House Bill hb0269
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
By Representatives Murman, Lacasa, Byrd, Mack, Melvin,
Diaz-Balart, Cantens, Bense, Argenziano and Lynn
1 A bill to be entitled
2 An act relating to school district best
3 financial management practices reviews;
4 amending s. 230.23025, F.S.; providing
5 legislative intent; providing OPPAGA with
6 primary responsibility for the completion of
7 best financial practices reviews; revising
8 areas in which best financial management
9 practices are to be developed and adopted;
10 revising and clarifying the best financial
11 management practices adoption and revision
12 process; clarifying that OPPAGA may either
13 complete, or contract with a private firm to
14 complete, all or part of any review;
15 authorizing the inclusion of review items in
16 addition to the adopted best financial
17 management practices, after consultation with
18 the school district; establishing a continuing
19 5-year review cycle; authorizing the Joint
20 Legislative Auditing Committee to adjust the
21 schedule under certain circumstances;
22 authorizing the review of additional school
23 districts under certain circumstances;
24 specifying that reviews shall be conducted to
25 the extent funded by the Legislature;
26 specifying the use of such funds; requiring
27 copies of the final report issued by OPPAGA to
28 be provided to additional entities; revising
29 provisions relating to eligibility for the
30 "Seal of Best Financial Management";
31 establishing requirements relating to status
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 reports; requiring OPPAGA to review a
2 district's status reports, assess
3 implementation of the action plan, and assess
4 progress toward implementing the best financial
5 management practices and to issue a report;
6 clarifying provisions relating to the award of
7 the "Seal of Best Financial Management";
8 requiring school districts that are reviewed to
9 maintain certain records; repealing s. 11.515,
10 F.S., relating to school district performance
11 reviews; repealing s. 230.2302, F.S., relating
12 to performance reviews; repealing s. 230.23026,
13 F.S., relating to the Florida School District
14 Review Trust Fund; amending s. 11.51, F.S.,
15 relating to school district performance reviews
16 by the Office of Program Policy Analysis and
17 Government Accountability, s. 230.23027, F.S.,
18 relating to the Small School District
19 Stabilization Program, s. 233.43, F.S.,
20 relating to duties of superintendent relating
21 to instructional materials, and s. 235.2197,
22 F.S., relating to the Florida Frugal Schools
23 Program; correcting cross references to
24 conform; providing an effective date.
25
26 Be It Enacted by the Legislature of the State of Florida:
27
28 Section 1. Section 230.23025, Florida Statutes, as
29 amended by chapters 97-384, 98-225, 2000-235, and 2000-291,
30 Laws of Florida, is amended to read:
31
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 230.23025 Best financial management practices;
2 standards; reviews; designation of districts.--
3 (1) The purpose of best financial management practices
4 reviews is to improve Florida school district management and
5 use of resources and to identify cost savings. The Office of
6 Program Policy Analysis and Government Accountability (OPPAGA)
7 and the Office of the Auditor General are directed to develop
8 a system for reviewing the financial management practices of
9 school districts. In this system, OPPAGA and the Auditor
10 General shall assist OPPAGA in examining jointly examine
11 district operations to determine whether they meet "best
12 financial management practices."
13 (2) The best financial management practices adopted by
14 the Commissioner of Education may be updated periodically
15 After consultation with the Legislature, the Governor, the
16 SMART Schools Clearinghouse, OPPAGA, and the Auditor General,
17 OPPAGA may submit to the Commissioner of Education for review
18 and adoption proposed revisions to the best financial
19 management practices adopted by the commissioner. The best
20 financial management practices, at a minimum, must instill
21 public confidence by addressing the school district's use of
22 state and district resources; identifying ways that the
23 district could save funds; and improving districts'
24 performance accountability systems, including public
25 accountability. To achieve these objectives, best practices
26 shall be developed for, but need not be limited to, the
27 following areas:
28 (a) Management structures.
29 (b) Performance accountability.
30 (c) Efficient delivery of educational services,
31 including instructional materials.
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 (d) Administrative and instructional technology.
2 (e) Personnel systems and benefits management.
3 (f) Facilities construction.
4 (g) Facilities maintenance.
5 (h) Student transportation.
6 (i) Food service operations.
7 (j) Cost control systems, including asset management,
8 risk management, financial management, purchasing, internal
9 auditing, and financial auditing.
10
11 In areas for which the commissioner has not adopted best
12 practices, OPPAGA may develop additional best financial
13 management practices, with input from a broad range of
14 stakeholders. OPPAGA shall present any additional best
15 practices to the commissioner for review and adoption. Revised
16 best financial management practices adopted by the
17 commissioner must be used in future school district reviews
18 conducted according to this section.
