CS/HB 107

1
A bill to be entitled
2An act relating to local government accountability;
3amending s. 11.40, F.S., relating to the Legislative
4Auditing Committee; clarifying when the Department of
5Community Affairs may institute procedures for declaring
6that a special district is inactive; amending s. 30.49,
7F.S.; specifying the level of detail required for each
8fund in the sheriff's proposed budget; revising the
9categories for expenditures; amending s. 112.63, F.S.,
10relating to the review of the actuarial reports and
11statements of retirement plans of governmental entities by
12the Department of Management Services; providing that the
13failure of a special district to make appropriate
14adjustments or provide additional information authorizes
15the department to seek a writ of certiorari; amending s.
16129.01, F.S.; revising provisions relating to the
17preparation of county budgets; specifying the level of
18detail required for each fund in the budget; amending s.
19129.02, F.S.; revising provisions relating to the
20preparation of special district budgets; specifying the
21level of detail required for each fund in the budget;
22amending s. 129.021, F.S.; conforming cross-references;
23amending s. 129.03, F.S.; deleting a time restriction on
24preparing and presenting a tentative county budget;
25requiring tentative county budgets to be posted on the
26county's website; amending s. 129.06, F.S.; revising
27provisions relating to the execution and amendment of
28county budgets; requiring revised budgets to be posted on
29the county's website; amending s. 129.07, F.S.; revising
30provisions relating to the prohibition against exceeding
31the county budget; amending s. 129.201, F.S.; conforming
32and revising provisions relating to the budget of the
33supervisor of elections; specifying the level of detail
34required for each fund in the proposed budget; revising
35expenditure categories; amending s. 166.241, F.S.;
36revising provisions relating to the preparation or
37amendment of municipal budgets; specifying the level of
38detail for each fund in the budget; requiring such budgets
39and amendments to such budgets to be posted on the website
40of the municipality or related county; amending s.
41189.4044, F.S.; adding failure to file a registered office
42or agent with the department for 1 or more years as a
43criteria for declaring a special district inactive;
44amending s. 189.412, F.S.; adding the Legislative Auditing
45Committee to the list of entities that obtain special
46district noncompliance status reports; amending s.
47189.418, F.S.; revising provisions relating to the
48preparation or amendment of special district budgets;
49specifying the level of detail for each fund in the
50budget; requiring such budgets to be posted on the website
51of the special district or related local general-purpose
52government or governing authority; specifying how the
53budget may be amended under certain circumstances;
54requiring special districts to comply with certain
55reporting requirements; authorizing a local governing
56authority to request certain financial information from
57special districts located solely within the boundaries of
58the authority; requiring special districts to cooperate
59with such requests; amending s. 189.419, F.S.; revising
60procedures relating to a special district's failure to
61file certain reports or information; amending s. 189.421,
62F.S.; revising procedures relating to the failure of a
63special district to disclose financial reports;
64authorizing the Department of Community Affairs to seek a
65writ of certiorari; amending s. 195.087, F.S.; requiring
66the final approved budget of the property appraiser and
67tax collector to be posted on their respective website or,
68if not available, the county's website; amending s.
69218.32, F.S.; revising the schedule for submitting a local
70governmental entity's audit and annual financial reports
71to the Department of Financial Services; requiring the
72department to notify the Special District Information
73Program if it does not receive a financial report from a
74local governmental entity; requiring a local governmental
75entity to provide a link to the entity's financial report
76on the department's website; amending s. 218.35, F.S.;
77requiring the budget for certain county-related duties to
78be itemized in accordance with the uniform accounting
79system of the Department of Financial Services; specifying
80the level of detail for each fund in the clerk of the
81court's budget; requiring the court clerk's approved
82budget to be posted on the county's website; amending s.
83218.39, F.S.; revising the timeframe for completing a
84local governmental entity's annual financial audit;
85requiring that an auditor prepare an audit report;
86requiring that such report be filed with the Auditor
87General within a specified time; requiring that the
88Auditor General notify the Legislative Auditing Committee
89of any audit report indicating that an audited entity has
90failed to take corrective action; requiring that the chair
91of a local governmental entity appear before the committee
92under certain circumstances; amending s. 218.503, F.S.;
93revising provisions relating to oversight by the Governor
94when an entity's financial statements show it cannot cover
95a deficit of funds; amending s. 373.536, F.S.; requiring
96that water management district budgets be posted on the
97district website; amending s. 1011.03, F.S.; requiring the
98summary of the tentative budget, the tentative budget, and
99the budget of a district school board to be posted on the
100district's official website; amending s. 1011.051, F.S.;
101revising provisions relating to the guidelines for
102district school boards to maintain an ending fund balance
103for the general fund; amending s. 1011.64, F.S.; updating
104obsolete accounting terminology for school districts;
105providing an effective date.
106
107Be It Enacted by the Legislature of the State of Florida:
108
109     Section 1.  Paragraph (b) of subsection (5) of section
11011.40, Florida Statutes, is amended to read:
111     11.40  Legislative Auditing Committee.-
112     (5)  Following notification by the Auditor General, the
113Department of Financial Services, or the Division of Bond
114Finance of the State Board of Administration of the failure of a
115local governmental entity, district school board, charter
116school, or charter technical career center to comply with the
117applicable provisions within s. 11.45(5)-(7), s. 218.32(1), or
118s. 218.38, the Legislative Auditing Committee may schedule a
119hearing. If a hearing is scheduled, the committee shall
120determine if the entity should be subject to further state
121action. If the committee determines that the entity should be
122subject to further state action, the committee shall:
123     (b)  In the case of a special district, notify the
124Department of Community Affairs that the special district has
125failed to comply with the law. Upon receipt of notification, the
126Department of Community Affairs shall proceed pursuant to s.
127189.4044 or the provisions specified in s. 189.421.
128     Section 2.  Subsections (1) through (4) of section 30.49,
129Florida Statutes, are amended to read:
130     30.49  Budgets.-
131     (1)  Pursuant to s. 129.03(2), each sheriff shall annually
132prepare and submit certify to the board of county commissioners
133a proposed budget of expenditures for the carrying out of the
134powers, duties, and operations of the office for the next
135ensuing fiscal year of the county. The fiscal year of the
136sheriff commences shall henceforth commence on October 1 and
137ends end on September 30 of each year.
138     (2)(a)  The sheriff shall submit with the proposed budget
139his or her sworn certificate, stating that the proposed
140expenditures are reasonable and necessary for the proper and
141efficient operation of the office for the ensuing year. The
142proposed budget must shall show the estimated amounts of all
143proposed expenditures for operating and equipping the sheriff's
144office and jail, excluding the cost of construction, repair, or
145capital improvement of county buildings during the such fiscal
146year. The expenditures must shall be categorized at the
147appropriate fund level in accordance with the following
148functional categories:
149     1.  General law enforcement.
150     2.  Corrections and detention alternative facilities.
151     3.  Court services, excluding service of process.
152     (b)  The sheriff shall submit a sworn certificate along
153with the proposed budget stating that the proposed expenditures
154are reasonable and necessary for the proper and efficient
155operation of the office for the next fiscal year.
156     (c)  Within the appropriate fund and functional category,
157expenditures must shall be itemized in accordance with the
158uniform accounting system chart of accounts prescribed by the
159Department of Financial Services, as follows:
160     1.  Personnel Personal services.
161     2.  Operating expenses.
162     3.  Capital outlay.
163     4.  Debt service.
164     5.  Grants and aids Nonoperating disbursements and
165contingency reserves.
166     6.  Other uses.
167     (d)(c)  The sheriff shall submit to the board of county
168commissioners for consideration and inclusion in the county
169budget, as deemed appropriate by the county, requests for
170construction, repair, or capital improvement of county buildings
171operated or occupied by the sheriff.
