Senate Bill sb2022

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    Florida Senate - 2001                                  SB 2022

    By Senator Sanderson





    31-718A-01                                         See HB 1197

  1                      A bill to be entitled

  2         An act relating to legislative oversight of

  3         governmental programs; amending s. 11.40, F.S.;

  4         authorizing the Legislative Auditing Committee

  5         to direct the Auditor General and the Office of

  6         Program Policy Analysis and Government

  7         Accountability to conduct audits, reviews, and

  8         examinations of certain entities; authorizing

  9         the Legislative Auditing Committee to conduct

10         investigations; authorizing the Legislative

11         Auditing Committee to hold hearings; amending

12         s. 11.42, F.S.; revising the requirements to

13         become Auditor General; transferring report

14         requirement; revising the employment

15         restrictions for employees of the Auditor

16         General; exempting the Auditor General from

17         certain provisions; amending s. 11.45, F.S.;

18         revising definitions; providing for duties of

19         the Auditor General; transferring certain

20         district school board authority; transferring

21         the requirement that a charter school provide

22         for an annual financial audit; transferring the

23         requirement that certain district school boards

24         have certain financial audits; providing for

25         authority of the Auditor General; providing for

26         scheduling and staffing of audits conducted by

27         the Auditor General; requiring the Legislative

28         Auditing Committee to direct an audit of a

29         municipality by the Auditor General under

30         certain circumstances; authorizing a local

31         governmental entity to request an audit by the

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         Auditor General; transferring the requirement

  2         that the Office of Program Policy Analysis and

  3         Government Accountability maintain a schedule

  4         of performance audits; deleting the requirement

  5         that the Office of Program Policy Analysis and

  6         Government Accountability identify and comment

  7         upon certain alternatives in conducting a

  8         performance audit; transferring a report

  9         distribution requirement; transferring the

10         annual financial auditing provisions related to

11         local governmental entities; transferring the

12         auditor selection procedures for local

13         governmental entities, district school boards,

14         and charter schools; transferring the penalty

15         provisions for failure to file an annual

16         financial audit; providing for Auditor General

17         reporting requirements; transferring the

18         penalty provisions for failure by a local

19         governmental entity to pay for the cost of an

20         audit by the Auditor General; transferring the

21         Legislative Auditing Committee's authority to

22         conduct investigations; eliminating the content

23         requirements for an audit report issued by the

24         Auditor General; deleting the requirement that

25         an agency head must file a report; eliminating

26         a report issued by the Auditor General and the

27         Office of Program Policy Analysis and

28         Government Accountability; transferring the

29         authority for district school boards and

30         district boards of trustees of community

31         colleges for performance audits and financial

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         audits; amending s. 11.47, F.S.; requiring

  2         certain officers to provide the Office of

  3         Program Policy Analysis and Government

  4         Accountability with information; requiring the

  5         staff of the Office of Program Policy Analysis

  6         and Government Accountability to make proper

  7         examinations; providing criminal penalties for

  8         false reports; providing penalties for persons

  9         who fail to provide the Office of Program

10         Policy Analysis and Government Accountability

11         with records; amending s. 11.51, F.S.; deleting

12         the provision that the Office of Program Policy

13         Analysis and Government Accountability is a

14         unit of the Auditor General; redefining the

15         duties of the office; eliminating the provision

16         requiring the Auditor General to provide

17         administrative support for the office;

18         requiring the office to maintain a schedule of

19         examinations; providing authority to the office

20         to examine certain programs; requiring the

21         office to deliver preliminary findings;

22         providing deadlines for responses to

23         preliminary findings; providing protection for

24         office workpapers; requiring the office to

25         conduct followup reports; amending s. 11.511,

26         F.S.; redefining the duties of the director of

27         the Office of Program Policy Analysis and

28         Government Accountability; revising employment

29         restrictions for the office staff; providing

30         for postponement of examinations; amending s.

31         11.513, F.S.; conforming cross-references;

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         transferring the authority of the Legislative

  2         Auditing Committee; transferring and rewording

  3         the authority of the director of the Office of

  4         Program Policy Analysis and Government

  5         Accountability to postpone projects; amending

  6         ss. 14.29, 20.2551, 288.1226, 320.08058,

  7         943.2569, F.S.; providing for audits of

  8         programs; amending s. 20.055, F.S.;

  9         transferring the review of state agencies'

10         internal audit reports conducted by the Auditor

11         General; providing responsibilities to

12         agencies' inspectors general; amending s.

13         20.23, F.S.; requiring the Department of

14         Transportation to implement certain

15         recommendations made by the Office of Program

16         Policy Analysis and Government Accountability;

17         amending ss. 24.105, 39.202, 119.07, 195.084,

18         213.053, 944.719, 948.15, F.S.; providing

19         authority to the Office of Program Policy

20         Analysis and Government Accountability to

21         access confidential records; amending s.

22         24.120, F.S.; requiring the Department of the

23         Lottery to provide access to the facilities of

24         the department to the Office of Program Policy

25         Analysis and Government Accountability;

26         amending s. 27.3455, F.S.; deleting a reporting

27         requirement; conforming cross-references;

28         amending ss. 30.51, 116.07, 122.03, 122.08,

29         145.022, 145.14, 154.331, 206.60, 212.08,

30         290.0056, 403.864, 657.008, 946.31, F.S.;

31         deleting obsolete provisions; amending ss.

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         110.109, 216.177, 216.178, 216.292, 334.0445,

  2         985.311, F.S.; designating the Office of

  3         Program Policy Analysis and Government

  4         Accountability as a recipient of information;

  5         amending s. 112.313, F.S.; expanding the

  6         definition of employees subject to

  7         postemployment restrictions to include the

  8         director of the Office of Program Policy

  9         Analysis and Government Accountability;

10         amending s. 112.324, F.S.; expanding the list

11         of persons subject to consequences regarding a

12         breach of public trust to include the director

13         and staff of the Office of Program Policy

14         Analysis and Government Accountability;

15         amending ss. 112.63, 175.261, 185.221,

16         189.4035, 189.412, 189.418, 189.419, 215.94,

17         230.23025, 311.07, F.S.; conforming

18         cross-references; amending s. 125.01, F.S.;

19         deleting a requirement that the Auditor General

20         retain county audit reports for a specific

21         period of time; amending ss. 154.11, 253.025,

22         259.041, F.S.; revising provisions related to

23         the Auditor General; amending s. 163.356, F.S.;

24         removing the Auditor General from the list of

25         entities to receive a report from a community

26         redevelopment agency; amending s. 189.428,

27         F.S.; revising the criteria to be used by a

28         local government conducting an oversight review

29         of a special district; amending ss. 193.074 and

30         196.101, F.S.; requiring the Office of Program

31         Policy Analysis and Government Accountability

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         to maintain confidentiality of records;

  2         amending ss. 195.096, 228.056, 228.505, 455.32,

  3         471.038, F.S.; revising provisions related to

  4         certain audits; amending s. 215.44, F.S.;

  5         deleting the requirement that the Auditor

  6         General annually audit the State Board of

  7         Administration; revising provisions related to

  8         an examination by the Office of Program Policy

  9         Analysis and Government Accountability;

10         creating s. 215.86, F.S.; providing for

11         management systems and controls for state

12         agencies; creating s. 215.98, F.S.; providing

13         for audits of direct-support organizations and

14         citizen-support organizations; amending ss.

15         229.8021, 237.40, 240.299, 240.2995, 240.331,

16         240.3315, 240.5285, 240.711, 250.115, 266.0018,

17         267.17, 288.1229, 288.809, 372.0215, 413.615,

18         413.87, 446.609, 944.802, 960.002, 985.4145,

19         F.S.; providing for audits of direct-support

20         organizations and citizen-support

21         organizations; amending s. 218.31, F.S.;

22         providing additional definitions; amending s.

23         218.32, F.S.; providing that certain entities

24         file an audit report with the Department of

25         Banking and Finance; conforming a

26         cross-reference; providing for the Department

27         of Banking and Finance to prescribe the format

28         of local governmental entities that are

29         required to provide for certain audits;

30         transferring the penalty provisions relating to

31         failure of a local governmental entity to file

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         an annual financial report with the Department

  2         of Banking and Finance; amending s. 218.33,

  3         F.S.; revising provisions related to the

  4         establishment of uniform accounting practices

  5         and procedures; amending s. 218.38, F.S.;

  6         transferring penalty provisions for failure to

  7         verify or provide information to the Division

  8         of Bond Finance within the State Board of

  9         Administration; creating s. 218.39, F.S.;

10         providing for audits of local governmental

11         entities, district school boards, charter

12         schools, and charter technical career centers;

13         providing for the format of county audits;

14         authorizing dependent special districts to be

15         included within the audit of a county or

16         municipality; prohibiting an independent

17         special district from being included within the

18         audit of a county or municipality; providing

19         for a management letter within each audit

20         report; providing for discussion of the

21         auditor's findings and recommendations;

22         providing for a response to the auditor's

23         findings and recommendations; requiring that a

24         predecessor auditor of a district school board

25         provide the Auditor General with access to the

26         prior year's working papers; requiring certain

27         audits to be conducted in accordance with rules

28         adopted by the Auditor General; creating s.

29         218.391, F.S.; providing for auditor selection

30         procedures; amending s. 218.415, F.S.;

31         conforming a cross-reference; transferring

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         responsibilities of the Auditor General;

  2         transferring penalty provisions; amending s.

  3         228.093, F.S.; providing authority to the

  4         Office of Program Policy Analysis and

  5         Government Accountability to access records;

  6         requiring the Office of Program Policy Analysis

  7         and Government Accountability to maintain

  8         confidentiality of records; requiring the

  9         office to destroy personally identifiable data

10         under certain circumstances; amending s.

11         230.23, F.S.; authorizing school boards to

12         employ an internal auditor; authorizing school

13         boards to hire independent certified public

14         accountants; amending s. 240.214, F.S.;

15         clarifying that accountability reports are to

16         be designed in consultation with the Office of

17         Program Policy Analysis and Government

18         Accountability; amending s. 240.311, F.S.;

19         providing authority to the Office of Program

20         Policy Analysis and Government Accountability

21         to require and receive supplemental data;

22         creating s. 240.3631, F.S.; authorizing

23         district boards of trustees of community

24         colleges to hire an independent certified

25         public accountant to conduct audits; amending

26         s. 240.512, F.S.; providing authority to the

27         Office of Program Policy Analysis and

28         Government Accountability to require and

29         receive supplemental data; providing authority

30         to the Office of Program Policy Analysis and

31         Government Accountability to access

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         confidential records; requiring the office to

  2         maintain confidentiality; amending s. 240.551,

  3         F.S.; providing for audits of direct-support

  4         organizations; deleting a paragraph which

  5         provides for audits of direct-support

  6         organizations; amending ss. 240.609, 288.9517,

  7         296.17, 296.41, 403.1826, 550.125, 601.15,

  8         744.708, F.S.; providing authority to the

  9         Office of Program Policy Analysis and

10         Government Accountability to examine programs;

11         amending s. 290.015, F.S.; providing

12         responsibilities to the Office of Program

13         Policy Analysis and Government Accountability

14         regarding the Florida Enterprise Zone Act of

15         1994; amending ss. 320.023, 320.08062, 322.081,

16         F.S.; deleting provisions related to audits of

17         certain organizations; requiring annual

18         attestations of certain organizations;

19         transferring the Auditor General's authority to

20         conduct audits; amending s. 339.406, F.S.;

21         revising provisions related to audits of

22         transportation corporations; providing the

23         Department of Transportation and the Auditor

24         General with the authority to conduct audits of

25         transportation corporations; amending s.

26         365.171, F.S.; revising the provision related

27         to auditing the 911 fees; conforming a

28         cross-reference; amending s. 373.45926, F.S.;

29         replacing certain terms; amending s. 373.507,

30         F.S.; deleting an obsolete provision;

31         correcting a cross-reference; providing for the

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         distribution of audits of water management

  2         districts; amending ss. 402.73, 411.01, 413.88,

  3         F.S.; deleting provisions related to an audit

  4         by the Auditor General; amending s. 403.8532,

  5         F.S.; replacing certain terms; amending s.

  6         411.221, F.S.; adding reports issued by the

  7         Office of Program Policy Analysis and

  8         Government Accountability to the information

  9         considered in strategic plan revisions;

10         amending s. 570.903, F.S.; transferring the

11         authority for certain direct-support

12         organizations to conduct business; providing

13         for audits of direct-support organizations;

14         amending s. 616.263, F.S.; providing the

15         Auditor General with the authority to conduct

16         audits; amending s. 943.25, F.S.; providing for

17         the conduct of audits of the criminal justice

18         trust fund; amending s. 944.512, F.S.;

19         providing that certain costs are to be

20         certified by a prosecuting attorney and an

21         imprisoning entity and subject to review by the

22         Auditor General; amending s. 957.07, F.S.;

23         providing responsibilities for the Department

24         of Corrections and the Auditor General;

25         amending ss. 957.11, 985.416, F.S.;

26         transferring duties from the Auditor General to

27         the Office of Program Policy Analysis and

28         Government Accountability; repealing s. 11.149,

29         F.S., relating to nonapplication of certain

30         provisions to the Legislative Auditing

31         Committee or the Auditor General; repealing s.

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         11.46, F.S., relating to accounting procedures;

  2         repealing s. 125.901(2)(e), F.S., relating to

  3         audits of independent special districts related

  4         to children's services; repealing ss.

  5         215.56005(2)(l), 216.2815, 228.053(11),

  6         228.082(6), 253.037(3), 288.906(2), 288.9616,

  7         298.65, 348.69, 374.987(3), 380.510(8),

  8         400.335, 403.1837(14), 440.49(14)(i), and

  9         517.1204(14), F.S., relating to authority of

10         the Auditor General to conduct audits;

11         repealing s. 218.415(23), F.S., relating to

12         local government investments; repealing s.

13         265.607, F.S., relating to audits of local

14         cultural sponsoring organizations; repealing s.

15         331.419(3), F.S.; deleting obsolete provisions;

16         repealing s. 339.413, F.S., relating to audits

17         of transportation corporations; repealing s.

18         373.589, F.S., relating to audits of water

19         management districts; repealing s. 388.331,

20         F.S., relating to audits of mosquito control

21         districts and mosquito control programs;

22         repealing ss. 570.912, 581.195, 589.013, and

23         590.612, F.S., relating to direct-support

24         organizations within the Department of

25         Agriculture; providing an effective date.

26

27  Be It Enacted by the Legislature of the State of Florida:

28

29         Section 1.  Subsections (3), (4), and (5) are added to

30  section 11.40, Florida Statutes, to read:

31         11.40  Legislative Auditing Committee.--

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         (3)  The Legislative Auditing Committee may direct the

  2  Auditor General or the Office of Program Policy Analysis and

  3  Government Accountability to conduct an audit, review, or

  4  examination of any entity or record described in s. 11.45(2)

  5  or (3).

  6         (4)  The Legislative Auditing Committee may take under

  7  investigation any matter within the scope of an audit, review,

  8  or examination either completed or then being conducted by the

  9  Auditor General or the Office of Program Policy Analysis and

10  Government Accountability, and, in connection with such

11  investigation, may exercise the powers of subpoena by law

12  vested in a standing committee of the Legislature.

13         (5)  Following notification by the Auditor General, the

14  Department of Banking and Finance, or the Division of Bond

15  Finance of the State Board of Administration of the failure of

16  a local governmental entity, district school board, charter

17  school, or charter technical career center to comply with the

18  applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or

19  s. 218.38, the Legislative Auditing Committee may schedule a

20  hearing. If a hearing is scheduled, the committee shall

21  determine if the entity should be subject to further state

22  action.  If the committee determines that the entity should be

23  subject to further state action, the committee shall:

24         (a)  In the case of a local governmental entity or

25  district school board, request the Department of Revenue and

26  the Department of Banking and Finance to withhold any funds

27  not pledged for bond debt service satisfaction which are

28  payable to such entity until the entity complies with the law.

29  The committee, in its request, shall specify the date such

30  action shall begin, and the request must be received by the

31  Department of Revenue and the Department of Banking and

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  Finance 30 days before the date of the distribution mandated

  2  by law. The Department of Revenue and the Department of

  3  Banking and Finance are authorized to implement the provisions

  4  of this paragraph.

  5         (b)  In the case of a special district, notify the

  6  Department of Community Affairs that the special district has

  7  failed to comply with the law. Upon receipt of notification,

  8  the Department of Community Affairs shall proceed pursuant to

  9  the provisions specified in ss. 189.421 and 189.422.

10         (c)  In the case of a charter school or charter

11  technical career center, notify the appropriate sponsoring

12  entity, which may terminate the charter pursuant to ss.

13  228.056 and 228.505.

14         Section 2.  Subsections (2), (6), and (8) of section

15  11.42, Florida Statutes, are amended, and subsection (9) is

16  added to that section, to read:

17         11.42  The Auditor General.--

18         (2)  The Auditor General shall be appointed to office

19  to serve at the pleasure of the Legislature, by a majority

20  vote of the members of the Legislative Auditing Committee,

21  subject to confirmation by both houses of the Legislature.  At

22  the time of her or his appointment, the Auditor General shall

23  have been certified under the Public Accountancy Law in this

24  state for a period of at least 10 years and shall have had not

25  less than 10 years' experience in an accounting or auditing

26  related field a governmental agency or 10 years' experience in

27  the private sector or a combination of 10 years' experience in

28  government and the private sector.  Vacancies in the office

29  shall be filled in the same manner as the original

30  appointment.

31

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         (6)(a)  The headquarters of the Auditor General shall

  2  be at the state capital, but to facilitate auditing and to

  3  eliminate unnecessary traveling the Auditor General may

  4  establish field offices located outside the state capital

  5  divisions and assign auditors to each division and determine

  6  their duties and the areas of the state to be served by the

  7  respective divisions. The Auditor General shall be provided

  8  with adequate quarters to carry out the position's functions

  9  in the state capital and in other areas of the state.

10         (b)  All payrolls and vouchers for the operations of

11  the Auditor General's office shall be submitted directly to

12  the Comptroller and, if found to be correct, payments state

13  warrants shall be issued therefor.

14         (c)  The Auditor General shall transmit to the

15  President of the Senate and the Speaker of the House of

16  Representatives by January 1 of each year a list of statutory

17  and fiscal changes recommended by audit reports. The

18  recommendations should be presented in two categories: one

19  addressing substantive law and policy issues and the other

20  addressing budget issues. The Auditor General may also

21  transmit recommendations at other times of the year when the

22  information would be timely and useful for the Legislature.

23         (8)  No officer or salaried full-time employee of the

24  office of Auditor General shall actively engage in any other

25  business or profession; serve as the representative of any

26  political party or on any executive committee or other

27  governing body thereof; serve as an executive, officer, or

28  employee of any political party committee, organization, or

29  association; or be engaged on behalf of any candidate for

30  public office in the solicitation of votes or other activities

31  in behalf of such candidacy. Neither the Auditor General nor

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  any employee of the Auditor General may shall become a

  2  candidate for election to public office unless she or he shall

  3  first resigns resign from office or employment. No officer or

  4  salaried employee of the Auditor General shall actively engage

  5  in any other business or profession or be otherwise employed

  6  without the prior written permission of the Auditor General.

  7         (9)  Sections 11.25(1) and 11.26 shall not apply to the

  8  Auditor General.

  9         Section 3.  Section 11.45, Florida Statutes, is amended

10  to read:

11         11.45  Definitions; duties; authorities audits;

12  reports; rules.--

13         (1)  DEFINITIONS.--As used in ss. 11.40-11.515 this

14  section, the term:

15         (a)  "Audit" means a financial audit, operational

16  audit, or performance audit.

17         (b)(a)  "County agency," for the exclusive purposes of

18  this section, means a board of county commissioners or other

19  legislative and governing body of a county, however styled,

20  including that of a consolidated or metropolitan government, a

21  clerk of the circuit court, a separate or ex officio clerk of

22  the county court, a sheriff, a property appraiser, a tax

23  collector, a supervisor of elections, or any other officer in

24  whom any portion of the fiscal duties of the above are under

25  law separately placed. Each county agency is a local

26  governmental entity for purposes of subparagraph (3)(a)5.

27         (c)(b)  "Financial audit" means an examination of

28  financial statements in order to express an opinion on the

29  fairness with which they are presented present financial

30  position, results of operations, and changes in financial

31  position in conformity with generally accepted accounting

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  principles and an examination to determine whether operations

  2  are properly conducted in accordance with legal and regulatory

  3  requirements. Financial audits must be conducted in accordance

  4  with generally accepted auditing standards and government

  5  governmental auditing standards as adopted by the Board of

  6  Accountancy.

  7         (d)(c)  "Governmental entity" means a state agency, a

  8  county agency, or any other entity, however styled, that

  9  independently exercises any type of state or local

10  governmental function.

11         (e)(d)  "Local governmental entity" means a county

12  agency, municipality, or special district as defined in s.

13  189.403, but does not include any housing authority

14  established under chapter 421.

15         (f)(e)  "Management letter" means a statement of the

16  auditor's comments and recommendations.

17         (g)(f)  "Operational audit" means a financial-related

18  audit whose purpose is to evaluate management's performance in

19  administering assigned responsibilities in accordance with

20  applicable laws, administrative rules, and other guidelines

21  and to determine the extent to which the internal control, as

22  designed and placed in operation, promotes and encourages the

23  achievement of management's control objectives in the

24  categories of compliance, economic and efficient operations,

25  reliability of financial records and reports, and safeguarding

26  of assets.

27         (h)(g)  "Performance audit" means an examination of a

28  program, activity, or function of a governmental entity,

29  conducted in accordance with applicable government auditing

30  standards or auditing and evaluation standards of other

31

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  appropriate authoritative bodies. The term includes an

  2  examination of issues related to:

  3         1.  Economy, efficiency, or effectiveness of the

  4  program.

  5         2.  Structure or design of the program to accomplish

  6  its goals and objectives.

  7         3.  Adequacy of the program to meet the needs

  8  identified by the Legislature or governing body.

  9         4.  Alternative methods of providing program services

10  or products.

11         5.  Goals, objectives, and performance measures used by

12  the agency to monitor and report program accomplishments.

13         6.  The accuracy or adequacy of public documents,

14  reports, or requests prepared under the program by state

15  agencies.

16         7.  Compliance of the program with appropriate

17  policies, rules, or laws.

18         8.  Any other issues related to governmental entities

19  as directed by the Legislative Auditing Committee.

20         (i)(h)  "Political subdivision" means a separate agency

21  or unit of local government created or established by law and

22  includes, but is not limited to, the following and the

23  officers thereof:  authority, board, branch, bureau, city,

24  commission, consolidated government, county, department,

25  district, institution, metropolitan government, municipality,

26  office, officer, public corporation, town, or village.

27         (j)(i)  "State agency" means a separate agency or unit

28  of state government created or established by law and

29  includes, but is not limited to, the following and the

30  officers thereof: authority, board, branch, bureau,

31  commission, department, division, institution, office,

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  officer, or public corporation, as the case may be, except any

  2  such agency or unit other than the Florida Public Service

  3  Commission within the legislative branch of state government

  4  other than the Florida Public Service Commission.

  5         (2)  DUTIES.--The Auditor General shall:

  6         (a)  Conduct make financial audits and performance

  7  audits of public records and perform related duties as

  8  prescribed by law, or concurrent resolution of the

  9  Legislature, or as directed. The Auditor General shall perform

10  his or her duties independently but under the general policies

11  established by the Legislative Auditing Committee.

12         (b)  Annually conduct a financial audit of state

13  government.

14         (c)  Annually conduct financial audits of all district

15  boards of trustees of community colleges.

16         (d)  Annually conduct financial audits of the accounts

17  and records of all district school boards in counties with

18  populations of fewer than 125,000, according to the most

19  recent federal decennial statewide census.

20         (e)  Annually conduct an audit of the Wireless

21  Emergency Telephone System Fund as described in s. 365.173.

22         (f)  At least every 2 years, conduct operational audits

23  of the accounts and records of state agencies. In connection

24  with these audits, the Auditor General shall give appropriate

25  consideration to reports issued by state agencies' inspectors

26  general and the resolution of findings therein.

27         (g)  At least every 2 years, conduct a performance

28  audit of the local government financial reporting system,

29  which, for the purpose of this chapter, means any statutory

30  provisions related to local government financial reporting.

31  The purpose of such an audit is to determine the accuracy,

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    Florida Senate - 2001                                  SB 2022
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  1  efficiency, and effectiveness of the reporting system in

  2  achieving its goals and to make recommendations to the local

  3  governments, the Governor, and the Legislature as to how the

  4  reporting system can be improved and how program costs can be

  5  reduced. The local government financial reporting system

  6  should provide for the timely, accurate, uniform, and

  7  cost-effective accumulation of financial and other information

  8  that can be used by the members of the Legislature and other

  9  appropriate officials to accomplish the following goals:

10         1.  Enhance citizen participation in local government;

11         2.  Improve the financial condition of local

12  governments;

13         3.  Provide essential government services in an

14  efficient and effective manner; and

15         4.  Improve decisionmaking on the part of the

16  Legislature, state agencies, and local government officials on

17  matters relating to local government.

18         (h)  Once every 3 years, conduct performance audits of

19  the Department of Revenue's administration of the ad valorem

20  tax laws as described in s. 195.096.

21         (i)  Once every 3 years, conduct financial audits of

22  the accounts and records of all district school boards in

23  counties with populations of 125,000 or more, according to the

24  most recent federal decennial statewide census.

25         (j)  Once every 3 years, review a sample of each state

26  agency's internal audit reports to determine compliance with

27  current Standards for the Professional Practice of Internal

28  Auditing or, if appropriate, government auditing standards.

29         (k)  Conduct audits of local governmental entities when

30  determined to be necessary by the Auditor General, when

31  directed by the Legislative Auditing Committee, or when

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  1  otherwise required by law. No later than 18 months after the

  2  release of the audit report, the Auditor General shall perform

  3  such appropriate followup procedures as he or she deems

  4  necessary to determine the audited entity's progress in

  5  addressing the findings and recommendations contained within

  6  the Auditor General's previous report. The Auditor General

  7  shall provide a copy of his or her determination to each

  8  member of the audited entity's governing body and to the

  9  Legislative Auditing Committee.

10

11  The Auditor General shall perform his or her duties

12  independently but under the general policies established by

13  the Legislative Auditing Committee. This subsection does not

14  limit the Auditor General's discretionary authority to conduct

15  other audits or engagements of governmental entities as

16  authorized in subsection (3).

17         (3)  AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.--

18         (a)1.  The Auditor General shall annually make

19  financial audits of the accounts and records of all state

20  agencies, as defined in this section, of all district school

21  boards in counties with populations of fewer than 125,000,

22  according to the most recent federal decennial statewide

23  census, and of all district boards of trustees of community

24  colleges. The Auditor General shall, at least every other

25  year, make operational audits of the accounts and records of

26  all state agencies, as defined in this section. The Auditor

27  General shall, at least once every 3 years, make financial

28  audits of the accounts and records of all district school

29  boards in counties with populations of 125,000 or more. For

30  each of the 2 years that the Auditor General does not make the

31  financial audit, each district school board shall contract for

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  1  an independent certified public accountant to perform a

  2  financial audit as defined in paragraph (1)(b). This section

  3  does not limit the Auditor General's discretionary authority

  4  to conduct performance audits of these governmental entities

  5  as authorized in subparagraph 3. A district school board may

  6  select an independent certified public accountant to perform a

  7  financial audit as defined in paragraph (1)(b) notwithstanding

  8  the notification provisions of this section. In addition, a

  9  district school board may employ an internal auditor to

10  perform ongoing financial verification of the financial

11  records of a school district, who must report directly to the

12  district school board or its designee. The Auditor General

13  shall, at a minimum, provide to the successor independent

14  certified public accountant of a district school board the

15  prior year's working papers, including documentation of

16  planning, internal control, audit results, and other matters

17  of continuing accounting and auditing significance, such as

18  the working paper analysis of balance sheet accounts and those

19  relating to contingencies.

20         2.  Each charter school established under s. 228.056

21  shall have an annual financial audit of its accounts and

22  records completed within 12 months after the end of its fiscal

23  year by an independent certified public accountant retained by

24  it and paid from its funds. The independent certified public

25  accountant who is selected to perform an annual financial

26  audit of the charter school shall provide a copy of the audit

27  report to the district school board, the Department of

28  Education, and the Auditor General. A management letter must

29  be prepared and included as a part of each financial audit

30  report. The Auditor General may, pursuant to his or her own

31

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    Florida Senate - 2001                                  SB 2022
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  1  authority or at the direction of the Joint Legislative

  2  Auditing Committee, conduct an audit of a charter school.

  3         3.  The Auditor General may pursuant to his or her own

  4  authority, or at the direction of the Legislative Auditing

  5  Committee, conduct at any time make financial audits and

  6  performance audits or other engagements as determined

  7  appropriate by the Auditor General of:

  8         1.  The accounts and records of any all governmental

  9  entity entities created or established by pursuant to law.

10         2.  The information technology programs, activities,

11  functions, or systems of any governmental entity created or

12  established by law.

13         3.  The accounts and records of any charter school

14  created or established by law.

15         4.  The accounts and records of any direct-support

16  organization or citizen support organization created or

17  established by law. The Auditor General is authorized to

18  require and receive any records from the direct-support

19  organization or citizen support organization, or from its

20  independent auditor.

21         5.  The public records associated with any

22  appropriation made by the General Appropriations Act to a

23  nongovernmental agency, corporation, or person. All records of

24  a nongovernmental agency, corporation, or person with respect

25  to the receipt and expenditure of such an appropriation shall

26  be public records and shall be treated in the same manner as

27  other public records are under general law.

28         6.  State financial assistance provided to any nonstate

29  entity.

30         7.  The Tobacco Settlement Financing Corporation

31  created pursuant to s. 215.56005.

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    Florida Senate - 2001                                  SB 2022
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  1         8.  The Florida On-Line High School created pursuant to

  2  s. 228.082.

  3         9.  Any purchases of federal surplus lands for use as

  4  sites for correctional facilities as described in s. 253.037.

  5         10.  Enterprise Florida, Inc., including any of its

  6  boards, advisory committees, or similar groups created by

  7  Enterprise Florida, Inc., and programs.  The audit report may

  8  not reveal the identity of any person who has anonymously made

  9  a donation to Enterprise Florida, Inc., pursuant to this

10  subparagraph. The identity of a donor or prospective donor to

11  Enterprise Florida, Inc., who desires to remain anonymous and

12  all information identifying such donor or prospective donor

13  are confidential and exempt from the provisions of s.

14  119.07(1) and s. 24(a), Art. I of the State Constitution. Such

15  anonymity shall be maintained in the auditor's report.

