Florida Senate - 2007 COMMITTEE AMENDMENT
Bill No. SB 2078
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CHAMBER ACTION
Senate House
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11 The Committee on Governmental Operations (Posey) recommended
12 the following amendment:
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14 Senate Amendment (with title amendment)
15 Delete everything after the enacting clause
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17 and insert:
18 Section 1. Section 20.055, Florida Statutes, is
19 amended to read:
20 20.055 Agency inspectors general.--
21 (1) For the purposes of this section:
22 (a) "State agency" means each department created
23 pursuant to this chapter, and also includes the Executive
24 Office of the Governor, the Department of Military Affairs,
25 the Fish and Wildlife Conservation Commission, the Office of
26 Insurance Regulation of the Financial Services Commission, the
27 Office of Financial Regulation of the Financial Services
28 Commission, the Public Service Commission, and the state
29 courts system.
30 (b) "Agency head" means a public official such as the
31 Governor, a Cabinet officer, a secretary as defined in s.
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1 20.03(5), or an executive director as defined in s. 20.03(6).
2 It also includes the chair of the Public Service Commission,
3 the Director of the Office of Insurance Regulation of the
4 Financial Services Commission, the Director of the Office of
5 Financial Regulation of the Financial Services Commission, and
6 the Chief Justice of the State Supreme Court. The term does
7 not include the head of, or an officer of, a private entity
8 operating as a for-profit or not-for-profit entity.
9 (c) "Individuals substantially affected" means natural
10 persons who have established a real and sufficiently immediate
11 injury in fact due to the findings, conclusions, or
12 recommendations of a final report of a state agency inspector
13 general, who are the subject of the audit or investigation,
14 and who do not have or are not currently afforded an existing
15 right to an independent review process. Employees of the
16 state, including career service, probationary, other personal
17 service, Selected Exempt Service, and Senior Management
18 Service employees, are not covered by this definition. This
19 definition also does not cover former employees of the state
20 if the final report of the state agency inspector general
21 relates to matters arising during a former employee's term of
22 state employment.
23 (d) "Entities contracting with the state" means
24 for-profit and not-for-profit organizations or businesses
25 having a legal existence, such as corporations or
26 partnerships, as opposed to natural persons, that have entered
27 into a relationship with a state agency as defined in
28 paragraph (a) to provide for consideration certain goods or
29 services to the state agency or on behalf of the state agency.
30 The relationship may be evidenced by payment by warrant or
31 purchasing card, contract, purchase order, provider agreement,
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1 or other such mutually agreed upon relationship.
2 (e) "Additional material relevant" means evidence
3 submitted to the state agency inspector general prior to
4 release of the final report that likely would have affected
5 the investigative findings. Such evidence is not merely
6 cumulative of evidence considered by the state agency
7 inspector general and, to be relevant, must tend to prove or
8 disprove the matters at issue in the investigation. Newly
9 discovered evidence may be considered if it was discovered
10 subsequent to the agency inspector general's final report and
11 the agency inspector general has affirmatively refused to
12 reopen the investigation despite such evidence. Such evidence
13 shall not have been withheld from the state agency inspector
14 general during the original investigation.
15 (f) "Original investigation" means an official
16 investigative review by a state agency inspector general of
17 information relative to suspected violations of any law, rule,
18 or agency policy resulting in written findings.
19 (2) The Office of Inspector General is hereby
20 established in each state agency to provide a central point
21 for coordination of and responsibility for activities that
22 promote accountability, integrity, and efficiency in
23 government. It shall be the duty and responsibility of each
24 inspector general, with respect to the state agency in which
25 the office is established, to:
26 (a) Advise in the development of performance measures,
27 standards, and procedures for the evaluation of state agency
28 programs.
29 (b) Assess the reliability and validity of the
30 information provided by the state agency on performance
31 measures and standards, and make recommendations for
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1 improvement, if necessary, prior to submission of those
2 measures and standards to the Executive Office of the Governor
3 pursuant to s. 216.0166(1).
4 (c) Review the actions taken by the state agency to
5 improve program performance and meet program standards and
6 make recommendations for improvement, if necessary.
7 (d) Provide direction for, supervise, and coordinate
8 audits, investigations, and management reviews relating to the
9 programs and operations of the state agency, except that when
10 the inspector general does not possess the qualifications
11 specified in subsection (4), the director of auditing shall
12 conduct such audits.
13 (e) Conduct, supervise, or coordinate other activities
14 carried out or financed by that state agency for the purpose
15 of promoting economy and efficiency in the administration of,
16 or preventing and detecting fraud and abuse in, its programs
17 and operations.
