1

The Committee on Governmental Operations (King) recommended the

2

following amendment:

3

4

     Senate Amendment (with title amendment)

5

     Delete everything after the enacting clause

6

and insert:

7

     Section 1.  Section 20.055, Florida Statutes, is amended to

8

read:

9

     20.055  Agency inspectors general.--

10

     (1)  For the purposes of this section:

11

     (a)  "State agency" means each department created pursuant

12

to this chapter, and also includes the Executive Office of the

13

Governor, the Department of Military Affairs, the Fish and

14

Wildlife Conservation Commission, the Office of Insurance

15

Regulation of the Financial Services Commission, the Office of

16

Financial Regulation of the Financial Services Commission, the

17

Public Service Commission, the Board of Governors of the State

18

University System, and the state courts system.

19

     (b)  "Agency head" means the Governor, a Cabinet officer, a

20

secretary as defined in s. 20.03(5), or an executive director as

21

defined in s. 20.03(6). It also includes the chair of the Public

22

Service Commission, the Director of the Office of Insurance

23

Regulation of the Financial Services Commission, the Director of

24

the Office of Financial Regulation of the Financial Services

25

Commission, and the Chief Justice of the State Supreme Court.

26

     (c) "Individuals substantially affected" means natural

27

persons who have established a real and sufficiently immediate

28

injury in fact due to the findings, conclusions, or

29

recommendations of a final report of a state agency inspector

30

general, who are the subject of the audit or investigation, and

31

who do not have or are not currently afforded an existing right

32

to an independent review process. Employees of the state,

33

including career service, probationary, other personal service,

34

Selected Exempt Service, and Senior Management Service employees,

35

are not covered by this definition. This definition also does not

36

cover former employees of the state if the final report of the

37

state agency inspector general relates to matters arising during

38

a former employee's term of state employment.

39

     (d) "Entities contracting with the state" means for-profit

40

and not-for-profit organizations or businesses having a legal

41

existence, such as corporations or partnerships, as opposed to

42

natural persons, that have entered into a relationship with a

43

state agency as defined in paragraph (a) to provide for

44

consideration certain goods or services to the state agency or on

45

behalf of the state agency. The relationship may be evidenced by

46

payment by warrant or purchasing card, contract, purchase order,

47

provider agreement, or other such mutually agreed upon

48

relationship.

49

     (2)  The Office of Inspector General is hereby established

50

in each state agency to provide a central point for coordination

51

of and responsibility for activities that promote accountability,

52

integrity, and efficiency in government. It shall be the duty and

53

responsibility of each inspector general, with respect to the

54

state agency in which the office is established, to:

55

     (a)  Advise in the development of performance measures,

56

standards, and procedures for the evaluation of state agency

57

programs.

58

     (b)  Assess the reliability and validity of the information

59

provided by the state agency on performance measures and

60

standards, and make recommendations for improvement, if

61

necessary, prior to submission of those measures and standards to

62

the Executive Office of the Governor pursuant to s. 216.0166(1).

63

     (c)  Review the actions taken by the state agency to improve

64

program performance and meet program standards and make

65

recommendations for improvement, if necessary.

66

     (d)  Provide direction for, supervise, and coordinate

67

audits, investigations, and management reviews relating to the

68

programs and operations of the state agency, except that when the

69

inspector general does not possess the qualifications specified

70

in subsection (4), the director of auditing shall conduct such

71

audits.

72

     (e)  Conduct, supervise, or coordinate other activities

73

carried out or financed by that state agency for the purpose of

74

promoting economy and efficiency in the administration of, or

75

preventing and detecting fraud and abuse in, its programs and

76

operations.

77

     (f)  Keep such agency head informed concerning fraud,

78

abuses, and deficiencies relating to programs and operations

79

administered or financed by the state agency, recommend

80

corrective action concerning fraud, abuses, and deficiencies, and

81

report on the progress made in implementing corrective action.

