CS/HB 165

1
A bill to be entitled
2An act relating to agency inspectors general; amending s.
320.055, F.S.; providing definitions; requiring agency
4inspectors general to comply with certain principles and
5standards; requiring an inspector general to submit
6findings of audits and investigations to specified persons
7or entities; requiring responses to findings within 20
8working days; requiring agencies under the Governor to
9notify the Chief Inspector General of inspector general
10appointments and terminations; prohibiting agency staff
11from preventing or prohibiting the inspector general from
12initiating, carrying out, or completing any audit or
13investigation; requiring audits to be conducted in
14accordance with the current International Standards for
15the Professional Practice of Internal Auditing; requiring
16the inspector general of each state agency to report
17certain written complaints to the agency head, and for
18agencies under the Governor, to the agency head and the
19Chief Inspector General; requiring the Chief Inspector
20General to fulfill certain duties and responsibilities;
21providing an effective date.
22
23Be It Enacted by the Legislature of the State of Florida:
24
25     Section 1.  Section 20.055, Florida Statutes, is amended to
26read:
27     20.055  Agency inspectors general.--
28     (1)  For the purposes of this section:
29     (a)  "State agency" means each department created pursuant
30to this chapter, and also includes the Executive Office of the
31Governor, the Department of Military Affairs, the Fish and
32Wildlife Conservation Commission, the Office of Insurance
33Regulation of the Financial Services Commission, the Office of
34Financial Regulation of the Financial Services Commission, the
35Public Service Commission, the Board of Governors of the State
36University System, and the state courts system.
37     (b)  "Agency head" means the Governor, a Cabinet officer, a
38secretary as defined in s. 20.03(5), or an executive director as
39defined in s. 20.03(6). It also includes the chair of the Public
40Service Commission, the Director of the Office of Insurance
41Regulation of the Financial Services Commission, the Director of
42the Office of Financial Regulation of the Financial Services
43Commission, and the Chief Justice of the State Supreme Court.
44     (c)  "Individuals substantially affected" means natural
45persons who have established a real and sufficiently immediate
46injury in fact due to the findings, conclusions, or
47recommendations of a final report of a state agency inspector
48general, who are the subject of the audit or investigation, and
49who do not have or are not currently afforded an existing right
50to an independent review process. Employees of the state,
51including career service, probationary, other personal service,
52Selected Exempt Service, and Senior Management Service
53employees, are not covered by this definition. This definition
54also does not cover former employees of the state if the final
55report of the state agency inspector general relates to matters
56arising during a former employee's term of state employment.
57     (d)  "Entities contracting with the state" means for-profit
58and not-for-profit organizations or businesses having a legal
59existence, such as corporations or partnerships, as opposed to
60natural persons, which have entered into a relationship with a
61state agency as defined in paragraph (a) to provide for
62consideration certain goods or services to the state agency or
63on behalf of the state agency. The relationship may be evidenced
64by payment by warrant or purchasing card, contract, purchase
65order, provider agreement, or other such mutually agreed upon
66relationship.
67     (2)  The Office of Inspector General is hereby established
68in each state agency to provide a central point for coordination
69of and responsibility for activities that promote
70accountability, integrity, and efficiency in government. It
71shall be the duty and responsibility of each inspector general,
72with respect to the state agency in which the office is
73established, to:
74     (a)  Advise in the development of performance measures,
75standards, and procedures for the evaluation of state agency
76programs.
77     (b)  Assess the reliability and validity of the information
78provided by the state agency on performance measures and
79standards, and make recommendations for improvement, if
80necessary, prior to submission of those measures and standards
81to the Executive Office of the Governor pursuant to s.
82216.0166(1).
83     (c)  Review the actions taken by the state agency to
84improve program performance and meet program standards and make
85recommendations for improvement, if necessary.
86     (d)  Provide direction for, supervise, and coordinate
87audits, investigations, and management reviews relating to the
88programs and operations of the state agency, except that when
89the inspector general does not possess the qualifications
90specified in subsection (4), the director of auditing shall
91conduct such audits.
92     (e)  Conduct, supervise, or coordinate other activities
93carried out or financed by that state agency for the purpose of
94promoting economy and efficiency in the administration of, or
95preventing and detecting fraud and abuse in, its programs and
96operations.
97     (f)  Keep such agency head informed concerning fraud,
98abuses, and deficiencies relating to programs and operations
99administered or financed by the state agency, recommend
100corrective action concerning fraud, abuses, and deficiencies,
101and report on the progress made in implementing corrective
102action.
103     (g)  Ensure effective coordination and cooperation between
104the Auditor General, federal auditors, and other governmental
105bodies with a view toward avoiding duplication.
106     (h)  Review, as appropriate, rules relating to the programs
107and operations of such state agency and make recommendations
108concerning their impact.
109     (i)  Ensure that an appropriate balance is maintained
110between audit, investigative, and other accountability
111activities.
112     (j)  Comply with the General Principles and Standards for
113Offices of Inspector General as published and revised by the
114Association of Inspectors General.
