Florida Senate - 2010                       CS for CS for SB 690
       
       
       
       By the Committees on Finance and Tax; and Community Affairs; and
       Senators Dean and Gaetz
       
       
       
       593-02818-10                                           2010690c2
    1                        A bill to be entitled                      
    2         An act relating to local government accountability;
    3         amending s. 11.40, F.S., relating to the Legislative
    4         Auditing Committee; clarifying when the Department of
    5         Community Affairs may institute procedures for
    6         declaring that a special district is inactive;
    7         amending s. 30.49, F.S.; specifying the level of
    8         detail required for each fund in the sheriff’s
    9         proposed budget; revising the categories for
   10         expenditures; amending s. 112.63, F.S., relating to
   11         the review of the actuarial reports and statements of
   12         retirement plans of governmental entities by the
   13         Department of Management Services; providing that the
   14         failure of a special district to make appropriate
   15         adjustments or provide additional information
   16         authorizes the department to seek a writ of
   17         certiorari; amending s. 129.01, F.S.; revising
   18         provisions relating to the preparation of county
   19         budgets; specifying the level of detail required for
   20         each fund in the budget; amending s. 129.02, F.S.;
   21         revising provisions relating to the preparation of
   22         special district budgets; specifying the level of
   23         detail required for each fund in the budget; amending
   24         s. 129.021, F.S.; conforming cross-references;
   25         amending s. 129.03, F.S.; deleting a time restriction
   26         on preparing and presenting a tentative county budget;
   27         requiring tentative county budgets to be posted on the
   28         county’s website; amending s. 129.06, F.S.; revising
   29         provisions relating to the execution and amendment of
   30         county budgets; requiring revised budgets to be posted
   31         on the county’s website; amending s. 129.07, F.S.;
   32         revising provisions relating to the prohibition
   33         against exceeding the county budget; amending s.
   34         129.201, F.S.; conforming and revising provisions
   35         relating to the budget of the supervisor of elections;
   36         specifying the level of detail required for each fund
   37         in the proposed budget; revising expenditure
   38         categories; amending s. 166.241, F.S.; revising
   39         provisions relating to the preparation or amendment of
   40         municipal budgets; specifying the level of detail for
   41         each fund in the budget; requiring such budgets and
   42         amendment to such budgets to be posted on the website
   43         of the municipality or related county; amending s.
   44         189.4044, F.S.; adding failure to file a registered
   45         office or agent with the department for 1 or more
   46         years as a criteria for declaring a special district
   47         inactive; amending s. 189.412, F.S.; adding the
   48         Legislative Auditing Committee to the list of entities
   49         that obtain special district noncompliance status
   50         reports; amending s. 189.418, F.S.; revising
   51         provisions relating to the preparation or amendment of
   52         special district budgets; specifying the level of
   53         detail for each fund in the budget; requiring such
   54         budgets to be posted on the website of the special
   55         district or related local general-purpose government
   56         or governing authority; requiring special districts to
   57         comply with certain reporting requirements;
   58         authorizing a local governing authority to request
   59         certain financial information from special districts
   60         located solely within the boundaries of the authority;
   61         requiring special districts to cooperate with such
   62         requests; amending s. 189.419, F.S.; revising
   63         procedures relating to a special district’s failure to
   64         file certain reports or information; amending s.
   65         189.421, F.S.; revising procedures relating to the
   66         failure of a special district to disclose financial
   67         reports; authorizing the Department of Community
   68         Affairs to seek a writ of certiorari; amending s.
   69         195.087, F.S.; requiring the final approved budget of
   70         the property appraiser and tax collector to be posted
   71         on the county’s website; amending s. 218.32, F.S.;
   72         revising the schedule for submitting a local
   73         governmental entity’s audit and annual financial
   74         reports to the Department of Financial Services;
   75         requiring the department to notify the Special
   76         District Information Program if it does not receive a
   77         financial report from a local government entity;
   78         requiring a local governmental entity to provide a
   79         link to the entity’s financial report on the
   80         department’s website; amending s. 218.35, F.S.;
   81         requiring the budget for certain county-related duties
   82         to be itemized in accordance with the uniform
   83         accounting system of the Department of Financial
   84         Services; specifying the level of detail for each fund
   85         in the clerk of the court’s budget; requiring the
   86         court clerk’s approved budget to be posted on the
   87         county’s website; amending s. 218.39, F.S.; revising
   88         the timeframe for completing a local governmental
   89         entity’s annual financial audit; requiring that an
   90         auditor prepare an audit report; requiring that such
   91         report be filed with the Auditor General within a
   92         specified time; requiring that the Auditor General
   93         notify the Legislative Auditing Committee of any audit
   94         report indicating that an audited entity has failed to
   95         take corrective action; requiring that the chair of a
   96         local governmental entity appear before the committee
   97         under certain circumstances; amending s. 218.503,
   98         F.S.; revising provisions relating to oversight by the
   99         Governor when an entity’s financial statements show it
  100         cannot cover a deficit of funds; amending s. 373.536,
  101         F.S.; requiring that water management district budgets
  102         be posted on the district website; amending s.
  103         1011.03, F.S.; requiring the summary of the tentative
  104         budget, the tentative budget, and the budget of a
  105         district school board to be posted on the website of
  106         the district or related county; amending s. 1011.051,
  107         F.S.; revising provisions relating to the guidelines
  108         for district school boards to maintain an ending fund
  109         balance for the general fund; amending s. 1011.64,
  110         F.S.; revising obsolete accounting terminology;
  111         providing an effective date.
  112  
  113  Be It Enacted by the Legislature of the State of Florida:
  114  
  115         Section 1. Paragraph (b) of subsection (5) of section
  116  11.40, Florida Statutes, is amended to read:
  117         11.40 Legislative Auditing Committee.—
  118         (5) Following notification by the Auditor General, the
  119  Department of Financial Services, or the Division of Bond
  120  Finance of the State Board of Administration of the failure of a
  121  local governmental entity, district school board, charter
  122  school, or charter technical career center to comply with the
  123  applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or
  124  s. 218.38, the Legislative Auditing Committee may schedule a
  125  hearing. If a hearing is scheduled, the committee shall
  126  determine if the entity should be subject to further state
  127  action. If the committee determines that the entity should be
  128  subject to further state action, the committee shall:
  129         (b) In the case of a special district, notify the
  130  Department of Community Affairs that the special district has
  131  failed to comply with the law. Upon receipt of notification, the
  132  Department of Community Affairs shall proceed pursuant to s.
  133  189.4044 or the provisions specified in s. 189.421.
  134         Section 2. Subsections (1) through (4) of section 30.49,
  135  Florida Statutes, are amended to read:
  136         30.49 Budgets.—
  137         (1) Pursuant to s. 129.03(2), each sheriff shall annually
  138  prepare and submit certify to the board of county commissioners
  139  a proposed budget of expenditures for the carrying out of the
  140  powers, duties, and operations of the office for the next
  141  ensuing fiscal year of the county. The fiscal year of the
  142  sheriff shall henceforth commence on October 1 and end on
  143  September 30 of each year.
  144         (2)(a) The sheriff shall submit with the proposed budget
  145  his or her sworn certificate, stating that the proposed
  146  expenditures are reasonable and necessary for the proper and
  147  efficient operation of the office for the ensuing year. The
  148  proposed budget must shall show the estimated amounts of all
  149  proposed expenditures for operating and equipping the sheriff’s
  150  office and jail, excluding the cost of construction, repair, or
  151  capital improvement of county buildings during the such fiscal
  152  year. The expenditures must shall be categorized at the
  153  appropriate fund level in accordance with the following
  154  functional categories:
  155         1. General law enforcement.
  156         2. Corrections and detention alternative facilities.
  157         3. Court services, excluding service of process.
  158         (b) The sheriff shall submit with the proposed budget a
  159  sworn certificate stating that the proposed expenditures are
  160  reasonable and necessary for the proper and efficient operation
  161  of the office for the next fiscal year.
  162         (c) Within the appropriate fund and functional category,
  163  expenditures shall be itemized in accordance with the uniform
  164  chart of accounts prescribed by the Department of Financial
  165  Services, as follows:
  166         1. Personnel Personal services.
  167         2. Operating expenses.
  168         3. Capital outlay.
  169         4. Debt service.
  170         5. Grants and aids Nonoperating disbursements and
  171  contingency reserves.
  172         6. Other uses.
  173         (d)(c) The sheriff shall submit to the board of county
  174  commissioners for consideration and inclusion in the county
  175  budget, as deemed appropriate by the county, requests for
  176  construction, repair, or capital improvement of county buildings
  177  operated or occupied by the sheriff.