172     (3)  The sheriff shall furnish to the board of county
173commissioners or the budget commission, if there is a budget
174commission in the county, all relevant and pertinent information
175concerning expenditures made in previous fiscal years and to the
176proposed expenditures which the such board or commission deems
177necessary, including expenditures at the subobject code level in
178accordance with the uniform accounting system prescribed by the
179Department of Financial Services. The board or commission may
180not amend, modify, increase, or reduce any expenditure at the
181subobject code level. except that The board or commission may
182not require confidential information concerning details of
183investigations which. Confidential information concerning
184details of investigations is exempt from the provisions of s.
185119.07(1).
186     (4)  The board of county commissioners or the budget
187commission, as appropriate the case may be, may require the
188sheriff to correct mathematical, mechanical, factual, and
189clerical errors and errors as to form in the proposed budget. At
190the hearings held pursuant to s. 200.065, the board or
191commission, as the case may be, may amend, modify, increase, or
192reduce any or all items of expenditure in the proposed budget,
193as certified by the sheriff pursuant to paragraphs (2)(a)-(c),
194and shall approve such budget, as amended, modified, increased,
195or reduced. The board or commission It must give written notice
196of its action to the sheriff and specify in such notice the
197specific items amended, modified, increased, or reduced. The
198budget must shall include the salaries and expenses of the
199sheriff's office, cost of operation of the county jail,
200purchase, maintenance and operation of equipment, including
201patrol cars, radio systems, transporting prisoners, court
202duties, and all other salaries, expenses, equipment, and
203investigation expenditures of the entire sheriff's office for
204the previous year.
205     (a)  The sheriff, within 30 days after receiving written
206notice of such action by the board or commission, either in
207person or in his or her office, may file an appeal by petition
208to the Administration Commission. Such appeal shall be by
209petition to the Administration commission. The petition must
210shall set forth the budget proposed by the sheriff, in the form
211and manner prescribed by the Executive Office of the Governor
212and approved by the Administration Commission, and the budget as
213approved by the board of county commissioners or the budget
214commission, as the case may be, and shall contain the reasons or
215grounds for the appeal. Such petition shall be filed with the
216Executive Office of the Governor, and a copy of the petition
217shall be served upon the board or commission from the decision
218of which appeal is taken by delivering the same to the chair or
219president thereof or to the clerk of the circuit court.
220     (b)  The board of county commissioners or the budget
221commission, as the case may be, shall have 5 days following from
222delivery of a copy of any such petition to file a reply with the
223Executive Office of the Governor a reply thereto, and it shall
224deliver a copy of such reply to the sheriff.
225     Section 3.  Subsection (4) of section 112.63, Florida
226Statutes, is amended to read:
227     112.63  Actuarial reports and statements of actuarial
228impact; review.-
229     (4)  Upon receipt, pursuant to subsection (2), of an
230actuarial report, or upon receipt, pursuant to subsection (3),
231of a statement of actuarial impact, the Department of Management
232Services shall acknowledge such receipt, but shall only review
233and comment on each retirement system's or plan's actuarial
234valuations at least on a triennial basis.
235     (a)  If the department finds that the actuarial valuation
236is not complete, accurate, or based on reasonable assumptions or
237otherwise materially fails to satisfy the requirements of this
238part;, if the department requires additional material
239information necessary to complete its review of the actuarial
240valuation of a system or plan or material information necessary
241to satisfy the duties of the department pursuant to s.
242112.665(1);, or if the department does not receive the actuarial
243report or statement of actuarial impact, the department shall
244notify the administrator of the affected retirement system or
245plan and the affected governmental entity and request
246appropriate adjustment, the additional material information, or
247the required report or statement. The notification must inform
248the administrator of the affected retirement system or plan and
249the affected governmental entity of the consequences for failing
250failure to comply with the requirements of this subsection.
251     (b)  If, after a reasonable period of time, a satisfactory
252adjustment is not made or the report, statement, or additional
253material information is not provided, the department may notify
254the Department of Revenue and the Department of Financial
255Services of the such noncompliance, and in which case the
256Department of Revenue and the Department of Financial Services
257shall withhold any funds not pledged for satisfaction of bond
258debt service which are payable to the affected governmental
259entity until the adjustment is made or the report, statement, or
260additional material information is provided to the department.
261The Department of Management Services shall specify the date
262such action is to begin and notify, and notification by the
263department must be received by the Department of Revenue, the
264Department of Financial Services, and the affected governmental
265entity 30 days before the specified date the action begins.
266     (c)(a)  Within 21 days after receipt of the notice, the
267affected governmental entity may petition the Department of
268Management Services for a hearing under ss. 120.569 and 120.57
269with the Department of Management Services. The Department of
270Revenue and the Department of Financial Services may not be
271parties to the any such hearing, but may request to intervene if
272requested by the Department of Management Services or if the
273Department of Revenue or the Department of Financial Services
274determines its interests may be adversely affected by the
275hearing.
276     1.  If the administrative law judge recommends in favor of
277the department, the department shall perform an actuarial
278review, prepare the statement of actuarial impact, or collect
279the requested material information. The cost to the department
280of performing the such actuarial review, preparing the
281statement, or collecting the requested material information
282shall be charged to the affected governmental entity whose of
283which the employees are covered by the retirement system or
284plan. If payment of such costs is not received by the department
285within 60 days after receipt by the affected governmental entity
286receives of the request for payment, the department shall
287certify to the Department of Revenue and the Department of
288Financial Services the amount due, and the Department of Revenue
289and the Department of Financial Services shall pay such amount
290to the Department of Management Services from any funds not
291pledged for satisfaction of bond debt service which are payable
292to the affected governmental entity of which the employees are
293covered by the retirement system or plan.
294     2.  If the administrative law judge recommends in favor of
295the affected governmental entity and the department performs an
296actuarial review, prepares the statement of actuarial impact, or
297collects the requested material information, the cost to the
298department of performing the actuarial review, preparing the
299statement, or collecting the requested material information
300shall be paid by the Department of Management Services.
301     (d)(b)  In the case of an affected special district, the
302Department of Management Services shall also notify the
303Department of Community Affairs. Upon receipt of notification,
304the Department of Community Affairs shall proceed pursuant to
305the provisions of s. 189.421 with regard to the special
306district.
307     1.  Failure of a special district to provide a required
308report or statement, to make appropriate adjustments, or to
309provide additional material information after the procedures
310specified in s. 189.421(1) are exhausted shall be deemed final
311action by the special district.
312     2.  The Department of Management Services may notify the
313Department of Community Affairs of those special districts that
314failed to come into compliance. Upon receipt of notification,
315the Department of Community Affairs shall proceed pursuant to s.
316189.421(4).
317     Section 4.  Section 129.01, Florida Statutes, is amended to
318read:
319     129.01  Budget system established.-There is hereby
320established A budget system for the control of the finances of
321the boards of county commissioners of the several counties of
322the state is established, as follows:
323     (1)  A budget There shall be prepared, approved, adopted,
324and executed, as prescribed in this chapter, for the fiscal year
325ending September 30, 1952, and for each fiscal year. At a
326minimum, the budget must show for each fund, as thereafter, an
327annual budget for such funds as may be required by law and or by
328sound financial practices, budgeted revenues and expenditures by
329organizational unit which are at least at the level of detail
330required for the annual financial report under s. 218.32(1) and
331generally accepted accounting principles. The budget shall
332control the levy of taxes and the expenditure of money for all
333county purposes during the ensuing fiscal year.
334     (2)  The Each budget must shall conform to the following
335general directions and requirements:
336     (a)  The budget must shall be prepared, summarized, and
337approved by the board of county commissioners of each county.
