Senate Bill sb2078c1
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Florida Senate - 2007 CS for SB 2078
By the Committee on Governmental Operations; and Senator
Bennett
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1 A bill to be entitled
2 An act relating to agency inspectors general;
3 amending s. 20.055, F.S.; providing
4 definitions; requiring agency inspectors
5 general to comply with certain principles and
6 standards; requiring an inspector general to
7 submit findings of an audit to specified
8 persons or entities; requiring agencies under
9 the Governor to notify the Chief Inspector
10 General of inspector general appointments and
11 terminations; prohibiting agency staff from
12 preventing or prohibiting the inspector general
13 or director of auditing from initiating,
14 carrying out, or completing any audit or
15 investigation; requiring audits to be conducted
16 in accordance with the current International
17 Standards for the Professional Practice of
18 Internal Auditing; requiring the inspector
19 general of each state agency to report certain
20 written complaints to the Chief Inspector
21 General; requiring the Chief Inspector General
22 to fulfill certain duties and responsibilities;
23 requiring a state agency to reimburse legal
24 fees and costs that are incurred by certain
25 individuals and entities under certain
26 conditions; providing an effective date.
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28 Be It Enacted by the Legislature of the State of Florida:
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30 Section 1. Section 20.055, Florida Statutes, is
31 amended to read:
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1 20.055 Agency inspectors general.--
2 (1) For the purposes of this section:
3 (a) "State agency" means each department created
4 pursuant to this chapter, and also includes the Executive
5 Office of the Governor, the Department of Military Affairs,
6 the Fish and Wildlife Conservation Commission, the Office of
7 Insurance Regulation of the Financial Services Commission, the
8 Office of Financial Regulation of the Financial Services
9 Commission, the Public Service Commission, and the state
10 courts system.
11 (b) "Agency head" means a public official such as the
12 Governor, a Cabinet officer, a secretary as defined in s.
13 20.03(5), or an executive director as defined in s. 20.03(6).
14 It also includes the chair of the Public Service Commission,
15 the Director of the Office of Insurance Regulation of the
16 Financial Services Commission, the Director of the Office of
17 Financial Regulation of the Financial Services Commission, and
18 the Chief Justice of the State Supreme Court. The term does
19 not include the head of, or an officer of, a private entity
20 operating as a for-profit or not-for-profit entity.
21 (c) "Individuals substantially affected" means natural
22 persons who have established a real and sufficiently immediate
23 injury in fact due to the findings, conclusions, or
24 recommendations of a final report of a state agency inspector
25 general, who are the subject of the audit or investigation,
26 and who do not have or are not currently afforded an existing
27 right to an independent review process. Employees of the
28 state, including career service, probationary, other personal
29 service, Selected Exempt Service, and Senior Management
30 Service employees, are not covered by this definition. This
31 definition also does not cover former employees of the state
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1 if the final report of the state agency inspector general
2 relates to matters arising during a former employee's term of
3 state employment.
4 (d) "Entities contracting with the state" means
5 for-profit and not-for-profit organizations or businesses
6 having a legal existence, such as corporations or
7 partnerships, as opposed to natural persons, that have entered
8 into a relationship with a state agency as defined in
9 paragraph (a) to provide for consideration certain goods or
10 services to the state agency or on behalf of the state agency.
11 The relationship may be evidenced by payment by warrant or
12 purchasing card, contract, purchase order, provider agreement,
13 or other such mutually agreed upon relationship.
14 (e) "Additional material relevant" means evidence
15 submitted to the state agency inspector general prior to
16 release of the final report that likely would have affected
17 the investigative findings. Such evidence is not merely
18 cumulative of evidence considered by the state agency
19 inspector general and, to be relevant, must tend to prove or
20 disprove the matters at issue in the investigation. Newly
21 discovered evidence may be considered if it was discovered
22 subsequent to the agency inspector general's final report and
23 the agency inspector general has affirmatively refused to
24 reopen the investigation despite such evidence. Such evidence
25 shall not have been withheld from the state agency inspector
26 general during the original investigation.
27 (f) "Original investigation" means an official
28 investigative review by a state agency inspector general of
29 information relative to suspected violations of any law, rule,
30 or agency policy resulting in written findings.
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1 (2) The Office of Inspector General is hereby
2 established in each state agency to provide a central point
3 for coordination of and responsibility for activities that
4 promote accountability, integrity, and efficiency in
5 government. It shall be the duty and responsibility of each
6 inspector general, with respect to the state agency in which
7 the office is established, to:
8 (a) Advise in the development of performance measures,
9 standards, and procedures for the evaluation of state agency
10 programs.