82

     (g)  Ensure effective coordination and cooperation between

83

the Auditor General, federal auditors, and other governmental

84

bodies with a view toward avoiding duplication.

85

     (h)  Review, as appropriate, rules relating to the programs

86

and operations of such state agency and make recommendations

87

concerning their impact.

88

     (i)  Ensure that an appropriate balance is maintained

89

between audit, investigative, and other accountability

90

activities.

91

     (j) Comply with the General Principles and Standards for

92

Offices of Inspector General as published and revised by the

93

Association of Inspectors General.

94

     (3)(a)  The inspector general shall be appointed by the

95

agency head. For agencies under the direction of the Governor,

96

the appointment shall be made after notifying the Governor and

97

the Chief Inspector General in writing, at least 7 days prior to

98

an offer of employment, of the agency head's intention to hire

99

the inspector general.

100

     (b)  Each inspector general shall report to and be under the

101

general supervision of the agency head and shall not be subject

102

to supervision by any other employee of the state agency. The

103

inspector general shall be appointed without regard to political

104

affiliation.

105

     (c)  An inspector general may be removed from office by the

106

agency head. For agencies under the direction of the Governor,

107

the agency head shall notify the Governor and the Chief Inspector

108

General, in writing, of the intention to terminate the inspector

109

general at least 7 days prior to the removal. For state agencies

110

under the direction of the Governor and Cabinet, the agency head

111

shall notify the Governor and Cabinet in writing of the intention

112

to terminate the inspector general at least 7 days prior to the

113

removal.

114

     (d) The agency head or agency staff shall not prevent or

115

prohibit the inspector general or director of auditing from

116

initiating, carrying out, or completing any audit or

117

investigation.

118

     (4)  To ensure that state agency audits are performed in

119

accordance with applicable auditing standards, the inspector

120

general or the director of auditing within the inspector

121

general's office shall possess the following qualifications:

122

     (a)  A bachelor's degree from an accredited college or

123

university with a major in accounting, or with a major in

124

business which includes five courses in accounting, and 5 years

125

of experience as an internal auditor or independent postauditor,

126

electronic data processing auditor, accountant, or any

127

combination thereof. The experience shall at a minimum consist of

128

audits of units of government or private business enterprises,

129

operating for profit or not for profit; or

130

     (b)  A master's degree in accounting, business

131

administration, or public administration from an accredited

132

college or university and 4 years of experience as required in

133

paragraph (a); or

134

     (c)  A certified public accountant license issued pursuant

135

to chapter 473 or a certified internal audit certificate issued

136

by the Institute of Internal Auditors or earned by examination,

137

and 4 years of experience as required in paragraph (a).

138

     (5)  In carrying out the auditing duties and

139

responsibilities of this act, each inspector general shall review

140

and evaluate internal controls necessary to ensure the fiscal

141

accountability of the state agency. The inspector general shall

142

conduct financial, compliance, electronic data processing, and

143

performance audits of the agency and prepare audit reports of his

144

or her findings. The scope and assignment of the audits shall be

145

determined by the inspector general; however, the agency head may

146

at any time direct the inspector general to perform an audit of a

147

special program, function, or organizational unit. The

148

performance of the audit shall be under the direction of the

149

inspector general, except that if the inspector general does not

150

possess the qualifications specified in subsection (4), the

151

director of auditing shall perform the functions listed in this

152

subsection.

153

     (a)  Such audits shall be conducted in accordance with the

154

current International Standards for the Professional Practice of

155

Internal Auditing as and subsequent Internal Auditing Standards

156

or Statements on Internal Auditing Standards published by the

157

Institute of Internal Auditors, Inc., or, where appropriate, in

158

accordance with generally accepted governmental auditing

159

standards. All audit reports issued by internal audit staff shall

160

include a statement that the audit was conducted pursuant to the

161

appropriate standards.