338     (b)  The budget must shall be balanced, so that; that is,
339the total of the estimated receipts available from taxation and
340other sources, including balances brought forward from prior
341fiscal years, equals shall equal the total of the appropriations
342for expenditures and reserves. It shall conform to the uniform
343classification of accounts prescribed by the appropriate state
344agency. The budgeted receipts must division of the budget shall
345include 95 percent of all receipts reasonably to be anticipated
346from all sources, including taxes to be levied, provided the
347percent anticipated from ad valorem levies is shall be as
348specified in s. 200.065(2)(a), and is 100 percent of the amount
349of the balances of both cash and liquid securities estimated to
350be brought forward at the beginning of the fiscal year. The
351appropriations must appropriation division of the budget shall
352include itemized appropriations for all expenditures authorized
353by law, contemplated to be made, or incurred for the benefit of
354the county during the said year and the provision for the
355reserves authorized by this chapter. Both the receipts and
356appropriations must appropriation divisions shall reflect the
357approximate division of expenditures between countywide
358expenditures and noncountywide expenditures and the division of
359county revenues derived from or on behalf of the county as a
360whole and county revenues derived from or on behalf of a
361municipal service taxing unit, special district included within
362the county budget, unincorporated area, service area, or program
363area, or otherwise not received for or on behalf of the county
364as a whole.
365     (c)  Provision may be made for the following reserves:
366     1.  A reserve for contingencies may be provided which does
367in a sum not to exceed 10 percent of the total appropriations of
368the budget.
369     2.  A reserve for cash balance to be carried over may be
370provided for the purpose of paying expenses from October 1 of
371the next ensuing fiscal year until the time when the revenues
372for that year are expected to be available. This reserve may be
373not be more than 20 percent of the total appropriations.
374However, receipts and balances of the budget; provided that for
375the bond interest and sinking fund budget, this reserve may not
376exceed be not more than the total maturities of debt, (both
377principal and interest), which that will occur during the next
378ensuing fiscal year, plus the sinking fund requirements,
379computed on a straight-line basis, for any outstanding
380obligations to be paid from the fund.
381     (d)  An appropriation for "outstanding indebtedness" shall
382be made to provide for the payment of vouchers that which have
383been incurred in and charged against the budget for the current
384year or a prior year, but that which are expected to be unpaid
385at the beginning of the next fiscal ensuing year for which the
386budget is being prepared. The appropriation for the payment of
387such vouchers shall be to made in the same fund in which for
388which the expenses were originally incurred.
389     (e)  Any surplus arising from an excess of the estimated
390cash balance over the estimated amount of unpaid obligations to
391be carried over in a fund at the end of the current fiscal year
392may be transferred to any of the other funds of the county, and
393the amount so transferred shall be budgeted as a receipt to such
394other funds. However, a; provided, that no such surplus:
395     1.  In a fund raised for debt service may not shall be
396transferred to another fund until, except to a fund raised for
397the same purposes in the same territory, unless the debt for
398which the fund was established of such territory has been
399extinguished., in which case it may be transferred to any other
400fund raised for that territory; provided, further, that no such
401surplus
402     2.  In a capital outlay reserve fund may not be transferred
403to another fund until such time as the projects for which the
404such capital outlay reserve fund was raised have been completed
405and all obligations paid.
406     Section 5.  Subsection (6) of section 129.02, Florida
407Statutes, is amended to read:
408     129.02  Requisites of budgets.-Each budget shall conform to
409the following specific directions and requirements:
410     (6)  For each special district included within the county
411budget, the operating fund budget must show budgeted revenues
412and expenditures by organizational unit which are at least at
413the level of detail required for the annual financial report
414under s. 218.32(1). The amount available from taxation and other
415sources, including balances brought forward from prior fiscal
416years, must equal the total appropriations for expenditures and
417reserves. The budget must include shall contain an estimate of
418receipts by source and balances as provided herein, and an
419itemized estimate of expenditures necessary that will need to be
420incurred to carry on all functions and activities of the special
421district as now or hereafter provided by law, including and of
422the indebtedness of the special district and the provision for
423required reserves; also of the reserves for contingencies and
424the balances, as hereinbefore provided, which should be carried
425forward at the end of the year.
426     Section 6.  Section 129.021, Florida Statutes, is amended
427to read:
428     129.021  County officer budget information.-Notwithstanding
429other provisions of law, the budgets of all county officers, as
430submitted to the board of county commissioners, must shall be in
431sufficient detail and contain such information as the board of
432county commissioners may require in furtherance of their powers
433and responsibilities provided in ss. 125.01(1)(q), and (r), and
434(v), and (6) and 129.01(2)(b).
435     Section 7.  Subsection (3) of section 129.03, Florida
436Statutes, is amended to read:
437     129.03  Preparation and adoption of budget.-
438     (3)  No later than 15 days after certification of value by
439the property appraiser pursuant to s. 200.065(1), The county
440budget officer, after tentatively ascertaining the proposed
441fiscal policies of the board for the next ensuing fiscal year,
442shall prepare and present to the board a tentative budget for
443the next ensuing fiscal year for each of the funds provided in
444this chapter, including all estimated receipts, taxes to be
445levied, and balances expected to be brought forward and all
446estimated expenditures, reserves, and balances to be carried
447over at the end of the year.
448     (a)  The board of county commissioners shall receive and
449examine the tentative budget for each fund and, subject to the
450notice and hearing requirements of s. 200.065, shall require
451such changes to be made as it deems shall deem necessary,;
452provided the budget remains shall remain in balance. The county
453budget officer's estimates of receipts other than taxes, and of
454balances to be brought forward, may shall not be revised except
455by a resolution of the board, duly passed and spread on the
456minutes of the board. However, the board may allocate to any of
457the funds of the county any anticipated receipts, other than
458taxes levied for a particular fund, except receipts designated
459or received to be expended for a particular purpose.
460     (b)  Upon receipt of the tentative budgets and completion
461of any revisions made by the board, the board shall prepare a
462statement summarizing all of the adopted tentative budgets. The
463This summary statement must shall show, for each budget and the
464total of all budgets, the proposed tax millages, the balances,
465the reserves, and the total of each major classification of
466receipts and expenditures, classified according to the uniform
467classification of accounts adopted prescribed by the appropriate
468state agency. The board shall cause this summary statement to be
469advertised one time in a newspaper of general circulation
470published in the county, or by posting at the courthouse door if
471there is no such newspaper, and the advertisement must shall
472appear adjacent to the advertisement required pursuant to s.
473200.065.
474     (c)  The board shall hold public hearings to adopt
475tentative and final budgets pursuant to s. 200.065. The hearings
476shall be primarily for the purpose of hearing requests and
477complaints from the public regarding the budgets and the
478proposed tax levies and for explaining the budget and any
479proposed or adopted amendments thereto, if any. The tentative
480budget must be posted on the county's official website at least
4812 days before the public hearing to consider such budget. The
482final budget must be posted on the website within 30 days after
483adoption. The tentative budgets, adopted tentative budgets, and
484final budgets shall be filed in the office of the county auditor
485as a public record. Sufficient reference in words and figures to
486identify the particular transactions shall be made in the
487minutes of the board to record its actions with reference to the
488budgets.
489     Section 8.  Subsection (1) and paragraphs (a) and (f) of
490subsection (2) of section 129.06, Florida Statutes, are amended
491to read:
492     129.06  Execution and amendment of budget.-
493     (1)  Upon the final adoption of the budgets as provided in
494this chapter, the budgets so adopted must shall regulate the
495expenditures of the county and each special district included
496within the county budget, and the itemized estimates of
497expenditures must shall have the effect of fixed appropriations
498and may shall not be amended, altered, or exceeded except as
499provided in this chapter.
500     (a)  The modified-accrual basis or accrual basis of
501accounting must be followed for all funds in accordance with
502generally accepted accounting principles.
503     (b)  The cost of the investments provided in this chapter,
504or the receipts from their sale or redemption, may must not be
505treated as expense or income, and but the investments on hand at
506the beginning or end of each fiscal year must be carried as
507separate items at cost in the fund balances; however, the
508amounts of profit or loss received on their sale must be treated
509as income or expense, as applicable the case may be.