19 (a) Efficient use of resources, use of lottery
20 proceeds, student transportation and food service operations,
21 management structures, and personnel systems and benefits,
22 instructional materials, and administrative and instructional
23 technology.
24 (b) Compliance with generally accepted accounting
25 principles and state and federal laws relating to financial
26 management.
27 (c) Performance accountability systems, including
28 performance measurement reports to the public, internal
29 auditing, financial auditing, and information made available
30 to support decisionmaking.
31
4
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 (d) Cost control systems, including asset, risk, and
2 financial management, purchasing, and information system
3 controls.
4 (e) Safety and security practices at the district and
5 school levels.
6 (2) School districts may, by a unanimous vote of the
7 membership of the school board, apply to OPPAGA for a complete
8 best financial management practice review or a review of
9 components of the best financial management practices,
10 including management, personnel, transportation, and food and
11 nutrition services. OPPAGA shall prioritize districts for
12 review based on their growth rates and demonstrated need for
13 review. The director of OPPAGA may, at his or her discretion,
14 contract with private consultants to perform part or all of
15 the review of any district. Districts applying for a complete
16 review shall contribute 50 percent of review costs, unless
17 funding for the entire cost of the review is specifically
18 provided by the Legislature. Districts applying for a review
19 of a component shall contribute 75 percent of the review cost.
20 All moneys contributed by any school district under this
21 section toward the cost of a complete or component best
22 financial management practices review of the district shall be
23 deposited into the Florida School District Review Trust Fund
24 administered by OPPAGA.
25 (3) OPPAGA may conduct best financial management
26 practices reviews pursuant to this section, or the director of
27 OPPAGA may, at his or her discretion, contract with a private
28 firm selected through a formal request for proposal process to
29 perform part or all of any review. The scope of the review
30 shall focus on the best practices adopted by the Commissioner
31 of Education, pursuant to subsection (2). OPPAGA may include
5
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 additional items in the scope of the review after seeking
2 input from the school district.
3 (4) It is the intent of the Legislature that each
4 school district shall be subject to a best financial
5 management practices review. The Legislature also intends that
6 all school districts shall be reviewed on a continuing 5-year
7 cycle, as follows, unless specified otherwise in the General
8 Appropriations Act, or as provided by this subsection and
9 subsection (5):
10 (a) Year 1: Hillsborough, Volusia, Sarasota, Collier,
11 Okaloosa, Alachua, St. Lucie, Santa Rosa, Hernando, Indian
12 River, Monroe, and Bradford.
13 (b) Year 2: Miami-Dade, Duval, Osceola, Bay, Columbia,
14 Suwannee, Wakulla, Baker, Union, Hamilton, Jefferson, Gadsden,
15 and Franklin.
16 (c) Year 3: Palm Beach, Orange, Seminole, Lee,
17 Escambia, Leon, Levy, Taylor, Madison, Gilchrist, Gulf, Dixie,
18 Liberty, and Lafayette.
19 (d) Year 4: Pinellas, Pasco, Marion, Manatee, Clay,
20 Charlotte, Citrus, Highlands, Nassau, Hendry, Okeechobee,
21 Hardee, DeSoto, and Glades.
22 (e) Year 5: Broward, Polk, Brevard, Lake, St. Johns,
23 Martin, Putnam, Jackson, Flagler, Walton, Sumter, Holmes,
24 Washington, and Calhoun.
25
26 The Joint Legislative Auditing Committee may adjust the
27 schedule of districts to be reviewed when unforeseen
28 circumstances prevent initiation of reviews scheduled in a
29 given year. Once the 5-year cycle has been completed, reviews
30 shall continue, beginning again with those districts included
31 in year one of the cycle.
6
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 (5) At the direction of the Joint Legislative Auditing
2 Committee or the President of the Senate and the Speaker of
3 the House of Representatives, and subject to funding by the
4 Legislature, OPPAGA may conduct up to two additional best
5 financial management practices reviews in districts not
6 scheduled for review during that year if such review is
7 necessary to address adverse financial conditions.
8 (6) Reviews shall be conducted to the extent
9 specifically funded by the Legislature in the General
10 Appropriations Act for this purpose. Such funds may be used
11 for the cost of reviews conducted by OPPAGA, by the Auditor
12 General, or by private consultants contracted by the director
13 of OPPAGA. Expenses may include professional services, travel
14 expenses of staff of OPPAGA and the Auditor General, and any
15 other necessary expenses incurred as part of a best financial
16 management practices review.
17 (7)(3) District reviews conducted under this section
18 must be completed within 6 months after commencement. OPPAGA
19 shall issue a final report to the President of the Senate, the
20 Speaker of the House of Representatives, and the district
21 regarding the district's use of best its financial management
22 practices and cost savings recommendations within 60 days
23 after completing the reviews. Copies of the final report shall
24 be provided to the Governor and the Commissioner of Education.