115     (3)(a)  The inspector general shall be appointed by the
116agency head. For agencies under the direction of the Governor,
117the appointment shall be made after notifying the Governor and
118the Chief Inspector General in writing, at least 7 days prior to
119an offer of employment, of the agency head's intention to hire
120the inspector general.
121     (b)  Each inspector general shall report to and be under
122the general supervision of the agency head and shall not be
123subject to supervision by any other employee of the state
124agency. The inspector general shall be appointed without regard
125to political affiliation.
126     (c)  An inspector general may be removed from office by the
127agency head. For agencies under the direction of the Governor,
128the agency head shall notify the Governor and the Chief
129Inspector General, in writing, of the intention to terminate the
130inspector general at least 7 days prior to the removal. For
131state agencies under the direction of the Governor and Cabinet,
132the agency head shall notify the Governor and Cabinet in writing
133of the intention to terminate the inspector general at least 7
134days prior to the removal.
135     (d)  The agency head or agency staff shall not prevent or
136prohibit the inspector general or director of auditing from
137initiating, carrying out, or completing any audit or
138investigation.
139     (4)  To ensure that state agency audits are performed in
140accordance with applicable auditing standards, the inspector
141general or the director of auditing within the inspector
142general's office shall possess the following qualifications:
143     (a)  A bachelor's degree from an accredited college or
144university with a major in accounting, or with a major in
145business which includes five courses in accounting, and 5 years
146of experience as an internal auditor or independent postauditor,
147electronic data processing auditor, accountant, or any
148combination thereof. The experience shall at a minimum consist
149of audits of units of government or private business
150enterprises, operating for profit or not for profit; or
151     (b)  A master's degree in accounting, business
152administration, or public administration from an accredited
153college or university and 4 years of experience as required in
154paragraph (a); or
155     (c)  A certified public accountant license issued pursuant
156to chapter 473 or a certified internal audit certificate issued
157by the Institute of Internal Auditors or earned by examination,
158and 4 years of experience as required in paragraph (a).
159     (5)  In carrying out the auditing duties and
160responsibilities of this act, each inspector general shall
161review and evaluate internal controls necessary to ensure the
162fiscal accountability of the state agency. The inspector general
163shall conduct financial, compliance, electronic data processing,
164and performance audits of the agency and prepare audit reports
165of his or her findings. The scope and assignment of the audits
166shall be determined by the inspector general; however, the
167agency head may at any time direct the inspector general to
168perform an audit of a special program, function, or
169organizational unit. The performance of the audit shall be under
170the direction of the inspector general, except that if the
171inspector general does not possess the qualifications specified
172in subsection (4), the director of auditing shall perform the
173functions listed in this subsection.
174     (a)  Such audits shall be conducted in accordance with the
175current International Standards for the Professional Practice of
176Internal Auditing as and subsequent Internal Auditing Standards
177or Statements on Internal Auditing Standards published by the
178Institute of Internal Auditors, Inc., or, where appropriate, in
179accordance with generally accepted governmental auditing
180standards. All audit reports issued by internal audit staff
181shall include a statement that the audit was conducted pursuant
182to the appropriate standards.
183     (b)  Audit workpapers and reports shall be public records
184to the extent that they do not include information which has
185been made confidential and exempt from the provisions of s.
186119.07(1) pursuant to law. However, when the inspector general
187or a member of the staff receives from an individual a complaint
188or information that falls within the definition provided in s.
189112.3187(5), the name or identity of the individual shall not be
190disclosed to anyone else without the written consent of the
191individual, unless the inspector general determines that such
192disclosure is unavoidable during the course of the audit or
193investigation.
194     (c)  The inspector general and the staff shall have access
195to any records, data, and other information of the state agency
196he or she deems necessary to carry out his or her duties. The
197inspector general is also authorized to request such information
198or assistance as may be necessary from the state agency or from
199any federal, state, or local government entity.
200     (d)  At the conclusion of each audit, the inspector general
201shall submit preliminary findings and recommendations to the
202person responsible for supervision of the program function or
203operational unit who shall respond to any adverse findings
204within 20 working days after receipt of the tentative findings.
205Such response and the inspector general's rebuttal to the
206response shall be included in the final audit report.
207     (e)  At the conclusion of an audit in which the results of
208the audit are published and distributed and the subject of the
209audit is a specific entity contracting with the state or an
210individual substantially affected by the findings, conclusions,
211and recommendations, the inspector general shall submit findings
212to the subject who shall be advised in writing that they may
213submit a written response to any adverse findings within 20
214working days after receipt of the findings. Such response and
215the inspector general's rebuttal to the response, if any, shall
216be included in the final audit report.
217     (f)(e)  The inspector general shall submit the final report
218to the agency head and to the Auditor General.
219     (g)(f)  The Auditor General, in connection with the
220independent postaudit of the same agency pursuant to s. 11.45,
221shall give appropriate consideration to internal audit reports
222and the resolution of findings therein. The Legislative Auditing
223Committee may inquire into the reasons or justifications for
224failure of the agency head to correct the deficiencies reported
225in internal audits that are also reported by the Auditor General
226and shall take appropriate action.