162

     (b)  Audit workpapers and reports shall be public records to

163

the extent that they do not include information which has been

164

made confidential and exempt from the provisions of s. 119.07(1)

165

pursuant to law. However, when the inspector general or a member

166

of the staff receives from an individual a complaint or

167

information that falls within the definition provided in s.

168

112.3187(5), the name or identity of the individual shall not be

169

disclosed to anyone else without the written consent of the

170

individual, unless the inspector general determines that such

171

disclosure is unavoidable during the course of the audit or

172

investigation.

173

     (c)  The inspector general and the staff shall have access

174

to any records, data, and other information of the state agency

175

he or she deems necessary to carry out his or her duties. The

176

inspector general is also authorized to request such information

177

or assistance as may be necessary from the state agency or from

178

any federal, state, or local government entity.

179

     (d)  At the conclusion of each audit, the inspector general

180

shall submit preliminary findings and recommendations to the

181

person responsible for supervision of the program function or

182

operational unit who shall respond to any adverse findings within

183

20 working days after receipt of the tentative findings. Such

184

response and the inspector general's rebuttal to the response

185

shall be included in the final audit report.

186

     (e) At the conclusion of an audit in which the results of

187

the audit are published and distributed and the subject of the

188

audit is a specific entity contracting with the state or an

189

individual substantially affected by the findings, conclusions,

190

and recommendations, the inspector general shall submit findings

191

to the subject who shall be advised in writing that they may

192

submit a written response to any adverse findings within 20

193

working days after receipt of the findings. Such response and the

194

inspector general's rebuttal to the response, if any, shall be

195

included in the final audit report.

196

     (f)(e) The inspector general shall submit the final report

197

to the agency head and to the Auditor General.

198

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

199

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

200

shall give appropriate consideration to internal audit reports

201

and the resolution of findings therein. The Legislative Auditing

202

Committee may inquire into the reasons or justifications for

203

failure of the agency head to correct the deficiencies reported

204

in internal audits that are also reported by the Auditor General

205

and shall take appropriate action.

206

     (h)(g) The inspector general shall monitor the

207

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

208

the state agency issued by the Auditor General or by the Office

209

of Program Policy Analysis and Government Accountability. No

210

later than 6 months after the Auditor General or the Office of

211

Program Policy Analysis and Government Accountability publishes a

212

report on the state agency, the inspector general shall provide a

213

written response to the agency head on the status of corrective

214

actions taken. The Inspector General shall file a copy of such

215

response with the Legislative Auditing Committee.

216

     (i)(h) The inspector general shall develop long-term and

217

annual audit plans based on the findings of periodic risk

218

assessments. The plan, where appropriate, should include

219

postaudit samplings of payments and accounts. The plan shall show

220

the individual audits to be conducted during each year and

221

related resources to be devoted to the respective audits. The

222

Chief Financial Officer, to assist in fulfilling the

223

responsibilities for examining, auditing, and settling accounts,

224

claims, and demands pursuant to s. 17.03(1), and examining,

225

auditing, adjusting, and settling accounts pursuant to s. 17.04,

226

may utilize audits performed by the inspectors general and

227

internal auditors. For state agencies under the Governor, the

228

audit plans shall be submitted to the Governor's Chief Inspector

229

General. The plan shall be submitted to the agency head for

230

approval. A copy of the approved plan shall be submitted to the

231

Auditor General.

232

     (6)  In carrying out the investigative duties and

233

responsibilities specified in this section, each inspector

234

general shall initiate, conduct, supervise, and coordinate

235

investigations designed to detect, deter, prevent, and eradicate

236

fraud, waste, mismanagement, misconduct, and other abuses in

237

state government. For these purposes, each inspector general

238

state agency shall:

239

     (a)  Receive complaints and coordinate all activities of the

240

agency as required by the Whistle-blower's Act pursuant to ss.

241

112.3187-112.31895.

242

     (b)  Receive and consider the complaints which do not meet

243

the criteria for an investigation under the Whistle-blower's Act

244

and conduct, supervise, or coordinate such inquiries,

245

investigations, or reviews as the inspector general deems

246

appropriate.