  178         (3) The sheriff shall furnish to the board of county
  179  commissioners or the budget commission, if there is a budget
  180  commission in the county, all relevant and pertinent information
  181  concerning expenditures made in previous fiscal years and to the
  182  proposed expenditures which the such board or commission deems
  183  necessary, including expenditures at the subobject code level in
  184  accordance with the uniform chart of accounts prescribed by the
  185  Department of Financial Services. The board or commission may
  186  not amend, modify, increase, or reduce any expenditure at the
  187  subobject code level. except that The board or commission may
  188  not require confidential information concerning details of
  189  investigations. Confidential information concerning details of
  190  investigations is exempt from the provisions of s. 119.07(1).
  191         (4) The board of county commissioners or the budget
  192  commission, as appropriate the case may be, may require the
  193  sheriff to correct mathematical, mechanical, factual, and
  194  clerical errors and errors as to form in the proposed budget. At
  195  the hearings held pursuant to s. 200.065, the board or
  196  commission, as the case may be, may amend, modify, increase, or
  197  reduce any or all items of expenditure in the proposed budget,
  198  as certified by the sheriff pursuant to paragraphs (2)(a)-(c),
  199  and shall approve such budget, as amended, modified, increased,
  200  or reduced. The board or commission It must give written notice
  201  of its action to the sheriff and specify in such notice the
  202  specific items amended, modified, increased, or reduced. The
  203  budget must shall include the salaries and expenses of the
  204  sheriff’s office, cost of operation of the county jail,
  205  purchase, maintenance and operation of equipment, including
  206  patrol cars, radio systems, transporting prisoners, court
  207  duties, and all other salaries, expenses, equipment, and
  208  investigation expenditures of the entire sheriff’s office for
  209  the previous year.
  210         (a) The sheriff, within 30 days after receiving written
  211  notice of such action by the board or commission, either in
  212  person or in his or her office, may file an appeal by petition
  213  to the Administration Commission. Such appeal shall be by
  214  petition to the Administration commission. The petition must
  215  shall set forth the budget proposed by the sheriff, in the form
  216  and manner prescribed by the Executive Office of the Governor
  217  and approved by the Administration Commission, and the budget as
  218  approved by the board of county commissioners or the budget
  219  commission, as the case may be, and shall contain the reasons or
  220  grounds for the appeal. Such petition shall be filed with the
  221  Executive Office of the Governor, and a copy of the petition
  222  shall be served upon the board or commission from the decision
  223  of which appeal is taken by delivering the same to the chair or
  224  president thereof or to the clerk of the circuit court.
  225         (b) The board of county commissioners or the budget
  226  commission, as the case may be, shall have 5 days following from
  227  delivery of a copy of any such petition to file a reply with the
  228  Executive Office of the Governor a reply thereto, and it shall
  229  deliver a copy of such reply to the sheriff.
  230         Section 3. Subsection (4) of section 112.63, Florida
  231  Statutes, is amended to read:
  232         112.63 Actuarial reports and statements of actuarial
  233  impact; review.—
  234         (4) Upon receipt, pursuant to subsection (2), of an
  235  actuarial report, or upon receipt, pursuant to subsection (3),
  236  of a statement of actuarial impact, the Department of Management
  237  Services shall acknowledge such receipt, but shall only review
  238  and comment on each retirement system’s or plan’s actuarial
  239  valuations at least on a triennial basis.
  240         (a) If the department finds that the actuarial valuation is
  241  not complete, accurate, or based on reasonable assumptions or
  242  otherwise materially fails to satisfy the requirements of this
  243  part;, if the department requires additional material
  244  information necessary to complete its review of the actuarial
  245  valuation of a system or plan or material information necessary
  246  to satisfy the duties of the department pursuant to s.
  247  112.665(1);, or if the department does not receive the actuarial
  248  report or statement of actuarial impact, the department shall
  249  notify the administrator of the affected retirement system or
  250  plan and the affected governmental entity and request
  251  appropriate adjustment, the additional material information, or
  252  the required report or statement. The notification must inform
  253  the administrator of the affected retirement system or plan and
  254  the affected governmental entity of the consequences for failing
  255  failure to comply with the requirements of this subsection.
  256         (b) If, after a reasonable period of time, a satisfactory
  257  adjustment is not made or the report, statement, or additional
  258  material information is not provided, the department may notify
  259  the Department of Revenue and the Department of Financial
  260  Services of the such noncompliance, and in which case the
  261  Department of Revenue and the Department of Financial Services
  262  shall withhold any funds not pledged for satisfaction of bond
  263  debt service which are payable to the affected governmental
  264  entity until the adjustment is made or the report, statement, or
  265  additional material information is provided to the department.
  266  The Department of Management Services shall specify the date
  267  such action is to begin and notify, and notification by the
  268  department must be received by the Department of Revenue, the
  269  Department of Financial Services, and the affected governmental
  270  entity 30 days before the specified date the action begins.
  271         (c)(a) Within 21 days after receipt of the notice, the
  272  affected governmental entity may petition the Department of
  273  Management Services for a hearing under ss. 120.569 and 120.57
  274  with the Department of Management Services. The Department of
  275  Revenue and the Department of Financial Services may not be
  276  parties to the any such hearing, but may request to intervene if
  277  requested by the Department of Management Services or if the
  278  Department of Revenue or the Department of Financial Services
  279  determines its interests may be adversely affected by the
  280  hearing.
  281         1. If the administrative law judge recommends in favor of
  282  the department, the department shall perform an actuarial
  283  review, prepare the statement of actuarial impact, or collect
  284  the requested material information. The cost to the department
  285  of performing the such actuarial review, preparing the
  286  statement, or collecting the requested material information
  287  shall be charged to the affected governmental entity whose of
  288  which the employees are covered by the retirement system or
  289  plan. If payment of such costs is not received by the department
  290  within 60 days after receipt by the affected governmental entity
  291  receives of the request for payment, the department shall
  292  certify to the Department of Revenue and the Department of
  293  Financial Services the amount due, and the Department of Revenue
  294  and the Department of Financial Services shall pay such amount
  295  to the Department of Management Services from any funds not
  296  pledged for satisfaction of bond debt service which are payable
  297  to the affected governmental entity of which the employees are
  298  covered by the retirement system or plan.
  299         2. If the administrative law judge recommends in favor of
  300  the affected governmental entity and the department performs an
  301  actuarial review, prepares the statement of actuarial impact, or
  302  collects the requested material information, the cost to the
  303  department of performing the actuarial review, preparing the
  304  statement, or collecting the requested material information
  305  shall be paid by the Department of Management Services.
  306         (d)(b) In the case of an affected special district, the
  307  Department of Management Services shall also notify the
  308  Department of Community Affairs. Upon receipt of notification,
  309  the Department of Community Affairs shall proceed pursuant to
  310  the provisions of s. 189.421 with regard to the special
  311  district.
  312         1.Failure of a special district to provide a required
  313  report or statement, to make appropriate adjustments, or to
  314  provide additional material information after the procedures
  315  specified in s. 189.421(1) are exhausted shall be deemed final
  316  action by the special district.
  317         2.The Department of Management Services may notify the
  318  Department of Community Affairs of those special districts that
  319  failed to come into compliance. Upon receipt of notification,
  320  the Department of Community Affairs shall proceed pursuant to s.
  321  189.421(4).
  322         Section 4. Section 129.01, Florida Statutes, is amended to
  323  read:
  324         129.01 Budget system established.—There is hereby
  325  established A budget system for the control of the finances of
  326  the boards of county commissioners of the several counties of
  327  the state is established, as follows:
  328         (1) A budget There shall be prepared, approved, adopted,
  329  and executed, as prescribed in this chapter, for the fiscal year
  330  ending September 30, 1952, and for each fiscal year. At a
  331  minimum, the budget must show for each fund, as thereafter, an
  332  annual budget for such funds as may be required by law and or by
  333  sound financial practices, budgeted revenues and expenditures by
  334  organizational unit at a level of detail that is at least
  335  similar to the level of detail in the annual financial report
  336  required under s. 218.32(1) and generally accepted accounting
  337  principles. The budget shall control the levy of taxes and the
  338  expenditure of money for all county purposes during the ensuing
  339  fiscal year.
  340         (2) The Each budget must shall conform to the following
  341  general directions and requirements:
  342         (a) The budget must shall be prepared, summarized, and
  343  approved by the board of county commissioners of each county.
