HB 5009

1
A bill to be entitled
2An act relating to the Auditor General; amending s. 11.45,
3F.S.; requiring that financial audits be conducted in
4accordance with certain auditing standards and activities;
5expanding the definition and standards of "operational
6audit"; revising the duties of the Auditor General
7pertaining to financial audits of district boards of
8trustees of community colleges, district school boards,
9universities, colleges, the Florida Clerks of Court
10Operations Corporation, and the Florida School for the
11Deaf and Blind; revising the time for conducting certain
12operational audits; revising the requirements for
13conducting a performance audit of the ad valorem tax laws;
14deleting the authority of the Auditor General to conduct
15an audit of the Investment Fraud Restoration Financing
16Corporation; authorizing the Auditor General to conduct
17audits or other engagements of certain virtual education
18providers; expanding the requirements of the annual report
19to the legislative leadership and Legislative Auditing
20Committee; amending s. 25.075, F.S.; deleting the
21requirement that the Auditor General audit certain reports
22made to the Supreme Court in accordance with the uniform
23case reporting system established by the court; amending
24s. 28.35, F.S.; deleting the requirements that the Florida
25Clerks of Court Operations Corporation submit an annual
26audited financial statement to the Auditor General and
27that the Auditor General conduct an audit of the
28corporation; amending s. 195.096, F.S.; deleting the
29requirement that the Auditor General conduct a performance
30audit of the administration of ad valorem tax laws;
31amending s. 218.31, F.S.; requiring that financial audits
32be conducted in accordance with certain auditing standards
33and activities; amending s. 273.05, F.S.; transferring the
34responsibility of developing rules for surplus property
35records from the Auditor General to the Chief Financial
36Officer; amending s. 365.173, F.S.; deleting certain
37responsibilities of the Auditor General for the Emergency
38Communications Number E911 System Fund; amending s.
39943.25, F.S.; deleting certain responsibilities of the
40Auditor General pertaining to criminal justice trust
41funds; amending s. 1002.36, F.S.; deleting the requirement
42that the Auditor General perform annual audits of the
43Florida School for the Deaf and the Blind; amending s.
441009.53, F.S.; revising the criteria for audits for
45institutions which receive a certain amount of funds from
46the Bright Futures Scholarship program; providing a date
47by which certain reports must be submitted; providing that
48an institution that is not subject to the audit shall
49attest, under penalty of perjury, that the scholarship
50proceeds were used in compliance with law; providing that
51the Department of Education may establish the form and
52format for the attestation; amending ss. 938.01 and
53943.17, F.S.; conforming cross-references to changes made
54by the act; providing an effective date.
55
56Be It Enacted by the Legislature of the State of Florida:
57
58     Section 1.  Paragraphs (c) and (g) of subsection (1),
59subsection (2), paragraphs (u), (v), (w), and (x) of subsection
60(3), and paragraph (h) of subsection (7) of section 11.45,
61Florida Statutes, are amended, and a new paragraph (x) is added
62to subsection (3) of that section, to read:
63     11.45  Definitions; duties; authorities; reports; rules.-
64     (1)  DEFINITIONS.-As used in ss. 11.40-11.513, the term:
65     (c)  "Financial audit" means an examination of financial
66statements in order to express an opinion on the fairness with
67which they are presented in conformity with generally accepted
68accounting principles and an examination to determine whether
69operations are properly conducted in accordance with legal and
70regulatory requirements. Financial audits must be conducted in
71accordance with auditing standards generally accepted in the
72United States auditing standards and government auditing
73standards as adopted by the Board of Accountancy. When
74applicable, the scope of financial audits shall encompass the
75additional activities necessary to establish compliance with the
76Single Audit Act Amendments of 1996, 31 U.S.C.A. ss. 7501-7507
77and other applicable federal law.