16         11.  The Florida Development Finance Corporation or the

17  capital development board or the programs or entities created

18  by the board. The audit or report may not reveal the identity

19  of any person who has anonymously made a donation to the board

20  pursuant to this subparagraph. The identity of a donor or

21  prospective donor to the board who desires to remain anonymous

22  and all information identifying such donor or prospective

23  donor are confidential and exempt from the provisions of s.

24  119.07(1) and s. 24(a), Art. I of the State Constitution. Such

25  anonymity shall be maintained in the auditor's report.

26         12.  The records pertaining to the use of funds from

27  voluntary contributions on a motor vehicle registration

28  application or on a driver's license application authorized

29  pursuant to ss. 320.023 and 322.081.

30         13.  The records pertaining to the use of funds from

31  the sale of specialty license plates described in chapter 320.

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    Florida Senate - 2001                                  SB 2022
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  1         14.  The transportation corporations under contract

  2  with the Department of Transportation that are acting on

  3  behalf of the state to secure and obtain rights-of-way for

  4  urgently needed transportation systems and to assist in the

  5  planning and design of such systems pursuant to ss.

  6  339.401-339.421.

  7         15.  The acquisitions and divestitures related to the

  8  Florida Communities Trust Program created pursuant to chapter

  9  380.

10         16.  The Florida Water Pollution Control Financing

11  Corporation created pursuant to s. 403.1837.

12         17.  The Florida Partnership for School Readiness

13  created pursuant to s. 411.01.

14         18.  The Occupational Access and Opportunity Commission

15  created pursuant to s. 413.83.

16         19.  The Florida Special Disability Trust Fund

17  Financing Corporation created pursuant to s. 440.49.

18         20.  Workforce Florida, Inc., or the programs or

19  entities created by Workforce Florida, Inc., created pursuant

20  to s. 445.004.

21         21.  The corporation defined in s. 455.32 that is under

22  contract with the Department of Business and Professional

23  Regulation to provide administrative, investigative,

24  examination, licensing, and prosecutorial support services in

25  accordance with the provisions of s. 455.32 and the practice

26  act of the relevant profession.

27         22.  The Florida Engineers Management Corporation

28  created pursuant to chapter 471.

29         23.  The Investment Fraud Restoration Financing

30  Corporation created pursuant to chapter 517.

31

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    Florida Senate - 2001                                  SB 2022
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  1         24.  The books and records of any permitholder that

  2  conducts race meetings or jai alai exhibitions under chapter

  3  550.

  4         25.  The corporation defined in chapter 946, part II,

  5  known as the Prison Rehabilitative Industries and Diversified

  6  Enterprises, Inc., or PRIDE Enterprises.

  7         (b)  The Auditor General is also authorized to:

  8         1.  Promote the building of competent and efficient

  9  accounting and internal audit organizations in the offices

10  administered by governmental entities.

11         2.  Provide consultation services to governmental

12  entities on their financial and accounting systems,

13  procedures, and related matters.

14         (4)  SCHEDULING AND STAFFING OF AUDITS.--

15         (a)  Each financial audit required or authorized by

16  this section, when practicable, shall be made and completed

17  within not more than 9 months following the end of each

18  audited fiscal year of the state agency or political

19  subdivision, or at such lesser time which may be provided by

20  law or concurrent resolution or directed by the Legislative

21  Auditing Committee. When the Auditor General determines that

22  conducting any audit or engagement otherwise required by law

23  would not be possible due to workload or would not be an

24  efficient or effective use of his or her resources based on an

25  assessment of risk, then, in his or her discretion, the

26  Auditor General may temporarily or indefinitely postpone such

27  audits or other engagements for such period or any portion

28  thereof, unless otherwise directed by the committee.

29         (b)  The Auditor General may, when in his or her

30  judgment it is necessary, designate and direct any auditor

31  employed by the Auditor General to audit any accounts or

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  1  records within the authority of the Auditor General to audit.

  2  The auditor shall report his or her findings for review by the

  3  Auditor General, who shall prepare the audit report.

  4         (c)  The audit report when final shall be a public

  5  record. The audit workpapers and notes are not a public

  6  record; however, those workpapers necessary to support the

  7  computations in the final audit report may be made available

  8  by a majority vote of the Legislative Auditing Committee after

  9  a public hearing showing proper cause. The audit workpapers

10  and notes shall be retained by the Auditor General until no

11  longer useful in his or her proper functions, after which time

12  they may be destroyed.

13         (d)  At the conclusion of the audit, the Auditor

14  General or the Auditor General's designated representative

15  shall discuss the audit with the official whose office is

16  subject to audit and submit to that official a list of the

17  Auditor General's findings which may be included in the audit

18  report. If the official is not available for receipt of the

19  list of audit findings then delivery is presumed to be made

20  when it is delivered to his or her office. The official shall

21  submit to the Auditor General or the designated

22  representative, within 30 days after the receipt of the list

23  of findings, his or her written statement of explanation or

24  rebuttal concerning all of the findings, including corrective

25  action to be taken to preclude a recurrence of all findings.

26         (e)  The Auditor General shall provide the successor

27  independent certified public accountant of a district school

28  board with access to the prior year's working papers in

29  accordance with the Statements on Auditing Standards,

30  including documentation of planning, internal control, audit

31  results, and other matters of continuing accounting and

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  1  auditing significance, such as the working paper analysis of

  2  balance sheet accounts and those relating to contingencies.

  3         (5)  PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.--The

  4  Legislative Auditing Committee shall direct the Auditor

  5  General to make a financial audit of any municipality whenever

  6  petitioned to do so by at least 20 percent of the electors of

  7  that municipality. The supervisor of elections of the county

  8  in which the municipality is located shall certify whether or

  9  not the petition contains the signatures of at least 20

10  percent of the electors of the municipality. After the

11  completion of the audit, the Auditor General shall determine

12  whether the municipality has the fiscal resources necessary to

13  pay the cost of the audit. The municipality shall pay the cost

14  of the audit within 90 days after the Auditor General's

15  determination that the municipality has the available

16  resources. If the municipality fails to pay the cost of the

17  audit, the Department of Revenue shall, upon certification of

18  the Auditor General, withhold from that portion of the

19  distribution pursuant to s. 212.20(6)(e)6. which is

20  distributable to such municipality, a sum sufficient to pay

21  the cost of the audit and shall deposit that sum into the

22  General Revenue Fund of the state.

23         (6)  REQUEST BY A LOCAL GOVERNMENTAL ENTITY FOR AN

24  AUDIT BY THE AUDITOR GENERAL.--Whenever a local governmental

25  entity requests the Auditor General to conduct an audit of all

26  or part of its operations and the Auditor General conducts the

27  audit under his or her own authority or at the direction of

28  the Legislative Auditing Committee, the expenses of the audit

29  shall be paid by the local governmental entity. The Auditor

30  General shall estimate the cost of the audit. Fifty percent of

31  the cost estimate shall be paid by the local governmental

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  entity before the initiation of the audit and deposited into

  2  the General Revenue Fund of the state. After the completion of

  3  the audit, the Auditor General shall notify the local

  4  governmental entity of the actual cost of the audit. The local

  5  governmental entity shall remit the remainder of the cost of

  6  the audit to the Auditor General for deposit into the General

  7  Revenue Fund of the state. If the local governmental entity

  8  fails to comply with paying the remaining cost of the audit,

  9  the Auditor General shall notify the Legislative Auditing

10  Committee. The committee shall proceed in accordance with s.

11  11.40(5).

12         (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.--

13         (a)  The Auditor General shall notify the Legislative

14  Auditing Committee of any local governmental entity, district

15  school board, charter school, or charter technical career

16  center that does not comply with the reporting requirements of

17  s. 218.39.  The committee shall proceed in accordance with s.

18  11.40(5). The audits referred to in this subparagraph must be

19  made whenever determined by the Auditor General, whenever

20  directed by the Legislative Auditing Committee, or whenever

21  otherwise required by law or concurrent resolution.  A

22  district school board, expressway authority, or bridge

23  authority may require that the annual financial audit of its

24  accounts and records be completed within 12 months after the

25  end of its fiscal year. If the Auditor General is unable to

26  meet that requirement, the Auditor General shall notify the

27  school board, the expressway authority, or the bridge

28  authority pursuant to subparagraph 5.

29         4.  The Office of Program Policy Analysis and

30  Government Accountability within the Office of the Auditor

31  General shall maintain a schedule of performance audits of

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    31-718A-01                                         See HB 1197




  1  state programs. In conducting a performance audit of a state

  2  program, the Office of Program Policy Analysis and Government

  3  Accountability, when appropriate, shall identify and comment

  4  upon alternatives for accomplishing the goals of the program

  5  being audited. Such alternatives may include funding

  6  techniques and, if appropriate, must describe how other states

  7  or governmental units accomplish similar goals.

  8         5.  If by July 1 in any fiscal year a district school

  9  board or local governmental entity has not been notified that

10  a financial audit for that fiscal year will be performed by

11  the Auditor General pursuant to subparagraph 3., each

12  municipality with either revenues or expenditures of more than

13  $100,000, each special district with either revenues or

14  expenditures of more than $50,000, and each county agency

15  shall, and each district school board may, require that an

16  annual financial audit of its accounts and records be

17  completed, within 12 months after the end of its respective

18  fiscal year, by an independent certified public accountant

19  retained by it and paid from its public funds.  An independent

20  certified public accountant who is selected to perform an

21  annual financial audit of a school district must report

22  directly to the district school board or its designee. A

23  management letter must be prepared and included as a part of

24  each financial audit report. Each local government finance

25  commission, board, or council, and each municipal power

26  corporation, created as a separate legal or administrative

27  entity by interlocal agreement under s. 163.01(7), shall

28  provide the Auditor General, within 12 months after the end of

29  its fiscal year, with an annual financial audit report of its

30  accounts and records and a written statement or explanation or

31  rebuttal concerning the auditor's comments, including

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    31-718A-01                                         See HB 1197




  1  corrective action to be taken. The county audit shall be one

  2  document that includes a separate audit of each county agency.

  3  The county audit must include an audit of the deposits into

  4  and expenditures from the Public Records Modernization Trust

  5  Fund. The Auditor General shall tabulate the results of the

  6  audits of the Public Records Modernization Trust Fund and

  7  report a summary of the audits to the Legislature annually.

  8         6.  The governing body of a municipality, special

  9  district, or charter school must establish an auditor

10  selection committee and competitive auditor selection

11  procedures. The governing board may elect to use its own

12  competitive auditor selection procedures or the procedures

13  outlined in subparagraph 7.

14         7.  The governing body of a noncharter county or

15  district school board that retains a certified public

16  accountant must establish an auditor selection committee and

17  select an independent certified public accountant according to

18  the following procedure:

19         a.  For each noncharter county, the auditor selection

20  committee must consist of the county officers elected pursuant

21  to s. 1(d), Art. VIII of the State Constitution, and one

22  member of the board of county commissioners or its designee.

23         b.  The committee shall publicly announce, in a uniform

24  and consistent manner, each occasion when auditing services

25  are required to be purchased. Public notice must include a

26  general description of the audit and must indicate how

27  interested certified public accountants can apply for

28  consideration.

29         c.  The committee shall encourage firms engaged in the

30  lawful practice of public accounting who desire to provide

31

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  1  professional services to submit annually a statement of

  2  qualifications and performance data.

  3         d.  Any certified public accountant desiring to provide

  4  auditing services must first be qualified pursuant to law. The

  5  committee shall make a finding that the firm or individual to

  6  be employed is fully qualified to render the required

  7  services. Among the factors to be considered in making this

  8  finding are the capabilities, adequacy of personnel, past

  9  record, and experience of the firm or individual.

10         e.  The committee shall adopt procedures for the

11  evaluation of professional services, including, but not

12  limited to, capabilities, adequacy of personnel, past record,

13  experience, results of recent external quality control

14  reviews, and such other factors as may be determined by the

15  committee to be applicable to its particular requirements.

16         f.  The public must not be excluded from the

17  proceedings under this subparagraph.

18         g.  The committee shall evaluate current statements of

19  qualifications and performance data on file with the

20  committee, together with those that may be submitted by other

21  firms regarding the proposed audit, and shall conduct

22  discussions with, and may require public presentations by, no

23  fewer than three firms regarding their qualifications,

24  approach to the audit, and ability to furnish the required

25  services.

26         h.  The committee shall select no fewer than three

27  firms deemed to be the most highly qualified to perform the

28  required services after considering such factors as the

29  ability of professional personnel; past performance;

30  willingness to meet time requirements; location; recent,

31  current, and projected workloads of the firms; and the volume

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    31-718A-01                                         See HB 1197




  1  of work previously awarded to the firm by the agency, with the

  2  object of effecting an equitable distribution of contracts

  3  among qualified firms, provided such distribution does not

  4  violate the principle of selection of the most highly

  5  qualified firms.  If fewer than three firms desire to perform

  6  the services, the committee shall recommend such firms as it

  7  determines to be qualified.

  8         i.  If the governing board receives more than one

  9  proposal for the same engagement, the board may rank, in order

10  of preference, the firms to perform the engagement.  The firm

11  ranked first may then negotiate a contract with the board

12  giving, among other things, a basis of its fee for that

13  engagement.  If the board is unable to negotiate a

14  satisfactory contract with that firm, negotiations with that

15  firm shall be formally terminated, and the board shall then

16  undertake negotiations with the second-ranked firm. Failing

17  accord with the second-ranked firm, negotiations shall then be

18  terminated with that firm and undertaken with the third-ranked

19  firm. Negotiations with the other ranked firms shall be

20  undertaken in the same manner.  The board, in negotiating with

21  firms, may reopen formal negotiations with any one of the

22  three top-ranked firms, but it may not negotiate with more

23  than one firm at a time. The board shall also negotiate on the

24  scope and quality of services. In making such determination,

25  the board shall conduct a detailed analysis of the cost of the

26  professional services required in addition to considering

27  their scope and complexity. For contracts over $50,000, the

28  board shall require the firm receiving the award to execute a

29  truth-in-negotiation certificate stating that the rates of

30  compensation and other factual unit costs supporting the

31  compensation are accurate, complete, and current at the time

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  1  of contracting. Such certificate shall also contain a

  2  description and disclosure of any understanding that places a

  3  limit on current or future years' audit contract fees,

  4  including any arrangements under which fixed limits on fees

  5  will not be subject to reconsideration if unexpected

  6  accounting or auditing issues are encountered. Such

  7  certificate shall also contain a description of any services

  8  rendered by the certified public accountant or firm of

  9  certified public accountants at rates or terms that are not

10  customary.  Any auditing service contract under which such a

11  certificate is required must contain a provision that the

12  original contract price and any additions thereto shall be

13  adjusted to exclude any significant sums by which the board

14  determines the contract price was increased due to inaccurate

15  or incomplete factual unit costs.  All such contract

16  adjustments shall be made within 1 year following the end of

17  the contract.

18         j.  If the board is unable to negotiate a satisfactory

19  contract with any of the selected firms, the committee shall

20  select additional firms, and the board shall continue

21  negotiations in accordance with this subsection until an

22  agreement is reached.

23         8.  At the conclusion of the audit field work, the

24  independent certified public accountant shall discuss with the

25  head of each local governmental entity or the chair's designee

26  or with the chair of the district school board or the chair's

27  designee, or with the chair of the board of the charter school

28  or the chair's designee, as appropriate, all of the auditor's

29  comments that will be included in the audit report.  If the

30  officer is not available to discuss the auditor's comments,

31  their discussion is presumed when the comments are delivered

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  in writing to his or her office. The auditor shall notify each

  2  member of the governing body of a local governmental entity

  3  for which deteriorating financial conditions exist which may

  4  cause a condition described in s. 218.503(1) to occur if

  5  actions are not taken to address such conditions.

  6         9.  The officer's written statement of explanation or

  7  rebuttal concerning the auditor's comments, including

  8  corrective action to be taken, must be filed with the

  9  governing body of the local governmental entity, district

10  school board, or charter school within 30 days after the

11  delivery of the financial audit report.

12         10.  The Auditor General, in consultation with the

13  Board of Accountancy, shall adopt rules for the form and

14  conduct of all financial audits subject to this section and

15  conducted by independent certified public accountants. The

16  Auditor General, in consultation with the Department of

17  Education, shall develop a compliance supplement for the

18  financial audit of a district school board conducted by an

19  independent certified public accountant. The rules for audits

20  of local governmental entities and district school boards must

21  include, but are not limited to, requirements for the

22  reporting of information necessary to carry out the purposes

23  of the Local Government Financial Emergencies Act as stated in

24  s. 218.501.

25         11.  Any local governmental entity or district school

26  board financial audit report required under subparagraph 5. or

27  charter school financial audit report required under

28  subparagraph 2. and the officer's written statement of

29  explanation or rebuttal concerning the auditor's comments,

30  including corrective action to be taken, must be submitted to

31  the Auditor General within 45 days after delivery of the audit

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  report to the local governmental entity, district school

  2  board, or charter school, but no later than 12 months after

  3  the end of the fiscal year. If the Auditor General does not

  4  receive the financial audit report within the prescribed

  5  period, he or she must notify the Legislative Auditing

  6  Committee that the governmental entity or charter school has

  7  not complied with this subparagraph. Following notification of

  8  failure to submit the required audit report or items required

  9  by rule adopted by the Auditor General, a hearing must be

10  scheduled by rule of the committee. After the hearing, the

11  committee shall determine which governmental entities or

12  charter schools will be subjected to further state action.  If

13  it finds that one or more governmental entities or charter

14  schools should be subjected to further state action, the

15  committee shall:

16         a.  In the case of a local governmental entity,

17  district school board, or charter school, request the

18  Department of Revenue and the Department of Banking and

19  Finance to withhold any funds not pledged for bond debt

20  service satisfaction which are payable to such governmental

21  entity or charter school until the required financial audit is

22  received by the Auditor General. The Department of Revenue and

23  the Department of Banking and Finance are authorized to

24  implement the provisions of this sub-subparagraph. The

25  committee, in its request, shall specify the date such action

26  shall begin, and the request must be received by the

27  Department of Revenue and the Department of Banking and

28  Finance 30 days before the date of the distribution mandated

29  by law.

30         b.  In the case of a special district, notify the

31  Department of Community Affairs that the special district has

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  failed to provide the required audits.  Upon receipt of

  2  notification, the Department of Community Affairs shall

  3  proceed pursuant to ss. 189.421 and 189.422.

  4         (b)12.a.  The Auditor General, in consultation with the

  5  Board of Accountancy, shall review all audit reports submitted

  6  pursuant to s. 218.39 subparagraph 11. The Auditor General

  7  shall request any significant items that were omitted in

  8  violation of a rule adopted by the Auditor General. The items

  9  must be provided within 45 days after the date of the request.

10  If the governmental entity does not comply with the Auditor

11  General's request, the Auditor General shall notify the

12  Legislative Auditing Committee. The committee shall proceed in

13  accordance with s. 11.40(5).

14         (c)  The Auditor General shall provide annually a list

15  of those special districts which are not in compliance with s.

16  218.39 to the Special District Information Program of the

17  Department of Community Affairs.

18         (d)  During the Auditor General's review of audit

19  reports, he or she shall contact those units of local

20  government, as defined in s. 218.403, that are not in

21  compliance with s. 218.415 and request evidence of corrective

22  action. The unit of local government shall provide the Auditor

23  General with evidence of corrective action within 45 days

24  after the date it is requested by the Auditor General.  If the

25  unit of local government fails to comply with the Auditor

26  General's request, the Auditor General shall notify the

27  Legislative Auditing Committee.  The committee shall proceed

28  in accordance with s. 11.40(5). If the Auditor General does

29  not receive the requested items, he or she shall notify the

30  Joint Legislative Auditing Committee.

31

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         (e)b.  The Auditor General shall notify the Governor

  2  and the Joint Legislative Auditing Committee of any audit

  3  report reviewed by the Auditor General pursuant to paragraph

  4  (b) which contains a statement that the local governmental

  5  entity or district school board is in a state of financial

  6  emergency as provided in s. 218.503. If the Auditor General

  7  requests a clarification regarding information included in an

  8  audit report to determine whether a, in reviewing any audit

  9  report, identifies additional information which indicates that

10  the local governmental entity or district school board is may

11  be in a state of financial emergency, as provided in s.

12  218.503, the Auditor General shall request appropriate

13  clarification from the local governmental entity or district

14  school board. the requested clarification must be provided

15  within 45 days after the date of the request. If the local

16  governmental entity or district school board does not comply

17  with the Auditor General's request, the Auditor General does

18  not receive the requested clarification, he or she shall

19  notify the Joint Legislative Auditing Committee.  If, after

20  obtaining the requested clarification, the Auditor General

21  determines that the local governmental entity or district

22  school board is in a state of financial emergency as provided

23  in s. 218.503, he or she shall notify the Governor and the

24  Joint Legislative Auditing Committee.

25         (f)c.  The Auditor General shall annually compile and

26  transmit to the President of the Senate, the Speaker of the

27  House of Representatives, and the Joint Legislative Auditing

28  Committee a summary of significant findings and financial

29  trends identified in audit reports reviewed in paragraph (b)

30  or otherwise identified by the Auditor General's review of

31  such audit reports and financial information, and identified

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    31-718A-01                                         See HB 1197




  1  in audits of district school boards conducted by the Auditor

  2  General. The Auditor General shall include financial

  3  information provided pursuant to s. 218.32(1)(e) for entities

  4  with fiscal years ending on or after June 30, 2003, within his

  5  or her reports submitted pursuant to this paragraph.

  6         (g)  If the Auditor General discovers significant

  7  errors, improper practices, or other significant discrepancies

  8  in connection with his or her audits of a state agency or

  9  state officer, the Auditor General shall notify the President

10  of the Senate, the Speaker of the House of Representatives,

11  and the Legislative Auditing Committee.  The President of the

12  Senate and the Speaker of the House of Representatives shall

13  promptly forward a copy of the notification to the chairs of

14  the respective legislative committees, which in the judgment

15  of the President of the Senate and the Speaker of the House of

16  Representatives are substantially concerned with the functions

17  of the state agency or state officer involved. Thereafter, and

18  in no event later than the 10th day of the next succeeding

19  legislative session, the person in charge of the state agency

20  involved, or the state officer involved, as the case may be,

21  shall explain in writing to the President of the Senate, the

22  Speaker of the House of Representatives, and to the

23  Legislative Auditing Committee the reasons or justifications

24  for such errors, improper practices, or other significant

25  discrepancies and the corrective measures, if any, taken by

26  the agency.

27         (h)  The Auditor General shall transmit to the

28  President of the Senate, the Speaker of the House of

29  Representatives, and the Legislative Auditing Committee by

30  December 1 of each year a list of statutory and fiscal changes

31  recommended by the Auditor General. The Auditor General may

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  also transmit recommendations at other times of the year when

  2  the information would be timely and useful for the

  3  Legislature.

  4         (8)  RULES OF THE AUDITOR GENERAL.--The Auditor

  5  General, in consultation with the Board of Accountancy, shall

  6  adopt rules for the form and conduct of all financial audits

  7  performed by independent certified public accountants pursuant

  8  to ss. 215.98, 218.39, 237.40, 240.299, and 240.331. The rules

  9  for audits of local governmental entities and district school

10  boards must include, but are not limited to, requirements for

11  the reporting of information necessary to carry out the

12  purposes of the Local Government Financial Emergencies Act as

13  stated in s. 218.501.

14         (9)  OTHER GUIDANCE PROVIDED BY THE AUDITOR

15  GENERAL.--The Auditor General, in consultation with the

16  Department of Education, shall develop a compliance supplement

17  for the financial audit of a district school board conducted

18  by an independent certified public accountant. audits of local

19  governmental entities, district school boards, and charter

20  schools performed by the independent certified public

21  accountants.

22         13.  In conducting a performance audit of any agency,

23  the Auditor General shall use the Agency Strategic Plan of the

24  agency in evaluating the performance of the agency.

25         (b)  The Legislative Auditing Committee shall direct

26  the Auditor General to make a financial audit of any

27  municipality whenever petitioned to do so by at least 20

28  percent of the electors of that municipality.  The supervisor

29  of elections of the county in which the municipality is

30  located shall certify whether or not the petition contains the

31  signatures of at least 20 percent of the electors of the

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    31-718A-01                                         See HB 1197




  1  municipality. After the completion of the audit, the Auditor

  2  General shall determine whether the municipality has the

  3  fiscal resources necessary to pay the cost of the audit. The

  4  municipality shall pay the cost of the audit within 90 days

  5  after the Auditor General's determination that the

  6  municipality has the available resources. If the municipality

  7  fails to pay the cost of the audit, the Department of Revenue

  8  shall, upon certification of the Auditor General, withhold

  9  from that portion of the distribution pursuant to s.

10  212.20(6)(f)5. which is distributable to such municipality a

11  sum sufficient to pay the cost of the audit and shall deposit

12  that sum into the General Revenue Fund of the state.

13         (c)  The Auditor General shall at least every 2 years

14  make a performance audit of the local government financial

15  reporting system, which, for the purpose of this chapter,

16  means the reporting provisions of this subsection and

17  subsection (4); s. 27.3455(1) and (2); part VII of chapter

18  112; s. 163.05; s. 166.241; chapter 189; parts III and V of

19  chapter 218; and s. 925.037(5). The performance audit shall

20  analyze each component of the reporting system separately and

21  analyze the reporting system as a whole. The purpose of such

22  an audit is to determine the accuracy, efficiency, and

23  effectiveness of the reporting system in achieving its goals

24  and objectives and to make recommendations to the local

25  governments, the Governor, and the Legislature as to how the

26  reporting system can be improved and how program costs can be

27  reduced. Such goals and objectives must include, but need not

28  be limited to, the timely, accurate, uniform, and

29  cost-effective accumulation of financial and other information

30  that can be used by the members of the Legislature and other

31  appropriate officials in order to:

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         1.  Compare and contrast revenue sources and

  2  expenditures of local governmental entities;

  3         2.  Assess the fiscal impact of the formation,

  4  dissolution, and activity of special districts;

  5         3.  Evaluate the fiscal impact of state mandates on

  6  local governmental entities;

  7         4.  Assess financial or economic conditions of local

  8  governmental entities; and

  9         5.  Improve communication and coordination among state

10  agencies and local governmental entities.

11         (d)  Whenever a local governmental entity requests the

12  Auditor General to conduct an audit of all or part of its

13  operations and the Auditor General conducts the audit under

14  his or her own authority or at the direction of the

15  Legislative Auditing Committee, the expenses of the audit

16  shall be paid by the local governmental entity. The Auditor

17  General shall estimate the cost of the audit. Fifty percent of

18  the cost estimate shall be paid by the local governmental

19  entity before the initiation of the audit and deposited into

20  the General Revenue Fund of the state. After the completion of

21  the audit, the Auditor General shall forward the actual cost

22  of the audit to the local governmental entity. The local

23  governmental entity shall remit the remainder of the cost of

24  the audit to the Auditor General for deposit into the General

25  Revenue Fund of the state. If the local governmental entity

26  fails to pay the cost of the audit, the Auditor General shall

27  notify the Legislative Auditing Committee. Following the

28  notification, the committee may schedule a hearing. After the

29  hearing, the committee shall determine if the local

30  governmental entity should be subject to further state action.

31  If the committee determines that the local governmental entity

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  should be subject to further state action, the committee

  2  shall:

  3         1.  In the case of a local governmental entity, request

  4  the Department of Revenue and the Department of Banking and

  5  Finance to withhold any funds payable to the governmental

  6  entity until the required payment is received by the Auditor

  7  General.

  8         2.  In the case of a special district, notify the

  9  Department of Community Affairs that the special district has

10  failed to pay for the cost of the audit. Upon receipt of

11  notification, the Department of Community Affairs shall

12  proceed pursuant to the provisions specified in ss. 189.421

13  and 189.422.

14         (4)  If the Auditor General conducts an audit of a

15  special district which indicates in its findings problems

16  related to debt policy or practice, including failure to meet

17  debt service payments, failure to comply with significant bond

18  covenants, failure to meet bond reserve requirements, and

19  significant erosion of a special district's revenue-producing

20  capacity, a copy of the audit shall be submitted to the

21  Division of Bond Finance of the State Board of Administration

22  for review and comment.  Upon receipt of this notification

23  from the Auditor General, the Division of Bond Finance shall

24  prepare a brief report describing the previous debt issued by

25  the special district and submit the report to the Legislative

26  Auditing Committee for their review and consideration.

27         (5)  Each audit required or authorized by this section,

28  when practicable, shall be made and completed within not more

29  than 12 months following the end of each fiscal year of the

30  state agency or political subdivision, if an annual audit, or

31  at such lesser time which may be provided by law or concurrent

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    31-718A-01                                         See HB 1197




  1  resolution or directed by the Legislative Auditing Committee.

  2  When the Auditor General is required by law to make a

  3  financial audit of the whole or a portion of a fiscal year of

  4  a political subdivision and his or her current workload of

  5  audits of state agencies and political subdivisions is so

  6  great that it is not practicable within the required time to

  7  perform such audit and also to make financial audits of that

  8  political subdivision as to any other period not previously

  9  audited by him or her, then in his or her discretion the

10  Auditor General may temporarily or indefinitely postpone

11  audits of such other period or any portion thereof unless

12  otherwise directed by the committee.

13         (6)  The Legislative Auditing Committee may at any

14  time, without regard to whether the Legislature is then in

15  session or out of session, take under investigation any matter

16  within the scope of an audit either completed or then being

17  conducted by the Auditor General, and in connection with such

18  investigation may exercise the powers of subpoena by law

19  vested in a standing committee of the Legislature.

20         (7)(a)  The Auditor General may, when in his or her

21  judgment it is necessary, designate and direct any auditor

22  employed by the Auditor General to audit any accounts or

23  records within the power of the Auditor General to audit.  The

24  auditor shall report his or her findings for review by the

25  Auditor General, who shall prepare the audit report.

26         (b)  The audit report when final shall be a public

27  record. The audit workpapers and notes are not a public

28  record; however, those workpapers necessary to support the

29  computations in the final audit report may be made available

30  by a majority vote of the Legislative Auditing Committee after

31  a public hearing showing proper cause.  The audit workpapers

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  and notes shall be retained by the Auditor General until no

  2  longer useful in his or her proper functions, after which time

  3  they may be destroyed.

  4         (c)  The audit report must make special mention of:

  5         1.  Any violation of the laws within the scope of the

  6  audit; and

  7         2.  Any illegal or improper expenditure, any improper

  8  accounting procedures, all failures to properly record

  9  financial transactions, and all other inaccuracies,

10  irregularities, shortages, and defalcations.