  344         (b) The budget must shall be balanced, so that; that is,
  345  the total of the estimated receipts available from taxation and
  346  other sources, including balances brought forward from prior
  347  fiscal years, equals shall equal the total of the appropriations
  348  for expenditures and reserves. It shall conform to the uniform
  349  classification of accounts prescribed by the appropriate state
  350  agency. The budgeted receipts must division of the budget shall
  351  include 95 percent of all receipts reasonably to be anticipated
  352  from all sources, including taxes to be levied, provided the
  353  percent anticipated from ad valorem levies is shall be as
  354  specified in s. 200.065(2)(a), and is 100 percent of the amount
  355  of the balances of both cash and liquid securities estimated to
  356  be brought forward at the beginning of the fiscal year. The
  357  appropriations must appropriation division of the budget shall
  358  include itemized appropriations for all expenditures authorized
  359  by law, contemplated to be made, or incurred for the benefit of
  360  the county during the said year and the provision for the
  361  reserves authorized by this chapter. Both the receipts and
  362  appropriations must appropriation divisions shall reflect the
  363  approximate division of expenditures between countywide
  364  expenditures and noncountywide expenditures and the division of
  365  county revenues derived from or on behalf of the county as a
  366  whole and county revenues derived from or on behalf of a
  367  municipal service taxing unit, special district included within
  368  the county budget, unincorporated area, service area, or program
  369  area, or otherwise not received for or on behalf of the county
  370  as a whole.
  371         (c) Provision may be made for the following reserves:
  372         1. A reserve for contingencies may be provided which does
  373  in a sum not to exceed 10 percent of the total appropriations of
  374  the budget.
  375         2. A reserve for cash balance to be carried over may be
  376  provided for the purpose of paying expenses from October 1 of
  377  the next ensuing fiscal year until the time when the revenues
  378  for that year are expected to be available. This reserve may be
  379  not be more than 20 percent of the total appropriations.
  380  However, receipts and balances of the budget; provided that for
  381  the bond interest and sinking fund budget, this reserve may not
  382  exceed be not more than the total maturities of debt, (both
  383  principal and interest), which that will occur during the next
  384  ensuing fiscal year, plus the sinking fund requirements,
  385  computed on a straight-line basis, for any outstanding
  386  obligations to be paid from the fund.
  387         (d) An appropriation for outstanding indebtedness shall
  388  be made to provide for the payment of vouchers that which have
  389  been incurred in and charged against the budget for the current
  390  year or a prior year, but that which are expected to be unpaid
  391  at the beginning of the next fiscal ensuing year for which the
  392  budget is being prepared. The appropriation for the payment of
  393  such vouchers shall be to made in the same fund in which for
  394  which the expenses were originally incurred.
  395         (e) Any surplus arising from an excess of the estimated
  396  cash balance over the estimated amount of unpaid obligations to
  397  be carried over in a fund at the end of the current fiscal year
  398  may be transferred to any of the other funds of the county, and
  399  the amount so transferred shall be budgeted as a receipt to such
  400  other funds. However, a; provided, that no such surplus:
  401         1. In a fund raised for debt service may not shall be
  402  transferred to another fund until, except to a fund raised for
  403  the same purposes in the same territory, unless the debt for
  404  which the fund was established of such territory has been
  405  extinguished., in which case it may be transferred to any other
  406  fund raised for that territory; provided, further, that no such
  407  surplus
  408         2. In a capital outlay reserve fund may not be transferred
  409  to another fund until such time as the projects for which the
  410  such capital outlay reserve fund was raised have been completed
  411  and all obligations paid.
  412         Section 5. Subsection (6) of section 129.02, Florida
  413  Statutes, is amended to read:
  414         129.02 Requisites of budgets.—Each budget shall conform to
  415  the following specific directions and requirements:
  416         (6) For each special district included within the county
  417  budget, the operating fund budget must show budgeted revenues
  418  and expenditures by organizational unit at a level of detail
  419  that is at least similar to the level of detail in the annual
  420  financial report required under s. 218.32(1). The amount
  421  available from taxation and other sources, including balances
  422  brought forward from prior fiscal years, must equal the total
  423  appropriations for expenditures and reserves. The budget must
  424  include shall contain an estimate of receipts by source and
  425  balances as provided herein, and an itemized estimate of
  426  expenditures necessary that will need to be incurred to carry on
  427  all functions and activities of the special district as now or
  428  hereafter provided by law, including and of the indebtedness of
  429  the special district and the provision for required reserves;
  430  also of the reserves for contingencies and the balances, as
  431  hereinbefore provided, which should be carried forward at the
  432  end of the year.
  433         Section 6. Section 129.021, Florida Statutes, is amended to
  434  read:
  435         129.021 County officer budget information.—Notwithstanding
  436  other provisions of law, the budgets of all county officers, as
  437  submitted to the board of county commissioners, must shall be in
  438  sufficient detail and contain such information as the board of
  439  county commissioners may require in furtherance of their powers
  440  and responsibilities provided in ss. 125.01(1)(q), and (r), and
  441  (v), and (6) and 129.01(2)(b).
  442         Section 7. Subsection (3) of section 129.03, Florida
  443  Statutes, is amended to read:
  444         129.03 Preparation and adoption of budget.—
  445         (3) No later than 15 days after certification of value by
  446  the property appraiser pursuant to s. 200.065(1), The county
  447  budget officer, after tentatively ascertaining the proposed
  448  fiscal policies of the board for the next ensuing fiscal year,
  449  shall prepare and present to the board a tentative budget for
  450  the next ensuing fiscal year for each of the funds provided in
  451  this chapter, including all estimated receipts, taxes to be
  452  levied, and balances expected to be brought forward and all
  453  estimated expenditures, reserves, and balances to be carried
  454  over at the end of the year.
  455         (a) The board of county commissioners shall receive and
  456  examine the tentative budget for each fund and, subject to the
  457  notice and hearing requirements of s. 200.065, shall require
  458  such changes to be made as it deems shall deem necessary,;
  459  provided the budget remains shall remain in balance. The county
  460  budget officer’s estimates of receipts other than taxes, and of
  461  balances to be brought forward, may shall not be revised except
  462  by a resolution of the board, duly passed and spread on the
  463  minutes of the board. However, the board may allocate to any of
  464  the funds of the county any anticipated receipts, other than
  465  taxes levied for a particular fund, except receipts designated
  466  or received to be expended for a particular purpose.
  467         (b) Upon receipt of the tentative budgets and completion of
  468  any revisions made by the board, the board shall prepare a
  469  statement summarizing all of the adopted tentative budgets. The
  470  This summary statement must shall show, for each budget and the
  471  total of all budgets, the proposed tax millages, the balances,
  472  the reserves, and the total of each major classification of
  473  receipts and expenditures, classified according to the uniform
  474  classification of accounts adopted prescribed by the appropriate
  475  state agency. The board shall cause this summary statement to be
  476  advertised one time in a newspaper of general circulation
  477  published in the county, or by posting at the courthouse door if
  478  there is no such newspaper, and the advertisement must shall
  479  appear adjacent to the advertisement required pursuant to s.
  480  200.065.
  481         (c) The board shall hold public hearings to adopt tentative
  482  and final budgets pursuant to s. 200.065. The hearings shall be
  483  primarily for the purpose of hearing requests and complaints
  484  from the public regarding the budgets and the proposed tax
  485  levies and for explaining the budget and any proposed or adopted
  486  amendments thereto, if any. The tentative budget must be posted
  487  on the county’s official website at least 2 days before the
  488  public hearing to consider such budget. The final budget must be
  489  posted on the website within 30 days after adoption. The
  490  tentative budgets, adopted tentative budgets, and final budgets
  491  shall be filed in the office of the county auditor as a public
  492  record. Sufficient reference in words and figures to identify
  493  the particular transactions shall be made in the minutes of the
  494  board to record its actions with reference to the budgets.
  495         Section 8. Subsection (1) and paragraphs (a) and (f) of
  496  subsection (2) of section 129.06, Florida Statutes, are amended
  497  to read:
  498         129.06 Execution and amendment of budget.—
  499         (1) Upon the final adoption of the budgets as provided in
  500  this chapter, the budgets so adopted must shall regulate the
  501  expenditures of the county and each special district included
  502  within the county budget, and the itemized estimates of
  503  expenditures must shall have the effect of fixed appropriations
  504  and may shall not be amended, altered, or exceeded except as
  505  provided in this chapter.
  506         (a) The modified-accrual basis or accrual basis of
  507  accounting must be followed for all funds in accordance with
  508  generally accepted accounting principles.
  509         (b) The cost of the investments provided in this chapter,
  510  or the receipts from their sale or redemption, may must not be
  511  treated as expense or income, and but the investments on hand at
  512  the beginning or end of each fiscal year must be carried as
  513  separate items at cost in the fund balances; however, the
  514  amounts of profit or loss received on their sale must be treated
  515  as income or expense, as applicable the case may be.