18 (f) Keep such agency head informed concerning fraud,
19 abuses, and deficiencies relating to programs and operations
20 administered or financed by the state agency, recommend
21 corrective action concerning fraud, abuses, and deficiencies,
22 and report on the progress made in implementing corrective
23 action.
24 (g) Ensure effective coordination and cooperation
25 between the Auditor General, federal auditors, and other
26 governmental bodies with a view toward avoiding duplication.
27 (h) Review, as appropriate, rules relating to the
28 programs and operations of such state agency and make
29 recommendations concerning their impact.
30 (i) Ensure that an appropriate balance is maintained
31 between audit, investigative, and other accountability
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1 activities.
2 (j) Adopt the General Principles and Standards for
3 Offices of Inspector General as published and revised by the
4 Association of Inspectors General.
5 (3)(a) The inspector general shall be appointed by the
6 agency head. For agencies under the direction of the Governor,
7 the appointment shall be made after notifying the Governor and
8 the Chief Inspector General in writing, at least 7 days prior
9 to an offer of employment, of the agency head's intention to
10 hire the inspector general.
11 (b) Each inspector general shall report to and be
12 under the general supervision of the agency head and shall not
13 be subject to supervision by any other employee of the state
14 agency. The inspector general shall be appointed without
15 regard to political affiliation.
16 (c) An inspector general may be removed from office by
17 the agency head. For agencies under the direction of the
18 Governor, the agency head shall notify the Governor and the
19 Chief Inspector General, in writing, of the intention to
20 terminate the inspector general at least 7 days prior to the
21 removal. For state agencies under the direction of the
22 Governor and Cabinet, the agency head shall notify the
23 Governor and Cabinet in writing of the intention to terminate
24 the inspector general at least 7 days prior to the removal.
25 (d) The agency head or agency staff shall not prevent
26 or prohibit the inspector general or director of auditing from
27 initiating, carrying out, or completing any audit or
28 investigation.
29 (4) To ensure that state agency audits are performed
30 in accordance with applicable auditing standards, the
31 inspector general or the director of auditing within the
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1 inspector general's office shall possess the following
2 qualifications:
3 (a) A bachelor's degree from an accredited college or
4 university with a major in accounting, or with a major in
5 business which includes five courses in accounting, and 5
6 years of experience as an internal auditor or independent
7 postauditor, electronic data processing auditor, accountant,
8 or any combination thereof. The experience shall at a minimum
9 consist of audits of units of government or private business
10 enterprises, operating for profit or not for profit; or
11 (b) A master's degree in accounting, business
12 administration, or public administration from an accredited
13 college or university and 4 years of experience as required in
14 paragraph (a); or
15 (c) A certified public accountant license issued
16 pursuant to chapter 473 or a certified internal audit
17 certificate issued by the Institute of Internal Auditors or
18 earned by examination, and 4 years of experience as required
19 in paragraph (a).
20 (5) In carrying out the auditing duties and
21 responsibilities of this act, each inspector general shall
22 review and evaluate internal controls necessary to ensure the
23 fiscal accountability of the state agency. The inspector
24 general shall conduct financial, compliance, electronic data
25 processing, and performance audits of the agency and prepare
26 audit reports of his or her findings. The scope and assignment
27 of the audits shall be determined by the inspector general;
28 however, the agency head may at any time direct the inspector
29 general to perform an audit of a special program, function, or
30 organizational unit. The performance of the audit shall be
31 under the direction of the inspector general, except that if
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1 the inspector general does not possess the qualifications
2 specified in subsection (4), the director of auditing shall
3 perform the functions listed in this subsection.
4 (a) Such audits shall be conducted in accordance with
5 the current International Standards for the Professional
6 Practice of Internal Auditing as and subsequent Internal
7 Auditing Standards or Statements on Internal Auditing
8 Standards published by the Institute of Internal Auditors,
9 Inc., or, where appropriate, in accordance with generally
10 accepted governmental auditing standards. All audit reports
11 issued by internal audit staff shall include a statement that
12 the audit was conducted pursuant to the appropriate standards.
13 (b) Audit workpapers and reports shall be public
14 records to the extent that they do not include information
15 which has been made confidential and exempt from the
16 provisions of s. 119.07(1) pursuant to law. However, when the
17 inspector general or a member of the staff receives from an
18 individual a complaint or information that falls within the
19 definition provided in s. 112.3187(5), the name or identity of
20 the individual shall not be disclosed to anyone else without
21 the written consent of the individual, unless the inspector
22 general determines that such disclosure is unavoidable during
23 the course of the audit or investigation.