11         (d)  At the conclusion of the audit, the Auditor

12  General or the Auditor General's designated representative

13  shall discuss the audit with the official whose office is

14  subject to audit and submit to that official a list of the

15  Auditor General's adverse findings which may be included in

16  the audit report. If the official is not available for receipt

17  of the list of adverse audit findings, clearly designated as

18  such, then delivery thereof is presumed to be made when it is

19  delivered to his or her office. The official shall submit to

20  the Auditor General or the designated representative, within

21  30 days after the receipt of the list of findings, his or her

22  written statement of explanation or rebuttal concerning all of

23  the findings, including therein corrective action to be taken

24  to preclude a recurrence of all adverse findings. Whenever

25  necessary, the Office of Program Policy Analysis and

26  Government Accountability may request the official to submit

27  his or her written statement of explanation or rebuttal within

28  15 days after the receipt of the list of findings.

29         (e)  Each agency head shall provide to the Legislative

30  Auditing Committee, within 6 months after the published date

31

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  of an audit report, a written explanation of the status of

  2  recommendations contained in the report.

  3         (f)  No later than 18 months after the release of a

  4  performance audit report, the agencies which are the subject

  5  of that report shall provide data and other information that

  6  describes with specificity what the agencies have done to

  7  respond to the recommendations contained in the report.  The

  8  Auditor General or the Office of Program Policy Analysis and

  9  Government Accountability may verify the data and information

10  provided by the agencies.  If the data and information

11  provided by the agencies are deemed sufficient and accurate,

12  the Auditor General or the Office of Program Policy Analysis

13  and Government Accountability shall report to the Joint

14  Legislative Auditing Committee and to the legislative standing

15  committees concerned with the subject areas of the audit.  The

16  report shall include a summary of the agencies' responses, the

17  evaluation of those responses, and any recommendations deemed

18  to be appropriate. The followup report required by this

19  paragraph may be waived by joint action of the President of

20  the Senate and the Speaker of the House of Representatives

21  upon the recommendation of the Director of the Office of

22  Program Policy Analysis and Government Accountability.

23         (8)  If the Auditor General discovers any errors,

24  unusual practices, or any other discrepancies in connection

25  with his or her audits of a state agency or state officer, the

26  Auditor General shall, as soon as practicable, notify in

27  writing the President of the Senate and the Speaker of the

28  House of Representatives, respectively, who, in turn, shall

29  promptly thereafter forward a copy thereof to the chairs of

30  the respective legislative committees, which in the judgment

31  of the President of the Senate and the Speaker of the House of

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    31-718A-01                                         See HB 1197




  1  Representatives. Thereafter, and in no event later than the

  2  10th day of the next succeeding legislative session, the

  3  person in charge of the state agency involved, or the state

  4  officer involved, as the case may be, shall explain in writing

  5  to the President of the Senate and the Speaker of the House of

  6  Representatives and to the Legislative Auditing Committee the

  7  reasons or justifications for such errors, unusual practices,

  8  or discrepancies and the corrective measures, if any, taken by

  9  the agency.

10         (9)  All agencies, other than state agencies as defined

11  herein, and all district school boards and district boards of

12  trustees of community colleges shall have the power to have a

13  performance audit or financial audit of their accounts and

14  records by an independent certified public accountant retained

15  by them and paid from their public funds.

16         (10)  The Auditor General shall provide annually a list

17  of those special districts which are in compliance with this

18  section and a list of those special districts which are not in

19  compliance with this section for the Special District

20  Information Program of the Department of Community Affairs.

21         (11)  In addition to any other provision of law

22  granting access to records and accounts, the Auditor General

23  may, pursuant to his or her own authority granted in this

24  subsection or at the direction of the Legislative Auditing

25  Committee, conduct audits of any direct-support organization

26  or citizen-support organization authorized by law. Independent

27  audits of direct-support organizations and citizen-support

28  organizations conducted by certified public accountants shall

29  be performed in accordance with rules adopted by the Auditor

30  General.

31

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1         Section 4.  Section 11.47, Florida Statutes, is amended

  2  to read:

  3         11.47  Penalties; failure to make a proper audit or

  4  examination; making a false audit report; failure to produce

  5  documents or information.--

  6         (1)  All officers whose respective offices the Auditor

  7  General or the Office of Program Policy Analysis and

  8  Government Accountability is authorized to audit or examine

  9  shall enter into their public records sufficient information

10  for proper audit or examination, and shall make the same

11  available to the Auditor General or the Office of Program

12  Policy Analysis and Government Accountability on demand.

13         (2)  The willful failure or refusal of the Auditor

14  General, director of the Office of Program Policy Analysis and

15  Government Accountability, or any staff auditor employed by

16  the Auditor General or the Office of Program Policy Analysis

17  and Government Accountability to make a proper audit or

18  examination in line with his or her duty, the willful making

19  of a false report as to any audit or examination, or the

20  willful failure or refusal to report a shortage or

21  misappropriation of funds or property shall be cause for

22  removal from such office or employment, and the Auditor

23  General, the director of the Office of Program Policy Analysis

24  and Government Accountability, or a staff member auditor shall

25  be guilty of a misdemeanor of the first degree, punishable as

26  provided in s. 775.082 or s. 775.083.

27         (3)  Any person who willfully fails or refuses to

28  furnish or produce any book, record, paper, document, data, or

29  sufficient information necessary to a proper audit or

30  examination which the Auditor General or the Office of Program

31  Policy Analysis and Government Accountability is by law

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    Florida Senate - 2001                                  SB 2022
    31-718A-01                                         See HB 1197




  1  authorized to perform shall be guilty of a misdemeanor of the

  2  first degree, punishable as provided in s. 775.082 or s.

  3  775.083.

  4         (4)  Any officer who willfully fails or refuses to

  5  furnish or produce any book, record, paper, document, data, or

  6  sufficient information necessary to a proper audit or

  7  examination which the Auditor General or the Office of Program

  8  Policy Analysis and Government Accountability is by law

  9  authorized to perform, shall be subject to removal from

10  office.

11         Section 5.  Section 11.51, Florida Statutes, is amended

12  to read:

13         11.51  Office of Program Policy Analysis and Government

14  Accountability.--

15         (1)  There is hereby created the Office of Program

16  Policy Analysis and Government Accountability as a unit of the

17  Office of the Auditor General appointed pursuant to s. 11.42.

18  The Such office shall perform independent examinations,

19  program reviews and other projects as provided by general law,

20  concurrent resolution, or as directed by the Legislative

21  Auditing Committee, and shall provide recommendations,

22  training, or other services as may assist the Legislature

23  program evaluation and justification reviews as required by s.

24  11.513 and performance audits as defined in s. 11.45 and shall

25  contract for performance reviews of school districts pursuant

26  to ss. 11.515 and 230.2302.

27         (2)  The Office of Program Policy Analysis and

28  Government Accountability shall maintain a schedule of

29  examinations of state programs is independent of the Auditor

30  General appointed pursuant to s. 11.42 and the Public Counsel

31

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  1  appointed pursuant to s. 350.061 for purposes of general

  2  policies established by the Legislative Auditing Committee.

  3         (3)  The Auditor General shall provide administrative

  4  support and services to the Office of Program Policy Analysis

  5  and Government Accountability is authorized to examine all

  6  entities and records listed in s. 11.45(3)(a) of Program

  7  Policy Analysis and Government Accountability to the extent

  8  required by the Legislative Auditing Committee.

  9         (4)  At the conclusion of an examination, the

10  designated representative of the director of the Office of

11  Program Policy Analysis and Government Accountability shall

12  discuss the examination with the official whose office is

13  examined and submit to that official the Office of Program

14  Policy Analysis and Government Accountability's preliminary

15  findings. If the official is not available for receipt of the

16  preliminary findings, clearly designated as such, then

17  delivery thereof is presumed to be made when it is delivered

18  to his or her office. Whenever necessary, the Office of

19  Program Policy Analysis and Government Accountability may

20  request the official to submit his or her written statement of

21  explanation or rebuttal within 15 days after the receipt of

22  the findings. If the response time is not requested to be

23  within 15 days, the official shall submit his or her response

24  within 30 days after receipt of the preliminary findings.

25         (5)  The report of the Office of Program Policy

26  Analysis and Government Accountability when final shall be a

27  public record. The office's workpapers and notes are not a

28  public record; however, those workpapers necessary to support

29  the computations in the final report may be made available by

30  a majority vote of the Legislative Auditing Committee after a

31  public hearing showing proper cause. The workpapers and notes

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  1  shall be retained by the director of the Office of Program

  2  Policy Analysis and Government Accountability until no longer

  3  useful in his or her proper functions, after which time they

  4  may be destroyed.

  5         (6)  No later than 18 months after the release of a

  6  report of the Office of Program Policy Analysis and Government

  7  Accountability, the agencies that are the subject of that

  8  report shall provide data and other information that describes

  9  with specificity what the agencies have done to respond to the

10  recommendations contained in the report. The Office of Program

11  Policy Analysis and Government Accountability may verify the

12  data and information provided by the agencies. If the data and

13  information provided by the agencies are deemed sufficient and

14  accurate, the Office of Program Policy Analysis and Government

15  Accountability shall report to the Legislative Auditing

16  Committee and to the legislative standing committees concerned

17  with the subject areas of the audit. The report shall include

18  a summary of the agencies' responses, the evaluation of those

19  responses, and any recommendations deemed to be appropriate.

20         Section 6.  Section 11.511, Florida Statutes, is

21  amended to read:

22         11.511  Director of the Office of Program Policy

23  Analysis and Government Accountability; appointment;

24  employment of staff; powers and duties.--

25         (1)(a)  The Legislative Auditing Committee shall

26  appoint a director of the Office of Program Policy Analysis

27  and Government Accountability by majority vote of the

28  committee, subject to confirmation by a majority vote of the

29  Senate and the House of Representatives. At the time of

30  appointment, the director must have had 10 years' experience

31  in policy analysis and program evaluation. The reappointment

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  1  of a director is subject to confirmation by a majority vote of

  2  the Senate and the House of Representatives.  The Legislative

  3  Auditing Committee may appoint an interim director.

  4         (b)  The appointment of the director may be terminated

  5  at any time by a majority vote of the Senate and the House of

  6  Representatives.

  7         (2)(a)  The director shall take and subscribe to the

  8  oath of office required of state officers by the State

  9  Constitution.

10         (b)  Until such time as each house confirms the

11  appointment of the director, the appointee shall perform the

12  functions as provided by law in this section and s. 11.513.

13         (3)(a)  The director shall make all spending decisions

14  under the annual operating budget approved by the President of

15  the Senate and the Speaker of the House of Representatives.

16  The director shall employ and set the compensation of such

17  professional, technical, legal, and clerical staff as may be

18  necessary to fulfill the responsibilities of the Office of

19  Program Policy Analysis and Government Accountability perform

20  all the requirements of this section and s. 11.513, in

21  accordance with the joint policies and procedures of the

22  President of the Senate and the Speaker of the House of

23  Representatives, and may remove these personnel. The staff

24  must be chosen to provide a broad background of experience and

25  expertise and, to the maximum extent possible, to represent a

26  range of disciplines that includes law, engineering, public

27  administration, environmental science, policy analysis

28  science, economics, sociology, and philosophy.

29         (b)  An officer or full-time employee of the Office of

30  Program Policy Analysis and Government Accountability may not

31  actively engage in any other business or profession; serve as

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  1  the representative of any political party or on any executive

  2  committee or other governing body thereof; receive

  3  remuneration for activities on behalf of any candidate for

  4  public office; or engage, on behalf of any candidate for

  5  public office, in the solicitation of votes or other

  6  activities in behalf of such candidacy. Neither the director

  7  of the Office of Program Policy Analysis and Government

  8  Accountability nor any employee of that office may become a

  9  candidate for election to public office unless he or she first

10  resigns from office or employment.

11         (4)  The director shall perform and/or contract for the

12  performance of examinations program evaluation and

13  justification reviews and other related duties as prescribed

14  by law. The director shall perform his or her duties

15  independently but under general policies established by the

16  Legislative Auditing Committee.

17         (5)  The director may adopt and enforce reasonable

18  rules necessary to facilitate the examinations studies,

19  reviews, and reports, and other tasks that he or she is

20  authorized to perform.

21         (6)  When the director determines that conducting an

22  examination would not be possible due to workload limitations

23  or the project does not appear to be of critical interest to

24  the Legislature, then, with the consent of the President of

25  the Senate and the Speaker of the House of Representatives,

26  the director may temporarily or indefinitely postpone such

27  examinations. The director, with the consent of the President

28  of the Senate and the Speaker of the House of Representatives,

29  may modify the work schedule of the office in order to

30  concentrate its efforts on agency programs that are determined

31  to have high oversight priority. The modification may include

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  1  reduction or elimination of recurring performance audits

  2  existing in law on July 1, 1999, but which do not appear to be

  3  of critical interest to the Legislature. The director may at

  4  any time conduct a performance review of a governmental entity

  5  created by law.

  6         Section 7.  Section 11.513, Florida Statutes, is

  7  amended to read:

  8         11.513  Program evaluation and justification review.--

  9         (1)  Each state agency shall be subject to a program

10  evaluation and justification review by the Office of Program

11  Policy Analysis and Government Accountability in accordance

12  with the schedule provided in s. 216.0172 or as determined by

13  the Legislative Auditing Committee. Each state agency shall

14  offer its complete cooperation to the Office of Program Policy

15  Analysis and Government Accountability so that such review may

16  be accomplished.

17         (2)  A Prior to the initiation of a state agency's

18  program evaluation and justification review and no later than

19  July 1 of the year in which a state agency begins operating

20  under a performance-based program budget, the state agency's

21  inspector general, internal auditor, or other person

22  designated by the agency head shall develop, in consultation

23  with the Office of Program Policy Analysis and Government

24  Accountability, a plan for monitoring and reviewing the state

25  agency's major programs to ensure that performance data are

26  maintained and supported by agency records.

27         (3)  The program evaluation and justification review

28  shall be conducted on major programs, but may include other

29  programs. The review shall be comprehensive in its scope but,

30  at a minimum, must be conducted in such a manner as to

31  specifically determine the following, and to consider and

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  1  determine what changes, if any, are needed with respect

  2  thereto:

  3         (a)  The identifiable cost of each program.

  4         (b)  The specific purpose of each program, as well as

  5  the specific public benefit derived therefrom.

  6         (c)  Progress toward achieving the outputs and outcomes

  7  associated with each program.

  8         (d)  An explanation of circumstances contributing to

  9  the state agency's ability to achieve, not achieve, or exceed

10  its projected outputs and outcomes, as defined in s. 216.011,

11  associated with each program.

12         (e)  Alternate courses of action that would result in

13  administration of the same program in a more efficient or

14  effective manner. The courses of action to be considered must

15  include, but are not limited to:

16         1.  Whether the program could be organized in a more

17  efficient and effective manner, whether the program's mission,

18  goals, or objectives should be redefined, or, when the state

19  agency cannot demonstrate that its efforts have had a positive

20  effect, whether the program should be reduced in size or

21  eliminated.

22         2.  Whether the program could be administered more

23  efficiently or effectively to avoid duplication of activities

24  and ensure that activities are adequately coordinated.

25         3.  Whether the program could be performed more

26  efficiently or more effectively by another unit of government

27  or a private entity, or whether a program performed by a

28  private entity could be performed more efficiently and

29  effectively by a state agency.

30         4.  When compared to costs, whether effectiveness

31  warrants elimination of the program or, if the program serves

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  1  a limited interest, whether it should be redesigned to require

  2  users to finance program costs.

  3         5.  Whether the cost to administer the program exceeds

  4  license and other fee revenues paid by those being regulated.

  5         6.  Whether other changes could improve the efficiency

  6  and effectiveness of the program.

  7         (f)  The consequences of discontinuing such program. If

  8  any discontinuation is recommended, such recommendation must

  9  be accompanied by a description of alternatives to implement

10  such recommendation, including an implementation schedule for

11  discontinuation and recommended procedures for assisting state

12  agency employees affected by the discontinuation.

13         (g)  Determination as to public policy, which may

14  include recommendations as to whether it would be sound public

15  policy to continue or discontinue funding the program, either

16  in whole or in part, in the existing manner.

17         (h)  Whether the information reported as part of the

18  state's performance based program budgeting system pursuant to

19  s. 216.031(5) has relevance and utility for the evaluation of

20  each program.

21         (i)  Whether state agency management has established

22  control systems sufficient to ensure that performance data are

23  maintained and supported by state agency records and

24  accurately presented in state agency performance reports.

25         (4)  No later than December 1 of the second year

26  following the year in which an agency begins operating under a

27  performance-based program budget, the Office of Program Policy

28  Analysis and Government Accountability shall submit a report

29  of evaluation and justification review findings and

30  recommendations to the President of the Senate, the Speaker of

31  the House of Representatives, the chairpersons of the

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  1  appropriate substantive committees, the chairpersons of the

  2  appropriations committees, the Legislative Auditing Committee,

  3  the Governor, the head of each state agency that was the

  4  subject of the evaluation and justification review, and the

  5  head of any state agency that is substantially affected by the

  6  findings and recommendations.

  7         (5)  The Legislature intends that the program

  8  evaluation and justification review procedure be designed to

  9  assess the efficiency, effectiveness, and long-term

10  implications of current or alternative state policies, and

11  that the procedure results in recommendations for the

12  improvement of such policies and state government. To that

13  end, whenever possible, all reports submitted pursuant to

14  subsection (4) must include an identification of the estimated

15  financial consequences, including any potential savings, that

16  could be realized if the recommendations or alternative

17  courses of action were implemented.

18         (6)  At any time, the Legislative Auditing Committee

19  may direct that a program evaluation and justification review

20  be conducted by the Office of Program Policy Analysis and

21  Government Accountability. In order to allow the office the

22  flexibility in carrying out the provisions of this act and to

23  reduce duplicative auditing requirements, the Legislative

24  Auditing Committee may waive the requirements of any law

25  existing as of the effective date of this act to conduct a

26  performance audit.

27         (6)(7)  Evaluation and justification reviews may

28  include consideration of programs provided by other agencies

29  which are integrally related to the programs administered by

30  the state agency or entity which is scheduled for review as

31

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  1  pursuant to s. 216.0172 or the schedule determined by the

  2  Legislative Auditing Committee.

  3         (8)  If recommended by the director of the Office of

  4  Program Policy Analysis and Government Accountability, the

  5  President of the Senate and the Speaker of the House of

  6  Representatives may jointly direct that any program evaluation

  7  and justification review requirement existing on July 1, 1999,

  8  be postponed to allow the Office of Program Policy Analysis

  9  and Government Accountability to conduct a review of another

10  program considered more urgent.

11         Section 8.  Subsection (15) of section 14.29, Florida

12  Statutes, is amended to read:

13         14.29  Florida Commission on Community Service.--

14         (15)  The direct-support organization shall provide for

15  an annual financial and compliance audit of its financial

16  accounts and records by an independent certified public

17  accountant in accordance with s. 215.98 rules established by

18  the commission. The annual audit report must be submitted to

19  the commission for review and approval. Upon approval, the

20  board shall certify the audit report to the Auditor General

21  for review.

22         Section 9.  Paragraphs (f) and (g) of subsection (5) of

23  section 20.055, Florida Statutes, are amended to read:

24         20.055  Agency inspectors general.--

25         (5)  In carrying out the auditing duties and

26  responsibilities of this act, each inspector general shall

27  review and evaluate internal controls necessary to ensure the

28  fiscal accountability of the state agency. The inspector

29  general shall conduct financial, compliance, electronic data

30  processing, and performance audits of the agency and prepare

31  audit reports of his or her findings. The scope and assignment

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  1  of the audits shall be determined by the inspector general;

  2  however, the agency head may at any time direct the inspector

  3  general to perform an audit of a special program, function, or

  4  organizational unit. The performance of the audit shall be

  5  under the direction of the inspector general, except that if

  6  the inspector general does not possess the qualifications

  7  specified in subsection (4), the director of auditing shall

  8  perform the functions listed in this subsection.

  9         (f)  The Auditor General, in connection with the

10  independent postaudit of the same agency pursuant to s. 11.45,

11  shall give appropriate consideration to internal audit reports

12  and the resolution of findings therein. The Legislative

13  Auditing Committee may inquire into the reasons or

14  justifications for failure of the agency head to correct the

15  deficiencies reported in internal audits that are also

16  reported by the Auditor General and shall take appropriate

17  action. The Auditor General shall also review a sample of each

18  agency's internal audit reports at least once every 3 years to

19  determine compliance with current Standards for the

20  Professional Practice of Internal Auditing or, if appropriate,

21  generally accepted governmental auditing standards. If the

22  Auditor General finds that these standards have not been

23  complied with, the Auditor General shall include a statement

24  of this fact in the audit report of the agency.

25         (g)  The inspector general shall monitor the

26  implementation of the state agency's response to any report on

27  audit of the state agency issued conducted by the Auditor

28  General or by the Office of Program Policy Analysis and

29  Government Accountability pursuant to s. 11.45. No later than

30  6 months after the Auditor General or the Office of Program

31  Policy Analysis and Government Accountability publishes a

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  1  report on of the audit of the state agency, the inspector

  2  general shall provide a written response report to the agency

  3  head on the status of corrective actions taken. The Inspector

  4  General shall file a copy of such response report shall be

  5  filed with the Legislative Auditing Committee.

  6         Section 10.  Subsection (6) of section 20.23, Florida

  7  Statutes, is amended to read:

  8         20.23  Department of Transportation.--There is created

  9  a Department of Transportation which shall be a decentralized

10  agency.

11         (6)  To facilitate the efficient and effective

12  management of the department in a businesslike manner, the

13  department shall develop a system for the submission of

14  monthly management reports to the Florida Transportation

15  Commission and secretary from the district secretaries.  The

16  commission and the secretary shall determine which reports are

17  required to fulfill their respective responsibilities under

18  this section.  A copy of each such report shall be submitted

19  monthly to the appropriations and transportation committees of

20  the Senate and the House of Representatives. Recommendations

21  made by the Auditor General or the Office of Program Policy

22  Analysis and Government Accountability in their reports on his

23  or her audits of the department that relate to management

24  practices, systems, or reports shall be implemented in a

25  timely manner.  However, if the department determines that one

26  or more of the recommendations should be altered or should not

27  be implemented, it shall provide a written explanation of such

28  determination to the Legislative Auditing Committee within 6

29  months after the date the recommendations were published.

30         Section 11.  Subsection (3) of section 20.2551, Florida

31  Statutes, is amended to read:

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  1         20.2551  Citizen support organizations; use of

  2  property; audit; public records; partnerships.--

  3         (3)  ANNUAL AUDIT.--Each Any citizen support

  4  organization which has annual expenditures of $100,000 or more

  5  shall provide for cause an annual financial audit in

  6  accordance with s. 215.98 postaudit of its financial accounts

  7  to be conducted by an independent certified public accountant

  8  in accordance with rules to be adopted by the department.  The

  9  annual audit report shall be submitted to the Auditor General

10  and the department for review.  The Auditor General and the

11  department are each authorized to require and obtain from the

12  citizen support organization, or from its independent auditor,

13  such data as may be needed relative to the operation of the

14  organization.

15         Section 12.  Paragraph (c) of subsection (13) of

16  section 24.105, Florida Statutes, is amended to read:

17         24.105  Powers and duties of department.--The

18  department shall:

19         (13)

20         (c)  Any information made confidential and exempt from

21  the provisions of s. 119.07(1) under this subsection shall be

22  disclosed to a member of the commission, to the Auditor

23  General, to the Office of Program Policy Analysis and

24  Government Accountability, or to the independent auditor

25  selected under s. 24.123 upon such person's request therefor.

26  If the President of the Senate or the Speaker of the House of

27  Representatives certifies that information made confidential

28  under this subsection is necessary for effecting legislative

29  changes, the requested information shall be disclosed to him

30  or her, and he or she may disclose such information to members

31

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  1  of the Legislature and legislative staff as necessary to

  2  effect such purpose.

  3         Section 13.  Subsection (4) of section 24.120, Florida

  4  Statutes, is amended to read:

  5         24.120  Financial matters; Administrative Trust Fund;

  6  interagency cooperation.--

  7         (4)  The department shall cooperate with the State

  8  Treasurer, the Comptroller, and the Auditor General, and the

  9  Office of Program Policy Analysis and Government

10  Accountability by giving employees designated by any of them

11  access to facilities of the department for the purpose of

12  efficient compliance with their respective responsibilities.

13         Section 14.  Subsection (1) and paragraph (a) of

14  subsection (2) of section 27.3455, Florida Statutes, are

15  amended to read:

16         27.3455  Annual statement of certain revenues and

17  expenditures.--

18         (1)  Each county shall submit annually to the

19  Comptroller and the Auditor General a statement of revenues

20  and expenditures as set forth in this section in the form and

21  manner prescribed by the Comptroller in consultation with the

22  Legislative Committee on Intergovernmental Relations, provided

23  that such statement identify total county expenditures on:

24         (a)  Medical examiner services.

25         (b)  County victim witness programs.

26         (c)  Each of the services outlined in ss. 27.34(2) and

27  27.54(3).

28         (d)  Appellate filing fees in criminal cases in which

29  an indigent defendant appeals a judgment of a county or

30  circuit court to a district court of appeal or the Florida

31  Supreme Court.

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  1         (e)  Other court-related costs of the state attorney

  2  and public defender that were paid by the county where such

  3  costs were included in a judgment or order rendered by the

  4  trial court against the county.

  5

  6  Such statement also shall identify the revenues provided by s.

  7  938.05(1) that were used to meet or reimburse the county for

  8  such expenditures.

  9         (2)(a)  Within 6 months of the close of the local

10  government fiscal year, each county shall submit to the

11  Comptroller a statement of compliance from its independent

12  certified public accountant, engaged pursuant to s. 218.39

13  chapter 11, that the certified statement of expenditures was

14  in accordance with ss. 27.34(2), 27.54(3), and this section.

15  All discrepancies noted by the independent certified public

16  accountant shall be included in the statement furnished by the

17  county to the Comptroller.

18         Section 15.  Subsection (5) of section 30.51, Florida

19  Statutes, is amended to read:

20         30.51  Fees and commissions.--

21         (5)  All fees, commissions, or other funds collected by

22  the sheriff for services rendered or performed by his or her

23  office shall be remitted monthly to the county, in the manner

24  prescribed by the auditor general.

25         Section 16.  Paragraph (k) of subsection (2) of section

26  39.202, Florida Statutes, is amended to read:

27         39.202  Confidentiality of reports and records in cases

28  of child abuse or neglect.--

29         (2)  Access to such records, excluding the name of the

30  reporter which shall be released only as provided in

31

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  1  subsection (4), shall be granted only to the following

  2  persons, officials, and agencies:

  3         (k)  Any appropriate official of a Florida advocacy

  4  council investigating a report of known or suspected child

  5  abuse, abandonment, or neglect; the Auditor General or the

  6  Office of Program Policy Analysis and Government

  7  Accountability for the purpose of conducting audits or

  8  examinations preliminary or compliance reviews pursuant to law

  9  s. 11.45; or the guardian ad litem for the child.

10         Section 17.  Subsection (1) of section 110.109, Florida

11  Statutes, is amended to read:

12         110.109  Productivity improvement and personnel audits

13  of executive branch agencies.--The department shall be

14  responsible for conducting personnel audits of all executive

15  branch agencies, except the State University System, to

16  provide as follows:

17         (1)  In order to provide for the improvement of

18  productivity and human resources management, the department

19  shall have the authority to conduct agency personnel

20  administration and management reviews to assist agencies in

21  identifying areas of recommended improvement.  Such reviews

22  shall be conducted in cooperation with the internal auditor of

23  the employing agency so as to ascertain the operational

24  necessity and effectiveness of agency personnel programs and

25  human resource management.  A copy of any such reviews made by

26  the department shall be submitted to the Legislature, and the

27  Auditor General, and the Office of Program Policy Analysis and

28  Government Accountability.

29         Section 18.  Paragraph (a) of subsection (9) of section

30  112.313, Florida Statutes, is amended to read:

31

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  1         112.313  Standards of conduct for public officers,

  2  employees of agencies, and local government attorneys.--

  3         (9)  POSTEMPLOYMENT RESTRICTIONS; STANDARDS OF CONDUCT

  4  FOR LEGISLATORS AND LEGISLATIVE EMPLOYEES.--

  5         (a)1.  It is the intent of the Legislature to implement

  6  by statute the provisions of s. 8(e), Art. II of the State

  7  Constitution relating to legislators, statewide elected

  8  officers, appointed state officers, and designated public

  9  employees.

10         2.  As used in this paragraph:

11         a.  "Employee" means:

12         (I)  Any person employed in the executive or

13  legislative branch of government holding a position in the

14  Senior Management Service as defined in s. 110.402 or any

15  person holding a position in the Selected Exempt Service as

16  defined in s. 110.602 or any person having authority over

17  policy or procurement employed by the Department of the

18  Lottery.

19         (II)  The Auditor General, the director of the Office

20  of Program Policy Analysis and Government Accountability, the

21  Sergeant at Arms and Secretary of the Senate, and the Sergeant

22  at Arms and Clerk of the House of Representatives.

23         (III)  The executive director of the Legislative

24  Committee on Intergovernmental Relations and the executive

25  director and deputy executive director of the Commission on

26  Ethics.

27         (IV)  An executive director, staff director, or deputy

28  staff director of each joint committee, standing committee, or

29  select committee of the Legislature; an executive director,

30  staff director, executive assistant, analyst, or attorney of

31  the Office of the President of the Senate, the Office of the

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  1  Speaker of the House of Representatives, the Senate Majority

  2  Party Office, Senate Minority Party Office, House Majority

  3  Party Office, or House Minority Party Office; or any person,

  4  hired on a contractual basis, having the power normally

  5  conferred upon such persons, by whatever title.

  6         (V)  The Chancellor and Vice Chancellors of the State

  7  University System; the general counsel to the Board of

  8  Regents; and the president, vice presidents, and deans of each

  9  state university.

10         (VI)  Any person having the power normally conferred

11  upon the positions referenced in this sub-subparagraph.

12         b.  "Appointed state officer" means any member of an

13  appointive board, commission, committee, council, or authority

14  of the executive or legislative branch of state government

15  whose powers, jurisdiction, and authority are not solely

16  advisory and include the final determination or adjudication

17  of any personal or property rights, duties, or obligations,

18  other than those relative to its internal operations.

19         c.  "State agency" means an entity of the legislative,

20  executive, or judicial branch of state government over which

21  the Legislature exercises plenary budgetary and statutory

22  control.