  516         (2) The board at any time within a fiscal year may amend a
  517  budget for that year, and may within the first 60 days of a
  518  fiscal year amend the budget for the prior fiscal year, as
  519  follows:
  520         (a) Appropriations for expenditures within in any fund may
  521  be decreased or and other appropriations in the same fund
  522  correspondingly increased by motion recorded in the minutes,
  523  provided that the total of the appropriations of the fund does
  524  not change may not be changed. The board of county
  525  commissioners, however, may establish procedures by which the
  526  designated budget officer may authorize certain
  527  intradepartmental budget amendments, provided that the total
  528  appropriations appropriation of the fund does not change
  529  department may not be changed.
  530         (f) Unless otherwise prohibited by law, if an amendment to
  531  a budget is required for a purpose not specifically authorized
  532  in paragraphs (a)-(e), unless otherwise prohibited by law, the
  533  amendment may be authorized by resolution or ordinance of the
  534  board of county commissioners adopted following a public
  535  hearing.
  536         1. The public hearing must be advertised at least 2 days,
  537  but not more than 5 days, before the date of the hearing. The
  538  advertisement must appear in a newspaper of paid general
  539  circulation and must identify the name of the taxing authority,
  540  the date, place, and time of the hearing, and the purpose of the
  541  hearing. The advertisement must also identify each budgetary
  542  fund to be amended, the source of the funds, the use of the
  543  funds, and the total amount of each fund’s appropriations
  544  budget.
  545         2.If the board amends the budget pursuant to this
  546  paragraph, the adopted amendment must be posted on the county’s
  547  official website within 5 days after adoption.
  548         Section 9. Section 129.07, Florida Statutes, is amended to
  549  read:
  550         129.07 Unlawful to exceed the budget; certain contracts
  551  void; commissioners contracting excess indebtedness personally
  552  liable.—It is unlawful for The board of county commissioners may
  553  not to expend or enter into a contract requiring expenditures
  554  for the expenditure in any fiscal year for more than the amount
  555  of appropriations budgeted in each fund’s budget, except as
  556  provided herein, and in no case shall the total appropriations
  557  of any budget may not be exceeded, except as provided in s.
  558  129.06., and Any indebtedness contracted for any purpose against
  559  either of the funds enumerated in this chapter or for any
  560  purpose, the expenditure for which is chargeable to either of
  561  the said funds, is shall be null and void, and no suit may or
  562  suits shall be prosecuted in any court in this state for the
  563  collection of such indebtedness. same, and The members of the
  564  board of county commissioners voting for and contracting for
  565  such indebtedness amounts and the bonds of such members of said
  566  boards also shall be liable for any the excess indebtedness so
  567  contracted for.
  568         Section 10. Section 129.201, Florida Statutes, is amended
  569  to read:
  570         129.201 Budget of supervisor of elections; manner and time
  571  of preparation and presentation.—
  572         (1) Pursuant to ss. 129.01 and s. 129.03(2), each
  573  supervisor of elections shall annually prepare and submit
  574  certify to the board of county commissioners, or county budget
  575  commission if there is one in the county, a proposed budget for
  576  carrying out the powers, duties, and operations of income and
  577  expenditures to fulfill the duties, responsibilities, and
  578  operation of the office of the supervisor of elections for the
  579  next ensuing fiscal year of the county. The fiscal year of the
  580  supervisor of elections commences shall commence on October 1 of
  581  each year and ends shall end on September 30 of the following
  582  year.
  583         (2)(a)Expenditures must be itemized in accordance with the
  584  uniform accounting system prescribed by the Department of
  585  Financial Services Each expenditure item in the budget for the
  586  supervisor of elections shall be itemized generally as follows:
  587         (a)1.Personnel services. Compensation for the supervisor
  588  of elections and all other personnel of the office.
  589         (b)2. Operating expenses.
  590         (c)3. Capital outlay.
  591         (d) Debt service.
  592         (e)4.Grants and aids. Contingencies and transfers.
  593         (f) Other uses.
  594         (b)To the extent appropriate, the budget shall be further
  595  itemized in conformance with the Uniform Accounting System for
  596  Local Units of Government in Florida adopted by rule of the
  597  Chief Financial Officer.
  598         (3) The supervisor of elections shall furnish to the board
  599  of county commissioners or the county budget commission all
  600  relevant and pertinent information that the which such board or
  601  commission deems shall deem necessary, including expenditures at
  602  the subobject code level in accordance with the uniform chart of
  603  accounts prescribed by the Department of Financial Services. The
  604  board or commission may not amend, modify, increase, or reduce
  605  any expenditure at the subobject code level.
  606         (4) The board or commission, as appropriate the case may
  607  be, may require the supervisor of elections to correct
  608  mathematical, mechanical, factual, and clerical errors and
  609  errors of form in the proposed budget. At the hearings held
  610  pursuant to s. 200.065, the board or commission may amend,
  611  modify, increase, or reduce any or all items of expenditure in
  612  the proposed budget as submitted under subsections (1) and (2);
  613  and, as amended, modified, increased, or reduced, such budget
  614  shall be approved by the board or commission, which must provide
  615  giving written notice of its action to specific items amended,
  616  modified, increased, or reduced.
  617         (5) The board or commission shall include in the county
  618  budget the items of proposed expenditures as set forth in the
  619  budget which are required by this section to be submitted, after
  620  the budget has been reviewed and approved. The board or
  621  commission shall include the supervisor of elections’ reserve
  622  for contingencies provided herein in the general county budget’s
  623  reserve for contingencies account in the general county budget.
  624         (6) The supervisor of elections’ reserve for contingencies
  625  is in the budget of a supervisor of elections shall be governed
  626  by the same provisions governing the amount and use of the
  627  reserve for contingencies appropriated in the county budget.
  628         (7) The proposed budget shall be submitted to the board of
  629  county commissioners or county budget commission pursuant to s.
  630  129.03(2), and the budget shall be included by the board or
  631  commission in the general county budget.
  632         (8) The items placed in the budget of the board are
  633  pursuant to this act shall be subject to the same provisions of
  634  law as the county annual budget; however, an no amendment may be
  635  made to the appropriations of the office of the supervisor of
  636  elections may not be made without due notice of the change to
  637  the supervisor of elections.
  638         (9) The budget of the supervisor of elections may be
  639  increased by the board of county commissioners to cover such
  640  expenses for emergencies and unanticipated expenses as are
  641  recommended and justified by the supervisor of elections.
  642         Section 11. Section 166.241, Florida Statutes, is amended
  643  to read:
  644         166.241 Fiscal years, appropriations, budgets, and budget
  645  amendments.—
  646         (1) Each municipality shall establish make provision for
  647  establishing a fiscal year beginning October 1 of each year and
  648  ending September 30 of the following year.
  649         (2) The governing body of each municipality shall adopt a
  650  budget each fiscal year. The budget must be adopted by ordinance
  651  or resolution unless otherwise specified in the respective
  652  municipality’s charter. The amount available from taxation and
  653  other sources, including balances brought forward amounts
  654  carried over from prior fiscal years, must equal the total
  655  appropriations for expenditures and reserves. At a minimum, the
  656  adopted budget must show for each fund, as required by law and
  657  sound financial practices, budgeted revenues and expenditures by
  658  organizational unit at a level of detail at least similar to the
  659  level of detail in the annual financial report required under s.
  660  218.32(1). The adopted budget must regulate expenditures of the
  661  municipality, and an it is unlawful for any officer of a
  662  municipal government may not to expend or contract for
  663  expenditures in any fiscal year except pursuant to the adopted
  664  budget in pursuance of budgeted appropriations.
  665         (3)The tentative budget must be posted on the
  666  municipality’s official website at least 2 days before the
  667  budget hearing, held pursuant to s. 200.065 or other law, to
  668  consider such budget. The final adopted budget must be posted on
  669  the municipality’s official website within 30 days after
  670  adoption. If the municipality does not operate an official
  671  website, the municipality must, within a reasonable period of
  672  time as established by the county or counties in which the
  673  municipality is located, transmit the tentative budget and final
  674  budget to the manager or administrator of such counties who
  675  shall post the budgets on the county’s website.
  676         (4)(3) The governing body of each municipality at any time
  677  within a fiscal year or within up to 60 days following the end
  678  of the fiscal year may amend a budget for that year as follows:
  679         (a) Appropriations for expenditures within a fund may be
  680  decreased or increased by motion recorded in the minutes if,
  681  provided that the total of the appropriations of the fund is not
  682  changed.
  683         (b) The governing body may establish procedures by which
  684  the designated budget officer may authorize certain budget
  685  amendments if within a department, provided that the total of
  686  the appropriations of the fund department is not changed.
  687         (c) If a budget amendment is required for a purpose not
  688  specifically authorized in paragraph (a) or paragraph (b), the
  689  budget amendment must be adopted in the same manner as the
  690  original budget unless otherwise specified in the municipality’s
  691  charter of the respective municipality.
