11 management practices reviews"; clarifying and
12 conforming the authorization for contracting
13 for reviews; revising the scope of such
14 reviews; amending s. 230.23025, F.S.; providing
15 the purpose of a best financial management
16 practices review; authorizing OPPAGA to develop
17 best practices for review and adoption by the
18 Commissioner of Education; revising areas
19 addressed by the review; establishing a
20 timeframe for school district review; requiring
21 districts to be reviewed to be specified in the
22 General Appropriations Act; providing funding
23 requirements; revising reporting requirements;
24 revising provisions relating to the "Seal of
25 Best Financial Management"; amending s.
26 230.23026, F.S.; conforming terminology;
27 amending s. 235.2197, F.S.; correcting cross
28 references; repealing s. 230.2302, F.S.,
29 relating to performance reviews; providing an
30 effective date.
31
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Florida House of Representatives - 1999 HB 1853
603-138B-99
1 Be It Enacted by the Legislature of the State of Florida:
2
3 Section 1. Subsection (1) of section 11.51, Florida
4 Statutes, is amended to read:
5 11.51 Office of Program Policy Analysis and Government
6 Accountability.--
7 (1) There is hereby created the Office of Program
8 Policy Analysis and Government Accountability as a unit of the
9 Office of the Auditor General appointed pursuant to s. 11.42.
10 Such office shall perform program evaluation and justification
11 reviews as required by s. 11.513 and performance audits as
12 defined in s. 11.45 and shall conduct or contract for best
13 financial management practices performance reviews of school
14 districts pursuant to ss. 11.515 and 230.23025 230.2302.
15 Section 2. Section 11.515, Florida Statutes, is
16 amended to read:
17 11.515 School district best financial management
18 practices performance review.--
19 (1) Any best financial management practices
20 performance review of a school district pursuant to this
21 section shall be conducted by a private firm selected by the
22 Office of Program Policy Analysis and Government
23 Accountability. The director of the Office of Program Policy
24 Analysis and Government Accountability may, at his or her
25 discretion, contract with a private consultant selected
26 through a formal request for proposal process to perform part
27 or all of the review of any district.
28 (2) In developing the scope of the review, the Office
29 of Program Policy Analysis and Government Accountability shall
30 seek input from the school district subject to a review. The
31 scope of the review shall include, but not be limited to:
2
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Florida House of Representatives - 1999 HB 1853
603-138B-99
1 (a) School district organization and Management
2 structures.
3 (b) Educational service delivery.
4 (c) Community involvement.
5 (d) Facilities use and management.
6 (e) Personnel systems and benefits management.
7 (f) Asset and risk management.
8 (g) Financial management.
9 (h) Purchasing.
10 (f)(i) Student transportation.
11 (g)(j) Food service operations.
12 (h)(k) Safety and security.
13 (i) Performance accountability.
14 (j) Use of lottery proceeds.
15 (k) Cost control systems.
16 (l) Instructional and administrative technology.
17 Section 3. Section 230.23025, Florida Statutes, 1998
18 Supplement, as amended by chapters 97-384 and 98-225, Laws of
19 Florida, is amended to read:
20 230.23025 Best financial management practices;
21 standards; reviews; designation of districts.--
22 (1) The purpose of a best financial management
23 practices review is to improve a school district's management
24 and use of resources, and to identify cost savings. The Office
25 of Program Policy Analysis and Government Accountability
26 (OPPAGA) and the Office of the Auditor General are directed to
27 develop a system for reviewing the financial management
28 practices of school districts. In this system, OPPAGA and the
29 Auditor General shall jointly examine district operations to
30 determine whether they meet "best financial management
31 practices." The best financial management practices adopted by
3
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Florida House of Representatives - 1999 HB 1853
603-138B-99
1 the Commissioner of Education may be updated periodically
2 after consultation with the Legislature, the Governor, the
3 SMART Schools Clearinghouse, OPPAGA, and the Auditor General.
4 In areas for which the commissioner has not adopted best
5 practices, OPPAGA may develop additional best practices, with
6 input from a broad range of stakeholders. OPPAGA shall present
7 any additional best practices or updates to existing best
8 practices to the commissioner for review and adoption. The
9 best financial management practices adopted by the
10 commissioner must be used in a school district review
11 conducted according to this section. The best financial
12 management practices, at a minimum, must instill public
13 confidence by addressing the following areas:
14 (a) Efficient use of resources, use of lottery
15 proceeds, student transportation and food service operations,
16 management structures, and personnel systems and benefits,
17 educational service delivery, community involvement, safety
18 and security, facilities, and administrative and instructional
19 technology;
20 (b) Compliance with generally accepted accounting
21 principles and state and federal laws relating to financial
22 management;
23 (c) Performance accountability systems, including
24 performance measurement reports to the public, internal
25 auditing, financial auditing, and information made available
26 to support decisionmaking;
27 (d) Cost control systems, including asset, risk, and
28 financial management, purchasing, and information system
29 controls.