247

     (c)  Report expeditiously to the Department of Law

248

Enforcement or other law enforcement agencies, as appropriate,

249

whenever the inspector general has reasonable grounds to believe

250

there has been a violation of criminal law.

251

     (d)  Conduct investigations and other inquiries free of

252

actual or perceived impairment to the independence of the

253

inspector general or the inspector general's office. This shall

254

include freedom from any interference with investigations and

255

timely access to records and other sources of information.

256

     (e) At the conclusion of each investigation in which the

257

subject of the investigation is a specific entity contracting

258

with the state or an individual substantially affected by the

259

findings, conclusions, and recommendations, the inspector general

260

shall, consistent with chapter 119, submit findings to the

261

subject that is a specific entity contracting with the state or

262

an individual substantially affected, who shall be advised that

263

they may submit a written response within 20 working days after

264

the receipt of the findings. Such response and the inspector

265

general's rebuttal to the response, if any, shall be included in

266

the final investigative report.

267

     (f)(e) Submit in a timely fashion final reports on

268

investigations conducted by the inspector general to the agency

269

head, except for whistle-blower's investigations, which shall be

270

conducted and reported pursuant to s. 112.3189.

271

     (7)  Each inspector general shall, not later than September

272

30 of each year, prepare an annual report summarizing the

273

activities of the office during the immediately preceding state

274

fiscal year. The final report shall be furnished to the agency

275

head. Such report shall include, but need not be limited to:

276

     (a)  A description of activities relating to the

277

development, assessment, and validation of performance measures.

278

     (b)  A description of significant abuses and deficiencies

279

relating to the administration of programs and operations of the

280

agency disclosed by investigations, audits, reviews, or other

281

activities during the reporting period.

282

     (c)  A description of the recommendations for corrective

283

action made by the inspector general during the reporting period

284

with respect to significant problems, abuses, or deficiencies

285

identified.

286

     (d)  The identification of each significant recommendation

287

described in previous annual reports on which corrective action

288

has not been completed.

289

     (e)  A summary of each audit and investigation completed

290

during the reporting period.

291

     (8) The inspector general in each agency shall provide to

292

the agency head, upon receipt, all written complaints concerning

293

the duties and responsibilities in this section or any allegation

294

of misconduct related to the office of the inspector general or

295

its employees, if received from subjects of audits or

296

investigations who are individuals substantially affected or

297

entities contracting with the state, as defined in this section.

298

For agencies solely under the direction of the Governor, the

299

inspector general shall also provide the complaint to the Chief

300

Inspector General.

301

     (9)(8) Each agency inspector general shall, to the extent

302

both necessary and practicable, include on his or her staff

303

individuals with electronic data processing auditing experience.

304

     Section 2.  This act shall take effect July 1, 2008.

305

306

================ T I T L E  A M E N D M E N T ================

307

And the title is amended as follows:

308

     Delete everything before the enacting clause

309

and insert:

310

A bill to be entitled

311

An act relating to agency inspectors general; amending s.

312

20.055, F.S.; providing definitions; requiring agency

313

inspectors general to comply with certain principles and

314

standards; requiring an inspector general to submit

315

findings of audits and investigations to specified persons

316

or entities; ; requiring responses to findings within 20

317

working days; requiring agencies under the Governor to

318

notify the Chief Inspector General of inspector general

319

appointments and terminations; prohibiting agency staff

320

from preventing or prohibiting the inspector general from

321

initiating, carrying out, or completing any audit or

322

investigation; requiring audits to be conducted in

323

accordance with the current International Standards for

324

the Professional Practice of Internal Auditing; requiring

325

the inspector general of each state agency to report

326

certain written complaints to the agency head, and for

327

agencies under the Governor, to the agency head and the

328

Chief Inspector General; requiring the Chief Inspector

329

General to fulfill certain duties and responsibilities;

330

providing an effective date.

3/26/2008  2:20:00 PM     8-05857-08