  692         (5)If the governing body of a municipality amends the
  693  budget pursuant to paragraph (4)(c), the adopted amendment must
  694  be posted on the official website of the municipality within 5
  695  days after adoption. If the municipality does not operate an
  696  official website, the municipality must, within a reasonable
  697  period of time as established by the county or counties in which
  698  the municipality is located, transmit the adopted amendment to
  699  the manager or administrator of such county or counties who
  700  shall post the adopted amendment on the county’s website.
  701         Section 12. Paragraph (a) of subsection (1) of section
  702  189.4044, Florida Statutes, is amended to read:
  703         189.4044 Special procedures for inactive districts.—
  704         (1) The department shall declare inactive any special
  705  district in this state by documenting that:
  706         (a) The special district meets one of the following
  707  criteria:
  708         1. The registered agent of the district, the chair of the
  709  governing body of the district, or the governing body of the
  710  appropriate local general-purpose government notifies the
  711  department in writing that the district has taken no action for
  712  2 or more years;
  713         2. Following an inquiry from the department, the registered
  714  agent of the district, the chair of the governing body of the
  715  district, or the governing body of the appropriate local
  716  general-purpose government notifies the department in writing
  717  that the district has not had a governing board or a sufficient
  718  number of governing board members to constitute a quorum for 2
  719  or more years or the registered agent of the district, the chair
  720  of the governing body of the district, or the governing body of
  721  the appropriate local general-purpose government fails to
  722  respond to the department’s inquiry within 21 days; or
  723         3. The department determines, pursuant to s. 189.421, that
  724  the district has failed to file any of the reports listed in s.
  725  189.419; or.
  726         4.The district has not had a registered office and agent
  727  on file with the department for 1 or more years.
  728         Section 13. Subsection (1) of section 189.412, Florida
  729  Statutes, is amended to read:
  730         189.412 Special District Information Program; duties and
  731  responsibilities.—The Special District Information Program of
  732  the Department of Community Affairs is created and has the
  733  following special duties:
  734         (1) The collection and maintenance of special district
  735  noncompliance status reports from the Department of Management
  736  Services, the Department of Financial Services, the Division of
  737  Bond Finance of the State Board of Administration, and the
  738  Auditor General, and the Legislative Auditing Committee, for the
  739  reporting required in ss. 112.63, 218.32, 218.38, and 218.39.
  740  The noncompliance reports must list those special districts that
  741  did not comply with the statutory reporting requirements.
  742         Section 14. Subsections (3) through (7) of section 189.418,
  743  Florida Statutes, are amended to read:
  744         189.418 Reports; budgets; audits.—
  745         (3) The governing body of each special district shall adopt
  746  a budget by resolution each fiscal year. The total amount
  747  available from taxation and other sources, including balances
  748  brought forward amounts carried over from prior fiscal years,
  749  must equal the total of appropriations for expenditures and
  750  reserves. At a minimum, the adopted budget must show for each
  751  fund, as required by law and sound financial practices, budgeted
  752  revenues and expenditures by organizational unit at a level of
  753  detail that is at least similar to the level of detail in the
  754  annual financial report required under s. 218.32(1). The adopted
  755  budget must regulate expenditures of the special district, and
  756  an it is unlawful for any officer of a special district may not
  757  to expend or contract for expenditures in any fiscal year except
  758  pursuant to the adopted budget in pursuance of budgeted
  759  appropriations.
  760         (4)The tentative budget must be posted on the special
  761  district’s official website at least 2 days before the budget
  762  hearing, held pursuant to s. 200.065 or other law, to consider
  763  such budget. The final adopted budget must be posted on the
  764  special district’s official website within 30 days after
  765  adoption. If the special district does not operate an official
  766  website, the special district must, within a reasonable period
  767  of time as established by the local general-purpose government,
  768  or governments in which the special district is located or the
  769  local governing authority to which the district is dependent,
  770  transmit the tentative budget or final budget to the manager or
  771  administrator of the local general-purpose government or the
  772  local governing authority. The manager or administrator shall
  773  post the tentative budget or final budget on the website of the
  774  local general-purpose government or governing authority. This
  775  subsection and subsection (3) does not apply to water management
  776  districts as defined in s. 373.019.
  777         (5)(4) The proposed budget of a dependent special district
  778  must shall be presented in accordance with generally accepted
  779  accounting principles, contained within the general budget of
  780  the local governing authority to which it is dependent, and be
  781  clearly stated as the budget of the dependent district. However,
  782  with the concurrence of the local governing authority, a
  783  dependent district may be budgeted separately. The dependent
  784  district must provide any budget information requested by the
  785  local governing authority at the time and place designated by
  786  the local governing authority.
  787         (6)(5) The governing body of each special district at any
  788  time within a fiscal year or within up to 60 days following the
  789  end of the fiscal year may amend a budget for that year as
  790  follows:.
  791         (a) Appropriations for expenditures within a fund may be
  792  decreased or increased by motion recorded in the minutes if the
  793  total appropriations of the fund do not change.
  794         (b) The governing body may establish procedures by which
  795  the designated budget officer may authorize certain budget
  796  amendments if the total appropriations of the fund is not
  797  changed.
  798         (c) If a budget amendment is required for a purpose not
  799  specifically authorized in paragraph (a) or paragraph (b), the
  800  budget amendment must be adopted by resolution.
  801         (7)If the governing body of a special district amends the
  802  budget pursuant to paragraph (6)(c), the adopted amendment must
  803  be posted on the official website of the special district within
  804  5 days after adoption. If the special district does not operate
  805  an official website, the special district must, within a
  806  reasonable period of time as established by the local general
  807  purpose government, transmit the adopted amendment to the
  808  manager or administrator of the local general-purpose government
  809  or governments in which the special district is located or the
  810  governing authority to which the district is dependent. The
  811  manager or administrator shall post the adopted amendment on the
  812  website of the local general-purpose government or governing
  813  authority.
  814         (8)(6) A local general-purpose government governing
  815  authority may, in its discretion, review the budget or tax levy
  816  of any special district located solely within its boundaries.
  817         (9)All special districts must comply with the financial
  818  reporting requirements of ss. 218.32 and 218.39. A local
  819  general-purpose government or governing authority may request,
  820  from any special district located solely within its boundaries,
  821  financial information in order to comply with its reporting
  822  requirements under ss. 218.32 and 218.39. The special district
  823  must cooperate with such request and provide the financial
  824  information at the time and place designated by the local
  825  general-purpose government or governing authority.
  826         (10)(7) All reports or information required to be filed
  827  with a local general-purpose government or governing authority
  828  under ss. 189.415, 189.416, and 189.417 and subsection (8) this
  829  section shall:
  830         (a) If When the local general-purpose government or
  831  governing authority is a county, be filed with the clerk of the
  832  board of county commissioners.
  833         (b) If When the district is a multicounty district, be
  834  filed with the clerk of the county commission in each county.
  835         (c) If When the local general-purpose government or
  836  governing authority is a municipality, be filed at the place
  837  designated by the municipal governing body.
  838         Section 15. Section 189.419, Florida Statutes, is amended
  839  to read:
  840         189.419 Effect of failure to file certain reports or
  841  information.—
  842         (1) If an independent a special district fails to file the
  843  reports or information required under s. 189.415, s. 189.416, or
  844  s. 189.417, or s. 189.418(9) with the local general-purpose
  845  government or governments in which it is located governing
  846  authority, the person authorized to receive and read the reports
  847  or information or the local general-purpose government shall
  848  notify the district’s registered agent and the appropriate local
  849  governing authority or authorities. If requested by the
  850  district, the local general-purpose government governing
  851  authority shall grant an extension of time of up to 30 days for
  852  filing the required reports or information.
  853         (2) If the governing body of at any time the local general
  854  purpose government or governments governing authority or
  855  authorities or the board of county commissioners determines that
  856  there has been an unjustified failure to file these the reports
  857  or information described in subsection (1), it may notify the
  858  department, and the department may proceed pursuant to s.
  859  189.421(1).
  860         (2)If a dependent special district fails to file the
  861  reports or information required under s. 189.416, s. 189.417, or
  862  s. 189.418(9) with the local governing authority to which it is
  863  dependent, the local governing authority shall take whatever
  864  steps it deems necessary to enforce the special district’s
  865  accountability. Such steps may include, as authorized,
  866  withholding funds, removing governing board members at will,
  867  vetoing the special district’s budget, conducting the oversight
  868  review process set forth in s. 189.428, or amending, merging, or
  869  dissolving the special district in accordance with the
  870  provisions contained in the ordinance that created the dependent
  871  special district.
  872         (3) If a special district fails to file the reports or
  873  information required under s. 112.63, s. 218.32, s. 218.38, or
  874  s. 218.39 with the appropriate state agency, the agency shall
  875  notify the department, and the department shall send a certified
  876  technical assistance letter to the special district which
  877  summarizes the requirements and encourages the special district
  878  to take steps to prevent the noncompliance from reoccurring
  879  proceed pursuant to s. 189.421.