227     (h)(g)  The inspector general shall monitor the
228implementation of the state agency's response to any report on
229the state agency issued by the Auditor General or by the Office
230of Program Policy Analysis and Government Accountability. No
231later than 6 months after the Auditor General or the Office of
232Program Policy Analysis and Government Accountability publishes
233a report on the state agency, the inspector general shall
234provide a written response to the agency head on the status of
235corrective actions taken. The Inspector General shall file a
236copy of such response with the Legislative Auditing Committee.
237     (i)(h)  The inspector general shall develop long-term and
238annual audit plans based on the findings of periodic risk
239assessments. The plan, where appropriate, should include
240postaudit samplings of payments and accounts. The plan shall
241show the individual audits to be conducted during each year and
242related resources to be devoted to the respective audits. The
243Chief Financial Officer, to assist in fulfilling the
244responsibilities for examining, auditing, and settling accounts,
245claims, and demands pursuant to s. 17.03(1), and examining,
246auditing, adjusting, and settling accounts pursuant to s. 17.04,
247may utilize audits performed by the inspectors general and
248internal auditors. For state agencies under the Governor, the
249audit plans shall be submitted to the Governor's Chief Inspector
250General. The plan shall be submitted to the agency head for
251approval. A copy of the approved plan shall be submitted to the
252Auditor General.
253     (j)  Inspector general audit reports distributed to the
254Public Service Commission shall be provided to each member of
255the commission.
256     (6)  In carrying out the investigative duties and
257responsibilities specified in this section, each inspector
258general shall initiate, conduct, supervise, and coordinate
259investigations designed to detect, deter, prevent, and eradicate
260fraud, waste, mismanagement, misconduct, and other abuses in
261state government. For these purposes, each inspector general
262state agency shall:
263     (a)  Receive complaints and coordinate all activities of
264the agency as required by the Whistle-blower's Act pursuant to
265ss. 112.3187-112.31895.
266     (b)  Receive and consider the complaints which do not meet
267the criteria for an investigation under the Whistle-blower's Act
268and conduct, supervise, or coordinate such inquiries,
269investigations, or reviews as the inspector general deems
270appropriate.
271     (c)  Report expeditiously to the Department of Law
272Enforcement or other law enforcement agencies, as appropriate,
273whenever the inspector general has reasonable grounds to believe
274there has been a violation of criminal law.
275     (d)  Conduct investigations and other inquiries free of
276actual or perceived impairment to the independence of the
277inspector general or the inspector general's office. This shall
278include freedom from any interference with investigations and
279timely access to records and other sources of information.
280     (e)  At the conclusion of each investigation in which the
281subject of the investigation is a specific entity contracting
282with the state or an individual substantially affected by the
283findings, conclusions, and recommendations, the inspector
284general shall, consistent with chapter 119, submit findings to
285the subject that is a specific entity contracting with the state
286or an individual substantially affected, who shall be advised
287that they may submit a written response within 20 working days
288after the receipt of the findings. Such response and the
289inspector general's rebuttal to the response, if any, shall be
290included in the final investigative report.
291     (f)(e)  Submit in a timely fashion final reports on
292investigations conducted by the inspector general to the agency
293head, except for whistle-blower's investigations, which shall be
294conducted and reported pursuant to s. 112.3189.
295     (g)  Provide to each member of the Public Service
296Commission inspector general investigative reports distributed
297to the commission.
298     (7)  Each inspector general shall, not later than September
29930 of each year, prepare an annual report summarizing the
300activities of the office during the immediately preceding state
301fiscal year. The final report shall be furnished to the agency
302head. Such report shall include, but need not be limited to:
303     (a)  A description of activities relating to the
304development, assessment, and validation of performance measures.
305     (b)  A description of significant abuses and deficiencies
306relating to the administration of programs and operations of the
307agency disclosed by investigations, audits, reviews, or other
308activities during the reporting period.
309     (c)  A description of the recommendations for corrective
310action made by the inspector general during the reporting period
311with respect to significant problems, abuses, or deficiencies
312identified.
313     (d)  The identification of each significant recommendation
314described in previous annual reports on which corrective action
315has not been completed.
316     (e)  A summary of each audit and investigation completed
317during the reporting period.
318     (8)  The inspector general in each agency shall provide to
319the agency head, upon receipt, all written complaints concerning
320the duties and responsibilities in this section or any
321allegation of misconduct related to the office of the inspector
322general or its employees, if received from subjects of audits or
323investigations who are individuals substantially affected or
324entities contracting with the state, as defined in this section.
325For agencies solely under the direction of the Governor, the
326inspector general shall also provide the complaint to the Chief
327Inspector General.
328     (9)(8)  Each agency inspector general shall, to the extent
329both necessary and practicable, include on his or her staff
330individuals with electronic data processing auditing experience.
331     Section 2.  This act shall take effect July 1, 2008.


CODING: Words stricken are deletions; words underlined are additions.