23         3.  No member of the Legislature, appointed state

24  officer, or statewide elected officer shall personally

25  represent another person or entity for compensation before the

26  government body or agency of which the individual was an

27  officer or member for a period of 2 years following vacation

28  of office. No member of the Legislature shall personally

29  represent another person or entity for compensation during his

30  or her term of office before any state agency other than

31

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  1  judicial tribunals or in settlement negotiations after the

  2  filing of a lawsuit.

  3         4.  No agency employee shall personally represent

  4  another person or entity for compensation before the agency

  5  with which he or she was employed for a period of 2 years

  6  following vacation of position, unless employed by another

  7  agency of state government.

  8         5.  Any person violating this paragraph shall be

  9  subject to the penalties provided in s. 112.317 and a civil

10  penalty of an amount equal to the compensation which the

11  person receives for the prohibited conduct.

12         6.  This paragraph is not applicable to:

13         a.  A person employed by the Legislature or other

14  agency prior to July 1, 1989;

15         b.  A person who was employed by the Legislature or

16  other agency on July 1, 1989, whether or not the person was a

17  defined employee on July 1, 1989;

18         c.  A person who was a defined employee of the State

19  University System or the Public Service Commission who held

20  such employment on December 31, 1994;

21         d.  A person who has reached normal retirement age as

22  defined in s. 121.021(29), and who has retired under the

23  provisions of chapter 121 by July 1, 1991; or

24         e.  Any appointed state officer whose term of office

25  began before January 1, 1995, unless reappointed to that

26  office on or after January 1, 1995.

27         Section 19.  Paragraphs (a) and (c) of subsection (7)

28  of section 112.324, Florida Statutes, are amended to read:

29         112.324  Procedures on complaints of violations.--

30         (7)  If, in cases pertaining to complaints other than

31  complaints against impeachable officers or members of the

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  1  Legislature, upon completion of a full and final investigation

  2  by the commission, the commission finds that there has been a

  3  violation of this part or of s. 8, Art. II of the State

  4  Constitution, it shall be the duty of the commission to report

  5  its findings and recommend appropriate action to the proper

  6  disciplinary official or body as follows, and such official or

  7  body shall have the power to invoke the penalty provisions of

  8  this part, including the power to order the appropriate

  9  elections official to remove a candidate from the ballot for a

10  violation of s. 112.3145 or s. 8(a) and (i), Art. II of the

11  State Constitution:

12         (a)  The President of the Senate and the Speaker of the

13  House of Representatives, jointly, in any case concerning the

14  Public Counsel, members of the Public Service Commission,

15  members of the Public Service Commission Nominating Council,

16  the Auditor General, the director of the Office of Program

17  Policy Analysis and Government Accountability, or members of

18  the Legislative Committee on Intergovernmental Relations.

19         (c)  The President of the Senate, in any case

20  concerning an employee of the Senate; the Speaker of the House

21  of Representatives, in any case concerning an employee of the

22  House of Representatives; or the President and the Speaker,

23  jointly, in any case concerning an employee of a committee of

24  the Legislature whose members are appointed solely by the

25  President and the Speaker or in any case concerning an

26  employee of the Public Counsel, Public Service Commission,

27  Auditor General, Office of Program Policy Analysis and

28  Government Accountability, or Legislative Committee on

29  Intergovernmental Relations.

30         Section 20.  Subsection (2) of section 112.63, Florida

31  Statutes, is amended to read:

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  1         112.63  Actuarial reports and statements of actuarial

  2  impact; review.--

  3         (2)  The frequency of actuarial reports must be at

  4  least every 3 years commencing from the last actuarial report

  5  of the plan or system or October 1, 1980, if no actuarial

  6  report has been issued within the 3-year period prior to

  7  October 1, 1979. The results of each actuarial report shall be

  8  filed with the plan administrator within 60 days of

  9  certification. Thereafter, the results of each actuarial

10  report shall be made available for inspection upon request.

11  Additionally, each retirement system or plan covered by this

12  act which is not administered directly by the Department of

13  Management Services shall furnish a copy of each actuarial

14  report to the Department of Management Services within 60 days

15  after receipt from the actuary. The requirements of this

16  section are supplemental to actuarial valuations necessary to

17  comply with the requirements of ss. 218.321 11.45 and 218.39

18  218.32.

19         Section 21.  Section 116.07, Florida Statutes, is

20  amended to read:

21         116.07  Account books to be kept by sheriffs and

22  clerks.--All sheriffs and clerks of the circuit court and ex

23  officio clerks of the boards of county commissioners of this

24  state shall keep books of account and of record in accordance

25  with s. 218.33 forms to be approved by the Auditor General,

26  except such books and forms as are now otherwise provided for

27  by law.

28         Section 22.  Subsection (6) of section 119.07, Florida

29  Statutes, is amended to read:

30         119.07  Inspection, examination, and duplication of

31  records; exemptions.--

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  1         (6)  Nothing in subsection (3) or any other general or

  2  special law shall limit the access of the Auditor General, the

  3  Office of Program Policy Analysis and Government

  4  Accountability, or any state, county, municipal, university,

  5  board of community college, school district, or special

  6  district internal auditor to public records when such person

  7  auditor states in writing that such records are needed for a

  8  properly authorized audit, examination, or investigation. Such

  9  person auditor shall maintain the confidentiality of any

10  public records that are confidential or exempt from the

11  provisions of subsection (1) and shall be subject to the same

12  penalties as the custodians of those public records for

13  violating confidentiality.

14         Section 23.  Paragraph (b) of subsection (8) of section

15  122.03, Florida Statutes, is amended to read:

16         122.03  Contributions; participants; prior service

17  credit.--

18         (8)  Any surviving spouse of a county official or

19  former county official, who was formerly employed full time in

20  the office of the county official and who is presently

21  employed by the said county official or is a county official

22  of any such county and who did not receive compensation for a

23  period of more than 10 years as such employee, may receive

24  credit for retirement purposes as provided for in this chapter

25  by:

26         (b)  Submitting affidavits from one assistant auditor

27  general and two county officials or former county officials

28  from any such county to substantiate said employment.

29         Section 24.  Subsection (7) of section 122.08, Florida

30  Statutes, is amended to read:

31

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  1         122.08  Requirements for retirement;

  2  classifications.--There shall be two retirement

  3  classifications for all state and county officers and

  4  employees participating herein as hereafter provided in this

  5  section:

  6         (7)  No state or county official or employee who has a

  7  shortage in his or her accounts, as certified by the Auditor

  8  General, may retire or receive any benefits under this chapter

  9  so long as such shortage exists.

10         Section 25.  Paragraph (x) of subsection (1) of section

11  125.01, Florida Statutes, is amended to read:

12         125.01  Powers and duties.--

13         (1)  The legislative and governing body of a county

14  shall have the power to carry on county government.  To the

15  extent not inconsistent with general or special law, this

16  power includes, but is not restricted to, the power to:

17         (x)  Employ an independent certified public accounting

18  firm to audit any funds, accounts, and financial records of

19  the county and its agencies and governmental subdivisions.

20  Entities that are funded wholly or in part by the county, at

21  the discretion of the county, may be required by the county to

22  conduct a performance audit paid for by the county. An entity

23  shall not be considered as funded by the county by virtue of

24  the fact that such entity utilizes the county to collect

25  taxes, assessments, fees, or other revenue. If an independent

26  special district receives county funds pursuant to a contract

27  or interlocal agreement for the purposes of funding, in whole

28  or in part, a discrete program of the district, only that

29  program may be required by the county to undergo a performance

30  audit. Not fewer than five copies of each complete audit

31  report, with accompanying documents, shall be filed with the

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  1  clerk of the circuit court and maintained there for public

  2  inspection. The clerk shall thereupon forward one complete

  3  copy of the audit report with accompanying documents to the

  4  Auditor General, who shall retain the same as a public record

  5  for 10 years from receipt thereof.

  6         Section 26.  Subsection (1) of section 145.022, Florida

  7  Statutes, is amended to read:

  8         145.022  Guaranteed salary upon resolution of board of

  9  county commissioners.--

10         (1)  Any board of county commissioners, with the

11  concurrence of the county official involved, shall by

12  resolution guarantee and appropriate a salary to the county

13  official, in an amount specified in this chapter, if all fees

14  collected by such official are turned over to the board of

15  county commissioners. Such a resolution is applicable only

16  with respect to the county official who concurred in its

17  adoption and only for the duration of such official's tenure

18  in his or her current term of office.  Copies of the

19  resolution adopted shall be filed with the Department of

20  Banking and Finance and the Auditor General.

21         Section 27.  Subsection (2) of section 145.14, Florida

22  Statutes, is amended to read:

23         145.14  Compensation of other county officials;

24  guarantee.--

25         (2)  With the concurrence of any county officer

26  described by subsection (1), any board of county commissioners

27  may by resolution guarantee and appropriate to that officer a

28  salary not to exceed $9,600 in lieu of fees, if all fees

29  collected are turned over to the board of county

30  commissioners. Copies of the resolution shall be filed with

31  the Department of Banking and Finance and the Auditor General.

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  1         Section 28.  Paragraph (o) of subsection (1) of section

  2  154.11, Florida Statutes, is amended to read:

  3         154.11  Powers of board of trustees.--

  4         (1)  The board of trustees of each public health trust

  5  shall be deemed to exercise a public and essential

  6  governmental function of both the state and the county and in

  7  furtherance thereof it shall, subject to limitation by the

  8  governing body of the county in which such board is located,

  9  have all of the powers necessary or convenient to carry out

10  the operation and governance of designated health care

11  facilities, including, but without limiting the generality of,

12  the foregoing:

13         (o)  To employ certified public accountants to audit

14  and analyze the records of the board and to prepare financial

15  or revenue statements of the board; however, this paragraph

16  shall not in any way affect any responsibility of the Auditor

17  General pursuant to s. 11.45 in connection with the records of

18  the board.

19         Section 29.  Paragraph (d) of subsection (2) of section

20  154.331, Florida Statutes, is amended to read:

21         154.331  County health and mental health care special

22  districts.--Each county may establish a dependent special

23  district pursuant to the provisions of chapter 125 or, by

24  ordinance, create an independent special district as defined

25  in s. 200.001(8)(e) to provide funding for indigent and other

26  health and mental health care services throughout the county

27  in accordance with this section.  The county governing body

28  shall obtain approval, by a majority vote of the electors, to

29  establish the district with authority to annually levy ad

30  valorem taxes which shall not exceed the maximum millage rate

31  authorized by this section.  Any independent health or mental

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  1  health care special district created by this section shall be

  2  required to levy and fix millage subject to the provisions of

  3  s. 200.065. Once approved by the electorate, the independent

  4  health or mental health care special district shall not be

  5  required to seek approval of the electorate in future years to

  6  levy the previously approved millage.

  7         (2)

  8         (d)  All financial records and accounts relating to the

  9  independent health or mental health care special district

10  shall be available for review by the county governing body and

11  for audit by state auditors assigned from time to time to

12  audit the affairs of the county officials.

13         Section 30.  Paragraph (c) of subsection (3) of section

14  163.356, Florida Statutes, is amended to read:

15         163.356  Creation of community redevelopment agency.--

16         (3)

17         (c)  The governing body of the county or municipality

18  shall designate a chair and vice chair from among the

19  commissioners.  An agency may employ an executive director,

20  technical experts, and such other agents and employees,

21  permanent and temporary, as it requires, and determine their

22  qualifications, duties, and compensation.  For such legal

23  service as it requires, an agency may employ or retain its own

24  counsel and legal staff.  An agency authorized to transact

25  business and exercise powers under this part shall file with

26  the governing body and with the Auditor General, on or before

27  March 31 of each year, a report of its activities for the

28  preceding fiscal year, which report shall include a complete

29  financial statement setting forth its assets, liabilities,

30  income, and operating expenses as of the end of such fiscal

31  year. At the time of filing the report, the agency shall

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  1  publish in a newspaper of general circulation in the community

  2  a notice to the effect that such report has been filed with

  3  the county or municipality and that the report is available

  4  for inspection during business hours in the office of the

  5  clerk of the city or county commission and in the office of

  6  the agency.

  7         Section 31.  Paragraph (b) of subsection (1) of section

  8  175.261, Florida Statutes, is amended to read:

  9         175.261  Annual report to Division of Retirement;

10  actuarial valuations.--For any municipality, special fire

11  control district, chapter plan, local law municipality, local

12  law special fire control district, or local law plan under

13  this chapter, the board of trustees for every chapter plan and

14  local law plan shall submit the following reports to the

15  division:

16         (1)  With respect to chapter plans:

17         (b)  In addition to annual reports provided under

18  paragraph (a), by February 1 of each triennial year, an

19  actuarial valuation of the chapter plan must be made by the

20  division at least once every 3 years, as provided in s.

21  112.63, commencing 3 years from the last actuarial valuation

22  of the plan or system for existing plans, or commencing 3

23  years from issuance of the initial actuarial impact statement

24  submitted under s. 112.63 for newly created plans. To that

25  end, the chair of the board of trustees for each firefighters'

26  pension trust fund operating under a chapter plan shall report

27  to the division such data as it needs to complete an actuarial

28  valuation of each fund. The forms for each municipality and

29  special fire control district shall be supplied by the

30  division.  The expense of this actuarial valuation shall be

31  borne by the firefighters' pension trust fund established by

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  1  ss. 175.041 and 175.121. The requirements of this section are

  2  supplemental to the actuarial valuations necessary to comply

  3  with ss. 218.321 11.45 and 218.39 218.32.

  4         Section 32.  Paragraph (b) of subsection (1) of section

  5  185.221, Florida Statutes, is amended to read:

  6         185.221  Annual report to Division of Retirement;

  7  actuarial valuations.--For any municipality, chapter plan,

  8  local law municipality, or local law plan under this chapter,

  9  the board of trustees for every chapter plan and local law

10  plan shall submit the following reports to the division:

11         (1)  With respect to chapter plans:

12         (b)  In addition to annual reports provided under

13  paragraph (a), by February 1 of each triennial year, an

14  actuarial valuation of the chapter plan must be made by the

15  division at least once every 3 years, as provided in s.

16  112.63, commencing 3 years from the last actuarial valuation

17  of the plan or system for existing plans, or commencing 3

18  years from the issuance of the initial actuarial impact

19  statement submitted under s. 112.63 for newly created plans.

20  To that end, the chair of the board of trustees for each

21  municipal police officers' retirement trust fund operating

22  under a chapter plan shall report to the division such data as

23  the division needs to complete an actuarial valuation of each

24  fund.  The forms for each municipality shall be supplied by

25  the division.  The expense of the actuarial valuation shall be

26  borne by the municipal police officers' retirement trust fund

27  established by s. 185.10. The requirements of this section are

28  supplemental to the actuarial valuations necessary to comply

29  with ss. 218.321 11.45 and 218.39 218.32.

30         Section 33.  Subsection (2) of section 189.4035,

31  Florida Statutes, is amended to read:

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  1         189.4035  Preparation of official list of special

  2  districts.--

  3         (2)  The official list shall be produced by the

  4  department after the department has notified each special

  5  district that is currently reporting to the department, the

  6  Department of Banking and Finance pursuant to s. 218.32, or

  7  the Auditor General pursuant to s. 218.39 11.45.  Upon

  8  notification, each special district shall submit, within 60

  9  days, its determination of its status.  The determination

10  submitted by a special district shall be consistent with the

11  status reported in the most recent local government audit of

12  district activities submitted to the Auditor General pursuant

13  to s. 218.39 11.45.

14         Section 34.  Subsection (1) of section 189.412, Florida

15  Statutes, is amended to read:

16         189.412  Special District Information Program; duties

17  and responsibilities.--The Special District Information

18  Program of the Department of Community Affairs is created and

19  has the following special duties:

20         (1)  The collection and maintenance of special district

21  compliance status reports from the Auditor General, the

22  Department of Banking and Finance, the Division of Bond

23  Finance of the State Board of Administration, the Department

24  of Management Services, the Department of Revenue, and the

25  Commission on Ethics for the reporting required in ss. 11.45,

26  112.3144, 112.3145, 112.3148, 112.3149, 112.63, 200.068,

27  218.32, 218.34, 218.38, 218.39, and 280.17 and chapter 121 and

28  from state agencies administering programs that distribute

29  money to special districts. The special district compliance

30  status reports must consist of a list of special districts

31  used in that state agency and a list of which special

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  1  districts did not comply with the reporting statutorily

  2  required by that agency.

  3         Section 35.  Subsections (4) and (5) of section

  4  189.418, Florida Statutes, are amended to read:

  5         189.418  Reports; audits.--

  6         (4)  Each special district shall make provisions for an

  7  annual independent postaudit of its financial records as

  8  provided in s. 218.39 11.45.  A copy of the report audit shall

  9  be filed with the local governing authority or authorities.

10         (5)  All reports or information required to be filed

11  with a local governing authority under ss. 11.45, 189.416,

12  189.417, 218.32, and 218.34, and 218.39 and this section

13  shall:

14         (a)  When the local governing authority is a county, be

15  filed with the clerk of the board of county commissioners.

16         (b)  When the district is a multicounty district, be

17  filed with the clerk of the county commission in each county.

18         (c)  When the local governing authority is a

19  municipality, be filed at the place designated by the

20  municipal governing body.

21         Section 36.  Subsections (1) and (3) of section

22  189.419, Florida Statutes, are amended to read:

23         189.419  Effect of failure to file certain reports.--

24         (1)  If a special district fails to file the reports

25  required under s. 11.45, s. 189.415, s. 189.416, s. 189.417,

26  s. 189.418, s. 218.32, or s. 218.34, or s. 218.39 and a

27  description of all new bonds as provided in s. 218.38(1) with

28  the local governing authority, the person authorized to

29  receive and read the reports shall notify the district's

30  registered agent and the appropriate local governing authority

31  or authorities. At any time, the governing authority may grant

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  1  an extension of time for filing the required reports, except

  2  that an extension may not exceed 30 days.

  3         (3)  If a special district fails to file the reports

  4  required under s. 11.45, s. 218.32, s. 218.34, or s. 218.38,

  5  or s. 218.39 with the appropriate state agency, the agency

  6  shall notify the department, and the department may initiate

  7  proceedings against the special district in the manner

  8  provided in s. 189.421 or assess fines of not more than $25,

  9  with an aggregate total not to exceed $50, when formal

10  inquiries do not resolve the noncompliance.

11         Section 37.  Paragraphs (f) and (g) of subsection (5)

12  of section 189.428, Florida Statutes, are amended to read:

13         189.428  Special districts; oversight review process.--

14         (5)  Those conducting the oversight review process

15  shall, at a minimum, consider the listed criteria for

16  evaluating the special district, but may also consider any

17  additional factors relating to the district and its

18  performance.  If any of the listed criteria do not apply to

19  the special district being reviewed, they need not be

20  considered.  The criteria to be considered by the reviewer

21  include:

22         (f)  Whether the Auditor General has notified the

23  Legislative Auditing Committee determined that the special

24  district's audit report, reviewed pursuant to s. 11.45(7),

25  indicates that a deteriorating financial condition exists that

26  may cause a condition described in s. 218.503(1) to occur if

27  actions are not taken to address such condition district is or

28  may be in a state of financial emergency or has been

29  experiencing financial difficulty during any of the last 3

30  fiscal years for which data are available.

31

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  1         (g)  Whether the Auditor General has determined that

  2  the special district is in a state of financial emergency as

  3  provided in s. 218.503(1), and has notified the Governor and

  4  the Legislative Auditing Committee failed to receive an audit

  5  report and has made a determination that the special district

  6  was required or may have been required to file an audit report

  7  during any of the last 3 fiscal years for which the data are

  8  available.

  9         Section 38.  Section 193.074, Florida Statutes, is

10  amended to read:

11         193.074  Confidentiality of returns.--All returns of

12  property and returns required by s. 201.022 submitted by the

13  taxpayer pursuant to law shall be deemed to be confidential in

14  the hands of the property appraiser, the clerk of the circuit

15  court, the department, the tax collector, and the Auditor

16  General, and the Office of Program Policy Analysis and

17  Government Accountability, and their employees and persons

18  acting under their supervision and control, except upon court

19  order or order of an administrative body having quasi-judicial

20  powers in ad valorem tax matters, and such returns are exempt

21  from the provisions of s. 119.07(1).

22         Section 39.  Section 195.084, Florida Statutes, is

23  amended to read:

24         195.084  Information exchange.--

25         (1)  The department shall promulgate rules and

26  regulations for the exchange of information among the

27  department, the property appraisers' offices, the tax

28  collector, and the Auditor General, and the Office of Program

29  Policy Analysis and Government Accountability.  All records

30  and returns of the department useful to the property appraiser

31  or the tax collector shall be made available upon request but

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  1  subject to the reasonable conditions imposed by the

  2  department.  This section shall supersede statutes prohibiting

  3  disclosure only with respect to the property appraiser, the

  4  tax collector, and the Auditor General, and the Office of

  5  Program Policy Analysis and Government Accountability, but the

  6  department may establish regulations setting reasonable

  7  conditions upon the access to and custody of such information.

  8  The Auditor General, the Office of Program Policy Analysis and

  9  Government Accountability, the tax collectors, and the

10  property appraisers shall be bound by the same requirements of

11  confidentiality as the Department of Revenue.  Breach of

12  confidentiality shall be a misdemeanor of the first degree,

13  punishable as provided by ss. 775.082 and 775.083.

14         (2)  All of the records of property appraisers and

15  collectors, including, but not limited to, worksheets and

16  property record cards, shall be made available to the

17  Department of Revenue, the and Auditor General, and the Office

18  of Program Policy Analysis and Government Accountability.

19  Property appraisers and collectors are hereby directed to

20  cooperate fully with representatives of the Department of

21  Revenue, the and Auditor General, and the Office of Program

22  Policy Analysis and Government Accountability in realizing the

23  objectives stated in s. 195.0012.

24         Section 40.  Subsection (7) of section 195.096, Florida

25  Statutes, is amended to read:

26         195.096  Review of assessment rolls.--

27         (7)  The Auditor General shall conduct a have the

28  responsibility to perform performance audit audits of the

29  administration of ad valorem tax laws by the department

30  pursuant to the general authority granted in chapter 11.  Such

31  performance audits shall be conducted triennially following

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  1  completion of reviews conducted pursuant to this section.  The

  2  performance audit report conducted pursuant to this subsection

  3  shall be formally submitted to the Legislature no later than

  4  April 1, on a triennial basis, reporting on the activities of

  5  the ad valorem tax program of the Department of Revenue

  6  related to the ad valorem tax rolls. The Auditor General shall

  7  include, for at least four counties so reviewed, findings as

  8  to the accuracy of assessment procedures, projections, and

  9  computations made by the division, utilizing the same

10  generally accepted appraisal standards and procedures to which

11  the division and the property appraisers are required to

12  adhere. However, the report shall not include any findings or

13  statistics related to any ad valorem tax roll which is in

14  litigation between the state and county officials at the time

15  the report is to be issued.

16         Section 41.  Paragraph (c) of subsection (4) of section

17  196.101, Florida Statutes, is amended to read:

18         196.101  Exemption for totally and permanently disabled

19  persons.--

20         (4)

21         (c)  The department shall require by rule that the

22  taxpayer annually submit a sworn statement of gross income,

23  pursuant to paragraph (a).  The department shall require that

24  the filing of such statement be accompanied by copies of

25  federal income tax returns for the prior year, wage and

26  earnings statements (W-2 forms), and other documents it deems

27  necessary, for each member of the household. The taxpayer's

28  statement shall attest to the accuracy of such copies.  The

29  department shall prescribe and furnish a form to be used for

30  this purpose which form shall include spaces for a separate

31  listing of United States Department of Veterans Affairs

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  1  benefits and social security benefits.  All records produced

  2  by the taxpayer under this paragraph are confidential in the

  3  hands of the property appraiser, the department, the tax

  4  collector, and the Auditor General, and the Office of Program

  5  Policy Analysis and Government Accountability and shall not be

  6  divulged to any person, firm, or corporation except upon court

  7  order or order of an administrative body having quasi-judicial

  8  powers in ad valorem tax matters, and such records are exempt

  9  from the provisions of s. 119.07(1).

10         Section 42.  Paragraph (b) of subsection (1) of section

11  206.60, Florida Statutes, is amended to read:

12         206.60  County tax on motor fuel.--

13         (1)  The proceeds of the county fuel tax imposed

14  pursuant to s. 206.41(1)(b) are appropriated for public

15  transportation purposes in the manner following:

16         (b)1.  The Department of Revenue shall, from month to

17  month, distribute the amount allocated to each of the several

18  counties under paragraph (a) to the board of county

19  commissioners of the county, who shall use such funds solely

20  for the acquisition of rights-of-way; the construction,

21  reconstruction, operation, maintenance, and repair of

22  transportation facilities, roads, and bridges therein; or the

23  reduction of bonded indebtedness of such county or of special

24  road and bridge districts within such county, incurred for

25  road and bridge or other transportation purposes. In the event

26  the powers and duties relating to transportation facilities,

27  roads, and bridges usually exercised and performed by boards

28  of county commissioners are exercised and performed by some

29  other or separate county board, such board shall receive the

30  proceeds, exercise the powers, and perform the duties

31

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  1  designated in this section to be done by the boards of county

  2  commissioners.

  3         2.  The board of county commissioners of each county,

  4  or any separate board or local agency exercising the powers

  5  and performing the duties relating to transportation

  6  facilities, roads, and bridges usually exercised and performed

  7  by the boards of county commissioners, shall be assigned the

  8  full responsibility for the maintenance of transportation

  9  facilities in the county and of roads in the county road

10  system.

11         3.  In calculating the distribution of funds under

12  paragraph (a), the Department of Revenue shall obtain from the

13  Auditor General the certification of the level of assessment

14  in each district and shall pay only the amount of money which

15  is derived by multiplying said ratio and the amount which

16  would be due a district under paragraph (a).  The funds which

17  are raised under this section but are not distributed under

18  this section shall be deposited in the Fuel Tax Collection

19  Trust Fund.  All funds placed in the Fuel Tax Collection Trust

20  Fund shall be distributed in the same manner as provided in

21  paragraphs (a) and (b).

22         3.4.  Nothing in this paragraph as amended by chapter

23  71-212, Laws of Florida, shall be construed to permit the

24  expenditure of public funds in such manner or for such

25  projects as would violate the State Constitution or the trust

26  indenture of any bond issue or which would cause the state to

27  lose any federal aid funds for highway or transportation

28  purposes; and the provisions of this paragraph shall be

29  applied in a manner to avoid such result.

30         Section 43.  Paragraph (ff) of subsection (7) of

31  section 212.08, Florida Statutes, is amended to read:

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  1         212.08  Sales, rental, use, consumption, distribution,

  2  and storage tax; specified exemptions.--The sale at retail,

  3  the rental, the use, the consumption, the distribution, and

  4  the storage to be used or consumed in this state of the

  5  following are hereby specifically exempt from the tax imposed

  6  by this chapter.

  7         (7)  MISCELLANEOUS EXEMPTIONS.--

  8         (ff)  Certain electricity or steam uses.--

  9         1.  Subject to the provisions of subparagraph 4.,

10  charges for electricity or steam used to operate machinery and

11  equipment at a fixed location in this state when such

12  machinery and equipment is used to manufacture, process,

13  compound, produce, or prepare for shipment items of tangible

14  personal property for sale, or to operate pollution control

15  equipment, recycling equipment, maintenance equipment, or

16  monitoring or control equipment used in such operations are

17  exempt to the extent provided in this paragraph. If 75 percent

18  or more of the electricity or steam used at the fixed location

19  is used to operate qualifying machinery or equipment, 100

20  percent of the charges for electricity or steam used at the

21  fixed location are exempt. If less than 75 percent but 50

22  percent or more of the electricity or steam used at the fixed

23  location is used to operate qualifying machinery or equipment,

24  50 percent of the charges for electricity or steam used at the

25  fixed location are exempt. If less than 50 percent of the

26  electricity or steam used at the fixed location is used to

27  operate qualifying machinery or equipment, none of the charges

28  for electricity or steam used at the fixed location are

29  exempt.

30         2.  This exemption applies only to industries

31  classified under SIC Industry Major Group Numbers 10, 12, 13,

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  1  14, 20, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34,

  2  35, 36, 37, 38, and 39 and Industry Group Number 212. As used

  3  in this paragraph, "SIC" means those classifications contained

  4  in the Standard Industrial Classification Manual, 1987, as

  5  published by the Office of Management and Budget, Executive

  6  Office of the President.

  7         3.  Possession by a seller of a written certification

  8  by the purchaser, certifying the purchaser's entitlement to an

  9  exemption permitted by this subsection, relieves the seller

10  from the responsibility of collecting the tax on the

11  nontaxable amounts, and the department shall look solely to

12  the purchaser for recovery of such tax if it determines that

13  the purchaser was not entitled to the exemption.

14         4.  Such exemption shall be applied as follows:

15         a.  Beginning July 1, 1996, 20 percent of the charges

16  for such electricity shall be exempt.

17         b.  Beginning July 1, 1997, 40 percent of the charges

18  for such electricity shall be exempt.

19         c.  Beginning July 1, 1998, 60 percent of the charges

20  for such electricity or steam shall be exempt.

21         d.  Beginning July 1, 1999, 80 percent of the charges

22  for such electricity or steam shall be exempt.

23         e.  Beginning July 1, 2000, 100 percent of the charges

24  for such electricity or steam shall be exempt.

25         5.  Notwithstanding any other provision in this

26  paragraph to the contrary, in order to receive the exemption

27  provided in this paragraph a taxpayer must first register with

28  the WAGES Program Business Registry established by the local

29  WAGES coalition for the area in which the taxpayer is located.

30  Such registration establishes a commitment on the part of the

31

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  1  taxpayer to hire WAGES program participants to the maximum

  2  extent possible consistent with the nature of their business.

  3         6.a.  In order to determine whether the exemption

  4  provided in this paragraph from the tax on charges for

  5  electricity or steam has an effect on retaining or attracting

  6  companies to this state, the Office of Program Policy Analysis

  7  and Government Accountability shall monitor and report on the

  8  industries receiving the exemption.

  9         b.  The report shall be submitted no later than January

10  1, 2001, and must be comprehensive in scope, but, at a

11  minimum, must be conducted in such a manner as to specifically

12  determine the number of companies within each SIC Industry

13  Major Group receiving the exemption as of September 1, 2000,

14  the number of individuals employed by companies within each

15  SIC Industry Major Group receiving the exemption as of

16  September 1, 2000, whether the change, if any, in such number

17  of companies or employees is attributable to the exemption

18  provided in this paragraph, whether it would be sound public

19  policy to continue or discontinue the exemption, and the

20  consequences of doing so.