  880         (4)If a special district fails to file the reports or
  881  information required under s. 112.63 with the appropriate state
  882  agency, the agency shall notify the department and the
  883  department shall proceed pursuant to s. 189.421(1).
  884         (5)If a special district fails to file the reports or
  885  information required under s. 218.32 or s. 218.39 with the
  886  appropriate state agency or office, the state agency or office
  887  shall, and the Legislative Auditing Committee may, notify the
  888  department and the department shall proceed pursuant to s.
  889  189.421.
  890         Section 16. Section 189.421, Florida Statutes, is amended
  891  to read:
  892         189.421 Failure of district to disclose financial reports.—
  893         (1)(a)If When notified pursuant to s. 189.419(1), (4), or
  894  (5) 189.419, the department shall attempt to assist a special
  895  district in complying to comply with its financial reporting
  896  requirements by sending a certified letter to the special
  897  district, and, if the special district is dependent, sending a
  898  copy of that the letter to the chair of the governing body of
  899  the local governing authority. The letter must include general
  900  purpose government, which includes the following: a description
  901  of the required report, including statutory submission
  902  deadlines, a contact telephone number for technical assistance
  903  to help the special district comply, a 60-day deadline extension
  904  of time for filing the required report with the appropriate
  905  entity, the address where the report must be filed, and an
  906  explanation of the penalties for noncompliance.
  907         (b)A special district that is unable to meet the 60-day
  908  reporting deadline must provide written notice to the department
  909  before the expiration of the deadline stating the reason the
  910  special district is unable to comply with the deadline, the
  911  steps the special district is taking to prevent the
  912  noncompliance from reoccurring, and the estimated date that the
  913  special district will file the report with the appropriate
  914  agency. The district’s written response does not constitute an
  915  extension by the department; however, the department shall
  916  forward the written response as follows:
  917         1.If the written response refers to the reports required
  918  under s. 218.32 or s. 218.39, forward the written response to
  919  the Legislative Auditing Committee for its consideration in
  920  determining whether the special district should be subject to
  921  further state action in accordance with s. 11.40(5)(b).
  922         2.If the written response refers to the reports or
  923  information requirements listed in s. 189.419(1), forward the
  924  written response to the local general-purpose government or
  925  governments for its consideration in determining whether the
  926  oversight review process set forth in s. 189.428 should be
  927  undertaken.
  928         3.If the written response refers to the reports or
  929  information required under s. 112.63, forward the written
  930  response to the Department of Management Services for its
  931  consideration in determining whether the special district should
  932  be subject to further state action in accordance with s.
  933  112.63(4)(d)2. The department may grant an additional 30-day
  934  extension of time if requested to do so in writing by the
  935  special district. The department shall notify the appropriate
  936  entity of the new extension of time. In the case of a special
  937  district that did not timely file the reports or information
  938  required by s. 218.38, the department shall send a certified
  939  technical assistance letter to the special district which
  940  summarizes the requirements and encourages the special district
  941  to take steps to prevent the noncompliance from reoccurring.
  942         (2) Failure of a special district to comply with the
  943  actuarial and financial reporting requirements under s. 112.63,
  944  s. 218.32, or s. 218.39 after the procedures of subsection (1)
  945  are exhausted shall be deemed final action of the special
  946  district. The actuarial and financial reporting requirements are
  947  declared to be essential requirements of law. Remedy for
  948  noncompliance shall be by writ of certiorari as set forth in
  949  subsection (4) (3).
  950         (3) Pursuant to s. 11.40(5)(b), the Legislative Auditing
  951  Committee shall notify the department of those districts that
  952  fail failed to file the required reports report. If the
  953  procedures described in subsection (1) have not yet been
  954  initiated, the department shall initiate such procedures upon
  955  receiving the notice from the Legislative Auditing Committee.
  956  Otherwise, within 60 30 days after receiving such this notice,
  957  or within 60 30 days after the expiration of the 60-day deadline
  958  extension date provided in subsection (1), whichever occurs
  959  later, the department, shall proceed as follows: notwithstanding
  960  the provisions of chapter 120, the department shall file a
  961  petition for writ of certiorari with the circuit court. Venue
  962  for all actions pursuant to this subsection is shall be in Leon
  963  County. The court shall award the prevailing party attorney’s
  964  fees and costs in all cases filed pursuant to this section
  965  unless affirmatively waived by all parties. A writ of certiorari
  966  shall be issued unless a respondent establishes that the
  967  notification of the Legislative Auditing Committee was issued as
  968  a result of material error. Proceedings under this subsection
  969  shall otherwise be governed by the Rules of Appellate Procedure.
  970         (4)Pursuant to s. 112.63(4)(d)2., the Department of
  971  Management Services may notify the department of those special
  972  districts that have failed to file the required adjustments,
  973  additional information, or report or statement after the
  974  procedures of subsection (1) have been exhausted. Within 60 days
  975  after receiving such notice or within 60 days after the 60-day
  976  deadline provided in subsection (1), whichever occurs later, the
  977  department, notwithstanding chapter 120, shall file a petition
  978  for writ of certiorari with the circuit court. Venue for all
  979  actions pursuant to this subsection is in Leon County. The court
  980  shall award the prevailing party attorney’s fees and costs in
  981  all cases filed pursuant to this section unless affirmatively
  982  waived by all parties. A writ of certiorari shall be issued
  983  unless a respondent establishes that the notification of the
  984  Department of Management Services was issued as a result of
  985  material error. Proceedings under this subsection are otherwise
  986  governed by the Rules of Appellate Procedure.
  987         Section 17. Subsection (6) is added to section 195.087,
  988  Florida Statutes, to read:
  989         195.087 Property appraisers and tax collectors to submit
  990  budgets to Department of Revenue.—
  991         (6)The final approved budget of each property appraiser
  992  and tax collector must be posted on the county’s official
  993  website within 5 days after adoption of the county’s budget. The
  994  final approved budget of each property appraiser and tax
  995  collector may be included in the county’s budget.
  996         Section 18. Paragraphs (d), (e), and (f) of subsection (1)
  997  of section 218.32, Florida Statutes, are amended, and paragraph
  998  (g) is added to that subsection, to read:
  999         218.32 Annual financial reports; local governmental
 1000  entities.—
 1001         (1)
 1002         (d) Each local governmental entity that is required to
 1003  provide for an audit under in accordance with s. 218.39(1) must
 1004  submit the annual financial report with the audit report. a copy
 1005  of the audit report and annual financial report must be
 1006  submitted to the department within 45 days after the completion
 1007  of the audit report but no later than 9 12 months after the end
 1008  of the fiscal year.
 1009         (e) Each local governmental entity that is not required to
 1010  provide for an audit under report in accordance with s. 218.39
 1011  must submit the annual financial report to the department no
 1012  later than 9 months after the end of the fiscal April 30 of each
 1013  year. The department shall consult with the Auditor General in
 1014  the development of the format of annual financial reports
 1015  submitted pursuant to this paragraph. The format must shall
 1016  include balance sheet information used to be utilized by the
 1017  Auditor General pursuant to s. 11.45(7)(f). The department must
 1018  forward the financial information contained within the these
 1019  entities’ annual financial reports to the Auditor General in
 1020  electronic form. This paragraph does not apply to housing
 1021  authorities created under chapter 421.
 1022         (f) If the department does not receive a completed annual
 1023  financial report from a local governmental entity within the
 1024  required period, it shall notify the Legislative Auditing
 1025  Committee and the Special District Information Program of the
 1026  Department of Community Affairs of the local governmental
 1027  entity’s failure to comply with the reporting requirements. The
 1028  committee shall proceed in accordance with s. 11.40(5).
 1029         (g)Each local governmental entity’s website must provide a
 1030  link to the department’s website to view the entity’s annual
 1031  financial report submitted to the department pursuant to this
 1032  section. If the local governmental entity does not have an
 1033  official website, the county government’s website must provide
 1034  the required link for the local governmental entity.
 1035         Section 19. Section 218.35, Florida Statutes, is amended to
 1036  read:
 1037         218.35 County fee officers; financial matters.—
 1038         (1) Each county fee officer shall establish an annual
 1039  budget for carrying out the powers, duties, and operations of
 1040  his or her office for the next county fiscal year which shall
 1041  clearly reflect the revenues available to said office and the
 1042  functions for which money is to be expended. The budget must
 1043  shall be balanced so that; that is, the total of estimated
 1044  receipts, including balances brought forward, equals shall equal
 1045  the total of estimated expenditures and reserves. The budgeting
 1046  of segregated funds must shall be made in a such manner that
 1047  retains the relation between program and revenue source, as
 1048  provided by law is retained.