24 (c) The inspector general and the staff shall have
25 access to any records, data, and other information of the
26 state agency he or she deems necessary to carry out his or her
27 duties. The inspector general is also authorized to request
28 such information or assistance as may be necessary from the
29 state agency or from any federal, state, or local government
30 entity.
31 (d) At the conclusion of each audit, the inspector
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1 general shall submit preliminary findings and recommendations
2 to the person responsible for supervision of the program
3 function or operational unit who shall respond to any adverse
4 findings within 20 working days after receipt of the tentative
5 findings. Such response and the inspector general's rebuttal
6 to the response shall be included in the final audit report.
7 (e) At the conclusion of an audit in which the results
8 of the audit are published and disbursed and the subject of
9 the audit is a specific, singular entity contracting with the
10 state, the inspector general shall submit findings to the
11 subject who shall respond to any adverse findings within 20
12 working days. Such response and the inspector general's
13 rebuttal to the response, if any, shall be included in the
14 final audit report.
15 (f)(e) The inspector general shall submit the final
16 report to the agency head and to the Auditor General.
17 (g)(f) The Auditor General, in connection with the
18 independent postaudit of the same agency pursuant to s. 11.45,
19 shall give appropriate consideration to internal audit reports
20 and the resolution of findings therein. The Legislative
21 Auditing Committee may inquire into the reasons or
22 justifications for failure of the agency head to correct the
23 deficiencies reported in internal audits that are also
24 reported by the Auditor General and shall take appropriate
25 action.
26 (h)(g) The inspector general shall monitor the
27 implementation of the state agency's response to any report on
28 the state agency issued by the Auditor General or by the
29 Office of Program Policy Analysis and Government
30 Accountability. No later than 6 months after the Auditor
31 General or the Office of Program Policy Analysis and
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1 Government Accountability publishes a report on the state
2 agency, the inspector general shall provide a written response
3 to the agency head on the status of corrective actions taken.
4 The Inspector General shall file a copy of such response with
5 the Legislative Auditing Committee.
6 (i)(h) The inspector general shall develop long-term
7 and annual audit plans based on the findings of periodic risk
8 assessments. The plan, where appropriate, should include
9 postaudit samplings of payments and accounts. The plan shall
10 show the individual audits to be conducted during each year
11 and related resources to be devoted to the respective audits.
12 The Chief Financial Officer, to assist in fulfilling the
13 responsibilities for examining, auditing, and settling
14 accounts, claims, and demands pursuant to s. 17.03(1), and
15 examining, auditing, adjusting, and settling accounts pursuant
16 to s. 17.04, may utilize audits performed by the inspectors
17 general and internal auditors. For state agencies under the
18 Governor, the audit plans shall be submitted to the Governor's
19 Chief Inspector General. The plan shall be submitted to the
20 agency head for approval. A copy of the approved plan shall be
21 submitted to the Auditor General.
22 (6) In carrying out the investigative duties and
23 responsibilities specified in this section, each inspector
24 general shall initiate, conduct, supervise, and coordinate
25 investigations designed to detect, deter, prevent, and
26 eradicate fraud, waste, mismanagement, misconduct, and other
27 abuses in state government. For these purposes, each inspector
28 general state agency shall:
29 (a) Receive complaints and coordinate all activities
30 of the agency as required by the Whistle-blower's Act pursuant
31 to ss. 112.3187-112.31895.
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1 (b) Receive and consider the complaints which do not
2 meet the criteria for an investigation under the
3 Whistle-blower's Act and conduct, supervise, or coordinate
4 such inquiries, investigations, or reviews as the inspector
5 general deems appropriate.
6 (c) Report expeditiously to the Department of Law
7 Enforcement or other law enforcement agencies, as appropriate,
8 whenever the inspector general has reasonable grounds to
9 believe there has been a violation of criminal law.
10 (d) Conduct investigations and other inquiries free of
11 actual or perceived impairment to the independence of the
12 inspector general or the inspector general's office. This
13 shall include freedom from any interference with
14 investigations and timely access to records and other sources
15 of information.
16 (e) At the conclusion of each investigation in which
17 the subject of the investigation is a specific entity
18 contracting with the state or an individual substantially
19 affected by the findings, conclusions, and recommendations,
20 the inspector general shall submit findings to the subject who
21 shall respond to any adverse findings within 10 days. Such
22 response and the inspector general's rebuttal to the response,
23 if any, shall be included in the final investigative report.