78     (g)  "Operational audit" means an a financial-related audit
79whose purpose is to evaluate management's performance in
80establishing and maintaining internal controls, including
81controls designed to prevent and detect fraud, waste, and abuse,
82and in administering assigned responsibilities in accordance
83with applicable laws, administrative rules, regulations,
84contracts, grant agreements, and other guidelines. Operational
85audits must be conducted in accordance with government auditing
86standards. Operational audits examine and to determine the
87extent to which the internal controls control, as designed and
88placed in operation to, promote promotes and encourage
89encourages the achievement of management's control objectives in
90the categories of compliance, economic and efficient operations,
91reliability of financial records and reports, and safeguarding
92of assets and the identification of weaknesses in those internal
93controls.
94     (2)  DUTIES.-The Auditor General shall:
95     (a)  Conduct audits of records and perform related duties
96as prescribed by law, concurrent resolution of the Legislature,
97or as directed by the Legislative Auditing Committee.
98     (b)  Annually conduct a financial audit of state
99government.
100     (c)  Annually conduct financial audits of all state
101universities and district boards of trustees of community
102colleges.
103     (d)  Annually conduct financial audits of the accounts and
104records of all district school boards in counties with
105populations of fewer than 150,000, according to the most recent
106federal decennial statewide census.
107     (e)  Once every 3 years, conduct financial audits of the
108accounts and records of all district school boards in counties
109with populations of 150,000 or more, according to the most
110recent federal decennial statewide census. Through fiscal year
1112008-2009, annually conduct an audit of the Wireless Emergency
112Telephone System Fund as described in s. 365.173.
113     (f)  Annually conduct audits of the accounts and records of
114the Florida School for the Deaf and the Blind.
115     (f)(g)  At least every 3 2 years, conduct operational
116audits of the accounts and records of state agencies, and
117universities, colleges, district school boards, the Florida
118Clerks of Court Operations Corporation, and the Florida School
119for the Deaf and the Blind. In connection with these audits, the
120Auditor General shall give appropriate consideration to reports
121issued by state agencies' inspectors general or universities'
122inspectors general and the resolution of findings therein.
123     (g)(h)  At least every 3 2 years, conduct a performance
124audit of the local government financial reporting system, which,
125for the purpose of this chapter, means any statutory provisions
126related to local government financial reporting. The purpose of
127such an audit is to determine the accuracy, efficiency, and
128effectiveness of the reporting system in achieving its goals and
129to make recommendations to the local governments, the Governor,
130and the Legislature as to how the reporting system can be
131improved and how program costs can be reduced. The Auditor
132General shall determine the scope of such audits. The local
133government financial reporting system should provide for the
134timely, accurate, uniform, and cost-effective accumulation of
135financial and other information that can be used by the members
136of the Legislature and other appropriate officials to accomplish
137the following goals:
138     1.  Enhance citizen participation in local government;
139     2.  Improve the financial condition of local governments;
140     3.  Provide essential government services in an efficient
141and effective manner; and
142     4.  Improve decisionmaking on the part of the Legislature,
143state agencies, and local government officials on matters
144relating to local government.
145     (h)(i)  At least Once every 3 years, conduct a performance
146audit audits of the Department of Revenue's administration of
147the ad valorem tax laws as described in s. 195.096. The
148performance audit shall report on the activities of the ad
149valorem tax program of the Department of Revenue related to the
150ad valorem tax rolls. The Auditor General shall include, for at
151least four counties so reviewed, findings as to the accuracy of
152assessment procedures, projections, and computations made by the
153division, using the same generally accepted appraisal standards
154and procedures to which the division and the property appraisers
155are required to adhere. However, the report may not include any
156findings or statistics related to any ad valorem tax roll that
157is in litigation between the state and county officials at the
158time the report is to be issued.
159     (j)  Once every 3 years, conduct financial audits of the
160accounts and records of all district school boards in counties
161with populations of 125,000 or more, according to the most
162recent federal decennial statewide census.
163     (i)(k)  Once every 3 years, review a sample of each state
164agency's internal audit reports at each state agency, as defined
165in s. 20.0551(1)(a), to determine compliance with current
166Standards for the Professional Practice of Internal Auditing or,
167if appropriate, government auditing standards.