510     (2)  The board at any time within a fiscal year may amend a
511budget for that year, and may within the first 60 days of a
512fiscal year amend the budget for the prior fiscal year, as
513follows:
514     (a)  Appropriations for expenditures within in any fund may
515be decreased or and other appropriations in the same fund
516correspondingly increased by motion recorded in the minutes if,
517provided that the total of the appropriations of the fund does
518not change may not be changed. The board of county
519commissioners, however, may establish procedures by which the
520designated budget officer may authorize certain
521intradepartmental budget amendments if, provided that the total
522appropriations appropriation of the fund does not change
523department may not be changed.
524     (f)  Unless otherwise prohibited by law, if an amendment to
525a budget is required for a purpose not specifically authorized
526in paragraphs (a)-(e), unless otherwise prohibited by law, the
527amendment may be authorized by resolution or ordinance of the
528board of county commissioners adopted following a public
529hearing.
530     1.  The public hearing must be advertised at least 2 days,
531but not more than 5 days, before the date of the hearing. The
532advertisement must appear in a newspaper of paid general
533circulation and must identify the name of the taxing authority,
534the date, place, and time of the hearing, and the purpose of the
535hearing. The advertisement must also identify each budgetary
536fund to be amended, the source of the funds, the use of the
537funds, and the total amount of each fund's appropriations
538budget.
539     2.  If the board amends the budget pursuant to this
540paragraph, the adopted amendment must be posted on the county's
541official website within 5 days after adoption.
542     Section 9.  Section 129.07, Florida Statutes, is amended to
543read:
544     129.07  Unlawful to exceed the budget; certain contracts
545void; commissioners contracting excess indebtedness personally
546liable.-It is unlawful for The board of county commissioners may
547not to expend or enter into a contract requiring expenditures
548for the expenditure in any fiscal year for more than the amount
549of appropriations budgeted in each fund's budget, except as
550provided herein, and in no case shall the total appropriations
551of any budget may not be exceeded, except as provided in s.
552129.06., and Any indebtedness contracted for any purpose against
553either of the funds enumerated in this chapter or for any
554purpose, the expenditure for which is chargeable to either of
555the said funds, is shall be null and void, and no suit may or
556suits shall be prosecuted in any court in this state for the
557collection of such indebtedness. same, and The members of the
558board of county commissioners voting for and contracting for
559such indebtedness are amounts and the bonds of such members of
560said boards also shall be liable for any the excess indebtedness
561so contracted for.
562     Section 10.  Section 129.201, Florida Statutes, is amended
563to read:
564     129.201  Budget of supervisor of elections; manner and time
565of preparation and presentation.-
566     (1)  Pursuant to ss. 129.01 and s. 129.03(2), each
567supervisor of elections shall annually prepare and submit
568certify to the board of county commissioners, or county budget
569commission if there is one in the county, a proposed budget for
570carrying out the powers, duties, and operations of income and
571expenditures to fulfill the duties, responsibilities, and
572operation of the office of the supervisor of elections for the
573next ensuing fiscal year of the county. The fiscal year of the
574supervisor of elections commences shall commence on October 1 of
575each year and ends shall end on September 30 of the following
576year.
577     (2)(a)  Expenditures must be itemized in accordance with
578the uniform accounting system prescribed by the Department of
579Financial Services Each expenditure item in the budget for the
580supervisor of elections shall be itemized generally as follows:
581     (a)1.  Personnel services. Compensation for the supervisor
582of elections and all other personnel of the office.
583     (b)2.  Operating expenses.
584     (c)3.  Capital outlay.
585     (d)  Debt service.
586     (e)4.  Grants and aids. Contingencies and transfers.
587     (f)  Other uses.
588     (b)  To the extent appropriate, the budget shall be further
589itemized in conformance with the Uniform Accounting System for
590Local Units of Government in Florida adopted by rule of the
591Chief Financial Officer.
592     (3)  The supervisor of elections shall furnish to the board
593of county commissioners or the county budget commission all
594relevant and pertinent information that the which such board or
595commission deems shall deem necessary, including expenditures at
596the subobject code level in accordance with the uniform
597accounting system prescribed by the Department of Financial
598Services. The board or commission may not amend, modify,
599increase, or reduce any expenditure at the subobject code level.
600     (4)  The board or commission, as appropriate the case may
601be, may require the supervisor of elections to correct
602mathematical, mechanical, factual, and clerical errors and
603errors of form in the proposed budget. At the hearings held
604pursuant to s. 200.065, the board or commission may amend,
605modify, increase, or reduce any or all items of expenditure in
606the proposed budget as submitted under subsections (1) and (2);
607and, as amended, modified, increased, or reduced, such budget
608shall be approved by the board or commission, which must provide
609giving written notice of its action to specific items amended,
610modified, increased, or reduced.
611     (5)  The board or commission shall include in the county
612budget the items of proposed expenditures as set forth in the
613budget which are required by this section to be submitted, after
614the budget has been reviewed and approved. The board or
615commission shall include the supervisor of elections' reserve
616for contingencies provided herein in the general county budget's
617reserve for contingencies account in the general county budget.
618     (6)  The supervisor of elections' reserve for contingencies
619is in the budget of a supervisor of elections shall be governed
620by the same provisions governing the amount and use of the
621reserve for contingencies appropriated in the county budget.
622     (7)  The proposed budget shall be submitted to the board of
623county commissioners or county budget commission pursuant to s.
624129.03(2), and the budget shall be included by the board or
625commission in the general county budget.
626     (8)  The items placed in the budget of the board are
627pursuant to this act shall be subject to the same provisions of
628law as the county annual budget; however, an no amendment may be
629made to the appropriations of the office of the supervisor of
630elections may not be made without due notice of the change to
631the supervisor of elections.
632     (9)  The budget of the supervisor of elections may be
633increased by the board of county commissioners to cover such
634expenses for emergencies and unanticipated expenses as are
635recommended and justified by the supervisor of elections.
636     Section 11.  Section 166.241, Florida Statutes, is amended
637to read:
638     166.241  Fiscal years, appropriations, budgets, and budget
639amendments.-
640     (1)  Each municipality shall establish make provision for
641establishing a fiscal year beginning October 1 of each year and
642ending September 30 of the following year.
643     (2)  The governing body of each municipality shall adopt a
644budget each fiscal year. The budget must be adopted by ordinance
645or resolution unless otherwise specified in the respective
646municipality's charter. The amount available from taxation and
647other sources, including balances brought forward amounts
648carried over from prior fiscal years, must equal the total
649appropriations for expenditures and reserves. At a minimum, the
650adopted budget must show for each fund, as required by law and
651sound financial practices, budgeted revenues and expenditures by
652organizational unit which are at least at the level of detail
653required for the annual financial report under s. 218.32(1). The
654adopted budget must regulate expenditures of the municipality,
655and an it is unlawful for any officer of a municipal government
656may not to expend or contract for expenditures in any fiscal
657year except pursuant to the adopted budget in pursuance of
658budgeted appropriations.
659     (3)  The tentative budget must be posted on the
660municipality's official website at least 2 days before the
661budget hearing, held pursuant to s. 200.065 or other law, to
662consider such budget. The final adopted budget must be posted on
663the municipality's official website within 30 days after
664adoption. If the municipality does not operate an official
665website, the municipality must, within a reasonable period of
666time as established by the county or counties in which the
667municipality is located, transmit the tentative budget and final
668budget to the manager or administrator of such county or
669counties who shall post the budgets on the county's website.
670     (4)(3)  The governing body of each municipality at any time
671within a fiscal year or within up to 60 days following the end
672of the fiscal year may amend a budget for that year as follows:
673     (a)  Appropriations for expenditures within a fund may be
674decreased or increased by motion recorded in the minutes if,
675provided that the total of the appropriations of the fund is not
676changed.
677     (b)  The governing body may establish procedures by which
678the designated budget officer may authorize certain budget
679amendments if within a department, provided that the total of
680the appropriations of the fund department is not changed.
681     (c)  If a budget amendment is required for a purpose not
682specifically authorized in paragraph (a) or paragraph (b), the
683budget amendment must be adopted in the same manner as the
684original budget unless otherwise specified in the municipality's
685charter of the respective municipality.