24 (f)(e) Submit in a timely fashion final reports on
25 investigations conducted by the inspector general to the
26 agency head, except for whistle-blower's investigations, which
27 shall be conducted and reported pursuant to s. 112.3189.
28 (7) Each inspector general shall, not later than
29 September 30 of each year, prepare an annual report
30 summarizing the activities of the office during the
31 immediately preceding state fiscal year. The final report
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1 shall be furnished to the agency head. Such report shall
2 include, but need not be limited to:
3 (a) A description of activities relating to the
4 development, assessment, and validation of performance
5 measures.
6 (b) A description of significant abuses and
7 deficiencies relating to the administration of programs and
8 operations of the agency disclosed by investigations, audits,
9 reviews, or other activities during the reporting period.
10 (c) A description of the recommendations for
11 corrective action made by the inspector general during the
12 reporting period with respect to significant problems, abuses,
13 or deficiencies identified.
14 (d) The identification of each significant
15 recommendation described in previous annual reports on which
16 corrective action has not been completed.
17 (e) A summary of each audit and investigation
18 completed during the reporting period.
19 (8) The inspector general in each agency under the
20 Governor's jurisdiction shall timely report to the Chief
21 Inspector General all written complaints received concerning
22 the duties and responsibilities outlined in this section or
23 any misconduct alleged related to the office of the inspector
24 general or its employees.
25 (9) The Chief Inspector General in the Executive
26 Office of the Governor, as defined in s. 14.32, shall:
27 (a) Receive and consider all complaints against
28 offices of inspectors general or their employees and conduct,
29 supervise, or coordinate such inquiries, investigations, or
30 reviews as the Chief Inspector General considers appropriate.
31 (b) Develop policies and procedures for reviewing
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1 complaints against a state agency office of inspector general
2 or its employees, including, but not limited to, complaints
3 regarding misconduct, failure to properly follow professional
4 standards, or any other violation of agency policy, rule, or
5 law which is consistent with the definitions in this section
6 and s. 14.32. The policies and procedures must identify
7 exemptions from this process, including, but not limited to,
8 whistle-blower investigations conducted in accordance with ss.
9 112.3187-112.31895. These policies and procedures must afford
10 entities contracting with state agencies, and individuals
11 substantially affected by the findings, conclusions, and
12 recommendations, a meaningful opportunity to express their
13 complaint and present additional material relevant to the
14 original investigation.
15 (c) Distribute the report of any investigation
16 conducted or supervised by the Chief Inspector General to the
17 office of the inspector general of the state agency, the
18 agency head of the subject's employing agency, and the person
19 that filed the complaint against the office of inspector
20 general of the state agency or its employees.
21 (10) If a state agency inspector general's reported
22 adverse findings regarding entities contracting with state
23 agencies and individuals substantially affected by the
24 findings, conclusions, and recommendations are determined to
25 be incorrect under this process, the agency shall reimburse
26 reasonable legal fees and costs specifically associated with
27 filing and pursuing the complaints, which are incurred by the
28 entities contracting with state agencies and individuals
29 substantially affected by the findings, conclusions, and
30 recommendations.
31 (11)(8) Each agency inspector general shall, to the
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1 extent both necessary and practicable, include on his or her
2 staff individuals with electronic data processing auditing
3 experience.
4 Section 2. This act shall take effect July 1, 2007.
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7 ================ T I T L E A M E N D M E N T ===============
8 And the title is amended as follows:
9 Delete everything before the enacting clause
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11 and insert:
12 A bill to be entitled
13 An act relating to agency inspectors general;
14 amending s. 20.055, F.S.; providing
15 definitions; requiring agency inspectors
16 general to adopt certain principles and
17 standards; requiring an inspector general to
18 submit findings of an audit to specified
19 persons or entities; requiring agencies under
20 the Governor to notify the Chief Inspector
21 General of inspector general appointments and
22 terminations; prohibiting agency staff from
23 preventing or prohibiting the inspector general
24 or director of auditing from initiating,
25 carrying out, or completing any audit or
26 investigation; requiring audits to be conducted
27 in accordance with the current International
28 Standards for the Professional Practice of
29 Internal Auditing; requiring the inspector
30 general of each state agency to report certain
31 written complaints to the Chief Inspector
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1 General; requiring the Chief Inspector General
2 to fulfill certain duties and responsibilities;
3 requiring a state agency to reimburse legal
4 fees and costs that are incurred by certain
5 individuals and entities under certain
6 conditions; providing an effective date.
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