25 (8)(a) If the district is found not to conform to best
26 financial management practices, the report must contain an a
27 plan of action plan detailing how the district could meet the
28 best practices within 2 years. The school board must decide,
29 by a majority plus one vote within 90 days after receipt of
30 the final report, whether or not to implement the action plan
31 and pursue a "Seal of Best Financial Management" awarded by
7
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 the State Board of Education to qualified school districts. If
2 a district fails to vote on the action plan within 90 days,
3 school board members may be required to appear and present
4 testimony before a legislative committee, pursuant to s.
5 11.143.
6 (b) The school board may vote to reverse a decision
7 not to implement an action plan, provided that the action plan
8 is implemented and there is still sufficient time, as
9 determined by the district school board, to meet the best
10 practices within 2 years after issuance of the final report.
11 (9)(4) If a district votes to implement the action
12 plan:
13 (a) No later than 1 year after receipt of the final
14 report, the school district must District school boards that
15 agree by a majority plus one vote to institute the action plan
16 shall submit an initial status annual report to the President
17 of the Senate, the Speaker of the House of Representatives
18 Legislature, the Governor, the SMART Schools Clearinghouse,
19 OPPAGA, the Auditor General, the State Board of Education, and
20 the Commissioner of Education on progress made towards
21 implementing the action plan and whether changes have occurred
22 in other areas of operation that which would affect compliance
23 with the best practices.
24 (b) A second status report must be submitted by the
25 school district to the President of the Senate, the Speaker of
26 the House of Representatives, the Governor, OPPAGA, the
27 Auditor General, the Commissioner of Education, and the State
28 Board of Education no later than 1 year after submission of
29 the initial report.
30
31
8
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 Status reports are not required once OPPAGA concludes that the
2 district is using best practices. Such districts shall be
3 reviewed annually by OPPAGA, in addition to the annual
4 financial audit required under s. 11.45, to determine whether
5 they have attained compliance with the best financial
6 management practices in the areas covered by the plan.
7 (10) After receipt of each of a district's two status
8 reports required by subsection (9), OPPAGA shall assess the
9 district's implementation of the action plan and progress
10 toward implementing the best financial management practices in
11 areas covered by the plan. Following each assessment, OPPAGA
12 shall issue a report to the President of the Senate, the
13 Speaker of the House of Representatives, and the district
14 indicating whether the district has successfully implemented
15 the best financial management practices. Copies of the report
16 must be provided to the Governor, the Auditor General, the
17 Commissioner of Education, and the State Board of Education.
18 If a district has failed to implement an action plan adopted
19 pursuant to subsection (8), school board members may be
20 required to appear before a legislative committee, pursuant to
21 s. 11.143, to present testimony regarding the district's
22 failure to implement such action plan.
23 (11) School districts that successfully implement the
24 best financial management practices within 2 years are
25 eligible to receive a "Seal of Best Financial Management."
26 Upon notification by OPPAGA that a district has been districts
27 that are found to be using comply with the best financial
28 management practices, the State Board of Education shall award
29 that district shall receive a "Seal of Best Financial
30 Management" by the State Board of Education certifying that
31 the district is adhering to the state's best financial
9
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 management practices. The State Board of Education This
2 designation shall be effective for 5 years from the
3 certification date or until the next review is completed,
4 whichever is sooner a 5-year period, after which the district
5 school board may reapply for the designation to be granted
6 after another financial management practice review. During the
7 designation period, the district school board shall annually,
8 not later than the anniversary date of the certification,
9 notify the SMART Schools Clearinghouse, OPPAGA, the Auditor
10 General, and the State Board of Education of any changes in
11 policies or operations or any other situations that would not
12 conform to the state's best financial management practices.
13 The State Board of Education may revoke the designation of a
14 district at any time if it determines that a district is no
15 longer complying with the state's best financial management
16 practices.
17 (12) School districts that receive a best financial
18 management practices review must maintain records that will
19 enable independent verification of the implementation of the
20 action plan and any related fiscal impacts.
21 (5) Any audit or performance review of one or more of
22 the designated components conducted or supervised by OPPAGA or
23 the Department of Management Services, and completed within 2
24 years before the date of application to OPPAGA for a best
25 financial practices review, may serve as all or part of the
26 audit or review required as the examination of district
27 operations necessary for a determination of whether a district
28 meets the "best financial management practices" designation.
29 The cost contribution requirements of subsection (2) do not
30 apply to any such audit or performance review.
31
10
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 Section 2. Section 11.515, Florida Statutes, is
2 repealed.
3 Section 3. Section 230.2302, Florida Statutes, is
4 repealed.
5 Section 4. Section 230.23026, Florida Statutes, is
6 repealed.