686     (5)  If the governing body of a municipality amends the
687budget pursuant to paragraph (4)(c), the adopted amendment must
688be posted on the official website of the municipality within 5
689days after adoption. If the municipality does not operate an
690official website, the municipality must, within a reasonable
691period of time as established by the county or counties in which
692the municipality is located, transmit the adopted amendment to
693the manager or administrator of such county or counties who
694shall post the adopted amendment on the county's website.
695     Section 12.  Paragraph (a) of subsection (1) of section
696189.4044, Florida Statutes, is amended to read:
697     189.4044  Special procedures for inactive districts.-
698     (1)  The department shall declare inactive any special
699district in this state by documenting that:
700     (a)  The special district meets one of the following
701criteria:
702     1.  The registered agent of the district, the chair of the
703governing body of the district, or the governing body of the
704appropriate local general-purpose government notifies the
705department in writing that the district has taken no action for
7062 or more years;
707     2.  Following an inquiry from the department, the
708registered agent of the district, the chair of the governing
709body of the district, or the governing body of the appropriate
710local general-purpose government notifies the department in
711writing that the district has not had a governing board or a
712sufficient number of governing board members to constitute a
713quorum for 2 or more years or the registered agent of the
714district, the chair of the governing body of the district, or
715the governing body of the appropriate local general-purpose
716government fails to respond to the department's inquiry within
71721 days; or
718     3.  The department determines, pursuant to s. 189.421, that
719the district has failed to file any of the reports listed in s.
720189.419; or.
721     4.  The district has not had a registered office and agent
722on file with the department for 1 or more years.
723     Section 13.  Subsection (1) of section 189.412, Florida
724Statutes, is amended to read:
725     189.412  Special District Information Program; duties and
726responsibilities.-The Special District Information Program of
727the Department of Community Affairs is created and has the
728following special duties:
729     (1)  The collection and maintenance of special district
730noncompliance status reports from the Department of Management
731Services, the Department of Financial Services, the Division of
732Bond Finance of the State Board of Administration, and the
733Auditor General, and the Legislative Auditing Committee, for the
734reporting required in ss. 112.63, 218.32, 218.38, and 218.39.
735The noncompliance reports must list those special districts that
736did not comply with the statutory reporting requirements.
737     Section 14.  Subsections (3) through (7) of section
738189.418, Florida Statutes, are amended to read:
739     189.418  Reports; budgets; audits.-
740     (3)  The governing body of each special district shall
741adopt a budget by resolution each fiscal year. The total amount
742available from taxation and other sources, including balances
743brought forward amounts carried over from prior fiscal years,
744must equal the total of appropriations for expenditures and
745reserves. At a minimum, the adopted budget must show for each
746fund, as required by law and sound financial practices, budgeted
747revenues and expenditures by organizational unit which are at
748least at the level of detail required for the annual financial
749report under s. 218.32(1). The adopted budget must regulate
750expenditures of the special district, and an it is unlawful for
751any officer of a special district may not to expend or contract
752for expenditures in any fiscal year except pursuant to the
753adopted budget in pursuance of budgeted appropriations.
754     (4)  The tentative budget must be posted on the special
755district's official website at least 2 days before the budget
756hearing, held pursuant to s. 200.065 or other law, to consider
757such budget. The final adopted budget must be posted on the
758special district's official website within 30 days after
759adoption. If the special district does not operate an official
760website, the special district must, within a reasonable period
761of time as established by the local general-purpose government
762or governments in which the special district is located or the
763local governing authority to which the district is dependent,
764transmit the tentative budget or final budget to the manager or
765administrator of the local general-purpose government or the
766local governing authority. The manager or administrator shall
767post the tentative budget or final budget on the website of the
768local general-purpose government or governing authority. This
769subsection and subsection (3) do not apply to water management
770districts as defined in s. 373.019.
771     (5)(4)  The proposed budget of a dependent special district
772must shall be presented in accordance with generally accepted
773accounting principles, contained within the general budget of
774the local governing authority to which it is dependent, and be
775clearly stated as the budget of the dependent district. However,
776with the concurrence of the local governing authority, a
777dependent district may be budgeted separately. The dependent
778district must provide any budget information requested by the
779local governing authority at the time and place designated by
780the local governing authority.
781     (6)(5)  The governing body of each special district at any
782time within a fiscal year or within up to 60 days following the
783end of the fiscal year may amend a budget for that year as
784follows:.
785     (a)  Appropriations for expenditures within a fund may be
786decreased or increased by motion recorded in the minutes if the
787total appropriations of the fund do not increase.
788     (b)  The governing body may establish procedures by which
789the designated budget officer may authorize certain budget
790amendments if the total appropriations of the fund is not
791increased.
792     (c)  If a budget amendment is required for a purpose not
793specifically authorized in paragraph (a) or paragraph (b), the
794budget amendment must be adopted by resolution.
795     (7)  If the governing body of a special district amends the
796budget pursuant to paragraph (6)(c), the adopted amendment must
797be posted on the official website of the special district within
7985 days after adoption. If the special district does not operate
799an official website, the special district must, within a
800reasonable period of time as established by the local general-
801purpose government or governments in which the special district
802is located or the local governing authority to which the
803district is dependent, transmit the adopted amendment to the
804manager or administrator of the local general-purpose government
805or governing authority. The manager or administrator shall post
806the adopted amendment on the website of the local general-
807purpose government or governing authority.
808     (8)(6)  A local general-purpose government governing
809authority may, in its discretion, review the budget or tax levy
810of any special district located solely within its boundaries.
811     (9)  All special districts must comply with the financial
812reporting requirements of ss. 218.32 and 218.39. A local
813general-purpose government or governing authority may request,
814from any special district located solely within its boundaries,
815financial information in order to comply with its reporting
816requirements under ss. 218.32 and 218.39. The special district
817must cooperate with such request and provide the financial
818information at the time and place designated by the local
819general-purpose government or governing authority.
820     (10)(7)  All reports or information required to be filed
821with a local general-purpose government or governing authority
822under ss. 189.415, 189.416, and 189.417 and subsection (8) must
823this section shall:
824     (a)  If When the local general-purpose government or
825governing authority is a county, be filed with the clerk of the
826board of county commissioners.
827     (b)  If When the district is a multicounty district, be
828filed with the clerk of the county commission in each county.
829     (c)  If When the local general-purpose government or
830governing authority is a municipality, be filed at the place
831designated by the municipal governing body.
832     Section 15.  Section 189.419, Florida Statutes, is amended
833to read:
834     189.419  Effect of failure to file certain reports or
835information.-
836     (1)  If an independent a special district fails to file the
837reports or information required under s. 189.415, s. 189.416, or
838s. 189.417, or s. 189.418(9) with the local general-purpose
839government or governments in which it is located governing
840authority, the person authorized to receive and read the reports
841or information or the local general-purpose government shall
842notify the district's registered agent and the appropriate local
843governing authority or authorities. If requested by the
844district, the local general-purpose government governing
845authority shall grant an extension of time of up to 30 days for
846filing the required reports or information.
847     (2)  If the governing body of at any time the local
848general-purpose government or governments governing authority or
849authorities or the board of county commissioners determines that
850there has been an unjustified failure to file these the reports
851or information described in subsection (1), it may notify the
852department, and the department may proceed pursuant to s.
853189.421(1).
854     (2)  If a dependent special district fails to file the
855reports or information required under s. 189.416, s. 189.417, or
856s. 189.418(9) with the local governing authority to which it is
857dependent, the local governing authority shall take whatever
858steps it deems necessary to enforce the special district's
859accountability. Such steps may include, as authorized,
860withholding funds, removing governing board members at will,
861vetoing the special district's budget, conducting the oversight
862review process set forth in s. 189.428, or amending, merging, or
863dissolving the special district in accordance with the
864provisions contained in the ordinance that created the dependent
865special district.