168     (j)(l)  Conduct audits of local governmental entities when
169determined to be necessary by the Auditor General, when directed
170by the Legislative Auditing Committee, or when otherwise
171required by law. No later than 18 months after the release of
172the audit report, the Auditor General shall perform such
173appropriate followup procedures as he or she deems necessary to
174determine the audited entity's progress in addressing the
175findings and recommendations contained within the Auditor
176General's previous report. The Auditor General shall notify
177provide a copy of his or her determination to each member of the
178audited entity's governing body and to the Legislative Auditing
179Committee of the results of his or her determination.
180
181The Auditor General shall perform his or her duties
182independently but under the general policies established by the
183Legislative Auditing Committee. This subsection does not limit
184the Auditor General's discretionary authority to conduct other
185audits or engagements of governmental entities as authorized in
186subsection (3).
187     (3)  AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.-The
188Auditor General may, pursuant to his or her own authority, or at
189the direction of the Legislative Auditing Committee, conduct
190audits or other engagements as determined appropriate by the
191Auditor General of:
192     (u)  The Investment Fraud Restoration Financing Corporation
193created pursuant to chapter 517.
194     (u)(v)  The books and records of any permitholder that
195conducts race meetings or jai alai exhibitions under chapter
196550.
197     (v)(w)  The corporation defined in part II of chapter 946,
198known as the Prison Rehabilitative Industries and Diversified
199Enterprises, Inc., or PRIDE Enterprises.
200     (w)(x)  The Florida Virtual School pursuant to s. 1002.37.
201     (x)  Virtual education providers receiving state funds or
202funds from local ad valorem taxes.
203     (7)  AUDITOR GENERAL REPORTING REQUIREMENTS.-
204     (h)  The Auditor General shall compile and transmit to the
205President of the Senate, the Speaker of the House of
206Representatives, and the Legislative Auditing Committee by
207December 1 of each year an annual report, which shall include a
208projected 2-year work plan identifying the audits and other
209accountability activities to be undertaken and a list of
210statutory and fiscal changes recommended by the Auditor General.
211The Auditor General may also transmit recommendations at other
212times of the year when the information would be timely and
213useful for the Legislature.
214     Section 2.  Subsection (3) of section 25.075, Florida
215Statutes, is amended to read:
216     25.075  Uniform case reporting system.-
217     (3)  The Auditor General shall audit the reports made to
218the Supreme Court in accordance with the uniform system
219established by the Supreme Court.
220     Section 3.  Subsection (5) of section 28.35, Florida
221Statutes, is amended to read:
222     28.35  Florida Clerks of Court Operations Corporation.-
223     (5)(a)  The corporation shall submit an annual audited
224financial statement to the Auditor General in a form and manner
225prescribed by the Auditor General. The Auditor General shall
226conduct an annual audit of the operations of the corporation,
227including the use of funds and compliance with the provisions of
228this section and ss. 28.36 and 28.37.
229     (b)  Certified public accountants conducting audits of
230counties pursuant to s. 218.39 shall report, as part of the
231audit, whether or not the clerks of the courts have complied
232with the requirements of this section and s. 28.36. In addition,
233each clerk of court shall forward a copy of the portion of the
234financial audit relating to the court-related duties of the
235clerk of court to the Supreme Court. The Auditor General shall
236develop a compliance supplement for the audit of compliance with
237the budgets and applicable performance standards certified by
238the corporation.
239     Section 4.  Subsections (7), (8), and (9) of section
240195.096, Florida Statutes, are amended to read:
241     195.096  Review of assessment rolls.-
242     (7)  The Auditor General shall conduct a performance audit
243of the administration of ad valorem tax laws by the department
244triennially following completion of reviews conducted pursuant
245to this section. The audit report shall be submitted to the
246Legislature no later than April 1, on a triennial basis,
247reporting on the activities of the ad valorem tax program of the
248Department of Revenue related to the ad valorem tax rolls. The
249Auditor General shall include, for at least four counties so
250reviewed, findings as to the accuracy of assessment procedures,
251projections, and computations made by the division, utilizing
252the same generally accepted appraisal standards and procedures
253to which the division and the property appraisers are required
254to adhere. However, the report shall not include any findings or
255statistics related to any ad valorem tax roll which is in
256litigation between the state and county officials at the time
257the report is to be issued.