21         c.  The report shall be submitted to the President of

22  the Senate, the Speaker of the House of Representatives, the

23  Senate Minority Leader, and the House Minority Leader.

24

25  Exemptions provided to any entity by this subsection shall not

26  inure to any transaction otherwise taxable under this chapter

27  when payment is made by a representative or employee of such

28  entity by any means, including, but not limited to, cash,

29  check, or credit card even when that representative or

30  employee is subsequently reimbursed by such entity.

31

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  1         Section 44.  Subsection (6) of section 213.053, Florida

  2  Statutes, is amended to read:

  3         213.053  Confidentiality and information sharing.--

  4         (6)  Any information received by the Department of

  5  Revenue in connection with the administration of taxes,

  6  including, but not limited to, information contained in

  7  returns, reports, accounts, or declarations filed by persons

  8  subject to tax, shall be made available by the department to

  9  the Auditor General or his or her authorized agent, the

10  director of the Office of Program Policy Analysis and

11  Government Accountability or his or her authorized agent, the

12  Comptroller or his or her authorized agent, the Insurance

13  Commissioner or his or her authorized agent, the Treasurer or

14  his or her authorized agent, or a property appraiser or tax

15  collector or their authorized agents pursuant to s.

16  195.084(1), in the performance of their official duties, or to

17  designated employees of the Department of Education solely for

18  determination of each school district's price level index

19  pursuant to s. 236.081(2); however, no information shall be

20  disclosed to the Auditor General or his or her authorized

21  agent, the director of the Office of Program Policy Analysis

22  and Government Accountability or his or her authorized agent,

23  the Comptroller or his or her authorized agent, the Insurance

24  Commissioner or his or her authorized agent, the Treasurer or

25  his or her authorized agent, or to a property appraiser or tax

26  collector or their authorized agents, or to designated

27  employees of the Department of Education if such disclosure is

28  prohibited by federal law.  The Auditor General or his or her

29  authorized agent, the director of the Office of Program Policy

30  Analysis and Government Accountability or his or her

31  authorized agent, the Comptroller or his or her authorized

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  1  agent, the Treasurer or his or her authorized agent, and the

  2  property appraiser or tax collector and their authorized

  3  agents, or designated employees of the Department of Education

  4  shall be subject to the same requirements of confidentiality

  5  and the same penalties for violation of the requirements as

  6  the department.  For the purpose of this subsection,

  7  "designated employees of the Department of Education" means

  8  only those employees directly responsible for calculation of

  9  price level indices pursuant to s. 236.081(2).  It does not

10  include the supervisors of such employees or any other

11  employees or elected officials within the Department of

12  Education.

13         Section 45.  Subsection (6) of section 215.44, Florida

14  Statutes, is amended to read:

15         215.44  Board of Administration; powers and duties in

16  relation to investment of trust funds.--

17         (6)  The Auditor General shall audit annually the

18  entire operation of the board. The Office of Program Policy

19  Analysis and Government Accountability shall examine the

20  board's perform or cause to be performed a performance audit

21  of the management by the board of investments every 2 years.

22  In addition to the duties prescribed in this subsection, the

23  Auditor General and the Office of Program Policy Analysis and

24  Government Accountability shall annually as part of his or her

25  audit conduct performance postaudits of investments under s.

26  215.47(6) which are not otherwise authorized under ss.

27  215.44-215.53.  The Office of Program Policy Analysis and

28  Government Accountability Auditor General shall submit such

29  reports audit report to the board, the President of the

30  Senate, and the Speaker of the House of Representatives and

31  their designees.

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  1         Section 46.  Section 215.86, Florida Statutes, is

  2  created to read:

  3         215.86  Management systems and controls.--Each state

  4  agency and the judicial branch as defined in s. 216.011 shall

  5  establish and maintain management systems and controls that

  6  promote and encourage compliance; economic, efficient, and

  7  effective operations; reliability of records and reports; and

  8  safeguarding of assets.  Accounting systems and procedures

  9  shall be designed to fulfill the requirements of generally

10  accepted accounting principles.

11         Section 47.  Subsection (2) of section 215.94, Florida

12  Statutes, is amended to read:

13         215.94  Designation, duties, and responsibilities of

14  functional owners.--

15         (2)  The Department of Banking and Finance shall be the

16  functional owner of the Florida Accounting Information

17  Resource Subsystem established pursuant to ss. 11.46, 17.03,

18  215.86, 216.141, and 216.151 and further developed in

19  accordance with the provisions of ss. 215.90-215.96.  The

20  subsystem shall include, but shall not be limited to, the

21  following functions:

22         (a)  Accounting and reporting so as to provide timely

23  data for producing financial statements for the state in

24  accordance with generally accepted accounting principles.

25         (b)  Auditing and settling claims against the state.

26         Section 48.  Section 215.98, Florida Statutes, is

27  created to read:

28         215.98  Audits of state agency direct-support

29  organizations and citizen support organizations.--Each

30  direct-support organization and each citizen support

31  organization, created or authorized pursuant to law, and

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  1  created, approved, or administered by a state agency, other

  2  than a university, district board of trustees of a community

  3  college, or district school board, shall provide for an annual

  4  financial audit of its accounts and records to be conducted by

  5  an independent certified public accountant in accordance with

  6  rules adopted by the Auditor General pursuant to s. 11.45(8)

  7  and the state agency that created, approved, or administers

  8  the direct-support organization or citizen support

  9  organization. The audit report shall be submitted within 9

10  months after the end of the fiscal year to the Auditor General

11  and to the state agency responsible for creation,

12  administration, or approval of the direct-support organization

13  or citizen support organization. Such state agency, the

14  Auditor General, and the Office of Program Policy Analysis and

15  Government Accountability shall have the authority to require

16  and receive from the organization or from the independent

17  auditor any records relative to the operation of the

18  organization.

19         Section 49.  Subsection (1) of section 216.177, Florida

20  Statutes, is amended to read:

21         216.177  Appropriations acts, statement of intent,

22  violation, notice, review and objection procedures.--

23         (1)  When an appropriations act is delivered to the

24  Governor after the Legislature has adjourned sine die, as soon

25  as practicable, but no later than the 10th day before the end

26  of the period allowed by law for veto consideration in any

27  year in which an appropriation is made, the chairs of the

28  legislative appropriations committees shall jointly transmit:

29         (a)  The official list of General Revenue Fund

30  appropriations determined in consultation with the Executive

31  Office of the Governor to be nonrecurring; and

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  1         (b)  The documents set forth in s. 216.0442(2)(a) and

  2  (c),

  3

  4  to the Executive Office of the Governor, the Comptroller, the

  5  Auditor General, the director of the Office of Program Policy

  6  Analysis and Government Accountability, the Chief Justice of

  7  the Supreme Court, and each state agency. A request for

  8  additional explanation and direction regarding the legislative

  9  intent of the General Appropriations Act during the fiscal

10  year may be made only by and through the Executive Office of

11  the Governor for state agencies, and by and through the Chief

12  Justice of the Supreme Court for the judicial branch, as is

13  deemed necessary.  However, the Comptroller may also request

14  further clarification of legislative intent pursuant to the

15  Comptroller's responsibilities related to his or her preaudit

16  function of expenditures.

17         Section 50.  Subsection (2) of section 216.178, Florida

18  Statutes, is amended to read:

19         216.178  General Appropriations Act; format;

20  procedure.--

21         (2)  The Office of Planning and Budgeting shall develop

22  a final budget report that reflects the net appropriations for

23  each budget item.  The report shall reflect actual

24  expenditures for each of the 2 preceding fiscal years and the

25  estimated expenditures for the current fiscal year.  In

26  addition, the report must contain the actual revenues and cash

27  balances for the preceding 2 fiscal years and the estimated

28  revenues and cash balances for the current fiscal year.  The

29  report may also contain expenditure data, program objectives,

30  and program measures for each state agency program. The report

31  must be produced by October 15 each year.  A copy of the

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  1  report must be made available to each member of the

  2  Legislature, to the head of each state agency, to the Auditor

  3  General, to the director of the Office of Program Policy

  4  Analysis and Government Accountability, and to the public.

  5         Section 51.  Subsection (3) of section 216.292, Florida

  6  Statutes, is amended to read:

  7         216.292  Appropriations nontransferable; exceptions.--

  8         (3)  The head of each department or the Chief Justice

  9  of the Supreme Court, whenever it is deemed necessary by

10  reason of changed conditions, may transfer appropriations

11  funded from identical funding sources, except appropriations

12  for fixed capital outlay, and transfer the amounts included

13  within the total original approved budget and releases as

14  furnished pursuant to ss. 216.181 and 216.192, as follows:

15         (a)  Between categories of appropriations within a

16  budget entity, if no category of appropriation is increased or

17  decreased by more than 5 percent of the original approved

18  budget or $150,000, whichever is greater, by all action taken

19  under this subsection.

20         (b)  Additionally, between budget entities within

21  identical categories of appropriations, if no category of

22  appropriation is increased or decreased by more than 5 percent

23  of the original approved budget or $150,000, whichever is

24  greater, by all action taken under this subsection.

25         (c)  Such authorized revisions must be consistent with

26  the intent of the approved operating budget, must be

27  consistent with legislative policy and intent, and must not

28  conflict with specific spending policies specified in the

29  General Appropriations Act.

30

31

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  1  Such authorized revisions, together with related changes, if

  2  any, in the plan for release of appropriations, shall be

  3  transmitted by the state agency or by the judicial branch to

  4  the Comptroller for entry in the Comptroller's records in the

  5  manner and format prescribed by the Executive Office of the

  6  Governor in consultation with the Comptroller.  A copy of such

  7  revision shall be furnished to the Executive Office of the

  8  Governor or the Chief Justice, the chair of the Legislative

  9  Budget Commission, the chairs of the legislative committees,

10  and the Auditor General, and the director of the Office of

11  Program Policy Analysis and Government Accountability.

12         Section 52.  Subsection (1) of section 218.31, Florida

13  Statutes, is amended, and subsections (15), (16), (17), and

14  (18) are added to that section, to read:

15         218.31  Definitions.--As used in this part, except

16  where the context clearly indicates a different meaning:

17         (1)  "Local governmental entity" means a county agency

18  as defined in s. 11.45, a municipality, or a special district

19  as defined in s. 189.403. For purposes of s. 218.32, the term

20  also includes a housing authority created under chapter 421.

21         (15)  "Auditor" means an independent certified public

22  accountant licensed pursuant to chapter 473 and retained by a

23  local governmental entity to perform a financial audit.

24         (16)  "County agency" means a board of county

25  commissioners or other legislative and governing body of a

26  county, however styled, including that of a consolidated or

27  metropolitan government, a clerk of the circuit court, a

28  separate or ex officio clerk of the county court, a sheriff, a

29  property appraiser, a tax collector, a supervisor of

30  elections, or any other officer in whom any portion of the

31  fiscal duties of the above are under law separately placed.

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  1         (17)  "Financial audit" means an examination of

  2  financial statements in order to express an opinion on the

  3  fairness with which they are presented in conformity with

  4  generally accepted accounting principles and an examination to

  5  determine whether operations are properly conducted in

  6  accordance with legal and regulatory requirements. Financial

  7  audits must be conducted in accordance with generally accepted

  8  auditing standards and government auditing standards as

  9  adopted by the Board of Accountancy and as prescribed by rules

10  promulgated by the Auditor General.

11         (18)  "Management letter" means a statement of the

12  auditor's comments and recommendations as prescribed by rules

13  adopted by the Auditor General.

14         Section 53.  Subsection (1) of section 218.32, Florida

15  Statutes, is amended to read:

16         218.32  Annual financial reports; local governmental

17  entities.--

18         (1)(a)  Each local governmental entity that is

19  determined to be a reporting entity, as defined by generally

20  accepted accounting principles, and each independent special

21  district as defined in s. 189.403, shall submit to the

22  department a copy of its annual financial report for the

23  previous fiscal year in a format prescribed by the department.

24  The annual financial report must include a list of each local

25  governmental entity included in the report and each local

26  governmental entity that failed to provide financial

27  information as required by paragraph (b). The chair of the

28  governing body and the chief financial officer of each local

29  governmental entity shall sign the annual financial report

30  submitted pursuant to this subsection attesting to the

31  accuracy of the information included in the report. The county

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  1  annual financial report must be a single document that covers

  2  each county agency.

  3         (b)  Each component unit, as defined by generally

  4  accepted accounting principles, of a local governmental entity

  5  shall provide the local governmental entity, within a

  6  reasonable time period as established by the local

  7  governmental entity, with financial information necessary to

  8  comply with the reporting requirements contained in this

  9  section.

10         (c)  Each regional planning council created under s.

11  186.504, each local government finance commission, board, or

12  council, and each municipal power corporation created as a

13  separate legal or administrative entity by interlocal

14  agreement under s. 163.01(7) shall submit to the department a

15  copy of its audit report and an annual financial report for

16  the previous fiscal year in a format prescribed by the

17  department.

18         (d)  Each local governmental entity that is required to

19  provide for an audit report in accordance with s. 218.39(1)

20  11.45(3)(a)5. must submit the annual financial report with the

21  audit report. A copy of the audit report and annual financial

22  report must be submitted to the department within 45 days

23  after the completion of the audit report but no later than 12

24  months after the end of the fiscal year.

25         (e)  Each local governmental entity that is not

26  required to provide for an audit report in accordance with s.

27  218.39 All other reporting entities must submit the annual

28  financial report to the department no later than April 30 of

29  each year. The department shall consult with the Auditor

30  General in the development of the format of annual financial

31  reports submitted pursuant to this paragraph. The format shall

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  1  include balance sheet information to be utilized by the

  2  Auditor General pursuant to s. 11.45(7)(f). The department

  3  must forward the financial information contained within these

  4  entities' annual financial reports to the Auditor General in

  5  electronic form.  This paragraph does not apply to housing

  6  authorities created under chapter 421.

  7         (f)(e)  If the department does not receive a completed

  8  annual financial report from a local governmental entity

  9  within the required period, it shall notify the Legislative

10  Auditing Committee of the local governmental entity's failure

11  to comply with the reporting requirements. The committee shall

12  proceed in accordance with s. 11.40(5) report. Following

13  receipt of notification of failure to report, the committee

14  shall schedule a hearing for the purpose of receiving

15  additional testimony addressing the failure of local

16  governmental entities to comply with the reporting

17  requirements of this section.  After the hearing, the

18  committee shall determine which local governmental entities

19  will be subjected to further state action.  If it finds that

20  one or more local governmental entities should be subjected to

21  further state action, the committee shall:

22         1.  In the case of a county or municipality, request

23  the Department of Revenue and the Department of Banking and

24  Finance to withhold any funds not pledged for bond debt

25  service satisfaction which are payable to the county or

26  municipality until the required annual financial report is

27  received by the department. The Department of Revenue and the

28  Department of Banking and Finance are authorized to implement

29  the provisions of this subparagraph. The committee, in its

30  request, shall specify the date such action shall begin, and

31  the request must be received by the Department of Revenue and

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  1  the Department of Banking and Finance 30 days before the date

  2  of distribution mandated by law.

  3         2.  In the case of a special district, notify the

  4  Department of Community Affairs that the special district has

  5  failed to provide the required annual financial report. Upon

  6  notification, the Department of Community Affairs shall

  7  proceed pursuant to ss. 189.421 and 189.422.

  8         3.  In the case of a special district that is a

  9  component unit and that did not provide the financial

10  information required by paragraph (b) to the applicable

11  reporting entity, notify the Department of Community Affairs

12  that the special district has failed to provide the required

13  financial information. Upon notification, the Department of

14  Community Affairs shall proceed pursuant to ss. 189.421 and

15  189.422.

16         Section 54.  Subsection (2) of section 218.33, Florida

17  Statutes, is amended to read:

18         218.33  Local governmental entities; establishment of

19  uniform fiscal years and accounting practices and

20  procedures.--

21         (2)  Each local governmental entity shall follow

22  uniform accounting practices and procedures as promulgated by

23  rule of the department to assure the use of proper accounting

24  and fiscal management by such units. Such rules shall include

25  a uniform classification of accounts. The department shall

26  make such reasonable rules regarding uniform accounting

27  practices and procedures by local governmental entities in

28  this state, including a uniform classification of accounts, as

29  it considers necessary to assure the use of proper accounting

30  and fiscal management techniques by such units.

31

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  1         Section 55.  Subsection (3) of section 218.38, Florida

  2  Statutes, is amended to read:

  3         218.38  Notice of bond issues required; verification.--

  4         (3)  If a unit of local government fails to verify

  5  pursuant to subsection (2) the information held by the

  6  division, or fails to provide the information required by

  7  subsection (1), the division shall notify the Legislative

  8  Auditing Committee of such failure to comply. The committee

  9  shall proceed in accordance with s. 11.40(5). Following

10  receipt of such notification of failure to comply with these

11  provisions, a hearing shall be scheduled by the committee for

12  the purpose of receiving testimony addressing the failure of

13  units of local government to comply with the requirements of

14  this section.  After the hearing, the committee shall

15  determine which units of local government will be subjected to

16  further state action.  If it finds that one or more units of

17  local government should be subjected to further state action,

18  the committee shall:

19         (a)  In the case of a unit of local government, request

20  the Department of Revenue and the Department of Banking and

21  Finance to withhold any funds not pledged for bond debt

22  service satisfaction which are payable to such governmental

23  entity. The Department of Revenue and the Department of

24  Banking and Finance are authorized to implement the provisions

25  of this paragraph. The committee, in its request, shall

26  specify the date such action shall begin, and the request must

27  be received by the Department of Revenue and the Department of

28  Banking and Finance 30 days before the date of the

29  distribution mandated by law.

30         (b)  In the case of a special district, notify the

31  Department of Community Affairs that the special district has

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  1  failed to comply.  Upon notification, the Department of

  2  Community Affairs shall proceed pursuant to ss. 189.421 and

  3  189.422.

  4         Section 56.  Sections 218.39 and 218.391, Florida

  5  Statutes, are created to read:

  6         218.39  Annual financial audit reports.--

  7         (1)  If, by the first day in any fiscal year, a local

  8  governmental entity, district school board, charter school, or

  9  charter technical career center has not been notified that a

10  financial audit for that fiscal year will be performed by the

11  Auditor General, each of the following entities shall have an

12  annual financial audit of its accounts and records completed

13  within 12 months after the end of its fiscal year by an

14  independent certified public accountant retained by it and

15  paid from its public funds:

16         (a)  Each county.

17         (b)  Any municipality with revenues or the total of

18  expenditures and expenses in excess of $250,000.

19         (c)  Any special district with revenues or the total of

20  expenditures and expenses in excess of $100,000.

21         (d)  Each district school board.

22         (e)  Each charter school established under s. 228.056.

23         (f)  Each charter technical center established under s.

24  228.505.

25         (g)  Each municipality with revenues or the total of

26  expenditures and expenses between $100,000 and $250,000 that

27  has not been subject to a financial audit pursuant to this

28  subsection for the 2 preceding fiscal years.

29         (h)  Each special district with revenues or the total

30  of expenditures and expenses between $50,000 and $100,000 that

31

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  1  has not been subject to a financial audit pursuant to this

  2  subsection for the 2 preceding fiscal years.

  3         (2)  The county audit report shall be a single document

  4  that includes an audit of the county as a whole.  Reports on

  5  compliance and internal control, management letters, and such

  6  other information as required by rules adopted by the Auditor

  7  General shall be provided for each county agency.

  8         (3)  A dependent special district may make provision

  9  for an annual financial audit by being included within the

10  audit of another local governmental entity upon which it is

11  dependent.  An independent special district may not make

12  provision for an annual financial audit by being included

13  within the audit of another local governmental entity.

14         (4)  A management letter shall be prepared and included

15  as a part of each financial audit report.

16         (5)  At the conclusion of the audit, the auditor shall

17  discuss with the chair of each local governmental entity or

18  the chair's designee, or with the elected official of each

19  county agency or with the elected official's designee, or with

20  the chair of the district school board or the chair's

21  designee, or with the chair of the board of the charter school

22  or the chair's designee, or with the chair of the charter

23  technical career center or the chair's designee, as

24  appropriate, all of the auditor's comments that will be

25  included in the audit report.  If the officer is not available

26  to discuss the auditor's comments, their discussion is

27  presumed when the comments are delivered in writing to his or

28  her office.  The auditor shall notify each member of the

29  governing body of a local governmental entity or district

30  school board for which deteriorating financial conditions

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  1  exist that may cause a condition described in s. 218.503(1) to

  2  occur if actions are not taken to address such conditions.

  3         (6)  The officer's written statement of explanation or

  4  rebuttal concerning the auditor's findings, including

  5  corrective action to be taken, must be filed with the

  6  governing body of the local governmental entity, district

  7  school board, charter school, or charter technical career

  8  center within 30 days after the delivery of the auditor's

  9  findings.

10         (7)  The predecessor auditor of a district school board

11  shall provide the Auditor General access to the prior year's

12  working papers in accordance with the Statements on Auditing

13  Standards, including documentation of planning, internal

14  control, audit results, and other matters of continuing

15  accounting and auditing significance, such as the working

16  paper analysis of balance sheet accounts and those relating to

17  contingencies.

18         (8)  All audits conducted in accordance with this

19  section must be conducted in accordance with the rules of the

20  Auditor General promulgated pursuant to s. 11.45.  All audit

21  reports and the officer's written statement of explanation or

22  rebuttal must be submitted to the Auditor General within 45

23  days after delivery of the audit report to the entity's

24  governing body, but no later than 12 months after the end of

25  the fiscal year.

26         (9)  Each charter school and charter technical career

27  center must file a copy of its audit report with the

28  sponsoring entity; the local district school board, if not the

29  sponsoring entity; the Auditor General; and with the

30  Department of Education.

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  1         (10)  This section does not apply to housing

  2  authorities created under chapter 421.

  3         (11)  Notwithstanding the provisions of any local law,

  4  the provisions of this section shall govern.

  5         218.391  Auditor selection procedures.--

  6         (1)  Each local governmental entity, district school

  7  board, charter school, or charter technical career center

  8  shall use auditor selection procedures when selecting an

  9  auditor to conduct the annual financial audit required in s.

10  218.39.

11         (2)  The governing body of a charter county,

12  municipality, special district, charter school, or charter

13  technical career center shall establish an auditor selection

14  committee and auditor selection procedures or use the

15  procedures outlined in subsection (3). The purpose of the

16  committee and the procedures is to contract with an auditor to

17  conduct the annual financial audit required in s. 218.39.

18         (3)  The governing body of a noncharter county or

19  district school board that retains a certified public

20  accountant shall establish an auditor selection committee and

21  select an auditor according to the following procedure:

22         (a)  For each noncharter county, the auditor selection

23  committee shall consist of the county officers elected

24  pursuant to s. 1(d), Art. VIII of the State Constitution, and

25  one member of the board of county commissioners or its

26  designee.

27         (b)  The committee shall publicly announce, in a

28  uniform and consistent manner, each occasion when auditing

29  services are required to be purchased.  Public notice must

30  include a general description of the audit and must indicate

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  1  how interested certified public accountants can apply for

  2  consideration.

  3         (c)  The committee shall encourage firms engaged in the

  4  lawful practice of public accounting who desire to provide

  5  professional services to submit annually a statement of

  6  qualifications and performance data.

  7         (d)  Any certified public accountant desiring to

  8  provide auditing services shall first be qualified pursuant to

  9  law.  The committee shall make a finding that the firm or

10  individual to be employed is fully qualified to render the

11  required services. Among the factors to be considered in

12  making this finding are the capabilities, adequacy of

13  personnel, past record, and experience of the firm or

14  individual.

15         (e)  The committee shall adopt procedures for the

16  evaluation of professional services, including, but not

17  limited to, capabilities, adequacy of personnel, past record,

18  experience, results of recent external quality control

19  reviews, and such other factors as may be determined by the

20  committee to be applicable to its particular requirements.

21         (f)  The public shall not be excluded from the

22  proceedings under this subsection.

23         (g)  The committee shall evaluate current statements of

24  qualifications and performance data on file with the

25  committee, together with those that may be submitted by other

26  firms regarding the proposed audit, and shall conduct

27  discussions with, and may require public presentations by, no

28  fewer than three firms regarding their qualifications,

29  approach to the audit, and ability to furnish the required

30  services.

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  1         (h)  The committee shall select in order of preference

  2  no fewer than three firms deemed to be the most highly

  3  qualified to perform the required services after considering

  4  the following factors: the ability of professional personnel;

  5  past performance; willingness to meet time requirements;

  6  location; and recent, current, and projected workloads of the

  7  firms. However, such distribution shall not violate the

  8  principle of selection of the most highly qualified firms.  If

  9  fewer than three firms desire to perform the services, the

10  committee shall recommend such firms as it determines to be

11  qualified.

12         (i)  The committee may request, accept, and consider

13  proposals for the compensation to be paid only during

14  competitive negotiations under paragraph (h). The firm ranked

15  first may then negotiate a contract with the board giving,

16  among other things, a basis of its fee for that engagement.

17  If the board is unable to negotiate a satisfactory contract

18  with that firm, negotiations with that firm shall be formally

19  terminated, and the board shall then undertake negotiations

20  with the second-ranked firm.  Failing accord with the

21  second-ranked firm, negotiations shall then be terminated with

22  that firm and undertaken with the third-ranked firm.

23  Negotiations with the other ranked firms shall be undertaken

24  in the same manner.  The board, in negotiating with firms, may

25  reopen formal negotiations with any one of the three

26  top-ranked firms, but it may not negotiate with more than one

27  firm at a time.  The board shall also negotiate on the scope

28  and quality of services.  In making such determination, the

29  board shall conduct a detailed analysis of the cost of the

30  professional services required in addition to considering

31  their scope and complexity.  For contracts over $50,000, the

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  1  board shall require the firm receiving the award to execute a

  2  truth-in-negotiations certificate stating that the rates of

  3  compensation and other factual unit costs supporting the

  4  compensation are accurate, complete, and current at the time

  5  of contracting. Such certificate shall also contain a

  6  description and disclosure of any understanding that places a

  7  limit on current or future years' audit contract fees,

  8  including any arrangements under which fixed limits on fees

  9  will not be subject to reconsideration if unexpected

10  accounting or auditing issues are encountered.  Such

11  certificate shall also contain a description of any services

12  rendered by the certified public accountant or firm of

13  certified public accountants at rates or terms that are not

14  customary.  Any auditing service contract under which such a

15  certificate is required must contain a provision that the

16  original contract price and any additions thereto shall be

17  adjusted to exclude any significant sums by which the board

18  determines the contract price was increased due to inaccurate

19  or incomplete factual unit costs.  All such contract

20  adjustments shall be made within 1 year following the end of

21  the contract.

22         (j)  If the board is unable to negotiate a satisfactory

23  contract with any of the selected firms, the committee shall

24  select additional firms, and the board shall continue

25  negotiations in accordance with this subsection until an

26  agreement is reached.

27         Section 57.  Subsection (22) of section 218.415,

28  Florida Statutes, is amended to read:

29         218.415  Local government investment

30  policies.--Investment activity by a unit of local government

31  must be consistent with a written investment plan adopted by

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  1  the governing body, or in the absence of the existence of a

  2  governing body, the respective principal officer of the unit

  3  of local government and maintained by the unit of local

  4  government or, in the alternative, such activity must be

  5  conducted in accordance with subsection (17).  Any such unit

  6  of local government shall have an investment policy for any

  7  public funds in excess of the amounts needed to meet current

  8  expenses as provided in subsections (1)-(16), or shall meet

  9  the alternative investment guidelines contained in subsection

10  (17). Such policies shall be structured to place the highest

11  priority on the safety of principal and liquidity of funds.

12  The optimization of investment returns shall be secondary to

13  the requirements for safety and liquidity.  Each unit of local

14  government shall adopt policies that are commensurate with the

15  nature and size of the public funds within its custody.

16         (22)  AUDITS.--Certified public accountants conducting

17  audits of units of local government pursuant to s. 218.39

18  11.45 shall report, as part of the audit, whether or not the

19  unit of local government has complied with this section.

20         Section 58.  Paragraph (g) of subsection (8) of section

21  228.056, Florida Statutes, is amended to read:

22         228.056  Charter schools.--

23         (8)  REQUIREMENTS.--

24         (g)  A charter school shall provide for be subject to

25  an annual financial audit in accordance with s. 218.39 a

26  manner similar to that of a school district.

27         Section 59.  Paragraph (d) of subsection (3) of section

28  228.093, Florida Statutes, is amended to read:

29         228.093  Pupil and student records and reports; rights

30  of parents, guardians, pupils, and students; notification;

31  penalty.--

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  1         (3)  RIGHTS OF PARENT, GUARDIAN, PUPIL, OR

  2  STUDENT.--The parent or guardian of any pupil or student who

  3  attends or has attended any public school, area

  4  vocational-technical training center, community college, or

  5  institution of higher education in the State University System

  6  shall have the following rights with respect to any records or

  7  reports created, maintained, and used by any public

  8  educational institution in the state.  However, whenever a

  9  pupil or student has attained 18 years of age, or is attending

10  an institution of postsecondary education, the permission or

11  consent required of, and the rights accorded to, the parents

12  of the pupil or student shall thereafter be required of and

13  accorded to the pupil or student only, unless the pupil or

14  student is a dependent pupil or student of such parents as

15  defined in 26 U.S.C. s. 152 (s. 152 of the Internal Revenue

16  Code of 1954). The State Board of Education shall formulate,

17  adopt, and promulgate rules whereby parents, guardians,

18  pupils, or students may exercise these rights:

19         (d)  Right of privacy.--Every pupil or student shall

20  have a right of privacy with respect to the educational

21  records kept on him or her. Personally identifiable records or

22  reports of a pupil or student, and any personal information

23  contained therein, are confidential and exempt from the

24  provisions of s. 119.07(1).  No state or local educational

25  agency, board, public school, area technical center, community

26  college, or institution of higher education in the State

27  University System shall permit the release of such records,

28  reports, or information without the written consent of the

29  pupil's or student's parent or guardian, or of the pupil or

30  student himself or herself if he or she is qualified as

31  provided in this subsection, to any individual, agency, or

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  1  organization.  However, personally identifiable records or

  2  reports of a pupil or student may be released to the following

  3  persons or organizations without the consent of the pupil or

  4  the pupil's parent:

  5         1.  Officials of schools, school systems, area

  6  technical centers, community colleges, or institutions of

  7  higher learning in which the pupil or student seeks or intends

  8  to enroll; and a copy of such records or reports shall be

  9  furnished to the parent, guardian, pupil, or student upon

10  request.

11         2.  Other school officials, including teachers within

12  the educational institution or agency, who have legitimate

13  educational interests in the information contained in the

14  records.