866     (3)  If a special district fails to file the reports or
867information required under s. 112.63, s. 218.32, s. 218.38, or
868s. 218.39 with the appropriate state agency, the agency shall
869notify the department, and the department shall send a certified
870technical assistance letter to the special district which
871summarizes the requirements and encourages the special district
872to take steps to prevent the noncompliance from reoccurring
873proceed pursuant to s. 189.421.
874     (4)  If a special district fails to file the reports or
875information required under s. 112.63 with the appropriate state
876agency, the agency shall notify the department and the
877department shall proceed pursuant to s. 189.421(1).
878     (5)  If a special district fails to file the reports or
879information required under s. 218.32 or s. 218.39 with the
880appropriate state agency or office, the state agency or office
881shall, and the Legislative Auditing Committee may, notify the
882department and the department shall proceed pursuant to s.
883189.421.
884     Section 16.  Section 189.421, Florida Statutes, is amended
885to read:
886     189.421  Failure of district to disclose financial
887reports.-
888     (1)(a)  If When notified pursuant to s. 189.419(1), (4), or
889(5) 189.419, the department shall attempt to assist a special
890district in complying to comply with its financial reporting
891requirements by sending a certified letter to the special
892district, and, if the special district is dependent, sending a
893copy of that the letter to the chair of the governing body of
894the local governing authority. The letter must include general-
895purpose government, which includes the following: a description
896of the required report, including statutory submission
897deadlines, a contact telephone number for technical assistance
898to help the special district comply, a 60-day deadline extension
899of time for filing the required report with the appropriate
900entity, the address where the report must be filed, and an
901explanation of the penalties for noncompliance.
902     (b)  A special district that is unable to meet the 60-day
903reporting deadline must provide written notice to the department
904before the expiration of the deadline stating the reason the
905special district is unable to comply with the deadline, the
906steps the special district is taking to prevent the
907noncompliance from reoccurring, and the estimated date that the
908special district will file the report with the appropriate
909agency. The district's written notice does not constitute an
910extension by the department; however:
911     1.  If the written notice refers to the reports required
912under s. 218.32 or s. 218.39, the department shall forward the
913written notice to the Legislative Auditing Committee for its
914consideration in determining whether the special district should
915be subject to further state action in accordance with s.
91611.40(5)(b).
917     2.  If the written notice refers to the reports or
918information requirements listed in s. 189.419(1), the department
919shall forward the written notice to the local general-purpose
920government or governments for their consideration in determining
921whether the oversight review process set forth in s. 189.428
922should be undertaken.
923     3.  If the written notice refers to the reports or
924information required under s. 112.63, the department shall
925forward the written notice to the Department of Management
926Services for its consideration in determining whether the
927special district should be subject to further state action in
928accordance with s. 112.63(4)(d)2. The department may grant an
929additional 30-day extension of time if requested to do so in
930writing by the special district. The department shall notify the
931appropriate entity of the new extension of time. In the case of
932a special district that did not timely file the reports or
933information required by s. 218.38, the department shall send a
934certified technical assistance letter to the special district
935which summarizes the requirements and encourages the special
936district to take steps to prevent the noncompliance from
937reoccurring.
938     (2)  Failure of a special district to comply with the
939actuarial and financial reporting requirements under s. 112.63,
940s. 218.32, or s. 218.39 after the procedures of subsection (1)
941are exhausted shall be deemed final action of the special
942district. The actuarial and financial reporting requirements are
943declared to be essential requirements of law. Remedy for
944noncompliance shall be by writ of certiorari as set forth in
945subsection (4) (3).
946     (3)  Pursuant to s. 11.40(5)(b), the Legislative Auditing
947Committee shall notify the department of those districts that
948fail failed to file the required reports report. If the
949procedures described in subsection (1) have not yet been
950initiated, the department shall initiate such procedures upon
951receiving the notice from the Legislative Auditing Committee.
952Otherwise, within 60 30 days after receiving such this notice,
953or within 60 30 days after the expiration of the 60-day deadline
954extension date provided in subsection (1), whichever occurs
955later, the department, shall proceed as follows: notwithstanding
956the provisions of chapter 120, the department shall file a
957petition for writ of certiorari with the circuit court. Venue
958for all actions pursuant to this subsection is shall be in Leon
959County. The court shall award the prevailing party attorney's
960fees and costs in all cases filed pursuant to this section
961unless affirmatively waived by all parties. A writ of certiorari
962shall be issued unless a respondent establishes that the
963notification of the Legislative Auditing Committee was issued as
964a result of material error. Proceedings under this subsection
965are shall otherwise be governed by the Rules of Appellate
966Procedure.
967     (4)  Pursuant to s. 112.63(4)(d)2., the Department of
968Management Services may notify the department of those special
969districts that have failed to file the required adjustments,
970additional information, or report or statement after the
971procedures of subsection (1) have been exhausted. Within 60 days
972after receiving such notice or within 60 days after the 60-day
973deadline provided in subsection (1), whichever occurs later, the
974department, notwithstanding chapter 120, shall file a petition
975for writ of certiorari with the circuit court. Venue for all
976actions pursuant to this subsection is in Leon County. The court
977shall award the prevailing party attorney's fees and costs
978unless affirmatively waived by all parties. A writ of certiorari
979shall be issued unless a respondent establishes that the
980notification of the Department of Management Services was issued
981as a result of material error. Proceedings under this subsection
982are otherwise governed by the Rules of Appellate Procedure.
983     Section 17.  Subsection (6) is added to section 195.087,
984Florida Statutes, to read:
985     195.087  Property appraisers and tax collectors to submit
986budgets to Department of Revenue.-
987     (6)  Each property appraiser and tax collector must post
988their final approved budget on their official website within 30
989days after adoption. Each county's official website must have a
990link to the websites of the property appraiser or tax collector
991where the final approved budget is posted. If the property
992appraiser or tax collector does not have an official website,
993the final approved budget must be posted on the county's
994official website.
995     Section 18.  Paragraphs (d), (e), and (f) of subsection (1)
996of section 218.32, Florida Statutes, are amended, and paragraph
997(g) is added to that subsection, to read:
998     218.32  Annual financial reports; local governmental
999entities.-
1000     (1)
1001     (d)  Each local governmental entity that is required to
1002provide for an audit under in accordance with s. 218.39(1) must
1003submit the annual financial report with the audit report. a copy
1004of the audit report and annual financial report must be
1005submitted to the department within 45 days after the completion
1006of the audit report but no later than 9 12 months after the end
1007of the fiscal year.
1008     (e)  Each local governmental entity that is not required to
1009provide for an audit under report in accordance with s. 218.39
1010must submit the annual financial report to the department no
1011later than 9 months after the end of the fiscal April 30 of each
1012year. The department shall consult with the Auditor General in
1013the development of the format of annual financial reports
1014submitted pursuant to this paragraph. The format must shall
1015include balance sheet information used to be utilized by the
1016Auditor General pursuant to s. 11.45(7)(f). The department must
1017forward the financial information contained within the these
1018entities' annual financial reports to the Auditor General in
1019electronic form. This paragraph does not apply to housing
1020authorities created under chapter 421.
1021     (f)  If the department does not receive a completed annual
1022financial report from a local governmental entity within the
1023required period, it shall notify the Legislative Auditing
1024Committee and the Special District Information Program of the
1025Department of Community Affairs of the local governmental
1026entity's failure to comply with the reporting requirements. The
1027committee shall proceed in accordance with s. 11.40(5).
1028     (g)  Each local governmental entity's website must provide
1029a link to the department's website to view the entity's annual
1030financial report submitted to the department pursuant to this
1031section. If the local governmental entity does not have an
1032official website, the county government's website must provide
1033the required link for the local governmental entity.
1034     Section 19.  Section 218.35, Florida Statutes, is amended
1035to read:
1036     218.35  County fee officers; financial matters.-
1037     (1)  Each county fee officer shall establish an annual
1038budget for carrying out the powers, duties, and operations of
1039his or her office for the next county fiscal year which shall
1040clearly reflect the revenues available to said office and the
1041functions for which money is to be expended. The budget must
1042shall be balanced so that; that is, the total of estimated
1043receipts, including balances brought forward, equals shall equal
1044the total of estimated expenditures and reserves. The budgeting
1045of segregated funds must shall be made in a such manner that
1046retains the relation between program and revenue source, as
1047provided by law is retained.