30 (2) Each school district shall be subject to a best
31 financial management practices review on a 5-year cycle.
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Florida House of Representatives - 1999 HB 1853
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1 OPPAGA shall develop a schedule to review all school districts
2 on a 5-year cycle unless otherwise recommended by the director
3 of OPPAGA and approved by the Legislature in the General
4 Appropriations Act. No later than December 31 of each year,
5 OPPAGA shall recommend to the President of the Senate and the
6 Speaker of the House of Representatives those districts
7 proposed to undergo review and a maximum number of school
8 districts to be reviewed during the next fiscal year. School
9 districts may, by a unanimous vote of the membership of the
10 school board, apply to OPPAGA for a complete best financial
11 management practice review or a review of components of the
12 best financial management practices, including management,
13 personnel, transportation, and food and nutrition services.
14 OPPAGA shall prioritize districts for review based on their
15 growth rates and demonstrated need for review. The director of
16 OPPAGA may, at his or her discretion, contract with private
17 consultants to perform part or all of the review of any
18 district.
19 (3) The Legislature shall annually designate in the
20 General Appropriations Act those school districts that will
21 receive a best financial management practices review. The
22 Legislature may specifically designate that certain districts
23 receive fully funded reviews and that certain districts may
24 receive matching funds equal to 50 percent of the total cost
25 of the review as estimated by OPPAGA. Districts applying for a
26 complete review shall contribute 50 percent of the total cost
27 of the review costs, unless funding for the entire cost of the
28 review is specifically provided by the Legislature. Districts
29 applying for a review of a component shall contribute 75
30 percent of the review cost. All moneys contributed by any
31 school district under this section toward the cost of a
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Florida House of Representatives - 1999 HB 1853
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1 complete or component best financial management practices
2 review of the district shall be deposited into the Florida
3 School District Review Trust Fund administered by OPPAGA.
4 (4)(3) District reviews conducted under this section
5 must be completed within 6 months after commencement. OPPAGA
6 shall issue a report to the district regarding its financial
7 management practices and cost savings recommendations within
8 60 days after completing the reviews.
9 (5) If the district is found not to conform to best
10 financial management practices, the report must contain an
11 action a plan of action detailing how the district could meet
12 the best practices within 2 years and be eligible for a "Seal
13 of Best Financial Management." The school board must vote,
14 within 90 days of receipt of the final report, to implement or
15 not to implement the action plan. In order to be eligible to
16 receive the seal, the school board must vote by a majority
17 plus one to implement the action plan.
18 (4) No later than 1 year after receipt of the report,
19 district school boards that agree by a majority plus one vote
20 to institute the action plan must shall submit an initial
21 annual report to the Legislature, the Governor, the SMART
22 Schools Clearinghouse, OPPAGA, the Auditor General, and the
23 Commissioner of Education on progress made towards
24 implementing the plan and whether changes have occurred in
25 other areas of operation which would affect compliance with
26 the best practices. Thereafter, the report will be submitted
27 annually. Such districts shall be reviewed annually by
28 OPPAGA, in addition to the annual financial audit required
29 under s. 11.45, to determine whether they have attained
30 compliance with the best financial management practices in the
31 areas covered by the plan.
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Florida House of Representatives - 1999 HB 1853
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1 (6) Districts that are found to comply with the best
2 financial management practices shall receive a "Seal of Best
3 Financial Management" from by the State Board of Education
4 certifying that the district is adhering to the state's best
5 financial management practices. This designation shall be
6 effective for a 5-year period, beginning upon the
7 certification date, after which the district school board may
8 reapply for the designation to be granted after another best
9 financial management practice review. During the designation
10 period, the district school board shall annually notify, not
11 later than the anniversary date of the certification, the
12 SMART Schools Clearinghouse, OPPAGA, the Auditor General, and
13 the State Board of Education of any changes in policies or
14 operations or any other situations that would not conform to
15 the state's best financial management practices. The State
16 Board of Education may revoke the designation of a district at
17 any time if it determines that a district is no longer
18 complying with the state's best financial management
19 practices.
20 (7)(5) Any audit or performance review of one or more
21 of the designated components conducted or supervised by OPPAGA
22 or the Department of Management Services, and completed within
23 2 years before the district is scheduled in the General
24 Appropriations Act date of application to OPPAGA for a best
25 financial management practices review, may, at the OPPAGA
26 director's discretion, serve as all or part of the audit or
27 review required as the examination of district operations
28 necessary for a determination of whether a district meets the
29 "best financial management practices" designation. The cost
30 contribution requirements of subsection (2) do not apply to
31 any such audit or performance review.