15         3.  The United States Secretary of Education, the

16  Director of the National Institute of Education, the Assistant

17  Secretary for Education, the Comptroller General of the United

18  States, or state or local educational authorities who are

19  authorized to receive such information subject to the

20  conditions set forth in applicable federal statutes and

21  regulations of the United States Department of Education, or

22  in applicable state statutes and rules of the State Board of

23  Education.

24         4.  Other school officials, in connection with a

25  pupil's or student's application for or receipt of financial

26  aid.

27         5.  Individuals or organizations conducting studies for

28  or on behalf of an institution or a board of education for the

29  purpose of developing, validating, or administering predictive

30  tests, administering pupil or student aid programs, or

31  improving instruction, if such studies are conducted in such a

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  1  manner as will not permit the personal identification of

  2  pupils or students and their parents by persons other than

  3  representatives of such organizations and if such information

  4  will be destroyed when no longer needed for the purpose of

  5  conducting such studies.

  6         6.  Accrediting organizations, in order to carry out

  7  their accrediting functions.

  8         7.  School readiness coalitions and the Florida

  9  Partnership for School Readiness in order to carry out their

10  assigned duties.

11         8.  For use as evidence in pupil or student expulsion

12  hearings conducted by a district school board pursuant to the

13  provisions of chapter 120.

14         9.  Appropriate parties in connection with an

15  emergency, if knowledge of the information in the pupil's or

16  student's educational records is necessary to protect the

17  health or safety of the pupil, student, or other individuals.

18         10.  The Auditor General and the Office of Program

19  Policy Analysis and Government Accountability in connection

20  with their his or her official functions; however, except when

21  the collection of personally identifiable information is

22  specifically authorized by law, any data collected by the

23  Auditor General and the Office of Program Policy Analysis and

24  Government Accountability is confidential and exempt from the

25  provisions of s. 119.07(1) and shall be protected in such a

26  way as will not permit the personal identification of students

27  and their parents by other than the Auditor General, the

28  Office of Program Policy Analysis and Government

29  Accountability, and their his or her staff, and such

30  personally identifiable data shall be destroyed when no longer

31

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  1  needed for the Auditor General's and the Office of Program

  2  Policy Analysis and Government Accountability's official use.

  3         11.a.  A court of competent jurisdiction in compliance

  4  with an order of that court or the attorney of record pursuant

  5  to a lawfully issued subpoena, upon the condition that the

  6  pupil or student and the pupil's or student's parent are

  7  notified of the order or subpoena in advance of compliance

  8  therewith by the educational institution or agency.

  9         b.  A person or entity pursuant to a court of competent

10  jurisdiction in compliance with an order of that court or the

11  attorney of record pursuant to a lawfully issued subpoena,

12  upon the condition that the pupil or student, or his or her

13  parent if the pupil or student is either a minor and not

14  attending an institution of postsecondary education or a

15  dependent of such parent as defined in 26 U.S.C. s. 152 (s.

16  152 of the Internal Revenue Code of 1954), is notified of the

17  order or subpoena in advance of compliance therewith by the

18  educational institution or agency.

19         12.  Credit bureaus, in connection with an agreement

20  for financial aid which the student has executed, provided

21  that such information may be disclosed only to the extent

22  necessary to enforce the terms or conditions of the financial

23  aid agreement. Credit bureaus shall not release any

24  information obtained pursuant to this paragraph to any person.

25         13.  Parties to an interagency agreement among the

26  Department of Juvenile Justice, school and law enforcement

27  authorities, and other signatory agencies for the purpose of

28  reducing juvenile crime and especially motor vehicle theft by

29  promoting cooperation and collaboration, and the sharing of

30  appropriate information in a joint effort to improve school

31  safety, to reduce truancy, in-school and out-of-school

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  1  suspensions, to support alternatives to in-school and

  2  out-of-school suspensions and expulsions that provide

  3  structured and well-supervised educational programs

  4  supplemented by a coordinated overlay of other appropriate

  5  services designed to correct behaviors that lead to truancy,

  6  suspensions, and expulsions, and which support students in

  7  successfully completing their education.  Information provided

  8  in furtherance of such interagency agreements is intended

  9  solely for use in determining the appropriate programs and

10  services for each juvenile or the juvenile's family, or for

11  coordinating the delivery of such programs and services, and

12  as such is inadmissible in any court proceedings prior to a

13  dispositional hearing unless written consent is provided by a

14  parent, guardian, or other responsible adult on behalf of the

15  juvenile.

16

17  This paragraph does not prohibit any educational institution

18  from publishing and releasing to the general public directory

19  information relating to a pupil or student if the institution

20  elects to do so.  However, no educational institution shall

21  release, to any individual, agency, or organization which is

22  not listed in subparagraphs 1.-13., directory information

23  relating to the student body in general or a portion thereof

24  unless it is normally published for the purpose of release to

25  the public in general.  Any educational institution making

26  directory information public shall give public notice of the

27  categories of information which it has designated as directory

28  information with respect to all pupils or students attending

29  the institution and shall allow a reasonable period of time

30  after such notice has been given for a parent, guardian,

31  pupil, or student to inform the institution in writing that

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  1  any or all of the information designated should not be

  2  released.

  3         Section 60.  Paragraph (e) of subsection (11) of

  4  section 228.505, Florida Statutes, is amended to read:

  5         228.505  Charter technical career centers.--

  6         (11)  FUNDING.--

  7         (e)  A center shall provide for is subject to an annual

  8  financial audit in accordance with s. 218.39 a manner similar

  9  to that of a school district or community college.

10         Section 61.  Subsection (4) of section 229.8021,

11  Florida Statutes, is amended to read:

12         229.8021  Direct-support organization; use of property;

13  board of directors; audit.--

14         (4)  ANNUAL AUDIT.--The direct-support organization

15  shall provide make provision for an annual financial audit

16  postaudit of its financial accounts to be conducted by an

17  independent, certified public accountant in accordance with s.

18  218.39 rules to be promulgated by the State Board of

19  Education.  The annual audit report shall include a management

20  letter and shall be submitted to the Auditor General and the

21  State Board of Education for review.  The State Board of

22  Education and the Auditor General have the authority to

23  require and receive from the organization or from its

24  independent auditor any detail or supplemental data relative

25  to the operation of the organization. The identity of donors

26  and all information identifying donors and prospective donors

27  is confidential and exempt from the provisions of s.

28  119.07(1), and that anonymity shall be maintained in the

29  auditor's report.  All other records and information shall be

30  considered public records for the purposes of chapter 119.

31

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  1         Section 62.  Paragraphs (l) and (m) are added to

  2  subsection (10) of section 230.23, Florida Statutes, to read:

  3         230.23  Powers and duties of school board.--The school

  4  board, acting as a board, shall exercise all powers and

  5  perform all duties listed below:

  6         (10)  FINANCE.--Take steps to assure children adequate

  7  educational facilities through the financial procedure

  8  authorized in chapters 236 and 237 and as prescribed below:

  9         (l)  Internal auditor.--The school board may employ an

10  internal auditor to perform ongoing financial verification of

11  the financial records of the school district. The internal

12  auditor shall report directly to the school board or its

13  designee.

14         (m)  Financial and performance audits.--In addition to

15  the audits required by ss. 11.45 and 218.39, the school board

16  may contract with an independent certified public accountant

17  to conduct a financial or performance audit of its accounts

18  and records retained by it and paid from its public funds.

19         Section 63.  Subsection (4) of section 230.23025,

20  Florida Statutes, is amended to read:

21         230.23025  Best financial management practices;

22  standards; reviews; designation of districts.--

23         (4)  District school boards that agree by a majority

24  plus one vote to institute the action plan shall submit an

25  annual report to the Legislature, the Governor, the SMART

26  Schools Clearinghouse, OPPAGA, the Auditor General, and the

27  Commissioner of Education on progress made towards

28  implementing the plan and whether changes have occurred in

29  other areas of operation which would affect compliance with

30  the best practices. Such districts shall be reviewed annually

31  by OPPAGA, in addition to the annual financial audit required

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  1  under s. 218.39 11.45, to determine whether they have attained

  2  compliance with the best financial management practices in the

  3  areas covered by the plan. Districts that are found to comply

  4  with the best financial management practices shall receive a

  5  "Seal of Best Financial Management" by the State Board of

  6  Education certifying that the district is adhering to the

  7  state's best financial management practices. This designation

  8  shall be effective for a 5-year period, after which the

  9  district school board may reapply for the designation to be

10  granted after another financial management practice review.

11  During the designation period, the district school board shall

12  annually notify the SMART Schools Clearinghouse, OPPAGA, the

13  Auditor General, and the State Board of Education of any

14  changes in policies or operations or any other situations that

15  would not conform to the state's best financial management

16  practices. The State Board of Education may revoke the

17  designation of a district at any time if it determines that a

18  district is no longer complying with the state's best

19  financial management practices.

20         Section 64.  Subsection (4) of section 237.40, Florida

21  Statutes, is amended to read:

22         237.40  Direct-support organization; use of property;

23  board of directors; audit.--

24         (4)  ANNUAL AUDIT.--Each The direct-support

25  organization shall provide make provisions for an annual

26  financial audit postaudit of its financial accounts and

27  records, to be conducted by an independent certified public

28  accountant the district auditor in accordance with rules to be

29  adopted by the Auditor General pursuant to s. 11.45(8) and the

30  Commissioner of Education.  The annual audit report shall

31  include a management letter and shall be submitted within 9

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    31-718A-01                                         See HB 1197




  1  months after the fiscal year's end to filed as a public record

  2  in the district school board and the Auditor General.  The

  3  Commissioner of Education,  and the Auditor General, and the

  4  Office of Program Policy Analysis and Government

  5  Accountability have the authority to require and receive from

  6  the organization or the district auditor any records detail or

  7  supplemental data relative to the operation of the

  8  organization. The identity of donors and all information

  9  identifying donors and prospective donors are confidential and

10  exempt from the provisions of s. 119.07(1), and that anonymity

11  shall be maintained in the auditor's report.  All other

12  records and information shall be are considered public records

13  for the purposes of chapter 119.

14         Section 65.  Subsection (1) of section 240.214, Florida

15  Statutes, is amended to read:

16         240.214  State University System accountability

17  process.--It is the intent of the Legislature that an

18  accountability process be implemented which provides for the

19  systematic, ongoing evaluation of quality and effectiveness in

20  the State University System. It is further the intent of the

21  Legislature that this accountability process monitor

22  performance at the system level in each of the major areas of

23  instruction, research, and public service, while recognizing

24  the differing missions of each of the state universities. The

25  accountability process shall provide for the adoption of

26  systemwide performance standards and performance goals for

27  each standard identified through a collaborative effort

28  involving the State University System, the Legislature, and

29  the Governor's Office. These standards and goals shall be

30  consistent with s. 216.011(1) to maintain congruity with the

31  performance-based budgeting process.  This process requires

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  1  that university accountability reports reflect measures

  2  defined through performance-based budgeting.  The

  3  performance-based budgeting measures must also reflect the

  4  elements of teaching, research, and service inherent in the

  5  missions of the institutions in the State University System.

  6         (1)  By December 31 of each year, the Board of Regents

  7  shall submit an annual accountability report providing

  8  information on the implementation of performance standards,

  9  actions taken to improve university achievement of performance

10  goals, the achievement of performance goals during the prior

11  year, and initiatives to be undertaken during the next year.

12  The accountability reports shall be designed in consultation

13  with the Governor's Office, the Office of Program Policy

14  Analysis and Government Accountability the Auditor General,

15  and the Legislature.

16         Section 66.  Subsection (5) of section 240.299, Florida

17  Statutes, is amended to read:

18         240.299  Direct-support organizations; use of property;

19  board of directors; activities; audit; facilities.--

20         (5)  ANNUAL AUDIT.--Each direct-support organization

21  shall provide make provisions for an annual financial audit

22  postaudit of its financial accounts and records to be

23  conducted by an independent certified public accountant in

24  accordance with rules adopted to be promulgated by the Auditor

25  General pursuant to s. 11.45(8) and by the Board of Regents.

26  The annual audit report shall include a management letter and

27  shall be submitted, within 9 months after the end of the

28  fiscal year, to the Auditor General and the Board of Regents

29  for review.  The Board of Regents, and the Auditor General,

30  and the Office of Program Policy Analysis and Government

31  Accountability shall have the authority to require and receive

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  1  from the organization or from its independent auditor any

  2  records detail or supplemental data relative to the operation

  3  of the organization. The identity of donors who desire to

  4  remain anonymous shall be protected, and that anonymity shall

  5  be maintained in the auditor's report.  All records of the

  6  organization other than the auditor's report, management

  7  letter, and any supplemental data requested by the Board of

  8  Regents, and the Auditor General, and the Office of Program

  9  Policy Analysis and Government Accountability shall be

10  confidential and exempt from the provisions of s. 119.07(1).

11         Section 67.  Subsection (5) of section 240.2995,

12  Florida Statutes, is amended to read:

13         240.2995  University health services support

14  organizations.--

15         (5)  Each university health services support

16  organization shall provide make provisions for an annual

17  financial audit postaudit of its financial accounts to be

18  conducted by an independent certified public accountant in

19  accordance with s. 240.299(4) rules of the Board of Regents.

20  The annual audit report shall include a management letter and

21  shall be submitted to the Auditor General and the Board of

22  Regents for review.  The Board of Regents and the Auditor

23  General shall have the authority to require and receive from

24  the organization or from its independent auditor any detail or

25  supplemental data relative to the operation of the

26  organization. The auditor's report, management letter, and any

27  supplemental data requested by the Board of Regents and the

28  Auditor General shall be considered public records, pursuant

29  to s. 119.07.

30         Section 68.  Paragraph (c) of subsection (8) of section

31  240.311, Florida Statutes, is amended to read:

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  1         240.311  State Board of Community Colleges; powers and

  2  duties.--

  3         (8)

  4         (c)  Any Florida not-for-profit corporation receiving

  5  funds pursuant to this section shall make provisions for an

  6  annual postaudit of its financial accounts to be conducted by

  7  an independent certified public accountant in accordance with

  8  rules to be adopted by the board.  The annual audit report

  9  shall be submitted to the Auditor General and the board for

10  review.  The board, and the Auditor General, and the Office of

11  Program Policy Analysis and Government Accountability shall

12  have the authority to require and receive from the

13  organization or from its independent auditor any detail or

14  supplemental data relative to the operation of the

15  organization.

16         Section 69.  Subsection (6) of section 240.331, Florida

17  Statutes, is amended to read:

18         240.331  Community college direct-support

19  organizations.--

20         (6)  ANNUAL AUDIT.--Each direct-support organization

21  shall provide make provisions for an annual financial audit

22  postaudit of its financial accounts to be conducted by an

23  independent certified public accountant in accordance with

24  rules adopted to be promulgated by the Auditor General

25  pursuant to s. 11.45(8) district board of trustees. The annual

26  audit report must be submitted, within 9 months after the end

27  of the fiscal year, to the Auditor General, the State Board of

28  Community Colleges, and the board of trustees for review.  The

29  board of trustees, and the Auditor General, and the Office of

30  Program Policy Analysis and Government Accountability may

31  require and receive from the organization or from its

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  1  independent auditor any detail or supplemental data relative

  2  to the operation of the organization.  The identity of donors

  3  who desire to remain anonymous shall be protected, and that

  4  anonymity shall be maintained in the auditor's report. All

  5  records of the organization, other than the auditor's report,

  6  any information necessary for the auditor's report, any

  7  information related to the expenditure of funds, and any

  8  supplemental data requested by the board of trustees, and the

  9  Auditor General, and the Office of Program Policy Analysis and

10  Government Accountability, shall be confidential and exempt

11  from the provisions of s. 119.07(1).

12         Section 70.  Subsection (6) of section 240.3315,

13  Florida Statutes, is amended to read:

14         240.3315  Statewide community college direct-support

15  organizations.--

16         (6)  ANNUAL AUDIT.--A statewide community college

17  direct-support organization shall provide make provisions for

18  an annual financial audit postaudit of its financial accounts

19  to be conducted by an independent certified public accountant

20  in accordance with s. 240.331 rules to be adopted by the State

21  Board of Community Colleges.  The annual audit report shall be

22  submitted to the Auditor General and the State Board of

23  Community Colleges for review. The State Board of Community

24  Colleges and the Auditor General shall have the authority to

25  require and receive from the organization or from its

26  independent auditor any detail or supplemental data relative

27  to the operation of the organization. The identity of a donor

28  or prospective donor who desires to remain anonymous and all

29  information identifying such donor or prospective donor are

30  confidential and exempt from the provisions of s. 119.07(1)

31

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  1  and s. 24(a), Art. I of the State Constitution. Such anonymity

  2  shall be maintained in the auditor's report.

  3         Section 71.  Section 240.3631, Florida Statutes, is

  4  created to read:

  5         240.3631  Financial and performance audits.--Each

  6  district board of trustees of a community college is

  7  authorized to have an audit of their accounts and records by

  8  an independent certified public accountant retained by them

  9  and paid from their public funds.  These audits are in

10  addition to those required by s. 11.45.

11         Section 72.  Paragraph (d) of subsection (2) and

12  paragraph (b) of subsection (8) of section 240.512, Florida

13  Statutes, are amended to read:

14         240.512  H. Lee Moffitt Cancer Center and Research

15  Institute.--There is established the H. Lee Moffitt Cancer

16  Center and Research Institute at the University of South

17  Florida.

18         (2)  The Board of Regents shall provide in the

19  agreement with the not-for-profit corporation for the

20  following:

21         (d)  Preparation of an annual postaudit of the

22  not-for-profit corporation's financial accounts and the

23  financial accounts of any subsidiaries to be conducted by an

24  independent certified public accountant. The annual audit

25  report shall include management letters and shall be submitted

26  to the Auditor General and the Board of Regents for review.

27  The Board of Regents, and the Auditor General, and the Office

28  of Program Policy Analysis and Government Accountability shall

29  have the authority to require and receive from the

30  not-for-profit corporation and any subsidiaries or from their

31  independent auditor any detail or supplemental data relative

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  1  to the operation of the not-for-profit corporation or

  2  subsidiary.

  3         (8)

  4         (b)  Proprietary confidential business information is

  5  confidential and exempt from the provisions of s. 119.07(1)

  6  and s. 24(a), Art. I of the State Constitution.  However, the

  7  Auditor General, the Office of Program Policy Analysis and

  8  Government Accountability, and Board of Regents, pursuant to

  9  their oversight and auditing functions, must be given access

10  to all proprietary confidential business information upon

11  request and without subpoena and must maintain the

12  confidentiality of information so received. As used in this

13  paragraph, the term "proprietary confidential business

14  information" means information, regardless of its form or

15  characteristics, which is owned or controlled by the

16  not-for-profit corporation or its subsidiaries; is intended to

17  be and is treated by the not-for-profit corporation or its

18  subsidiaries as private and the disclosure of which would harm

19  the business operations of the not-for-profit corporation or

20  its subsidiaries; has not been intentionally disclosed by the

21  corporation or its subsidiaries unless pursuant to law, an

22  order of a court or administrative body, a legislative

23  proceeding pursuant to s. 5, Art. III of the State

24  Constitution, or a private agreement that provides that the

25  information may be released to the public; and which is

26  information concerning:

27         1.  Internal auditing controls and reports of internal

28  auditors;

29         2.  Matters reasonably encompassed in privileged

30  attorney-client communications;

31

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  1         3.  Contracts for managed-care arrangements, including

  2  preferred provider organization contracts, health maintenance

  3  organization contracts, and exclusive provider organization

  4  contracts, and any documents directly relating to the

  5  negotiation, performance, and implementation of any such

  6  contracts for managed-care arrangements;

  7         4.  Bids or other contractual data, banking records,

  8  and credit agreements the disclosure of which would impair the

  9  efforts of the not-for-profit corporation or its subsidiaries

10  to contract for goods or services on favorable terms;

11         5.  Information relating to private contractual data,

12  the disclosure of which would impair the competitive interest

13  of the provider of the information;

14         6.  Corporate officer and employee personnel

15  information;

16         7.  Information relating to the proceedings and records

17  of credentialing panels and committees and of the governing

18  board of the not-for-profit corporation or its subsidiaries

19  relating to credentialing;

20         8.  Minutes of meetings of the governing board of the

21  not-for-profit corporation and its subsidiaries, except

22  minutes of meetings open to the public pursuant to subsection

23  (9);

24         9.  Information that reveals plans for marketing

25  services that the corporation or its subsidiaries reasonably

26  expect to be provided by competitors;

27         10.  Trade secrets as defined in s. 688.002, including

28  reimbursement methodologies or rates; or

29         11.  The identity of donors or prospective donors of

30  property who wish to remain anonymous or any information

31  identifying such donors or prospective donors.  The anonymity

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  1  of these donors or prospective donors must be maintained in

  2  the auditor's report.

  3

  4  As used in this paragraph, the term "managed care" means

  5  systems or techniques generally used by third-party payors or

  6  their agents to affect access to and control payment for

  7  health care services. Managed-care techniques most often

  8  include one or more of the following:  prior, concurrent, and

  9  retrospective review of the medical necessity and

10  appropriateness of services or site of services; contracts

11  with selected health care providers; financial incentives or

12  disincentives related to the use of specific providers,

13  services, or service sites; controlled access to and

14  coordination of services by a case manager; and payor efforts

15  to identify treatment alternatives and modify benefit

16  restrictions for high-cost patient care.

17         Section 73.  Subsection (3) of section 240.5285,

18  Florida Statutes, is amended to read:

19         240.5285  Florida Atlantic University campuses.--

20         (3)  The Board of Regents shall take all actions

21  necessary to assure that Florida Atlantic University Broward

22  and Florida Atlantic University Boca Raton are partners in the

23  overall policymaking and academic governance structures of the

24  university. Annual legislative budget requests for operations

25  and facilities shall separately identify those funds requested

26  for Florida Atlantic University Broward and Florida Atlantic

27  University Boca Raton.  Florida Atlantic University Broward

28  and Florida Atlantic University Boca Raton shall have local

29  management authority over their campus faculty, staff, and

30  programs, but there shall be universitywide standards and

31  processes for evaluating requests for promotion and tenure;

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  1  there shall be complete transferability of credits and uniform

  2  programs across campuses; and colleges operating on multiple

  3  campuses shall have only one dean for each college. Florida

  4  Atlantic University Broward shall establish a faculty senate

  5  and may establish a direct-support organization. Any such

  6  direct-support organization shall be subject to s. 240.299(4).

  7         Section 74.  Paragraphs (b), (c), (d), (e), (f), and

  8  (g) of subsection (22) of section 240.551, Florida Statutes,

  9  are amended to read:

10         240.551  Florida Prepaid College Program.--

11         (22)  DIRECT-SUPPORT ORGANIZATION; AUTHORITY.--

12         (b)  The direct-support organization shall operate

13  under written contract with the board. The contract must

14  provide for:

15         1.  Approval of the articles of incorporation and

16  bylaws of the direct-support organization by the board.

17         2.  Submission of an annual budget for the approval of

18  the board. The budget must comply with rules adopted by the

19  board.

20         3.  An annual financial and compliance audit of its

21  financial accounts and records by an independent certified

22  public accountant in accordance with s. 215.98 rules adopted

23  by the board.

24         4.  Certification by the board that the direct-support

25  organization is complying with the terms of the contract and

26  in a manner consistent with the goals and purposes of the

27  board and in the best interest of the state. Such

28  certification must be made annually and reported in the

29  official minutes of a meeting of the board.

30         5.  The reversion to the board, or to the state if the

31  board ceases to exist, of moneys and property held in trust by

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  1  the direct-support organization for the benefit of the board

  2  or program if the direct-support organization is no longer

  3  approved to operate for the board or if the board ceases to

  4  exist.

  5         6.  The fiscal year of the direct-support organization,

  6  which must begin July 1 of each year and end June 30 of the

  7  following year.

  8         7.  The disclosure of material provisions of the

  9  contract and of the distinction between the board and the

10  direct-support organization to donors of gifts, contributions,

11  or bequests, and such disclosure on all promotional and

12  fundraising publications.

13         (c)  An annual financial and compliance audit of the

14  financial accounts and records of the direct-support

15  organization must be performed by an independent certified

16  public accountant. The audit must be submitted to the board

17  for review and approval. Upon approval, the board shall

18  certify the audit report to the Auditor General for review.

19  The board and Auditor General shall have the authority to

20  require and receive from the organization or its independent

21  auditor any detail or supplemental data relative to the

22  operation of the organization.

23         (c)(d)  The identity of donors who desire to remain

24  anonymous shall be confidential and exempt from the provisions

25  of s. 119.07(1) and s. 24(a), Art. I of the State

26  Constitution, and such anonymity shall be maintained in the

27  auditor's report. Information received by the organization

28  that is otherwise confidential or exempt by law shall retain

29  such status. Any sensitive, personal information regarding

30  contract beneficiaries, including their identities, is exempt

31

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  1  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

  2  the State Constitution.

  3         (d)(e)  The chair and the executive director of the

  4  board shall be directors of the direct-support organization

  5  and shall jointly name three other individuals to serve as

  6  directors of the organization.

  7         (e)(f)  The board may authorize the direct-support

  8  organization established in this subsection to use program

  9  property, except money, and use facilities and personal

10  services subject to the provisions of this section. If the

11  direct-support organization does not provide equal employment

12  opportunities to all persons regardless of race, color,

13  religion, sex, age, or national origin, it may not use the

14  property, facilities, or personal services of the board. For

15  the purposes of this subsection, the term "personal services"

16  includes full-time personnel and part-time personnel as well

17  as payroll processing as prescribed by rule of the board. The

18  board shall adopt rules prescribing the procedures by which

19  the direct-support organization is governed and any conditions

20  with which such a direct-support organization must comply to

21  use property, facilities, or personal services of the board.

22         (f)(g)  The board may invest funds of the

23  direct-support organization which have been allocated for the

24  purchase of advance payment contracts for scholarships with

25  receipts for advance payment contracts.

26         Section 75.  Subsection (6) of section 240.609, Florida

27  Statutes, is amended to read:

28         240.609  Postsecondary endowment grants.--

29         (6)  Matching endowment grants made pursuant to this

30  section to a qualified independent nonprofit college or

31  university shall be placed in a separate restricted endowment

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  1  by such institution.  The interest or other income accruing

  2  from the endowment shall be expended exclusively for

  3  professorships, library resources, scientific and technical

  4  equipment, and nonathletic scholarships.  Moreover, the funds

  5  in the endowment shall not be used for pervasively sectarian

  6  instruction, religious worship, or theology or divinity

  7  programs or resources.  The records of the endowment shall be

  8  subject to review by the department and audit or examination

  9  by the Auditor General and the Office of Program Policy

10  Analysis and Government Accountability.  If any institution

11  receiving a matching endowment grant pursuant to this section

12  ceases operations and undergoes dissolution proceedings, then

13  all funds received pursuant to this section from the state

14  shall be returned.

15         Section 76.  Paragraph (h) of subsection (2) of section

16  240.711, Florida Statutes, is amended to read:

17         240.711  Ringling Center for Cultural Arts.--

18         (2)

19         (h)  The John and Mable Ringling Museum of Art

20  direct-support organization shall provide for cause an annual

21  financial audit of its financial accounts to be conducted by

22  an independent certified public accountant, performed in

23  accordance with s. 240.299(4) generally accepted accounting

24  standards. Florida State University is authorized to require

25  and receive from the direct-support organization, or from its

26  independent auditor, any detail or supplemental data relative

27  to the operation of such organization. Information that, if

28  released, would identify donors who desire to remain

29  anonymous, is confidential and exempt from the provisions of

30  s. 119.07(1). Information that, if released, would identify

31  prospective donors is confidential and exempt from the

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  1  provisions of s. 119.07(1) when the direct-support

  2  organization has identified the prospective donor itself and

  3  has not obtained the name of the prospective donor by copying,

  4  purchasing, or borrowing names from another organization or

  5  source. Identities of such donors and prospective donors shall

  6  not be revealed in the auditor's report.

  7         Section 77.  Subsection (6) of section 250.115, Florida

  8  Statutes, is amended to read:

  9         250.115  Department of Military Affairs direct-support

10  organization.--

11         (6)  ANNUAL AUDIT.--The direct-support organization

12  shall provide make provisions for an annual financial audit

13  postaudit of its financial accounts to be conducted by an

14  independent certified public accountant in accordance with s.

15  215.98 rules to be promulgated by the Adjutant General. The

16  annual audit report shall be submitted to the Auditor General

17  and the Adjutant General. The Adjutant General and the Auditor

18  General may require and receive from the organization or its

19  independent auditor any detail or supplemental data relative

20  to the operation of the organization.

21         Section 78.  Subsection (11) of section 253.025,

22  Florida Statutes, is amended to read:

23         253.025  Acquisition of state lands for purposes other

24  than preservation, conservation, and recreation.--

25         (11)  The Auditor General shall conduct audits

26  performance postaudits of acquisitions and divestitures which,

27  according to his or her preliminary assessments of

28  board-approved acquisitions and divestitures, review of the

29  overall land acquisition program he or she deems necessary.

30  These preliminary assessments shall selected reviews will be

31  initiated not later than within 60 days following the final

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    31-718A-01                                         See HB 1197




  1  approval by the board of land acquisitions under this section.

  2  If an audit is conducted, the Auditor General shall submit an

  3  audit report to the board of trustees, the President of the

  4  Senate, the Speaker of the House of Representatives, and their

  5  designees.

  6         Section 79.  Subsection (16) of section 259.041,

  7  Florida Statutes, is amended to read:

  8         259.041  Acquisition of state-owned lands for

  9  preservation, conservation, and recreation purposes.--

10         (16)  The Auditor General shall conduct audits

11  performance postaudits of acquisitions and divestitures which

12  he or she deems necessary, according to his or her preliminary

13  assessments of board-approved acquisitions and divestitures

14  review of the overall land acquisition program. These

15  preliminary assessments shall selected reviews will be

16  initiated not later than within 60 days following the final

17  approval by the board of land acquisitions under this section.

18  If an audit is conducted, the Auditor General shall submit an

19  audit report to the board of trustees, the President of the

20  Senate, the Speaker of the House of Representatives, and their

21  designees.

22         Section 80.  Subsection (7) of section 266.0018,

23  Florida Statutes, is amended to read:

24         266.0018  Direct-support organization.--

25         (7)  The direct-support organization shall provide for

26  an annual financial and compliance audit of its financial

27  accounts and records by an independent certified public

28  accountant in accordance with s. 215.98 rules established by

29  the board.  The annual audit report must be submitted to the

30  board for review and approval. Upon approval, the board shall

31  certify the audit report to the Auditor General for review.