1048     (2)  The clerk of the circuit court, functioning in his or
1049her capacity as clerk of the circuit and county courts and as
1050clerk of the board of county commissioners, shall prepare his or
1051her budget in two parts:
1052     (a)  The budget for funds necessary to perform court-
1053related functions as provided for in s. 28.36, which shall
1054detail the methodologies used to apportion costs between court-
1055related and non-court-related functions performed by the clerk.
1056     (b)  The budget relating to the requirements of the clerk
1057as clerk of the board of county commissioners, county auditor,
1058and custodian or treasurer of all county funds and other county-
1059related duties, which shall be annually prepared and submitted
1060to the board of county commissioners pursuant to s. 129.03(2),
1061for each fiscal year. Expenditures must be itemized in
1062accordance with the uniform accounting system prescribed by the
1063Department of Financial Services as follows:
1064     1.  Personnel services.
1065     2.  Operating expenses.
1066     3.  Capital outlay.
1067     4.  Debt service.
1068     5.  Grants and aids.
1069     6.  Other uses.
1070     (3)  The clerk of the circuit court shall furnish to the
1071board of county commissioners or the county budget commission
1072all relevant and pertinent information that the board or
1073commission deems necessary, including expenditures at the
1074subobject code level in accordance with the uniform accounting
1075system prescribed by the Department of Financial Services.
1076     (4)  The final approved budget of the clerk of the circuit
1077court must be posted on the county's official website within 30
1078days after adoption. The final approved budget of the clerk of
1079the circuit court may be included in the county's budget.
1080     (5)(3)  Each county fee officer shall establish make
1081provision for establishing a fiscal year beginning October 1 and
1082ending September 30 of the following year, and shall report his
1083or her finances annually upon the close of each fiscal year to
1084the county fiscal officer for inclusion in the annual financial
1085report by the county.
1086     (6)(4)  The proposed budget of a county fee officer shall
1087be filed with the clerk of the county governing authority by
1088September 1 preceding the fiscal year for the budget, except for
1089the budget prepared by the clerk of the circuit court for court-
1090related functions as provided in s. 28.36.
1091     Section 20.  Section 218.39, Florida Statutes, is amended
1092to read:
1093     218.39  Annual financial audit reports.-
1094     (1)  If, by the first day in any fiscal year, a local
1095governmental entity, district school board, charter school, or
1096charter technical career center has not been notified that a
1097financial audit for that fiscal year will be performed by the
1098Auditor General, each of the following entities shall have an
1099annual financial audit of its accounts and records completed
1100within 9 12 months after the end of its fiscal year by an
1101independent certified public accountant retained by it and paid
1102from its public funds:
1103     (a)  Each county.
1104     (b)  Any municipality with revenues or the total of
1105expenditures and expenses in excess of $250,000, as reported on
1106the fund financial statements.
1107     (c)  Any special district with revenues or the total of
1108expenditures and expenses in excess of $100,000, as reported on
1109the fund financial statements.
1110     (d)  Each district school board.
1111     (e)  Each charter school established under s. 1002.33.
1112     (f)  Each charter technical center established under s.
11131002.34.
1114     (g)  Each municipality with revenues or the total of
1115expenditures and expenses between $100,000 and $250,000, as
1116reported on the fund financial statements, which that has not
1117been subject to a financial audit pursuant to this subsection
1118for the 2 preceding fiscal years.
1119     (h)  Each special district with revenues or the total of
1120expenditures and expenses between $50,000 and $100,000, as
1121reported on the fund financial statement, which that has not
1122been subject to a financial audit pursuant to this subsection
1123for the 2 preceding fiscal years.
1124     (2)  The county audit report must shall be a single
1125document that includes a financial audit of the county as a
1126whole and, for each county agency other than a board of county
1127commissioners, an audit of its financial accounts and records,
1128including reports on compliance and internal control, management
1129letters, and financial statements as required by rules adopted
1130by the Auditor General. In addition to such requirements, if a
1131board of county commissioners elects to have a separate audit of
1132its financial accounts and records in the manner required by
1133rules adopted by the Auditor General for other county agencies,
1134the such separate audit must shall be included in the county
1135audit report.
1136     (3)(a)  A dependent special district may provide make
1137provision for an annual financial audit by being included in
1138within the audit of the another local governmental entity upon
1139which it is dependent. An independent special district may not
1140make provision for an annual financial audit by being included
1141in within the audit of another local governmental entity.
1142     (b)  A special district that is a component unit, as
1143defined by generally accepted accounting principles, of a local
1144governmental entity shall provide the local governmental entity,
1145within a reasonable time period as established by the local
1146governmental entity, with financial information necessary to
1147comply with this section. The failure of a component unit to
1148provide this financial information must be noted in the annual
1149financial audit report of the local governmental entity.
1150     (4)  A management letter shall be prepared and included as
1151a part of each financial audit report.
1152     (5)  At the conclusion of the audit, the auditor shall
1153discuss with the chair of the governing body of the each local
1154governmental entity or the chair's designee, or with the elected
1155official of each county agency or with the elected official's
1156designee, or with the chair of the district school board or the
1157chair's designee, or with the chair of the board of the charter
1158school or the chair's designee, or with the chair of the board
1159of the charter technical career center or the chair's designee,
1160as appropriate, all of the auditor's comments that will be
1161included in the audit report. If the officer is not available to
1162discuss the auditor's comments, their discussion is presumed
1163when the comments are delivered in writing to his or her office.
1164The auditor shall notify each member of the governing body of a
1165local governmental entity, district school board, charter
1166school, or charter technical career center for which
1167deteriorating financial conditions exist that may cause a
1168condition described in s. 218.503(1) to occur if actions are not
1169taken to address such conditions.
1170     (6)  The officer's written statement of explanation or
1171rebuttal concerning the auditor's findings, including corrective
1172action to be taken, must be filed with the governing body of the
1173local governmental entity, district school board, charter
1174school, or charter technical career center within 30 days after
1175the delivery of the auditor's findings.
1176     (7)  All audits conducted pursuant to this section must be
1177conducted in accordance with the rules of the Auditor General
1178adopted pursuant to s. 11.45. Upon completion of the audit, the
1179auditor shall prepare an audit report in accordance with the
1180rules of the Auditor General. The audit report shall be filed
1181with the Auditor General within 45 days after delivery of the
1182audit report to the governing body of the audited entity, but no
1183later than 9 months after the end of the audited entity's fiscal
1184year. The audit report must include a written statement
1185describing corrective actions to be taken in response to each of
1186the auditor's recommendations included in the audit report.
1187     (8)  The Auditor General shall notify the Legislative
1188Auditing Committee of any audit report prepared pursuant to this
1189section which indicates that an audited entity required to have
1190an annual audit has failed to take full corrective action in
1191response to a recommendation that was included in the two
1192preceding audit reports filed. Such notification shall also
1193include any audited entity required to have audits on other than
1194an annual basis that failed to take full corrective action in
1195response to a recommendation that was included in the most
1196recent preceding audit report filed.
1197     (a)  The committee may direct the governing body of the
1198audited entity to provide a written statement to the committee
1199explaining why full corrective action has not been taken or, if
1200the governing body intends to take full corrective action,
1201describing the corrective action to be taken and when it will
1202occur.
1203     (b)  If the committee determines that the written statement
1204is not sufficient, it may require the chair of the governing
1205body of the local governmental entity or the chair's designee,
1206the elected official of each county agency or the elected
1207official's designee, the chair of the district school board or
1208the chair's designee, the chair of the board of the charter
1209school or the chair's designee, or the chair of the board of the
1210charter technical career center or the chair's designee, as
1211appropriate, to appear before the committee.