11 (b) Assess the reliability and validity of the
12 information provided by the state agency on performance
13 measures and standards, and make recommendations for
14 improvement, if necessary, prior to submission of those
15 measures and standards to the Executive Office of the Governor
16 pursuant to s. 216.0166(1).
17 (c) Review the actions taken by the state agency to
18 improve program performance and meet program standards and
19 make recommendations for improvement, if necessary.
20 (d) Provide direction for, supervise, and coordinate
21 audits, investigations, and management reviews relating to the
22 programs and operations of the state agency, except that when
23 the inspector general does not possess the qualifications
24 specified in subsection (4), the director of auditing shall
25 conduct such audits.
26 (e) Conduct, supervise, or coordinate other activities
27 carried out or financed by that state agency for the purpose
28 of promoting economy and efficiency in the administration of,
29 or preventing and detecting fraud and abuse in, its programs
30 and operations.
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1 (f) Keep such agency head informed concerning fraud,
2 abuses, and deficiencies relating to programs and operations
3 administered or financed by the state agency, recommend
4 corrective action concerning fraud, abuses, and deficiencies,
5 and report on the progress made in implementing corrective
6 action.
7 (g) Ensure effective coordination and cooperation
8 between the Auditor General, federal auditors, and other
9 governmental bodies with a view toward avoiding duplication.
10 (h) Review, as appropriate, rules relating to the
11 programs and operations of such state agency and make
12 recommendations concerning their impact.
13 (i) Ensure that an appropriate balance is maintained
14 between audit, investigative, and other accountability
15 activities.
16 (j) Comply with the General Principles and Standards
17 for Offices of Inspector General as published and revised by
18 the Association of Inspectors General.
19 (3)(a) The inspector general shall be appointed by the
20 agency head. For agencies under the direction of the Governor,
21 the appointment shall be made after notifying the Governor and
22 the Chief Inspector General in writing, at least 7 days prior
23 to an offer of employment, of the agency head's intention to
24 hire the inspector general.
25 (b) Each inspector general shall report to and be
26 under the general supervision of the agency head and shall not
27 be subject to supervision by any other employee of the state
28 agency. The inspector general shall be appointed without
29 regard to political affiliation.
30 (c) An inspector general may be removed from office by
31 the agency head. For agencies under the direction of the
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1 Governor, the agency head shall notify the Governor and the
2 Chief Inspector General, in writing, of the intention to
3 terminate the inspector general at least 7 days prior to the
4 removal. For state agencies under the direction of the
5 Governor and Cabinet, the agency head shall notify the
6 Governor and Cabinet in writing of the intention to terminate
7 the inspector general at least 7 days prior to the removal.
8 (d) The agency head or agency staff shall not prevent
9 or prohibit the inspector general or director of auditing from
10 initiating, carrying out, or completing any audit or
11 investigation.
12 (4) To ensure that state agency audits are performed
13 in accordance with applicable auditing standards, the
14 inspector general or the director of auditing within the
15 inspector general's office shall possess the following
16 qualifications:
17 (a) A bachelor's degree from an accredited college or
18 university with a major in accounting, or with a major in
19 business which includes five courses in accounting, and 5
20 years of experience as an internal auditor or independent
21 postauditor, electronic data processing auditor, accountant,
22 or any combination thereof. The experience shall at a minimum
23 consist of audits of units of government or private business
24 enterprises, operating for profit or not for profit; or
25 (b) A master's degree in accounting, business
26 administration, or public administration from an accredited
27 college or university and 4 years of experience as required in
28 paragraph (a); or
29 (c) A certified public accountant license issued
30 pursuant to chapter 473 or a certified internal audit
31 certificate issued by the Institute of Internal Auditors or
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1 earned by examination, and 4 years of experience as required
2 in paragraph (a).
3 (5) In carrying out the auditing duties and
4 responsibilities of this act, each inspector general shall
5 review and evaluate internal controls necessary to ensure the
6 fiscal accountability of the state agency. The inspector
7 general shall conduct financial, compliance, electronic data
8 processing, and performance audits of the agency and prepare
9 audit reports of his or her findings. The scope and assignment
10 of the audits shall be determined by the inspector general;
11 however, the agency head may at any time direct the inspector
12 general to perform an audit of a special program, function, or
13 organizational unit. The performance of the audit shall be
14 under the direction of the inspector general, except that if
15 the inspector general does not possess the qualifications
16 specified in subsection (4), the director of auditing shall
17 perform the functions listed in this subsection.