 1049         (2) The clerk of the circuit court, functioning in his or
 1050  her capacity as clerk of the circuit and county courts and as
 1051  clerk of the board of county commissioners, shall prepare his or
 1052  her budget in two parts:
 1053         (a) The budget for funds necessary to perform court-related
 1054  functions as provided for in s. 28.36, which shall detail the
 1055  methodologies used to apportion costs between court-related and
 1056  non-court-related functions performed by the clerk.
 1057         (b) The budget relating to the requirements of the clerk as
 1058  clerk of the board of county commissioners, county auditor, and
 1059  custodian or treasurer of all county funds and other county
 1060  related duties, which shall be annually prepared and submitted
 1061  to the board of county commissioners pursuant to s. 129.03(2),
 1062  for each fiscal year. Expenditures shall be itemized in
 1063  accordance with the uniform accounting system prescribed by the
 1064  Department of Financial Services as follows:
 1065         1.Personnel services.
 1066         2.Operating expenses.
 1067         3.Capital outlay.
 1068         4.Debt service.
 1069         5. Grants and aids.
 1070         6. Other uses.
 1071         (3) The clerk of the circuit court shall furnish to the
 1072  board of county commissioners or the county budget commission
 1073  all relevant and pertinent information that the board or
 1074  commission deems necessary, including expenditures at the
 1075  subobject code level in accordance with the uniform chart of
 1076  accounts prescribed by the Department of Financial Services.
 1077         (4)The final approved budget of the clerk of the circuit
 1078  court must be posted on the county’s official website within 30
 1079  days after adoption. The final approved budget of the clerk of
 1080  the circuit court may be included in the county’s budget.
 1081         (5)(3) Each county fee officer shall establish make
 1082  provision for establishing a fiscal year beginning October 1 and
 1083  ending September 30 of the following year, and shall report his
 1084  or her finances annually upon the close of each fiscal year to
 1085  the county fiscal officer for inclusion in the annual financial
 1086  report by the county.
 1087         (6)(4) The proposed budget of a county fee officer shall be
 1088  filed with the clerk of the county governing authority by
 1089  September 1 preceding the fiscal year for the budget, except for
 1090  the budget prepared by the clerk of the circuit court for court
 1091  related functions as provided in s. 28.36.
 1092         Section 20. Section 218.39, Florida Statutes, is amended to
 1093  read:
 1094         218.39 Annual financial audit reports.—
 1095         (1) If, by the first day in any fiscal year, a local
 1096  governmental entity, district school board, charter school, or
 1097  charter technical career center has not been notified that a
 1098  financial audit for that fiscal year will be performed by the
 1099  Auditor General, each of the following entities shall have an
 1100  annual financial audit of its accounts and records completed
 1101  within 9 12 months after the end of its fiscal year by an
 1102  independent certified public accountant retained by it and paid
 1103  from its public funds:
 1104         (a) Each county.
 1105         (b) Any municipality with revenues or the total of
 1106  expenditures and expenses in excess of $250,000.
 1107         (c) Any special district with revenues or the total of
 1108  expenditures and expenses in excess of $100,000.
 1109         (d) Each district school board.
 1110         (e) Each charter school established under s. 1002.33.
 1111         (f) Each charter technical center established under s.
 1112  1002.34.
 1113         (g) Each municipality with revenues or the total of
 1114  expenditures and expenses between $100,000 and $250,000 that has
 1115  not been subject to a financial audit pursuant to this
 1116  subsection for the 2 preceding fiscal years.
 1117         (h) Each special district with revenues or the total of
 1118  expenditures and expenses between $50,000 and $100,000 that has
 1119  not been subject to a financial audit pursuant to this
 1120  subsection for the 2 preceding fiscal years.
 1121         (2) The county audit report must shall be a single document
 1122  that includes a financial audit of the county as a whole and,
 1123  for each county agency other than a board of county
 1124  commissioners, an audit of its financial accounts and records,
 1125  including reports on compliance and internal control, management
 1126  letters, and financial statements as required by rules adopted
 1127  by the Auditor General. In addition to such requirements, if a
 1128  board of county commissioners elects to have a separate audit of
 1129  its financial accounts and records in the manner required by
 1130  rules adopted by the Auditor General for other county agencies,
 1131  the such separate audit must shall be included in the county
 1132  audit report.
 1133         (3)(a) A dependent special district may provide make
 1134  provision for an annual financial audit by being included in
 1135  within the audit of the another local governmental entity upon
 1136  which it is dependent. An independent special district may not
 1137  make provision for an annual financial audit by being included
 1138  in within the audit of another local governmental entity.
 1139         (b) A special district that is a component unit, as defined
 1140  by generally accepted accounting principles, of a local
 1141  governmental entity shall provide the local governmental entity,
 1142  within a reasonable time period as established by the local
 1143  governmental entity, with financial information necessary to
 1144  comply with this section. The failure of a component unit to
 1145  provide this financial information must be noted in the annual
 1146  financial audit report of the local governmental entity.
 1147         (4) A management letter shall be prepared and included as a
 1148  part of each financial audit report.
 1149         (5) At the conclusion of the audit, the auditor shall
 1150  discuss with the chair of the governing body of the each local
 1151  governmental entity or the chair’s designee, or with the elected
 1152  official of each county agency or with the elected official’s
 1153  designee, or with the chair of the district school board or the
 1154  chair’s designee, or with the chair of the board of the charter
 1155  school or the chair’s designee, or with the chair of the board
 1156  of the charter technical career center or the chair’s designee,
 1157  as appropriate, all of the auditor’s comments that will be
 1158  included in the audit report. If the officer is not available to
 1159  discuss the auditor’s comments, their discussion is presumed
 1160  when the comments are delivered in writing to his or her office.
 1161  The auditor shall notify each member of the governing body of a
 1162  local governmental entity, district school board, charter
 1163  school, or charter technical career center for which
 1164  deteriorating financial conditions exist that may cause a
 1165  condition described in s. 218.503(1) to occur if actions are not
 1166  taken to address such conditions.
 1167         (6) The officer’s written statement of explanation or
 1168  rebuttal concerning the auditor’s findings, including corrective
 1169  action to be taken, must be filed with the governing body of the
 1170  local governmental entity, district school board, charter
 1171  school, or charter technical career center within 30 days after
 1172  the delivery of the auditor’s findings.
 1173         (7)All audits conducted pursuant to this section must be
 1174  conducted in accordance with the rules of the Auditor General
 1175  adopted pursuant to s. 11.45. Upon completion of the audit, the
 1176  auditor shall prepare an audit report in accordance with the
 1177  rules of the Auditor General. The audit report shall be filed
 1178  with the Auditor General within 45 days after delivery of the
 1179  audit report to the governing body of the audited entity, but no
 1180  later than 9 months after the end of the audited entity’s fiscal
 1181  year. The audit report must include a written statement
 1182  describing corrective actions to be taken in response to each of
 1183  the auditor’s recommendations included in the audit report.
 1184         (8) The Auditor General shall notify the Legislative
 1185  Auditing Committee of any audit report prepared pursuant to this
 1186  section which indicates that an audited entity has failed to
 1187  take full corrective action in response to a recommendation that
 1188  was included in the two preceding financial audit reports. The
 1189  committee may direct the governing body of the audited entity to
 1190  provide a written statement to the committee explaining why full
 1191  corrective action has not been taken or, if the governing body
 1192  intends to take full corrective action, describing the
 1193  corrective action to be taken and when it will occur. If the
 1194  committee determines that the written statement is not
 1195  sufficient, it may require the chair of the governing body of
 1196  the local governmental entity or the chair’s designee, the
 1197  elected official of each county agency or the elected official’s
 1198  designee, the chair of the district school board or the chair’s
 1199  designee, the chair of the board of the charter school or the
 1200  chair’s designee, or the chair of the board of the charter
 1201  technical career center or the chair’s designee, as appropriate,
 1202  to appear before the committee. If the committee determines that
 1203  an audited entity has failed to take full corrective action for
 1204  which there is no justifiable reason for not taking such action,
 1205  or has failed to comply with committee requests made pursuant to
 1206  this section, the committee may proceed in accordance with s.
 1207  11.40(5).
 1208         (9)(7) The predecessor auditor of a district school board
 1209  shall provide the Auditor General access to the prior year’s
 1210  working papers in accordance with the Statements on Auditing
 1211  Standards, including documentation of planning, internal
 1212  control, audit results, and other matters of continuing
 1213  accounting and auditing significance, such as the working paper
 1214  analysis of balance sheet accounts and those relating to
 1215  contingencies.
 1216         (8) All audits conducted in accordance with this section
 1217  must be conducted in accordance with the rules of the Auditor
 1218  General promulgated pursuant to s. 11.45. All audit reports and
 1219  the officer’s written statement of explanation or rebuttal must
 1220  be submitted to the Auditor General within 45 days after
 1221  delivery of the audit report to the entity’s governing body, but
 1222  no later than 12 months after the end of the fiscal year.