258     (7)(8)  When a roll is prepared as an interim roll pursuant
259to s. 193.1145, the department shall compute assessment levels
260for both the interim roll and the final approved roll.
261     (8)(9)  Chapter 120 does shall not apply to this section.
262     Section 5.  Subsection (17) of section 218.31, Florida
263Statutes, is amended to read:
264     218.31  Definitions.-As used in this part, except where the
265context clearly indicates a different meaning:
266     (17)  "Financial audit" means an examination of financial
267statements in order to express an opinion on the fairness with
268which they are presented in conformity with generally accepted
269accounting principles and an examination to determine whether
270operations are properly conducted in accordance with legal and
271regulatory requirements. Financial audits must be conducted in
272accordance with auditing standards generally accepted in the
273United States auditing standards and government auditing
274standards as adopted by the Board of Accountancy and as
275prescribed by rules promulgated by the Auditor General. When
276applicable, the scope of financial audits shall encompass the
277additional activities necessary to establish compliance with the
278Single Audit Act Amendments of 1996, 31 U.S.C.A. ss. 7501-7507
279and other applicable federal law.
280     Section 6.  Subsection (5) of section 273.05, Florida
281Statutes, is amended to read:
282     273.05  Surplus property.-
283     (5)  The custodian shall maintain records of property that
284is certified as surplus with information indicating the value
285and condition of the property. Agency records for property
286certified as surplus shall comply with rules issued by the Chief
287Financial Officer Auditor General.
288     Section 7.  Subsection (3) of section 365.173, Florida
289Statutes, is amended to read:
290     365.173  Emergency Communications Number E911 System Fund.-
291     (3)  The Auditor General shall annually audit the fund to
292ensure that moneys in the fund are being managed in accordance
293with this section and s. 365.172. The Auditor General shall
294provide a report of the annual audit to the board.
295     Section 8.  Subsections (3) and (4) and paragraph (d) of
296subsection (5) of section 943.25, Florida Statutes, are amended,
297and present subsections (4) through (12) are renumbered as
298subsections (3) through (11), respectively, to read:
299     943.25  Criminal justice trust funds; source of funds; use
300of funds.-
301     (3)  The Auditor General is directed in her or his audit of
302courts to ascertain that such assessments have been collected
303and remitted and shall report to the Legislature. All such
304records of the courts shall be open for her or his inspection.
305The Auditor General is further directed to conduct audits of the
306expenditures of the trust funds and to report to the
307Legislature. Such audits shall be conducted in accordance with
308s. 11.45.
309     (3)(4)  The commission shall, by rule, establish,
310implement, supervise, and evaluate the expenditures of the
311Criminal Justice Standards and Training Trust Fund for approved
312advanced and specialized training program courses. Criminal
313justice training school enhancements may be authorized by the
314commission subject to the provisions of subsection (6) (7). The
315commission may approve the training of appropriate support
316personnel when it can be demonstrated that these personnel
317directly support the criminal justice function.
318     (4)(5)  The commission shall authorize the establishment of
319regional training councils to advise and assist the commission
320in developing and maintaining a plan assessing regional criminal
321justice training needs and to act as an extension of the
322commission in the planning, programming, and budgeting for
323expenditures of the moneys in the Criminal Justice Standards and
324Training Trust Fund.
325     (d)  A public criminal justice training school must be
326designated by the commission to receive and distribute the
327disbursements authorized under subsection (8) (9).