18 (a) Such audits shall be conducted in accordance with
19 the current International Standards for the Professional
20 Practice of Internal Auditing as and subsequent Internal
21 Auditing Standards or Statements on Internal Auditing
22 Standards published by the Institute of Internal Auditors,
23 Inc., or, where appropriate, in accordance with generally
24 accepted governmental auditing standards. All audit reports
25 issued by internal audit staff shall include a statement that
26 the audit was conducted pursuant to the appropriate standards.
27 (b) Audit workpapers and reports shall be public
28 records to the extent that they do not include information
29 which has been made confidential and exempt from the
30 provisions of s. 119.07(1) pursuant to law. However, when the
31 inspector general or a member of the staff receives from an
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1 individual a complaint or information that falls within the
2 definition provided in s. 112.3187(5), the name or identity of
3 the individual shall not be disclosed to anyone else without
4 the written consent of the individual, unless the inspector
5 general determines that such disclosure is unavoidable during
6 the course of the audit or investigation.
7 (c) The inspector general and the staff shall have
8 access to any records, data, and other information of the
9 state agency he or she deems necessary to carry out his or her
10 duties. The inspector general is also authorized to request
11 such information or assistance as may be necessary from the
12 state agency or from any federal, state, or local government
13 entity.
14 (d) At the conclusion of each audit, the inspector
15 general shall submit preliminary findings and recommendations
16 to the person responsible for supervision of the program
17 function or operational unit who shall respond to any adverse
18 findings within 20 working days after receipt of the tentative
19 findings. Such response and the inspector general's rebuttal
20 to the response shall be included in the final audit report.
21 (e) At the conclusion of an audit in which the results
22 of the audit are published and disbursed and the subject of
23 the audit is a specific, singular entity contracting with the
24 state, the inspector general shall submit findings to the
25 subject who shall respond to any adverse findings within 20
26 working days. Such response and the inspector general's
27 rebuttal to the response, if any, shall be included in the
28 final audit report.
29 (f)(e) The inspector general shall submit the final
30 report to the agency head and to the Auditor General.
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1 (g)(f) The Auditor General, in connection with the
2 independent postaudit of the same agency pursuant to s. 11.45,
3 shall give appropriate consideration to internal audit reports
4 and the resolution of findings therein. The Legislative
5 Auditing Committee may inquire into the reasons or
6 justifications for failure of the agency head to correct the
7 deficiencies reported in internal audits that are also
8 reported by the Auditor General and shall take appropriate
9 action.
10 (h)(g) The inspector general shall monitor the
11 implementation of the state agency's response to any report on
12 the state agency issued by the Auditor General or by the
13 Office of Program Policy Analysis and Government
14 Accountability. No later than 6 months after the Auditor
15 General or the Office of Program Policy Analysis and
16 Government Accountability publishes a report on the state
17 agency, the inspector general shall provide a written response
18 to the agency head on the status of corrective actions taken.
19 The Inspector General shall file a copy of such response with
20 the Legislative Auditing Committee.
21 (i)(h) The inspector general shall develop long-term
22 and annual audit plans based on the findings of periodic risk
23 assessments. The plan, where appropriate, should include
24 postaudit samplings of payments and accounts. The plan shall
25 show the individual audits to be conducted during each year
26 and related resources to be devoted to the respective audits.
27 The Chief Financial Officer, to assist in fulfilling the
28 responsibilities for examining, auditing, and settling
29 accounts, claims, and demands pursuant to s. 17.03(1), and
30 examining, auditing, adjusting, and settling accounts pursuant
31 to s. 17.04, may utilize audits performed by the inspectors
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1 general and internal auditors. For state agencies under the
2 Governor, the audit plans shall be submitted to the Governor's
3 Chief Inspector General. The plan shall be submitted to the
4 agency head for approval. A copy of the approved plan shall be
5 submitted to the Auditor General.
6 (6) In carrying out the investigative duties and
7 responsibilities specified in this section, each inspector
8 general shall initiate, conduct, supervise, and coordinate
9 investigations designed to detect, deter, prevent, and
10 eradicate fraud, waste, mismanagement, misconduct, and other
11 abuses in state government. For these purposes, each inspector
12 general state agency shall:
13 (a) Receive complaints and coordinate all activities
14 of the agency as required by the Whistle-blower's Act pursuant
15 to ss. 112.3187-112.31895.
16 (b) Receive and consider the complaints which do not
17 meet the criteria for an investigation under the
18 Whistle-blower's Act and conduct, supervise, or coordinate
19 such inquiries, investigations, or reviews as the inspector
20 general deems appropriate.