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    31-718A-01                                         See HB 1197




  1         Section 81.  Subsection (3) of section 267.17, Florida

  2  Statutes, is amended to read:

  3         267.17  Citizen support organizations; use of state

  4  property; audit.--

  5         (3)  ANNUAL AUDIT.--Each citizen support organization

  6  shall provide for cause an annual financial audit in

  7  accordance with s. 215.98 postaudit of its financial accounts

  8  to be conducted by an independent certified public accountant.

  9  The annual audit report shall be submitted to the division for

10  review.  The Auditor General and the division are each

11  authorized to require and obtain from the citizen support

12  organization, or from its independent auditor, such data as

13  may be needed relative to the operation of the organization.

14  The identity of donors who desire to remain anonymous shall be

15  confidential and exempt from the provisions of s. 119.07(1),

16  and that anonymity shall be maintained in the auditor's

17  report.

18         Section 82.  Subsection (6) of section 288.1226,

19  Florida Statutes, is amended to read:

20         288.1226  Florida Tourism Industry Marketing

21  Corporation; use of property; board of directors; duties;

22  audit.--

23         (6)  ANNUAL AUDIT.--The corporation shall provide make

24  provision for an annual financial audit in accordance with s.

25  215.98 postaudit of its financial accounts to be conducted by

26  an independent certified public accountant.  The annual audit

27  report shall be due prior to December 1 of each year, shall

28  include a management letter, and shall be submitted to the

29  Auditor General; the Office of Policy Analysis and Government

30  Accountability; and the Office of Tourism, Trade, and Economic

31  Development for review.  The Office of Program Policy Analysis

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    31-718A-01                                         See HB 1197




  1  and Government Accountability; the Office of Tourism, Trade,

  2  and Economic Development; and the Auditor General have the

  3  authority to require and receive from the corporation or from

  4  its independent auditor any detail or supplemental data

  5  relative to the operation of the corporation. The Office of

  6  Tourism, Trade, and Economic Development shall annually

  7  certify whether the corporation is operating in a manner and

  8  achieving the objectives that are consistent with the policies

  9  and goals of the commission and its long-range marketing plan.

10  The identity of a donor or prospective donor to the

11  corporation who desires to remain anonymous and all

12  information identifying such donor or prospective donor are

13  confidential and exempt from the provisions of s. 119.07(1)

14  and s. 24(a), Art. I of the State Constitution.  Such

15  anonymity shall be maintained in the auditor's report.

16         Section 83.  Subsection (5) of section 288.1229,

17  Florida Statutes, is amended to read:

18         288.1229  Promotion and development of sports-related

19  industries and amateur athletics; direct-support organization;

20  powers and duties.--

21         (5)  The organization shall provide for an annual

22  financial and compliance audit in accordance with s. 215.98 of

23  its financial accounts and records by an independent certified

24  public accountant pursuant to rules established by the Office

25  of Tourism, Trade, and Economic Development.  The auditor

26  shall submit the audit report to the director of the office

27  for review and approval. If the audit report is approved, the

28  office shall certify the audit report to the Auditor General

29  for review.

30         Section 84.  Subsection (4) of section 288.809, Florida

31  Statutes, is amended to read:

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    31-718A-01                                         See HB 1197




  1         288.809  Florida Intergovernmental Relations

  2  Foundation; use of property; board of directors; audit.--

  3         (4)  ANNUAL AUDIT.--The foundation shall provide make

  4  provision for an annual financial audit in accordance with s.

  5  215.98 postaudit of its financial accounts to be conducted by

  6  an independent, certified public accountant.  The annual audit

  7  report shall include a management letter and shall be

  8  submitted to the Auditor General and the department for

  9  review.  The department and the Auditor General have the

10  authority to require and receive from the foundation or from

11  its independent auditor any detail or supplemental data

12  relative to the operation of the foundation. The identity of a

13  donor or prospective donor to the foundation who desires to

14  remain anonymous and all information identifying such donor or

15  prospective donor are confidential and exempt from the

16  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

17  Constitution. Such anonymity shall be maintained in the

18  auditor's report.

19         Section 85.  Section 288.9517, Florida Statutes, is

20  amended to read:

21         288.9517  Audits; confidentiality.--

22         (1)  The Auditor General and the director of the Office

23  of Program Policy Analysis and Government Accountability may,

24  pursuant to their his or her own authority or at the direction

25  of the Legislative Auditing Committee, conduct an audit or

26  examination of the technology development board or the

27  programs or entities created by the board. The audit,

28  examination, or report may not reveal the identity of any

29  person who has anonymously made a donation to the board

30  pursuant to subsection (2).

31

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    31-718A-01                                         See HB 1197




  1         (2)  The identity of a donor, prospective donor, or

  2  inventor who contributes to the board who desires to remain

  3  anonymous and all information identifying such donor,

  4  prospective donor, or inventor who contributes to the board

  5  are confidential and exempt from the provisions of s.

  6  119.07(1) and s. 24(a), Art. I of the State Constitution. Such

  7  anonymity shall be maintained in the auditor's report.

  8         Section 86.  Subsection (5) of section 290.0056,

  9  Florida Statutes, is amended to read:

10         290.0056  Enterprise zone development agency.--

11         (5)  The governing body shall designate a chair and

12  vice chair from among the commissioners. An agency may employ

13  an executive director, technical experts, and such other

14  agents and employees, permanent and temporary, as it requires,

15  and determine their qualifications, duties, and compensation.

16  For such legal service as it requires, an agency may employ or

17  retain its own counsel and legal staff. An agency authorized

18  to transact business and exercise powers under this act shall

19  file with the governing body and with the Auditor General, on

20  or before March 31 of each year, a report of its activities

21  for the preceding fiscal year, which report shall include a

22  complete financial statement setting forth its assets,

23  liabilities, income, and operating expenses as of the end of

24  such fiscal year. At the time of filing the report, the agency

25  shall publish in a newspaper of general circulation in the

26  community a notice to the effect that such report has been

27  filed with the county or municipality and that the report is

28  available for inspection during business hours in the office

29  of the clerk of the municipality or county and in the office

30  of the agency.

31

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  1         Section 87.  Section 290.015, Florida Statutes, is

  2  amended to read:

  3         290.015  Evaluation and review.--

  4         (1)  Prior to January 1, 1995, the department shall

  5  prescribe by rule, subject to the approval of the Office of

  6  Program Policy Analysis and Government Accountability Auditor

  7  General, a research design for the review and evaluation of

  8  ss. 290.001-290.016, together with the incentives listed in s.

  9  290.007. The research design shall set forth the types of

10  additional information necessary to effectuate the research

11  design. Such information shall be provided in the report

12  required pursuant to s. 290.014(2).

13         (2)  Prior to the 2000 Regular Session of the

14  Legislature, the Office of Program Policy Analysis and

15  Government Accountability Auditor General shall perform a

16  review and evaluation of ss. 290.001-290.016, together with

17  the incentives listed in s. 290.007, using the research design

18  promulgated pursuant to subsection (1). The report shall

19  critique the enterprise zone program and shall include an

20  analysis of the state incentives listed under s. 290.007. A

21  report of the findings and recommendations of the Office of

22  Program Policy Analysis and Government Accountability Auditor

23  General shall be submitted to the President of the Senate and

24  the Speaker of the House of Representatives prior to the 2000

25  Regular Session. The appropriate committees of the Senate and

26  House of Representatives shall consider legislation to

27  implement the recommendations of the Office of Program Policy

28  Analysis and Government Accountability Auditor General.

29         (3)  Prior to the 2001 Regular Session of the

30  Legislature, the appropriate substantive committees of both

31  the Senate and the House of Representatives, upon assignment

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    31-718A-01                                         See HB 1197




  1  by the President and Speaker, respectively, shall be

  2  responsible for the completion of a review and evaluation of

  3  ss. 290.001-290.016, together with the incentives listed in s.

  4  290.007.

  5         Section 88.  Section 296.17, Florida Statutes, is

  6  amended to read:

  7         296.17  Audit; inspection; and standards for the

  8  home.--The home shall be open at any time to audit and

  9  inspection by the Auditor General and the Office of Program

10  Policy Analysis and Government Accountability, as provided by

11  law in s. 11.45, the Department of Veterans' Affairs, the

12  United States Department of Veterans Affairs, and to any other

13  audits or inspections as required by law to maintain

14  appropriate standards in the home. The standards that the

15  department shall use to regulate the operation of the home

16  shall be those prescribed by the United States Department of

17  Veterans Affairs, provided that where the state's standards

18  are more restrictive, the standards of the state shall apply.

19         Section 89.  Section 296.41, Florida Statutes, is

20  amended to read:

21         296.41  Audit; inspection; standards for the home.--The

22  home shall be open at any time to audit and inspection by the

23  Auditor General and the Office of Program Policy Analysis and

24  Government Accountability, as provided by law in s. 11.45, the

25  department, and the United States Department of Veterans

26  Affairs, and to any other audits or inspections as required by

27  law to maintain appropriate standards in the home.  The

28  standards that the department shall use to regulate the

29  operation of the home shall be those prescribed by the United

30  States Department of Veterans Affairs, provided that where the

31

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    31-718A-01                                         See HB 1197




  1  state's standards are more restrictive, the standards of the

  2  state shall apply.

  3         Section 90.  Paragraph (a) of subsection (3) of section

  4  311.07, Florida Statutes, is amended to read:

  5         311.07  Florida seaport transportation and economic

  6  development funding.--

  7         (3)(a)  Program funds shall be used to fund approved

  8  projects on a 50-50 matching basis with any of the deepwater

  9  ports, as listed in s. 403.021(9)(b), which is governed by a

10  public body or any other deepwater port which is governed by a

11  public body and which complies with the water quality

12  provisions of s. 403.061, the comprehensive master plan

13  requirements of s. 163.3178(2)(k), the local financial

14  management and reporting provisions of part III of chapter

15  218, and the auditing provisions of s. 11.45(3)(a)5. Program

16  funds also may be used by the Seaport Transportation and

17  Economic Development Council to develop with the Florida Trade

18  Data Center such trade data information products which will

19  assist Florida's seaports and international trade.

20         Section 91.  Subsections (5), (6), and (7) of section

21  320.023, Florida Statutes, are amended to read:

22         320.023  Requests to establish voluntary checkoff on

23  motor vehicle registration application.--

24         (5)  A voluntary contribution collected and distributed

25  under this chapter, or any interest earned from those

26  contributions, may not be used for commercial or for-profit

27  activities nor for general or administrative expenses, except

28  as authorized by law, or to pay the cost of the audit or

29  report required by law.

30

31

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    31-718A-01                                         See HB 1197




  1         (a)  All organizations that receive annual use fee

  2  proceeds from the department are responsible for ensuring that

  3  proceeds are used in accordance with law.

  4         (b)  All organizational recipients of any voluntary

  5  contributions in excess of $15,000, not otherwise subject to

  6  annual audit by the Office of the Auditor General, shall

  7  submit an annual audit of the expenditures of these

  8  contributions and interest earned from these contributions, to

  9  determine if expenditures are being made in accordance with

10  the specifications outlined by law. The audit shall be

11  prepared by a certified public accountant licensed under

12  chapter 473 at that organizational recipient's expense. The

13  notes to the financial statements should state whether

14  expenditures were made in accordance with law.

15         (b)(c)  Any organization not subject to In lieu of an

16  annual audit pursuant to s. 215.97 shall, any organization

17  receiving less than $15,000 in voluntary contributions

18  directly from the department may annually attest report, under

19  penalties of perjury, that such proceeds were used in

20  compliance with law. The attestation shall be made annually in

21  a form and format determined by the department.

22         (c)(d)  Any voluntary contributions authorized by law

23  shall only be distributed to an organization under an

24  appropriation by the Legislature.

25         (d)(e)  Any organization subject to audit pursuant to

26  s. 215.97 shall submit an audit report in accordance with

27  rules adopted by the Auditor General. The annual attestation

28  audit or report shall be submitted to the department for

29  review within 9 months 180 days after the end of the

30  organization's fiscal year.

31

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    31-718A-01                                         See HB 1197




  1         (6)  Within 90 days after receiving an organization's

  2  audit or attestation report, the department shall determine

  3  which recipients have not complied with subsection (5).  If

  4  the department determines that an organization has not

  5  complied  or has failed to use the revenues in accordance with

  6  law, the department must discontinue the distribution of the

  7  revenues to the organization until the department determines

  8  that the organization has complied. If an organization fails

  9  to comply within 12 months after the voluntary contributions

10  are withheld by the department, the proceeds shall be

11  deposited into the Highway Safety Operating Trust Fund to

12  offset department costs.

13         (7)  The Auditor General and the department has have

14  the authority to examine all records pertaining to the use of

15  funds from the voluntary contributions authorized.

16         Section 92.  Paragraph (b) of subsection (9) of section

17  320.08058, Florida Statutes, is amended to read:

18         320.08058  Specialty license plates.--

19         (9)  FLORIDA PROFESSIONAL SPORTS TEAM LICENSE PLATES.--

20         (b)  The license plate annual use fees are to be

21  annually distributed as follows:

22         1.  Fifty-five percent of the proceeds from the Florida

23  Professional Sports Team plate must be deposited into the

24  Professional Sports Development Trust Fund within the Office

25  of Tourism, Trade, and Economic Development. These funds must

26  be used solely to attract and support major sports events in

27  this state.  As used in this subparagraph, the term "major

28  sports events" means, but is not limited to, championship or

29  all-star contests of Major League Baseball, the National

30  Basketball Association, the National Football League, the

31  National Hockey League, the men's and women's National

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    31-718A-01                                         See HB 1197




  1  Collegiate Athletic Association Final Four basketball

  2  championship, or a horseracing or dogracing Breeders' Cup. All

  3  funds must be used to support and promote major sporting

  4  events, and the uses must be approved by the Florida Sports

  5  Foundation.

  6         2.  The remaining proceeds of the Florida Professional

  7  Sports Team license plate must be allocated to the Florida

  8  Sports Foundation, a direct-support organization of the Office

  9  of Tourism, Trade, and Economic Development.  These funds must

10  be deposited into the Professional Sports Development Trust

11  Fund within the Office of Tourism, Trade, and Economic

12  Development. These funds must be used by the Florida Sports

13  Foundation to promote the economic development of the sports

14  industry; to distribute licensing and royalty fees to

15  participating professional sports teams; to institute a grant

16  program for communities bidding on minor sporting events that

17  create an economic impact for the state; to distribute funds

18  to Florida-based charities designated by the Florida Sports

19  Foundation and the participating professional sports teams;

20  and to fulfill the sports promotion responsibilities of the

21  Office of Tourism, Trade, and Economic Development.

22         3.  The Florida Sports Foundation shall provide an

23  annual financial and compliance audit in accordance with s.

24  215.98 of its financial accounts and records by an independent

25  certified public accountant pursuant to the contract

26  established by the Office of Tourism, Trade, and Economic

27  Development as specified in s. 288.1229(5). The auditor shall

28  submit the audit report to the Office of Tourism, Trade, and

29  Economic Development for review and approval. If the audit

30  report is approved, the office shall certify the audit report

31  to the Auditor General for review.

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    31-718A-01                                         See HB 1197




  1         Section 93.  Section 320.08062, Florida Statutes, is

  2  amended to read:

  3         320.08062  Audits and attestations required; annual use

  4  fees of specialty license plates.--

  5         (1)(a)  All organizations that receive annual use fee

  6  proceeds from the department are responsible for ensuring that

  7  proceeds are used in accordance with ss. 320.08056 and

  8  320.08058.

  9         (b)  All organizational recipients of any specialty

10  license plate annual use fee authorized in this chapter, not

11  otherwise subject to annual audit by the Office of the Auditor

12  General, shall submit an annual audit of the expenditures of

13  annual use fees and interest earned from these fees, to

14  determine if expenditures are being made in accordance with

15  the specifications outlined by law.  The audit shall be

16  prepared by a certified public accountant licensed under

17  chapter 473 at that organizational recipient's expense.  The

18  notes to the financial statements should state whether

19  expenditures were made in accordance with ss. 320.08056 and

20  320.08058.

21         (b)(c)  Any organization not subject to In lieu of an

22  annual audit pursuant to s. 215.97 shall, any organization

23  receiving less than $25,000 in annual use fee proceeds

24  directly from the department, or from another state agency,

25  may annually attest report, under penalties of perjury, that

26  such proceeds were used in compliance with ss. 320.08056 and

27  320.08058. The attestation shall be made annually in a form

28  and format determined by the department.

29         (c)(d)  Any organization subject to audit pursuant to

30  s. 215.97 shall submit an audit report in accordance with

31  rules adopted by the Auditor General. The annual attestation

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    31-718A-01                                         See HB 1197




  1  audit or report shall be submitted to the department for

  2  review within 9 months 180 days after the end of the

  3  organization's fiscal year.

  4         (2)  Within 90 days after receiving an organization's

  5  audit or attestation report, the department shall determine

  6  which recipients of revenues from specialty license plate

  7  annual use fees have not complied with subsection (1). If the

  8  department determines that an organization has not complied or

  9  has failed to use the revenues in accordance with ss.

10  320.08056 and 320.08058, the department must discontinue the

11  distribution of the revenues to the organization until the

12  department determines that the organization has complied. If

13  an organization fails to comply within 12 months after the

14  annual use fee proceeds are withheld by the department, the

15  proceeds shall be deposited into the Highway Safety Operating

16  Trust Fund to offset department costs related to the issuance

17  of specialty license plates.

18         (3)  The Auditor General and the department has have

19  the authority to examine all records pertaining to the use of

20  funds from the sale of specialty license plates.

21         Section 94.  Subsections (5), (6), and (7) of section

22  322.081, Florida Statutes, are amended to read:

23         322.081  Requests to establish voluntary checkoff on

24  driver's license application.--

25         (5)  A voluntary contribution collected and distributed

26  under this chapter, or any interest earned from those

27  contributions, may not be used for commercial or for-profit

28  activities nor for general or administrative expenses, except

29  as authorized by law, or to pay the cost of the audit or

30  report required by law.

31

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    31-718A-01                                         See HB 1197




  1         (a)  All organizations that receive annual use fee

  2  proceeds from the department are responsible for ensuring that

  3  proceeds are used in accordance with law.

  4         (b)  All organizational recipients of any voluntary

  5  contributions in excess of $15,000, not otherwise subject to

  6  annual audit by the Office of the Auditor General, shall

  7  submit an annual audit of the expenditures of these

  8  contributions and interest earned from these contributions, to

  9  determine if expenditures are being made in accordance with

10  the specifications outlined by law. The audit shall be

11  prepared by a certified public accountant licensed under

12  chapter 473 at that organizational recipient's expense. The

13  notes to the financial statements should state whether

14  expenditures were made in accordance with law.

15         (b)(c)  Any organization not subject to In lieu of an

16  annual audit pursuant to s. 215.97 shall, any organization

17  receiving less than $15,000 in voluntary contributions

18  directly from the department may annually attest report, under

19  penalties of perjury, that such proceeds were used in

20  compliance with law. The attestation shall be made annually in

21  a form and format determined by the department.

22         (c)(d)  Any voluntary contributions authorized by law

23  shall only be distributed to an organization under an

24  appropriation by the Legislature.

25         (d)(e)  Any organization subject to audit pursuant to

26  s. 215.97 shall submit an audit report in accordance with

27  rules adopted by the Auditor General. The annual attestation

28  audit or report must be submitted to the department for review

29  within 9 months 180 days after the end of the organization's

30  fiscal year.

31

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    31-718A-01                                         See HB 1197




  1         (6)  Within 90 days after receiving an organization's

  2  audit or attestation report, the department shall determine

  3  which recipients have not complied with subsection (5).  If

  4  the department determines that an organization has not

  5  complied  or has failed to use the revenues in accordance with

  6  law, the department must discontinue the distribution of the

  7  revenues to the organization until the department determines

  8  that the organization has complied. If an organization fails

  9  to comply within 12 months after the voluntary contributions

10  are withheld by the department, the proceeds shall be

11  deposited into the Highway Safety Operating Trust Fund to

12  offset department costs.

13         (7)  The Auditor General and the department has have

14  the authority to examine all records pertaining to the use of

15  funds from the voluntary contributions authorized.

16         Section 95.  Subsection (4) of section 334.0445,

17  Florida Statutes, is amended to read:

18         334.0445  Model career service classification and

19  compensation plan.--

20         (4)  The department shall issue a baseline report on

21  the performance measures outlined in subsection (3) within 30

22  days after implementation of this act and shall provide

23  quarterly progress reports to the Department of Management

24  Services, the Executive Office of the Governor, legislative

25  appropriations committees, legislative personnel committees,

26  the Auditor General, the Office of Program Policy Analysis and

27  Government Accountability, and the affected certified

28  bargaining unions. Such reports shall contain the mandatory

29  measures listed in this legislation, as well as other mutually

30  agreed-upon measures between the Department of Transportation,

31  the Department of Management Services, the Executive Office of

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  1  the Governor, legislative appropriations committees,

  2  legislative personnel committees, and the affected certified

  3  bargaining unions.

  4         Section 96.  Subsection (5) of section 339.406, Florida

  5  Statutes, is amended, and subsection (7) is added to that

  6  section, to read:

  7         339.406  Contract between the department and the

  8  corporation.--The contract must provide for:

  9         (5)  The Yearly financial and compliance audits for

10  each corporation filing with by the department an annual

11  financial audit as defined in s. 11.45 and a management letter

12  and the Auditor General.

13         (7)  The authority for the department and the Auditor

14  General to conduct audits.

15         Section 97.  Paragraph (a) of subsection (13) of

16  section 365.171, Florida Statutes, is amended to read:

17         365.171  Emergency telephone number "911."--

18         (13)  "911" FEE.--

19         (a)  Following approval by referendum as set forth in

20  paragraph (b), or following approval by a majority vote of its

21  board of county commissioners, a county may impose a "911" fee

22  to be paid by the local exchange subscribers within its

23  boundaries served by the "911" service.  Proceeds from the

24  "911" fee shall be used only for "911" expenditures as set

25  forth in subparagraph 6.  The manner of imposing and

26  collecting said payment shall be as follows:

27         1.  At the request of the county subscribing to "911"

28  service, the telephone company shall, insofar as is

29  practicable, bill the "911" fee to the local exchange

30  subscribers served by the "911" service, on an individual

31  access line basis, at a rate not to exceed 50 cents per month

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  1  per line (up to a maximum of 25 access lines per account bill

  2  rendered).  However, the fee may not be assessed on any pay

  3  telephone in this state.  A county collecting the fee for the

  4  first time may collect the fee for no longer than 36 months

  5  without initiating the acquisition of its "911" equipment.

  6         2.  Fees collected by the telephone company pursuant to

  7  subparagraph 1. shall be returned to the county, less the

  8  costs of administration retained pursuant to paragraph (c).

  9  The county shall provide a minimum of 90 days' written notice

10  to the telephone company prior to the collection of any "911"

11  fees.

12         3.  Any county that currently has an operational "911"

13  system or that is actively pursuing the implementation of a

14  "911" system shall establish a fund to be used exclusively for

15  receipt and expenditure of "911" fee revenues collected

16  pursuant to this section.  All fees placed in said fund, and

17  any interest accrued thereupon, shall be used solely for "911"

18  costs described in subparagraph 6.  The money collected and

19  interest earned in this fund shall be appropriated for "911"

20  purposes by the county commissioners and incorporated into the

21  annual county budget. Such fund shall be included within the

22  financial audit performed The county shall annually have a

23  financial audit performed on this fund, in accordance with s.

24  218.39 11.45.  A report of the audit shall be forwarded to the

25  department within 60 days of its completion.  A county may

26  carry forward on an annual basis unspent moneys in the fund

27  for expenditures allowed by this section, or it may reduce its

28  fee. However, in no event shall a county carry forward more

29  than 10 percent of the "911" fee billed for the prior year.

30  The amount of moneys carried forward each year may be

31  accumulated in order to allow for capital improvements

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  1  described in this subsection.  The carryover shall be

  2  documented by resolution of the board of county commissioners

  3  expressing the purpose of the carryover or by an adopted

  4  capital improvement program identifying projected expansion or

  5  replacement expenditures for "911" equipment and service

  6  features, or both.  In no event shall the "911" fee carryover

  7  surplus moneys be used for any purpose other than for the

  8  "911" equipment, service features, and installation charges

  9  authorized in subparagraph 6. Nothing in this section shall

10  prohibit a county from using other sources of revenue for

11  improvements, replacements, or expansions of its "911" system.

12  A county may increase its fee for purposes authorized in this

13  section. However, in no case shall the fee exceed 50 cents per

14  month per line.  All current "911" fees shall be reported to

15  the department within 30 days of the start of each county's

16  fiscal period. Any fee adjustment made by a county shall be

17  reported to the department.  A county shall give the telephone

18  company a 90-day written notice of such fee adjustment.

19         4.  The telephone company shall have no obligation to

20  take any legal action to enforce collection of the "911" fee.

21  The telephone company shall provide quarterly to the county a

22  list of the names, addresses, and telephone numbers of any and

23  all subscribers who have identified to the telephone company

24  their refusal to pay the "911" fee.

25         5.  The county subscribing to "911" service shall

26  remain liable to the telephone company for any "911" service,

27  equipment, operation, or maintenance charge owed by the county

28  to the telephone company.

29

30

31

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  1  As used in this paragraph, "telephone company" means an

  2  exchange telephone service provider of "911" service or

  3  equipment to any county within its certificated area.

  4         6.  It is the intent of the Legislature that the "911"

  5  fee authorized by this section to be imposed by counties will

  6  not necessarily provide the total funding required for

  7  establishing or providing the "911" service.  For purposes of

  8  this section, "911" service includes the functions of database

  9  management, call taking, location verification, and call

10  transfer.  The following costs directly attributable to the

11  establishment and/or provision of "911" service are eligible

12  for expenditure of moneys derived from imposition of the "911"

13  fee authorized by this section:  the acquisition,

14  implementation, and maintenance of Public Safety Answering

15  Point (PSAP) equipment and "911" service features, as defined

16  in the Florida Public Service Commission's lawfully approved

17  "911" and related tariffs and/or the acquisition,

18  installation, and maintenance of other "911" equipment,

19  including call answering equipment, call transfer equipment,

20  ANI controllers, ALI controllers, ANI displays, ALI displays,

21  station instruments, "911" telecommunications systems,

22  teleprinters, logging recorders, instant playback recorders,

23  telephone devices for the deaf (TDD) used in the "911" system,

24  PSAP backup power systems, consoles, automatic call

25  distributors, and interfaces (hardware and software) for

26  computer-aided dispatch (CAD) systems; salary and associated

27  expenses for "911" call takers for that portion of their time

28  spent taking and transferring "911" calls; salary and

29  associated expenses for a county to employ a full-time

30  equivalent "911" coordinator position and a full-time

31  equivalent staff assistant position per county for the portion

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  1  of their time spent administrating the "911" system; training

  2  costs for PSAP call takers in the proper methods and

  3  techniques used in taking and transferring "911" calls; and

  4  expenses required to develop and maintain all information (ALI

  5  and ANI databases and other information source repositories)

  6  necessary to properly inform call takers as to location

  7  address, type of emergency, and other information directly

  8  relevant to the "911" call-taking and transferring function.

  9  The "911" fee revenues shall not be used to pay for any item

10  not listed, including, but not limited to, any capital or

11  operational costs for emergency responses which occur after

12  the call transfer to the responding public safety entity and

13  the costs for constructing buildings, leasing buildings,

14  maintaining buildings, or renovating buildings, except for

15  those building modifications necessary to maintain the

16  security and environmental integrity of the PSAP and "911"

17  equipment rooms.

18         7.  It is the goal of the Legislature that enhanced

19  "911" service be available throughout the state.  Expenditure

20  by counties of the "911" fees authorized by this section

21  should support this goal to the greatest extent feasible

22  within the context of local service needs and fiscal

23  capability. Nothing in this section shall be construed to

24  prohibit two or more counties from establishing a combined

25  emergency "911" telephone service by interlocal agreement and

26  utilizing the "911" fees authorized by this section for such

27  combined "911" service.

28         Section 98.  Subsection (3) of section 372.0215,

29  Florida Statutes, is amended to read:

30         372.0215  Citizen support organizations; use of state

31  property; audit.--

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  1         (3)  Each citizen support organization shall provide

  2  for an annual financial audit in accordance with s. 215.98 of

  3  its financial records and accounts by an independent certified

  4  public accountant.  A citizen support organization shall

  5  submit its annual audit report to the commission for review.

  6  The commission shall submit the audit report to the Auditor

  7  General. The commission and the Auditor General may obtain

  8  additional data relative to the operation of a citizen support

  9  organization from the citizen support organization or from its

10  independent auditor.  The identity of a donor or prospective

11  donor to a citizen support organization who desires to remain

12  anonymous and all information identifying such donor or

13  prospective donor are confidential and exempt from the

14  provisions of s. 119.07(1) and s. 24(a), Art. I of the State

15  Constitution. Such anonymity shall be maintained in the

16  auditor's report.

17         Section 99.  Subsection (3) of section 373.45926,

18  Florida Statutes, is amended to read:

19         373.45926  Everglades Trust Fund; allocation of

20  revenues and expenditure of funds for conservation and

21  protection of natural resources and abatement of water

22  pollution.--

23         (3)  The South Florida Water Management District shall

24  furnish, on a quarterly basis, a detailed copy of its

25  expenditures from the Everglades Trust Fund to the Governor,

26  the President of the Senate, and the Speaker of the House of

27  Representatives, and shall make copies available to the

28  public. The information shall be provided in a format approved

29  by the Joint Legislative Committee on Everglades Oversight. At

30  the direction of the Joint Legislative Committee on Everglades

31  Oversight, an audit a postaudit may be made from time to time

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  1  by the Auditor General, and such audit shall be within the

  2  authority of said Auditor General, to make.

  3         Section 100.  Section 373.507, Florida Statutes, is

  4  amended to read:

  5         373.507  Districts and basins; audits postaudits,

  6  budgets.--

  7         (1)  Each basin referred to in this chapter must

  8  furnish a detailed copy of its budget and past year's

  9  expenditures to the Governor, the Legislature, and the

10  governing body of each county in which the basin has

11  jurisdiction or derives any funds for the operations of the

12  basin.

13         (2)  Each district and basin referred to in this

14  chapter must make provision for an annual postaudit of its

15  financial accounts.  The postaudit must be made in accordance

16  with the rules of the Auditor General adopted under ss. 11.47

17  and 166.241.

18         (2)(3)(a)  Each district referred to in this chapter

19  must furnish copies of the following documents to the

20  Governor, the President of the Senate, the Speaker of the

21  House of Representatives, the chairs of all legislative

22  committees and subcommittees with substantive or fiscal

23  jurisdiction over districts, as determined by the President or

24  Speaker as applicable, the secretary of the department, and

25  the governing body of each county in which the district has

26  jurisdiction or derives any funds for the operations of the

27  district:

28         1.  The tentative budget.