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Florida House of Representatives - 1999 HB 1853
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1 Section 4. Subsection (2) of section 230.23026,
2 Florida Statutes, 1998 Supplement, is amended to read:
3 230.23026 Florida School District Review Trust Fund.--
4 (2) OPPAGA shall use the funds deposited in the trust
5 fund to pay costs of conducting best financial management
6 practices reviews, or reviews of components of the best
7 practices, in school districts under s. 230.23025. Funds may
8 be expended to pay the expenses of reviews conducted by
9 OPPAGA, by the Auditor General, or by private consultants at
10 the discretion of the director of OPPAGA. The expenses may
11 include professional services, travel expenses of OPPAGA and
12 the Auditor General, and any other necessary expenses incurred
13 as part of a complete or component best financial management
14 practices review. OPPAGA may refund to a school district any
15 portion of funds contributed by the school district that
16 OPPAGA determines are not needed to conduct the complete or
17 component best financial management practices review requested
18 by the district.
19 Section 5. Paragraphs (a) and (c) of subsection (2) of
20 section 235.2197, Florida Statutes, 1998 Supplement, are
21 amended to read:
22 235.2197 Florida Frugal Schools Program.--
23 (2) The "Florida Frugal Schools Program" is created to
24 recognize publicly each district school board that agrees to
25 build frugal yet functional educational facilities and that
26 implements "best financial management practices" when
27 planning, constructing, and operating educational facilities.
28 The State Board of Education shall recognize a district school
29 board as having a Florida Frugal Schools Program if the
30 district requests recognition and satisfies two or more of the
31 following criteria:
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Florida House of Representatives - 1999 HB 1853
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1 (a) The district receives a "Seal of Best Financial
2 Management" as provided in s. 230.23025 s. 230.2302 or
3 implements best financial management practices in the area of
4 educational facilities as evidenced by a partial review under
5 s. 230.23025 s. 230.2302.
6 (c) The district school board submits a plan to the
7 Commissioner of Education certifying how the revenues
8 generated by the levy of the capital outlay sales surtax
9 authorized by s. 212.055(7) will be spent. The plan must
10 include at least the following assurances about the use of the
11 proceeds of the surtax and any accrued interest:
12 1. The district school board will use the surtax and
13 accrued interest only for the fixed capital outlay purposes
14 identified by s. 212.055(7)(d) which will reduce school
15 overcrowding that has been validated by the Department of
16 Education, or for the repayment of bonded indebtedness related
17 to such capital outlay purposes.
18 2. The district school board will not spend the surtax
19 or accrued interest to pay for operational expenses or for the
20 construction, renovation, or remodeling of any administrative
21 building or any other ancillary facility that is not directly
22 related to the instruction, feeding, or transportation of
23 students enrolled in the public schools.
24 3. The district school board's use of the surtax and
25 accrued interest will be consistent with the best financial
26 management practices identified and approved under s.
27 230.23025 s. 230.2302.
28 4. The district school board will apply the
29 educational facilities contracting and construction techniques
30 authorized by s. 235.211 or other construction management
31 techniques to reduce the cost of educational facilities.
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1 5. The district school board will discontinue the
2 surtax levy when the district has provided the
3 survey-recommended educational facilities that were determined
4 to be necessary to relieve school overcrowding; when the
5 district has satisfied any bonded indebtedness incurred for
6 such educational facilities; or when the district's other
7 sources of capital outlay funds are sufficient to provide such
8 educational facilities, whichever occurs first.
9 6. The district school board will use any excess
10 surtax collections or accrued interest to reduce the
11 discretionary outlay millage levied under s. 236.25(2).
12 Section 6. Section 230.2302, Florida Statutes, is
13 repealed.
14 Section 7. This act shall take effect July 1, 1999.
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17 HOUSE SUMMARY
18
Requires the Office of Program Policy Analysis and
19 Government Accountability to conduct or contract for best
financial management practices reviews of school
20 districts. Revises references to "performance reviews" to
"best financial management practices reviews." Clarifies
21 and conforms the authorization for contracting for
reviews. Revises the scope of such reviews. Provides for
22 the purpose of a best financial management practices
review. Authorizes OPPAGA to develop best practices for
23 review and adoption by the Commissioner of Education.
Establishes a timeframe for school district review.
24 Requires districts to be reviewed to be specified in the
General Appropriations Act. Provides funding
25 requirements. Revises reporting requirements. Revises
provisions relating to the "Seal of Best Financial
26 Management." Repeals provisions relating to performance
reviews.
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