7 Section 5. Subsection (1) of section 11.51, Florida
8 Statutes, is amended to read:
9 11.51 Office of Program Policy Analysis and Government
10 Accountability.--
11 (1) There is hereby created the Office of Program
12 Policy Analysis and Government Accountability as a unit of the
13 Office of the Auditor General appointed pursuant to s. 11.42.
14 Such office shall perform program evaluation and justification
15 reviews as required by s. 11.513 and performance audits as
16 defined in s. 11.45 and shall contract for performance reviews
17 of school districts pursuant to s. 230.23025(3) ss. 11.515 and
18 230.2302.
19 Section 6. Subsection (4) of section 230.23027,
20 Florida Statutes, is amended to read:
21 230.23027 Small School District Stabilization
22 Program.--
23 (4) Effective July 1, 2000, and thereafter, when the
24 Office of Tourism, Trade, and Economic Development authorizes
25 a school district to participate in the program, the
26 Legislature may give priority to that district for a best
27 financial management practices review in the school district,
28 subject to approval pursuant to s. 230.23025(5) as authorized
29 in s. 11.515, to the extent that funding is provided annually
30 for such purpose in the General Appropriations Act. The scope
31 of the review shall be as set forth in s. 230.23025 s. 11.515.
11
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 Section 7. Subsection (1) of section 233.43, Florida
2 Statutes, is amended to read:
3 233.43 Duties of superintendent relating to
4 instructional materials.--
5 (1) The duties and responsibilities of each
6 superintendent of schools for the requisition, purchase,
7 receipt, storage, distribution, use, conservation, records,
8 and reports of, and management practices and property
9 accountability concerning, instructional materials shall be
10 prescribed by policies of the district school board. Such
11 policies shall also provide for an evaluation of any
12 instructional materials to be requisitioned that have not been
13 used previously in the schools of the district. The duties and
14 responsibilities include keeping adequate records and accounts
15 for all financial transactions for funds collected pursuant to
16 s. 233.46(4). Such records and accounts shall be a component
17 of the educational service delivery scope in a school district
18 best financial management practices review under s. ss. 11.515
19 and 230.23025.
20 Section 8. Paragraph (a) of subsection (2) of section
21 235.2197, Florida Statutes, is amended to read:
22 235.2197 Florida Frugal Schools Program.--
23 (2) The "Florida Frugal Schools Program" is created to
24 recognize publicly each district school board that agrees to
25 build frugal yet functional educational facilities and that
26 implements "best financial management practices" when
27 planning, constructing, and operating educational facilities.
28 The State Board of Education shall recognize a district school
29 board as having a Florida Frugal Schools Program if the
30 district requests recognition and satisfies two or more of the
31 following criteria:
12
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 2001 HB 269
583-215-01
1 (a) The district receives a "Seal of Best Financial
2 Management" as provided in s. 230.23025 or implements best
3 financial management practices applicable to in the area of
4 educational facilities as evidenced by a partial review under
5 s. 230.23025 s. 230.2302.
6 Section 9. This act shall take effect July 1, 2001.
7
8 *****************************************
9 HOUSE SUMMARY
10
Provides legislative intent relating to school district
11 best financial management practices reviews. Provides
OPPAGA with primary responsibility for the completion of
12 best financial practices reviews. Revises areas in which
best financial management practices are to be developed
13 and adopted. Revises and clarifies the best financial
management practices adoption and revision process.
14 Clarifies that OPPAGA may either complete, or contract
with a private firm to complete, all or part of any
15 review. Authorizes the inclusion of review items in
addition to the adopted best financial management
16 practices, after consultation with the school district.
Establishes a continuing 5-year review cycle. Authorizes
17 the Joint Legislative Auditing Committee to adjust the
schedule under certain circumstances. Authorizes the
18 review of additional school districts under certain
circumstances. Specifies that reviews shall be conducted
19 to the extent funded by the Legislature and specifies the
use of such funds. Requires copies of the final report
20 issued by OPPAGA to be provided to additional entities.
Revises provisions relating to eligibility for the "Seal
21 of Best Financial Management." Establishes requirements
relating to status reports. Requires OPPAGA to review a
22 district's status reports, assess implementation of the
action plan, and assess progress toward implementing the
23 best financial management practices and to issue a
report. Clarifies provisions relating to the award of the
24 "Seal of Best Financial Management." Requires school
districts that are reviewed to maintain certain records.
25 Repeals s. 11.515, F.S., relating to school district
performance reviews; s. 230.2302, F.S., relating to
26 performance reviews; and s. 230.23026, F.S., relating to
the Florida School District Review Trust Fund. Corrects
27 cross references to conform.
28
29
30
31
13
CODING: Words stricken are deletions; words underlined are additions.