29         2.  The adopted budget.

30         3.  The past year's expenditures.

31

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  1         4.  The audit report required postaudit described in s.

  2  218.39 subsection (2).

  3         (b)  The documents must be furnished by the earlier of

  4  10 days following completion of each document or as otherwise

  5  provided by law.

  6         (c)  If any entity in paragraph (a) provides written

  7  comments to the district regarding any document furnished, the

  8  district must respond to the comments in writing and furnish

  9  copies of the comments and written responses to the other

10  entities.

11         (d)  The audit report required in s. 218.39 shall be

12  furnished to the governing board of the district and the

13  clerks of the circuit courts of each county within or partly

14  within the district.

15         Section 101.  Subsection (9) of section 402.73, Florida

16  Statutes, is amended to read:

17         402.73  Contracting and performance standards.--

18         (9)  The department must implement systems and controls

19  to ensure financial integrity and service provision quality in

20  the developmental services Medicaid waiver service system. The

21  Auditor General shall include specific reference to systems

22  and controls related to financial integrity in the

23  developmental services Medicaid waiver service system in his

24  or her audit of the department for each fiscal year.

25         Section 102.  Subsection (8) of section 403.1826,

26  Florida Statutes, is amended to read:

27         403.1826  Grants, requirements for eligibility.--

28         (8)  Any local governmental agency receiving assistance

29  under ss. 403.1821-403.1832 shall keep such records as the

30  department prescribes, including records which fully disclose

31  the amount and disposition by the recipient of the proceeds of

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  1  such assistance, the total cost of the project or undertaking

  2  in connection with such assistance given or used, the amount

  3  of that portion of the cost of the project or undertaking

  4  supplied by other sources, and such other records as will

  5  facilitate an effective audit.  The department, and the

  6  Auditor General, and the Office of Program Policy Analysis and

  7  Government Accountability, or any of their duly authorized

  8  representatives, shall have access, for the purpose of audit

  9  and examination, to any books, documents, papers, and records

10  of the recipient that are pertinent to grants received under

11  ss. 403.1821-403.1832.  Upon project completion, the local

12  governmental agency shall submit to the department a separate

13  audit, by an independent certified public accountant, of the

14  grant expenditures.

15         Section 103.  Paragraph (d) of subsection (11) of

16  section 403.8532, Florida Statutes, is amended to read:

17         403.8532  Drinking water state revolving loan fund;

18  use; rules.--

19         (11)  Prior to approval of a loan, the local government

20  or public water system shall, at a minimum:

21         (d)  Provide assurance that records will be kept using

22  generally accepted government accounting principles standards

23  and that the department or its agents and the Auditor General,

24  or their agents will have access to all records pertaining to

25  the loan.

26         Section 104.  Subsection (2) of section 403.864,

27  Florida Statutes, is amended to read:

28         403.864  Public water supply accounting program.--

29         (2)  In furtherance of this intent, the Department of

30  Health and, the department, and the Auditor General shall

31  jointly develop an accounting program for use by the

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  1  department and the Department of Health and its units,

  2  including the county health departments, to determine the

  3  funds, overhead, personnel, and property used by each of the

  4  departments in conducting its respective public water supply

  5  functions and responsibilities for each fiscal year.  The

  6  accounting program shall provide information sufficient to

  7  satisfy state auditing and federal grant and aid reporting

  8  requirements and shall include provisions requiring the

  9  Department of Health to:

10         (a)  Segregate, from an accounting standpoint, funds

11  distributed to county health departments for public water

12  supply functions from other county health department trust

13  funds.

14         (b)  Segregate, from an accounting standpoint, funds

15  distributed to the central and branch laboratories of the

16  Department of Health for public water supply functions from

17  other laboratory funds.

18         (c)  Require each county health department, the central

19  and each branch laboratory of the Department of Health, and

20  any other entity of the Department of Health involved in and

21  carrying out public water supply functions to account to the

22  Department of Health on a semiannual basis for the funds

23  received, from whatever source, and used for public water

24  supply functions.

25         (d)  Require each county health department, the central

26  and each branch laboratory of the Department of Health, and

27  any other entity of the Department of Health involved in

28  carrying out public water supply functions either wholly or

29  partially with funds, either federal or state, received from

30  the department through an interagency agreement or other means

31

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  1  to account to the department on a semiannual basis for such

  2  funds received and used for public water supply functions.

  3         Section 105.  Paragraph (m) of subsection (4) of

  4  section 411.01, Florida Statutes, is amended to read:

  5         411.01  Florida Partnership for School Readiness;

  6  school readiness coalitions.--

  7         (4)  FLORIDA PARTNERSHIP FOR SCHOOL READINESS.--

  8         (m)  The Florida Partnership for School Readiness shall

  9  have a budget, and shall be financed through an annual

10  appropriation made for this purpose in the General

11  Appropriations Act, and shall be subject to compliance audits

12  and annual financial audits by the Auditor General.

13

14  To ensure that the system for measuring school readiness is

15  comprehensive and appropriate statewide, as the system is

16  developed and implemented, the partnership must consult with

17  representatives of district school systems, providers of

18  public and private child care, health care providers, large

19  and small employers, experts in education for children with

20  disabilities, and experts in child development.

21         Section 106.  Subsection (2) of section 411.221,

22  Florida Statutes, is amended to read:

23         411.221  Prevention and early assistance strategic

24  plan; agency responsibilities.--

25         (2)  The strategic plan and subsequent plan revisions

26  shall incorporate and otherwise utilize, to the fullest extent

27  possible, the evaluation findings and recommendations from

28  intraagency, independent third-party, field projects, and

29  reports issued by the Auditor General or the Office of Program

30  Policy Analysis and Government Accountability evaluations, as

31

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  1  well as the recommendations of the State Coordinating Council

  2  for School Readiness Programs.

  3         Section 107.  Subsection (11) of section 413.615,

  4  Florida Statutes, is amended to read:

  5         413.615  Florida Endowment for Vocational

  6  Rehabilitation.--

  7         (11)  ANNUAL AUDIT.--The board shall provide for cause

  8  an annual financial audit of the foundation foundation's

  9  financial accounts to be conducted by an independent certified

10  public accountant in accordance with s. 215.98 rules adopted

11  by the division. The annual audit report shall be submitted to

12  the Auditor General and to the division for review. The

13  Auditor General and the division are each authorized to

14  require and receive from the foundation, or from its

15  independent auditor, any relevant detail or supplemental data;

16  however, The identities of donors and prospective donors who

17  desire to remain anonymous shall be protected, and that

18  anonymity shall be maintained in the auditor's report.

19         Section 108.  Subsection (1) of section 413.87, Florida

20  Statutes, is amended to read:

21         413.87  Annual audit.--

22         (1)  The corporation shall provide make provision for

23  an annual financial audit in accordance with s. 215.98

24  postaudit of its financial accounts to be conducted by an

25  independent certified public accountant. The annual audit

26  report is due before December 1 of each year, must include a

27  management letter, and must be submitted to the commission,

28  the Auditor General, and the Office of Program Policy Analysis

29  and Government Accountability for review. The Office of

30  Program Policy Analysis and Government Accountability, the

31  commission, and the Auditor General have the authority to

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  1  require and receive from the corporation or from its

  2  independent auditor any detail or supplemental data relative

  3  to the operation of the corporation. The corporation shall

  4  annually certify whether the corporation is operating in a

  5  manner that is consistent with, and achieving objectives that

  6  are consistent with, the policies and goals of the commission

  7  and the plan.

  8         Section 109.  Section 413.88, Florida Statutes, is

  9  amended to read:

10         413.88  Annual report of the Occupational Access and

11  Opportunity Commission; audits.--

12         (1)  Before January 1 of each year, the commission

13  shall submit to the Governor, the President of the Senate, and

14  the Speaker of the House of Representatives a complete and

15  detailed report setting forth for itself and its designated

16  administrative entity:

17         (1)(a)  Its operations and accomplishments during the

18  fiscal year.

19         (2)(b)  Its business and operational plan.

20         (3)(c)  The assets and liabilities of the designated

21  administrative entity at the end of its most recent fiscal

22  year.

23         (4)(d)  A copy of the annual financial and compliance

24  audit.

25         (2)  The Auditor General may, pursuant to his or her

26  own authority or at the direction of the Legislative Auditing

27  Committee, conduct an audit of the commission or its

28  designated administrative entity.

29         Section 110.  Subsection (12) and paragraph (b) of

30  subsection (13) of section 446.609, Florida Statutes, are

31  amended to read:

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  1         446.609  Jobs for Florida's Graduates Act.--

  2         (12)  ANNUAL AUDIT.--The board shall provide for cause

  3  an annual financial audit of the foundation foundation's

  4  financial accounts to be conducted by an independent certified

  5  public accountant in accordance with s. 215.98 rules adopted

  6  by the department.  The annual audit report shall be submitted

  7  to the Auditor General and the department for review.  The

  8  Auditor General and the department may require and receive

  9  from the foundation, or from its independent auditor, any

10  relevant detail or supplemental data.

11         (13)  ASSESSMENT OF PROGRAM RESULTS.--The success of

12  the Jobs for Florida's Graduates Program shall be assessed as

13  follows:

14         (b)  Beginning in the first year of the Jobs for

15  Florida's Graduates Program, the Office Division of Economic

16  and Demographic Research of the Joint Legislative Management

17  Committee shall undertake, during the initial phase, an

18  ongoing longitudinal study of participants to determine the

19  overall efficacy of the program.  The division shall transmit

20  its findings each year to the Office of Program Policy

21  Analysis and Government Accountability for inclusion in the

22  report provided for in paragraph (a).

23         Section 111.  Subsection (9) of section 455.32, Florida

24  Statutes, is amended to read:

25         455.32  Management Privatization Act.--

26         (9)  The corporation shall provide for an annual

27  financial and compliance audit of its financial accounts and

28  records by an independent certified public accountant in

29  accordance with generally accepted auditing standards. The

30  annual audit report shall include a management letter in

31  accordance with s. 11.45 and a detailed supplemental schedule

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  1  of expenditures for each expenditure category and a management

  2  letter. The annual audit report must be submitted to the

  3  board, the department, and the Auditor General for review. The

  4  Auditor General may, pursuant to his or her authority or at

  5  the direction of the Legislative Auditing Committee, conduct

  6  an audit of the corporation.

  7         Section 112.  Paragraph (j) of subsection (3) of

  8  section 471.038, Florida Statutes, is amended to read:

  9         471.038  Florida Engineers Management Corporation.--

10         (3)  The Florida Engineers Management Corporation is

11  created to provide administrative, investigative, and

12  prosecutorial services to the board in accordance with the

13  provisions of chapter 455 and this chapter. The management

14  corporation may hire staff as necessary to carry out its

15  functions. Such staff are not public employees for the

16  purposes of chapter 110 or chapter 112, except that the board

17  of directors and the staff are subject to the provisions of s.

18  112.061. The provisions of s. 768.28 apply to the management

19  corporation, which is deemed to be a corporation primarily

20  acting as an instrumentality of the state, but which is not an

21  agency within the meaning of s. 20.03(11). The management

22  corporation shall:

23         (j)  Provide for an annual financial and compliance

24  audit of its financial accounts and records by an independent

25  certified public accountant in accordance with generally

26  accepted auditing standards. The annual audit report shall

27  include a management letter in accordance with s. 11.45 and a

28  detailed supplemental schedule of expenditures for each

29  expenditure category and a management letter. The annual audit

30  report must be submitted to the board, the department, and the

31  Auditor General for review. The Auditor General may, pursuant

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  1  to his or her own authority or at the direction of the

  2  Legislative Auditing Committee, conduct an audit of the

  3  corporation.

  4         Section 113.  Paragraph (c) of subsection (2) of

  5  section 550.125, Florida Statutes, is amended to read:

  6         550.125  Uniform reporting system; bond requirement.--

  7         (2)

  8         (c)  The Auditor General and the Office of Program

  9  Policy Analysis and Government Accountability may, pursuant to

10  their own authority or at the direction of the Legislative

11  Auditing Committee, audit, examine, and check the books and

12  records of any permitholder and, upon the request of the

13  division, shall do so.  These audit reports shall become part

14  of, and be maintained in, the division files.

15         Section 114.  Subsections (1) and (3) of section

16  570.903, Florida Statutes, are amended to read:

17         570.903  Direct-support organization.--

18         (1)  When the Legislature authorizes the establishment

19  of a direct-support organization to provide assistance for the

20  museums, the Florida Agriculture in the Classroom Program, the

21  Florida State Collection of Arthropods, the Friends of the

22  Florida State Forests Program of the Division of Forestry, and

23  the Forestry Arson Alert Program, and other programs of the

24  department, in addition to any specific provisions elsewhere

25  stated, the following provisions shall govern the creation,

26  use, powers, and duties of the direct-support organization.

27         (a)  The department shall enter into a memorandum or

28  letter of agreement with the direct-support organization,

29  which shall specify the approval of the department, the powers

30  and duties of the direct-support organization, and rules with

31  which the direct-support organization shall comply.

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    31-718A-01                                         See HB 1197




  1         (b)  The department may permit, without charge,

  2  appropriate use of property, facilities, and personnel of the

  3  department by a direct-support organization, subject to the

  4  provisions of ss. 570.902 and 570.903.  The use shall be

  5  directly in keeping with the approved purposes of the

  6  direct-support organization and shall not be made at times or

  7  places that would unreasonably interfere with opportunities

  8  for the general public to use department facilities for

  9  established purposes.

10         (c)  The department shall prescribe by contract or by

11  rule conditions with which a direct-support organization shall

12  comply in order to use property, facilities, or personnel of

13  the department or museum.  Such rules shall provide for budget

14  and audit review and oversight by the department.

15         (d)  The department shall not permit the use of

16  property, facilities, or personnel of the museum, department,

17  or designated program by a direct-support organization which

18  does not provide equal employment opportunities to all persons

19  regardless of race, color, religion, sex, age, or national

20  origin.

21         (3)(a)  The direct-support organization shall provide

22  make provisions for an annual financial audit of its financial

23  accounts to be conducted by an independent certified public

24  accountant in accordance with s. 215.98 generally accepted

25  accounting principles; provided that a direct-support

26  organization having less than $25,000 in total assets may be

27  audited by the department.  The annual audit report shall be

28  submitted to the Auditor General and to the department for

29  review within 2 months after the end of the direct-support

30  organization's fiscal year.

31

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    31-718A-01                                         See HB 1197




  1         (b)  If the direct-support organization fails to submit

  2  the audit report at the appropriate time, the Auditor General

  3  may, pursuant to her or his own authority, conduct the audit,

  4  or the Auditor General shall conduct the audit at the

  5  direction of the Joint Legislative Auditing Committee, or the

  6  department shall engage an independent certified public

  7  accountant to conduct the audit.  The direct-support

  8  organization shall pay for the entire costs of the audit.

  9         (c)  The Auditor General and the department shall have

10  the authority to require and receive from the organization or

11  from its independent auditor any detail or supplemental data

12  relative to the operation of the direct-support organization.

13         Section 115.  Paragraph (d) of subsection (10) of

14  section 601.15, Florida Statutes, is amended to read:

15         601.15  Advertising campaign; methods of conducting;

16  excise tax; emergency reserve fund; citrus research.--

17         (10)  The powers and duties of the Department of Citrus

18  include the following:

19         (d)  To keep books, records, and accounts of all of its

20  activities doings, which books, records, and accounts shall be

21  open to inspection, and audit, and examination by the Auditor

22  General and the Office of Program Policy Analysis and

23  Government Accountability at all times.

24         Section 116.  Subsection (2) of section 616.263,

25  Florida Statutes, is amended to read:

26         616.263  Annual reports and audit of authority.--

27         (2)  The authority shall at all times maintain proper

28  accounting systems and procedures and shall be subject to

29  audit annual auditing by the Auditor General as provided in s.

30  11.45.

31

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    31-718A-01                                         See HB 1197




  1         Section 117.  Subsection (4) of section 657.008,

  2  Florida Statutes, is amended to read:

  3         657.008  Place of doing business.--

  4         (4)  Any credit union organized under this state or

  5  federal law, the members of which are presently, or were at

  6  the time of admission into the credit union, employees of the

  7  state or a political subdivision or municipality thereof, or

  8  members of the immediate families of such employees, may apply

  9  for space in any building owned or leased by the state or

10  respective political subdivision or municipality in the

11  community or district in which the credit union does business.

12  The application shall be addressed to the officer charged with

13  the allotment of space in such building.  If space is

14  available, the officer may allot space to the credit union at

15  a reasonable charge for rent or services. If the governing

16  body having jurisdiction over the building determines that the

17  services rendered by the credit union to the employees of the

18  governing body are equivalent to a reasonable charge for rent

19  or services, available space may be allotted to the credit

20  union without charge for rent or services.  The officer

21  charged with the allotment of space in such building shall

22  report annually the terms and conditions of such use of space

23  to the Auditor General.

24         Section 118.  Subsection (5) of section 744.708,

25  Florida Statutes, is amended to read:

26         744.708  Reports and standards.--

27         (5)  An independent audit by a qualified certified

28  public accountant shall be performed at least every 2 years.

29  The audit should include an investigation into the practices

30  of the office for managing the person and property of the

31  wards. A copy of the report shall be submitted to the

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    31-718A-01                                         See HB 1197




  1  Statewide Public Guardianship Office. In addition, the office

  2  of public guardian shall be subject to audits or examinations

  3  by the Auditor General and the Office of Program Policy

  4  Analysis and Government Accountability pursuant to law s.

  5  11.45.

  6         Section 119.  Subsection (3) of section 943.25, Florida

  7  Statutes, is amended to read:

  8         943.25  Criminal justice trust funds; source of funds;

  9  use of funds.--

10         (3)  The Auditor General is directed in her or his

11  financial audit of courts to ascertain that such assessments

12  have been collected and remitted and shall report to the

13  Legislature annually. All such records of the courts shall be

14  open for her or his inspection. The Auditor General is further

15  directed to conduct financial audits of the expenditures of

16  the trust funds and to report to the Legislature annually.

17  Such audits shall be conducted in accordance with s. 11.45.

18         Section 120.  Section 943.2569, Florida Statutes, is

19  amended to read:

20         943.2569  Annual audits of each center.--Each center

21  shall provide for contract with an independent certified

22  public accountant to conduct annual financial audit and a

23  management letter as defined in s. 11.45 audits of the center.

24  Each audit must comply with the rules of the Auditor General

25  for fiscal audits.

26         Section 121.  Paragraph (c) of subsection (2) of

27  section 944.512, Florida Statutes, is amended to read:

28         944.512  State lien on proceeds from literary or other

29  type of account of crime for which convicted.--

30         (2)  The proceeds of such account shall be distributed

31  in the following order:

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    31-718A-01                                         See HB 1197




  1         (c)  After payments have been made pursuant to

  2  paragraph (a) or paragraph (b), an amount equal to pay all

  3  court costs in the prosecution of the convicted felon, which

  4  shall include, but not be limited to, jury fees and expenses,

  5  court reporter fees, and reasonable per diem for the

  6  prosecuting attorneys for the state, shall go to the General

  7  Revenue Fund.  Additional costs shall be assessed for the

  8  computed per capita cost of imprisonment or supervision by the

  9  state or county correctional system.  Such costs shall be

10  determined and certified by the prosecuting attorney and the

11  imprisoning entity and subject to review by the Auditor

12  General.

13         Section 122.  Subsection (3) of section 944.719,

14  Florida Statutes, is amended to read:

15         944.719  Adoption of rules, monitoring, and

16  reporting.--

17         (3)  The private vendor shall provide a work area at

18  the private correctional facility for use by the contract

19  monitor appointed by the department and shall provide the

20  monitor with access to all data, reports, and other materials

21  that the monitor, and the Auditor General, and the Office of

22  Program Policy Analysis and Government Accountability

23  determine are necessary to carry out monitoring and auditing

24  responsibilities.

25         Section 123.  Subsection (3) of section 944.802,

26  Florida Statutes, is amended to read:

27         944.802  Direct-support organization; definition; use

28  of property; board of directors; audit.--

29         (3)  ANNUAL AUDIT.--The direct-support organization

30  shall provide make provision for an any annual financial audit

31  postaudit of its financial accounts to be conducted by an

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    31-718A-01                                         See HB 1197




  1  independent certified public accountant in accordance with s.

  2  215.98 rules to be promulgated by the Department of

  3  Corrections.  The annual audit report shall include a

  4  management letter and shall be submitted to the Auditor

  5  General and the Department of Corrections for review.  The

  6  Department of Corrections and the Auditor General have the

  7  authority to require and receive from the organization or from

  8  its independent auditor any detail or supplemental data

  9  relative to the operation of the organization.

10         Section 124.  Section 946.31, Florida Statutes, is

11  amended to read:

12         946.31  Sources of fund.--If any general service

13  operation of an institution is transferred to the work program

14  operation by the Department of Corrections, all assets and

15  liabilities of such operation shall become a part of the

16  Correctional Work Program Trust Fund. All income, receipts,

17  earnings, and profits from work programs operated by the

18  department shall be credited to the Correctional Work Program

19  Trust Fund, to be used for the purposes set forth; however, if

20  the earned surplus in the fund at the end of any fiscal year

21  exceeds $5 million, one-half of such amount as is determined

22  by the Auditor General to be in excess of this amount shall be

23  deposited in the General Revenue Fund, and the other half

24  shall be used by the department for the expansion and

25  improvement of inmate work programs.

26         Section 125.  Subsection (3) of section 948.15, Florida

27  Statutes, is amended to read:

28         948.15  Misdemeanor probation services.--

29         (3)  Any private entity providing services for the

30  supervision of misdemeanor probationers must contract with the

31  county in which the services are to be rendered. In a county

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    31-718A-01                                         See HB 1197




  1  with a population of less than 70,000, the county court judge,

  2  or the administrative judge of the county court in a county

  3  that has more than one county court judge, must approve the

  4  contract. Terms of the contract must state, but are not

  5  limited to:

  6         (a)  The extent of the services to be rendered by the

  7  entity providing supervision or rehabilitation.

  8         (b)  Staff qualifications and criminal record checks of

  9  staff in accordance with essential standards established by

10  the American Correctional Association as of January 1, 1991.

11         (c)  Staffing levels.

12         (d)  The number of face-to-face contacts with the

13  offender.

14         (e)  Procedures for handling the collection of all

15  offender fees and restitution.

16         (f)  Procedures for handling indigent offenders which

17  ensure placement irrespective of ability to pay.

18         (g)  Circumstances under which revocation of an

19  offender's probation may be recommended.

20         (h)  Reporting and recordkeeping requirements.

21         (i)  Default and contract termination procedures.

22         (j)  Procedures that aid offenders with job assistance.

23

24  In addition, the entity shall supply the chief judge's office

25  with a quarterly report summarizing the number of offenders

26  supervised by the private entity, payment of the required

27  contribution under supervision or rehabilitation, and the

28  number of offenders for whom supervision or rehabilitation

29  will be terminated.  All records of the entity must be open to

30  inspection upon the request of the county, the court, the

31

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  1  Auditor General, the Office of Program Policy Analysis and

  2  Government Accountability, or agents thereof.

  3         Section 126.  Section 957.07, Florida Statutes, is

  4  amended to read:

  5         957.07  Cost-saving requirements.--The commission may

  6  not enter into a contract or series of contracts unless the

  7  commission determines that the contract or series of contracts

  8  in total for the facility will result in a cost savings to the

  9  state of at least 7 percent over the public provision of a

10  similar facility. Such cost savings as determined by the

11  commission must be based upon the actual costs associated with

12  the construction and operation of similar facilities or

13  services as determined by the Department of Corrections and

14  certified to the commission by the Auditor General. In

15  certifying the actual costs for the determination of the cost

16  savings required by this section, The Department of

17  Corrections Auditor General shall calculate all of the cost

18  components that determine the inmate per diem in correctional

19  facilities of a substantially similar size, type, and location

20  that are operated by the department, including all

21  administrative costs associated with central administration.

22  Services that are provided to the department by other

23  governmental agencies at no direct cost to the department

24  shall be assigned an equivalent cost and included in the per

25  diem. Reasonable projections of payments of any kind to the

26  state or any political subdivision thereof for which the

27  private entity would be liable because of its status as

28  private rather than a public entity, including, but not

29  limited to, corporate income and sales tax payments, shall be

30  included as cost savings in all such determinations. In

31  addition, the costs associated with the appointment and

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    31-718A-01                                         See HB 1197




  1  activities of each contract monitor shall be included in such

  2  determination. In counties where the Department of Corrections

  3  pays its employees a competitive area differential, the cost

  4  for the public provision of a similar correctional facility

  5  may include the competitive area differential paid by the

  6  department. The Department of Corrections Auditor General

  7  shall provide a report detailing the state cost to design,

  8  finance, acquire, lease, construct, and operate a facility

  9  similar to the private correctional facility on a per diem

10  basis. This report shall be provided to the Auditor General

11  commission in sufficient time that it may be certified to the

12  commission to be included in the request for proposals.

13         Section 127.  Section 957.11, Florida Statutes, is

14  amended to read:

15         957.11  Evaluation of costs and benefits of

16  contracts.--The Office of Program Policy Analysis and

17  Government Accountability Auditor General shall develop and

18  implement an evaluation of the costs and benefits of each

19  contract entered into under this chapter.  This evaluation

20  must include a comparison of the costs and benefits of

21  constructing and operating prisons by the state versus by

22  private contractors.  The Office of Program Policy Analysis

23  and Government Accountability Auditor General shall also

24  evaluate the performance of the private contractor at the end

25  of the term of each management contract and make

26  recommendations to the Speaker of the House of Representatives

27  and the President of the Senate on whether to continue the

28  contract.

29         Section 128.  Subsection (4) of section 960.002,

30  Florida Statutes, is amended to read:

31

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    31-718A-01                                         See HB 1197




  1         960.002  Direct-support organization to assist victims

  2  of adult and juvenile crime.--

  3         (4)  The direct-support organization shall provide make

  4  provisions for an annual financial and compliance audit of its

  5  financial accounts and records by an independent certified

  6  public accountant in accordance with s. 215.98 rules

  7  established by the Governor. The annual audit report shall be

  8  submitted to the Governor for review and approval.  Upon

  9  approval, the Governor shall certify the audit report to the

10  Auditor General for review and approval.

11         Section 129.  Paragraph (a) of subsection (1) of

12  section 985.311, Florida Statutes, is amended to read:

13         985.311  Intensive residential treatment program for

14  offenders less than 13 years of age.--

15         (1)  ASSESSMENT AND TREATMENT SERVICES.--Pursuant to

16  the provisions of this chapter and the establishment of

17  appropriate program guidelines and standards, contractual

18  instruments, which shall include safeguards of all

19  constitutional rights, shall be developed for intensive

20  residential treatment programs for offenders less than 13

21  years of age as follows:

22         (a)  The department shall provide for:

23         1.  The oversight of implementation of assessment and

24  treatment approaches.

25         2.  The identification and prequalification of

26  appropriate individuals or not-for-profit organizations,

27  including minority individuals or organizations when possible,

28  to provide assessment and treatment services to intensive

29  offenders less than 13 years of age.

30         3.  The monitoring and evaluation of assessment and

31  treatment services for compliance with the provisions of this

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    31-718A-01                                         See HB 1197




  1  chapter and all applicable rules and guidelines pursuant

  2  thereto.

  3         4.  The development of an annual report on the

  4  performance of assessment and treatment to be presented to the

  5  Governor, the Attorney General, the President of the Senate,

  6  the Speaker of the House of Representatives, and the Auditor

  7  General, and the Office of Program Policy Analysis and

  8  Government Accountability no later than January 1 of each

  9  year.

10         Section 130.  Subsection (6) of section 985.4145,

11  Florida Statutes, is amended to read:

12         985.4145  Direct-support organization; definition; use

13  of property; board of directors; audit.--

14         (6)  The direct-support organization shall provide for

15  an annual financial audit and compliance postaudit of its

16  financial accounts and records by an independent certified

17  public accountant in accordance with s. 215.98 rules of the

18  Auditor General. The annual audit report must include a

19  management letter and must be submitted to the Auditor General

20  and the department for review. The department and the Auditor

21  General may require and receive from the direct-support

22  organization, or from its independent auditor, any detail or

23  supplemental data relative to the operation of the

24  organization.

25         Section 131.  Subsection (3) of section 985.416,

26  Florida Statutes, is amended to read:

27         985.416  Innovation zones.--The department shall

28  encourage each of the juvenile justice circuit boards to

29  propose at least one innovation zone within the circuit for

30  the purpose of implementing any experimental, pilot, or

31  demonstration project that furthers the legislatively

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    31-718A-01                                         See HB 1197




  1  established goals of the department. An innovation zone is a

  2  defined geographic area such as a circuit, commitment region,

  3  county, municipality, service delivery area, school campus, or

  4  neighborhood providing a laboratory for the research,

  5  development, and testing of the applicability and efficacy of

  6  model programs, policy options, and new technologies for the

  7  department.

  8         (3)  Before implementing an innovation zone under this

  9  subsection, the secretary shall, in conjunction with the

10  Office of Program Policy Analysis and Government

11  Accountability Auditor General, develop measurable and valid

12  objectives for such zone within a negotiated reasonable period

13  of time. Moneys designated for an innovation zone in one

14  operating circuit may not be used to fund an innovation zone

15  in another operating circuit.

16         Section 132.  Sections 11.149 and 11.46; paragraph (e)

17  of subsection (2) of section 125.901; paragraph (l) of

18  subsection (2) of section 215.56005; section 216.2815;

19  subsection (23) of section 218.415; subsection (11) of section

20  228.053; subsection (6) of section 228.082; subsection (3) of

21  section 253.037; section 265.607; subsection (2) of section

22  288.906; sections 288.9616 and 298.65; subsection (3) of

23  section 331.419; sections 339.413, 348.69, and 373.589;

24  subsection (3) of section 374.987; subsection (8) of section

25  380.510; sections 388.331 and 400.335; subsection (14) of

26  section 403.1837; paragraph (i) of subsection (14) of section

27  440.49; subsection (14) of section 517.1204; and sections

28  570.912, 581.195, 589.013, and 590.612, Florida Statutes, are

29  repealed.

30         Section 133.  This act shall take effect upon becoming

31  a law.

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  1            *****************************************

  2                       LEGISLATIVE SUMMARY

  3    Revises auditing duties and responsibilities of the
      Auditor General, the Office of Program Policy Analysis
  4    and Government Accountability, and the Legislative
      Auditing Committee. Requires annual financial audits,
  5    examinations, reports, and attestations. (See bill for
      details.)
  6

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