21 (c) Report expeditiously to the Department of Law
22 Enforcement or other law enforcement agencies, as appropriate,
23 whenever the inspector general has reasonable grounds to
24 believe there has been a violation of criminal law.
25 (d) Conduct investigations and other inquiries free of
26 actual or perceived impairment to the independence of the
27 inspector general or the inspector general's office. This
28 shall include freedom from any interference with
29 investigations and timely access to records and other sources
30 of information.
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1 (e) At the conclusion of each investigation in which
2 the subject of the investigation is a specific entity
3 contracting with the state or an individual substantially
4 affected by the findings, conclusions, and recommendations,
5 the inspector general shall, consistent with chapter 119,
6 submit findings to the subject who shall respond to any
7 adverse findings within 10 days. Such response and the
8 inspector general's rebuttal to the response, if any, shall be
9 included in the final investigative report.
10 (f)(e) Submit in a timely fashion final reports on
11 investigations conducted by the inspector general to the
12 agency head, except for whistle-blower's investigations, which
13 shall be conducted and reported pursuant to s. 112.3189.
14 (7) Each inspector general shall, not later than
15 September 30 of each year, prepare an annual report
16 summarizing the activities of the office during the
17 immediately preceding state fiscal year. The final report
18 shall be furnished to the agency head. Such report shall
19 include, but need not be limited to:
20 (a) A description of activities relating to the
21 development, assessment, and validation of performance
22 measures.
23 (b) A description of significant abuses and
24 deficiencies relating to the administration of programs and
25 operations of the agency disclosed by investigations, audits,
26 reviews, or other activities during the reporting period.
27 (c) A description of the recommendations for
28 corrective action made by the inspector general during the
29 reporting period with respect to significant problems, abuses,
30 or deficiencies identified.
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1 (d) The identification of each significant
2 recommendation described in previous annual reports on which
3 corrective action has not been completed.
4 (e) A summary of each audit and investigation
5 completed during the reporting period.
6 (8) The inspector general in each agency under the
7 Governor's jurisdiction shall timely report to the Chief
8 Inspector General all written complaints received concerning
9 the duties and responsibilities outlined in this section or
10 any misconduct alleged related to the office of the inspector
11 general or its employees.
12 (9) For agencies under the Governor's jurisdiction,
13 the Chief Inspector General in the Executive Office of the
14 Governor, as defined in s. 14.32, shall:
15 (a) Receive and consider all complaints against
16 offices of inspectors general or their employees and conduct,
17 supervise, or coordinate such inquiries, investigations, or
18 reviews as the Chief Inspector General considers appropriate.
19 (b) Develop policies and procedures for reviewing
20 complaints against a state agency office of inspector general
21 or its employees, including, but not limited to, complaints
22 regarding misconduct, failure to properly follow professional
23 standards, or any other violation of agency policy, rule, or
24 law which is consistent with the definitions in this section
25 and s. 14.32. The policies and procedures must identify
26 exemptions from this process, including, but not limited to,
27 whistle-blower investigations conducted in accordance with ss.
28 112.3187-112.31895. These policies and procedures must afford
29 entities contracting with state agencies, and individuals
30 substantially affected by the findings, conclusions, and
31 recommendations, a meaningful opportunity to express their
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1 complaint and present additional material relevant to the
2 original investigation. Policies and procedures specified
3 herein are not subject to rulemaking under chapter 120.
4 (c) Distribute the report of any investigation
5 conducted or supervised by the Chief Inspector General to the
6 office of the inspector general of the state agency, the
7 agency head of the subject's employing agency, and the person
8 that filed the complaint against the office of inspector
9 general of the state agency or its employees.
10 (10) If a state agency inspector general's reported
11 adverse findings regarding entities contracting with state
12 agencies and individuals substantially affected by the
13 findings, conclusions, and recommendations are determined to
14 be not substantially justified by the Chief Inspector General,
15 the agency shall reimburse reasonable legal fees and costs not
16 to exceed $50,000 specifically associated with filing and
17 pursuing the complaints, which are incurred by the entities
18 contracting with state agencies and individuals substantially
19 affected by the findings, conclusions, and recommendations.
20 (11)(8) Each agency inspector general shall, to the
21 extent both necessary and practicable, include on his or her
22 staff individuals with electronic data processing auditing
23 experience.
24 Section 2. This act shall take effect July 1, 2007.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2078
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4 The Committee Substitute provides altered provisions for the
receipt of adverse audit findings by investigated parties and
5 permits response and rebuttal. It also provides that an
investigated party may recover up to $50,000 in reasonable
6 legal fees and costs when the findings, conclusions, and
recommendations of an investigation cannot be reasonably
7 substantiated.
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