328     Section 9.  Subsection (3) of section 1002.36, Florida
329Statutes, is amended to read:
330     1002.36  Florida School for the Deaf and the Blind.-
331     (3)  AUDITS.-The Auditor General shall conduct annual
332audits of the accounts and records of the Florida School for the
333Deaf and the Blind as provided in s. 11.45. The Department of
334Education's Inspector General is authorized to conduct
335investigations at the school as provided in s. 1001.20(4)(e).
336     Section 10.  Paragraph (c) of subsection (5) of section
3371009.53, Florida Statutes, is amended, and paragraph (d) is
338added to that subsection, to read:
339     1009.53  Florida Bright Futures Scholarship Program.-
340     (5)  The department shall issue awards from the scholarship
341program annually. Annual awards may be for up to 45 semester
342credit hours or the equivalent. Before the registration period
343each semester, the department shall transmit payment for each
344award to the president or director of the postsecondary
345education institution, or his or her representative, except that
346the department may withhold payment if the receiving institution
347fails to report or to make refunds to the department as required
348in this section.
349     (c)  Each institution that receives moneys through this
350program shall provide for a prepare an annual report that
351includes an annual financial audit, as defined in s.
35211.45(1)(c), conducted by an independent certified public
353accountant or the Auditor General, for each fiscal year in which
354the institution expends program moneys in excess of $100,000. At
355least every 2 years, the audit The report shall include an
356examination audit of the institution's administration of the
357program and the institution's a complete accounting of the
358moneys for the program since the last examination of the
359institution's administration of the program. The This report on
360the audit must be submitted to the department within 9 months
361after the end of the fiscal year annually by March 1. The
362department may conduct its own annual audit of an institution's
363administration of the program. The department may request a
364refund of any moneys overpaid to the institution for the
365program. The department may suspend or revoke an institution's
366eligibility to receive future moneys for the program if the
367department finds that an institution has not complied with this
368section. The institution must remit within 60 days any refund
369requested in accordance with this subsection.
370     (d)  Any institution not subject to audit pursuant to this
371subsection shall attest, under penalties of perjury, that
372proceeds received under this subsection were used in compliance
373with the applicable law. The attestation shall be made annually
374in a form and format determined by the department.
375     Section 11.  Paragraph (b) of subsection (1) of section
376938.01, Florida Statutes, is amended to read:
377     938.01  Additional Court Cost Clearing Trust Fund.-
378     (1)  All courts created by Art. V of the State Constitution
379shall, in addition to any fine or other penalty, require every
380person convicted for violation of a state penal or criminal
381statute or convicted for violation of a municipal or county
382ordinance to pay $3 as a court cost. Any person whose
383adjudication is withheld pursuant to the provisions of s.
384318.14(9) or (10) shall also be liable for payment of such cost.
385In addition, $3 from every bond estreature or forfeited bail
386bond related to such penal statutes or penal ordinances shall be
387remitted to the Department of Revenue as described in this
388subsection. However, no such assessment may be made against any
389person convicted for violation of any state statute, municipal
390ordinance, or county ordinance relating to the parking of
391vehicles.
392     (b)  All funds in the Department of Law Enforcement
393Criminal Justice Standards and Training Trust Fund shall be
394disbursed only in compliance with s. 943.25(8)(9).
395     Section 12.  Paragraph (c) of subsection (1) of section
396943.17, Florida Statutes, is amended to read:
397     943.17  Basic recruit, advanced, and career development
398training programs; participation; cost; evaluation.-The
399commission shall, by rule, design, implement, maintain,
400evaluate, and revise entry requirements and job-related
401curricula and performance standards for basic recruit, advanced,
402and career development training programs and courses. The rules
403shall include, but are not limited to, a methodology to assess
404relevance of the subject matter to the job, student performance,
405and instructor competency.
406     (1)  The commission shall:
407     (c)  Design, implement, maintain, evaluate, revise, or
408adopt a career development training program which is limited to
409those courses related to promotion to a higher rank or position.
410Career development courses will not be eligible for funding as
411provided in s. 943.25(8)(9).
412     Section 13.  This act shall take effect July 1, 2011.


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