 1223         (10)(9) Each charter school and charter technical career
 1224  center must file a copy of its audit report with the sponsoring
 1225  entity; the local district school board, if not the sponsoring
 1226  entity; the Auditor General; and with the Department of
 1227  Education.
 1228         (11)(10) This section does not apply to housing authorities
 1229  created under chapter 421.
 1230         (12)(11) Notwithstanding the provisions of any local law,
 1231  the provisions of this section shall govern.
 1232         Section 21. Paragraph (e) of subsection (1) of section
 1233  218.503, Florida Statutes, is amended to read:
 1234         218.503 Determination of financial emergency.—
 1235         (1) Local governmental entities, charter schools, charter
 1236  technical career centers, and district school boards shall be
 1237  subject to review and oversight by the Governor, the charter
 1238  school sponsor, the charter technical career center sponsor, or
 1239  the Commissioner of Education, as appropriate, when any one of
 1240  the following conditions occurs:
 1241         (e) A An unreserved or total fund balance or retained
 1242  earnings deficit in total or for that portion of fund balance
 1243  classified as neither restricted or nonspendable, or a
 1244  unrestricted or total or unrestricted net assets deficit, as
 1245  reported on the balance sheet or statement of net assets on the
 1246  general purpose or fund financial statements of entities
 1247  required to report under governmental financial reporting
 1248  standards, or on the basic financial statements of entities
 1249  required to report under not-for-profit financial reporting
 1250  standards, for which sufficient resources of the local
 1251  governmental entity, charter school, charter technical career
 1252  center, or district school board, as reported on the balance
 1253  sheet or statement of net assets on the general purpose or fund
 1254  financial statements, are not available to cover the deficit.
 1255  Resources available to cover reported deficits include fund
 1256  balance or net assets that are not otherwise restricted by
 1257  federal, state, or local laws, bond covenants, contractual
 1258  agreements, or other legal constraints. Property, plant, and
 1259  equipment Fixed or capital assets, the disposal of which would
 1260  impair the ability of a local governmental entity, charter
 1261  school, charter technical career center, or district school
 1262  board to carry out its functions, are not considered resources
 1263  available to cover reported deficits.
 1264         Section 22. Paragraph (c) of subsection (5) of section
 1265  373.536, Florida Statutes, is amended, and paragraph (c) is
 1266  added to subsection (6) of that section, to read:
 1267         373.536 District budget and hearing thereon.—
 1268         (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
 1269  APPROVAL.—
 1270         (c) Each water management district shall, by August 1 of
 1271  each year, submit for review a tentative budget to the Governor,
 1272  the President of the Senate, the Speaker of the House of
 1273  Representatives, the chairs of all legislative committees and
 1274  subcommittees with substantive or fiscal jurisdiction over water
 1275  management districts, as determined by the President of the
 1276  Senate or the Speaker of the House of Representatives as
 1277  applicable, the secretary of the department, and the governing
 1278  body of each county in which the district has jurisdiction or
 1279  derives any funds for the operations of the district. The
 1280  tentative budget must be posted on the water management
 1281  district’s official website at least 2 days before budget
 1282  hearings held pursuant to s. 200.065 or other law.
 1283         (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
 1284  WATER RESOURCE DEVELOPMENT WORK PROGRAM.—
 1285         (c)The final adopted budget must be posted on the water
 1286  management district’s official website within 30 days after
 1287  adoption.
 1288         Section 23. Subsections (1) and (5) of section 1011.03,
 1289  Florida Statutes, are amended, and subsection (6) is added to
 1290  that section, to read:
 1291         1011.03 Public hearings; budget to be submitted to
 1292  Department of Education.—
 1293         (1) Each district school board must cause a summary of its
 1294  tentative budget, including the proposed millage levies as
 1295  provided for by law, and graphs illustrating a historical
 1296  summary of financial and demographic data, to be advertised at
 1297  least once one time as a full-page advertisement in the
 1298  newspaper with the largest circulation published in the district
 1299  or to be posted at the courthouse door if there be no such
 1300  newspaper. The board shall post the summary of its tentative
 1301  budget on the district’s official website. If the district does
 1302  not operate an official website, the board must, within a
 1303  reasonable period of time as established by the county in which
 1304  the district is located, transmit the summary to the manager or
 1305  administrator of the county. The manager or administrator shall
 1306  post the summary of the tentative budget on the county’s
 1307  website.
 1308         (5) The board shall hold public hearings to adopt tentative
 1309  and final budgets pursuant to s. 200.065. The hearings shall be
 1310  primarily for the purpose of hearing requests and complaints
 1311  from the public regarding the budgets and the proposed tax
 1312  levies and for explaining the budget and proposed or adopted
 1313  amendments thereto, if any. The tentative budget must be posted
 1314  on the district’s official website at least 2 days before the
 1315  budget hearing held pursuant to s. 200.065 or other law. The
 1316  final adopted budget must be posted on the district’s official
 1317  website within 30 days after adoption. If the district does not
 1318  operate an official website, the board must, within a reasonable
 1319  period of time as established by the county in which the
 1320  district is located, transmit the tentative budget or final
 1321  budget to the manager or administrator of the county. The
 1322  manager or administrator shall post the tentative budget or
 1323  final budget on the county’s website. The district school board
 1324  shall then require the superintendent to transmit forthwith two
 1325  copies of the adopted budget to the Department of Education for
 1326  approval as prescribed by law and rules of the State Board of
 1327  Education.
 1328         (6)If the governing body of a district amends the budget,
 1329  the adopted amendment must be posted on the official website of
 1330  the district within 5 days after adoption. If the district does
 1331  not operate an official website, the board must, within a
 1332  reasonable period of time as established by the county in which
 1333  the district is located, transmit the adopted amendments to the
 1334  manager or administrator of the county. The manager or
 1335  administrator shall post the tentative budget and final budget
 1336  on the county’s website.
 1337         Section 24. Section 1011.051, Florida Statutes, is amended
 1338  to read:
 1339         1011.051 Guidelines for general funds.—The district school
 1340  board shall maintain a an unreserved general fund ending fund
 1341  balance that is sufficient to address normal contingencies.
 1342         (1) If at any time the portion of the unreserved general
 1343  fund’s ending fund fund balance classified as neither restricted
 1344  or nonspendable in the district’s approved operating budget is
 1345  projected to fall during the current fiscal year below 3 percent
 1346  of projected general fund revenues during the current fiscal
 1347  year, the superintendent shall provide written notification to
 1348  the district school board and the Commissioner of Education.
 1349         (2) If at any time the portion of the unreserved general
 1350  fund’s ending fund fund balance classified as neither restricted
 1351  or nonspendable in the district’s approved operating budget is
 1352  projected to fall during the current fiscal year below 2 percent
 1353  of projected general fund revenues during the current fiscal
 1354  year, the superintendent shall provide written notification to
 1355  the district school board and the Commissioner of Education.
 1356  Within 14 days after receiving such notification, if the
 1357  commissioner determines that the district does not have a plan
 1358  that is reasonably anticipated to avoid a financial emergency as
 1359  determined pursuant to s. 218.503, the commissioner shall
 1360  appoint a financial emergency board that shall operate
 1361  consistent with the requirements, powers, and duties specified
 1362  in s. 218.503(3)(g).
 1363         Section 25. Paragraph (a) of subsection (3) of section
 1364  1011.64, Florida Statutes, is amended to read:
 1365         1011.64 School district minimum classroom expenditure
 1366  requirements.—
 1367         (3)(a) Annually the Department of Education shall calculate
 1368  for each school district:
 1369         1. Total K-12 operating expenditures, which are defined as
 1370  the amount of total general fund expenditures for K-12 programs
 1371  as reported in accordance with the accounts and codes prescribed
 1372  in the most recent issuance of the Department of Education
 1373  publication entitled “Financial and Program Cost Accounting and
 1374  Reporting for Florida Schools” and as included in the most
 1375  recent annual financial report submitted to the Commissioner of
 1376  Education, less the student transportation revenue allocation
 1377  from the state appropriation for that purpose, amounts
 1378  transferred to other funds, and increases to the amount of the
 1379  general fund’s fund unreserved ending fund balance classified as
 1380  neither restricted or nonspendable when the total unreserved
 1381  ending fund balance classified as neither restricted or
 1382  nonspendable is in excess of 5 percent of the total general fund
 1383  revenues.
 1384         2. Expenditures for classroom instruction, which shall be
 1385  the sum of the general fund expenditures for K-12 instruction
 1386  and instructional staff training.
 1387         Section 26. This act shall take effect October 1, 2010.