1212     (c)  If the committee determines that an audited entity has
1213failed to take full corrective action for which there is no
1214justifiable reason for not taking such action, or has failed to
1215comply with committee requests made pursuant to this section,
1216the committee may proceed in accordance with s. 11.40(5).
1217     (9)(7)  The predecessor auditor of a district school board
1218shall provide the Auditor General access to the prior year's
1219working papers in accordance with the Statements on Auditing
1220Standards, including documentation of planning, internal
1221control, audit results, and other matters of continuing
1222accounting and auditing significance, such as the working paper
1223analysis of balance sheet accounts and those relating to
1224contingencies.
1225     (8)  All audits conducted in accordance with this section
1226must be conducted in accordance with the rules of the Auditor
1227General promulgated pursuant to s. 11.45. All audit reports and
1228the officer's written statement of explanation or rebuttal must
1229be submitted to the Auditor General within 45 days after
1230delivery of the audit report to the entity's governing body, but
1231no later than 12 months after the end of the fiscal year.
1232     (10)(9)  Each charter school and charter technical career
1233center must file a copy of its audit report with the sponsoring
1234entity; the local district school board, if not the sponsoring
1235entity; the Auditor General; and with the Department of
1236Education.
1237     (11)(10)  This section does not apply to housing
1238authorities created under chapter 421.
1239     (12)(11)  Notwithstanding the provisions of any local law,
1240the provisions of this section shall govern.
1241     Section 21.  Paragraph (e) of subsection (1) of section
1242218.503, Florida Statutes, is amended to read:
1243     218.503  Determination of financial emergency.-
1244     (1)  Local governmental entities, charter schools, charter
1245technical career centers, and district school boards shall be
1246subject to review and oversight by the Governor, the charter
1247school sponsor, the charter technical career center sponsor, or
1248the Commissioner of Education, as appropriate, when any one of
1249the following conditions occurs:
1250     (e)  A An unreserved or total fund balance or retained
1251earnings deficit in total or for that portion of a fund balance
1252not classified as restricted, committed, or nonspendable, or a
1253unrestricted or total or unrestricted net assets deficit, as
1254reported on the balance sheet or statement of net assets on the
1255general purpose or fund financial statements of entities
1256required to report under governmental financial reporting
1257standards or on the basic financial statements of entities
1258required to report under not-for-profit financial reporting
1259standards, for which sufficient resources of the local
1260governmental entity, charter school, charter technical career
1261center, or district school board, as reported on the balance
1262sheet or statement of net assets on the general purpose or fund
1263financial statements, are not available to cover the deficit.
1264Resources available to cover reported deficits include fund
1265balance or net assets that are not otherwise restricted by
1266federal, state, or local laws, bond covenants, contractual
1267agreements, or other legal constraints. Property, plant, and
1268equipment Fixed or capital assets, the disposal of which would
1269impair the ability of a local governmental entity, charter
1270school, charter technical career center, or district school
1271board to carry out its functions, are not considered resources
1272available to cover reported deficits.
1273     Section 22.  Paragraph (c) of subsection (5) of section
1274373.536, Florida Statutes, is amended, and paragraph (c) is
1275added to subsection (6) of that section, to read:
1276     373.536  District budget and hearing thereon.-
1277     (5)  TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND
1278APPROVAL.-
1279     (c)  Each water management district shall, by August 1 of
1280each year, submit for review a tentative budget to the Governor,
1281the President of the Senate, the Speaker of the House of
1282Representatives, the chairs of all legislative committees and
1283subcommittees with substantive or fiscal jurisdiction over water
1284management districts, as determined by the President of the
1285Senate or the Speaker of the House of Representatives as
1286applicable, the secretary of the department, and the governing
1287body of each county in which the district has jurisdiction or
1288derives any funds for the operations of the district. The
1289tentative budget must be posted on the water management
1290district's official website at least 2 days before budget
1291hearings held pursuant to s. 200.065 or other law.
1292     (6)  FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN;
1293WATER RESOURCE DEVELOPMENT WORK PROGRAM.-
1294     (c)  The final adopted budget must be posted on the water
1295management district's official website within 30 days after
1296adoption.
1297     Section 23.  Subsections (1) and (4) of section 1011.03,
1298Florida Statutes, are amended, and subsection (5) is added to
1299that section, to read:
1300     1011.03  Public hearings; budget to be submitted to
1301Department of Education.-
1302     (1)  Each district school board shall must cause a summary
1303of its tentative budget, including the proposed millage levies
1304as provided for by law, to be posted on the district's official
1305website online and advertised once one time in a newspaper of
1306general circulation published in the district or to be posted at
1307the courthouse if there be no such newspaper.
1308     (4)  The board shall hold public hearings to adopt
1309tentative and final budgets pursuant to s. 200.065. The hearings
1310shall be primarily for the purpose of hearing requests and
1311complaints from the public regarding the budgets and the
1312proposed tax levies and for explaining the budget and proposed
1313or adopted amendments thereto, if any. The tentative budget must
1314be posted on the district's official website at least 2 days
1315before the budget hearing held pursuant to s. 200.065 or other
1316law. The final adopted budget must be posted on the district's
1317official website within 30 days after adoption. The district
1318school board shall then require the superintendent to transmit
1319forthwith two copies of the adopted budget to the Department of
1320Education for approval as prescribed by law and rules of the
1321State Board of Education.
1322     (5)  If the governing body of a district amends the budget,
1323the adopted amendment must be posted on the official website of
1324the district within 5 days after adoption.
1325     Section 24.  Section 1011.051, Florida Statutes, is amended
1326to read:
1327     1011.051  Guidelines for general funds.-The district school
1328board shall maintain a an unreserved general fund ending fund
1329balance that is sufficient to address normal contingencies.
1330     (1)  If at any time the portion of the unreserved general
1331fund's ending fund balance not classified as restricted,
1332committed, or nonspendable in the district's approved operating
1333budget is projected to fall during the current fiscal year below
13343 percent of projected general fund revenues during the current
1335fiscal year, the superintendent shall provide written
1336notification to the district school board and the Commissioner
1337of Education.
1338     (2)  If at any time the portion of the unreserved general
1339fund's ending fund balance not classified as restricted,
1340committed, or nonspendable in the district's approved operating
1341budget is projected to fall during the current fiscal year below
13422 percent of projected general fund revenues during the current
1343fiscal year, the superintendent shall provide written
1344notification to the district school board and the Commissioner
1345of Education. Within 14 days after receiving such notification,
1346if the commissioner determines that the district does not have a
1347plan that is reasonably anticipated to avoid a financial
1348emergency as determined pursuant to s. 218.503, the commissioner
1349shall appoint a financial emergency board that shall operate
1350under consistent with the requirements, powers, and duties
1351specified in s. 218.503(3)(g).
1352     Section 25.  Paragraph (a) of subsection (3) of section
13531011.64, Florida Statutes, is amended to read:
1354     1011.64  School district minimum classroom expenditure
1355requirements.-
1356     (3)(a)  Annually the Department of Education shall
1357calculate for each school district:
1358     1.  Total K-12 operating expenditures, which are defined as
1359the amount of total general fund expenditures for K-12 programs
1360as reported in accordance with the accounts and codes prescribed
1361in the most recent issuance of the Department of Education
1362publication entitled "Financial and Program Cost Accounting and
1363Reporting for Florida Schools" and as included in the most
1364recent annual financial report submitted to the Commissioner of
1365Education, less the student transportation revenue allocation
1366from the state appropriation for that purpose, amounts
1367transferred to other funds, and increases to the amount of the
1368general fund's fund unreserved ending fund balance not
1369classified as restricted, committed, or nonspendable if when the
1370total unreserved ending fund balance not classified as
1371restricted, committed, or nonspendable is in excess of 5 percent
1372of the total general fund revenues.
1373     2.  Expenditures for classroom instruction, which equal
1374shall be the sum of the general fund expenditures for K-12
1375instruction and instructional staff training.
1376     Section 26.  This act shall take effect October 1, 2011.


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