Florida Senate - 2014                                    SB 1628
       
       
        
       By Senator Bean
       
       
       
       
       
       4-01137A-14                                           20141628__
    1                        A bill to be entitled                      
    2         An act relating to government accountability; amending
    3         ss. 20.05, 25.382, 43.16, 218.33, and 1002.33, F.S.;
    4         revising the responsibilities of department heads, the
    5         Supreme Court as it relates to the state courts
    6         system, the Justice Administrative Commission, state
    7         attorneys, public defenders, criminal conflict and
    8         civil regional counsel, the Guardian Ad Litem program,
    9         the Florida Clerks of Court Operations Corporation,
   10         local governmental entities, and governing bodies of
   11         charter schools to include the responsibility of
   12         establishing certain internal controls; amending s.
   13         20.055, F.S.; revising provisions relating to agency
   14         inspectors general; revising the definition of the
   15         term “state agency” to include the Justice
   16         Administrative Commission and the agencies it
   17         administratively supports; expanding the definition of
   18         the term “agency head”; amending s. 1001.42, F.S.;
   19         revising the responsibilities of a district school
   20         board’s internal auditor to permit certain audits and
   21         reviews; amending s. 1010.01, F.S.; requiring each
   22         Florida College System institution to file certain
   23         annual financial statements with the State Board of
   24         Education; requiring each school district, Florida
   25         College System institution, and state university to
   26         establish certain internal controls; providing an
   27         effective date.
   28          
   29  Be It Enacted by the Legislature of the State of Florida:
   30  
   31         Section 1. Paragraphs (g) and (h) of subsection (1) of
   32  section 20.05, Florida Statutes, are amended, and paragraph (i)
   33  is added to that subsection, to read:
   34         20.05 Heads of departments; powers and duties.—
   35         (1) Each head of a department, subject to the allotment of
   36  executive power under Article IV of the State Constitution, and
   37  except as otherwise provided by law, must:
   38         (g) If a department is under the direct supervision of a
   39  board, including a board consisting of the Governor and Cabinet,
   40  however designated, employ an executive director to serve at its
   41  pleasure; and
   42         (h) Make recommendations concerning more effective internal
   43  structuring of the department to the Legislature. Unless
   44  otherwise required by law, such recommendations must be provided
   45  to the Legislature at least 30 days before the first day of the
   46  regular session at which they are to be considered, when
   47  practicable; and
   48         (i) Establish, maintain, and document the effective
   49  operation of internal controls, including controls designed to
   50  prevent and detect fraud, waste, and abuse; to ensure the
   51  administration of assigned public duties and responsibilities in
   52  accordance with applicable laws, rules, contracts, grant
   53  agreements, and best practices; to promote and encourage
   54  economic and efficient operations; to ensure the reliability of
   55  financial records and reports; and to safeguard assets.
   56         Section 2. Paragraphs (a) and (b) of subsection (1) of
   57  section 20.055, Florida Statutes, are amended to read:
   58         20.055 Agency inspectors general.—
   59         (1) For the purposes of this section:
   60         (a) “State agency” means each department created pursuant
   61  to this chapter, and also includes the Executive Office of the
   62  Governor, the Department of Military Affairs, the Fish and
   63  Wildlife Conservation Commission, the Office of Insurance
   64  Regulation of the Financial Services Commission, the Office of
   65  Financial Regulation of the Financial Services Commission, the
   66  Public Service Commission, the Board of Governors of the State
   67  University System, the Florida Housing Finance Corporation, the
   68  Justice Administrative Commission and the agencies it
   69  administratively supports pursuant to s. 43.16(5), and the state
   70  courts system.
   71         (b) “Agency head” means the Governor, a Cabinet officer, a
   72  secretary as defined in s. 20.03(5), or an executive director as
   73  defined in s. 20.03(6). It also includes the chair of the Public
   74  Service Commission, the Director of the Office of Insurance
   75  Regulation of the Financial Services Commission, the Director of
   76  the Office of Financial Regulation of the Financial Services
   77  Commission, the chair of the board of directors of the Florida
   78  Housing Finance Corporation, the chair of the Justice
   79  Administrative Commission, and the Chief Justice of the State
   80  Supreme Court.
   81         Section 3. Subsection (5) is added to section 25.382,
   82  Florida Statutes, to read:
   83         25.382 State courts system.—
   84         (5) The Supreme Court shall ensure that the state courts
   85  system establishes, maintains, and documents the effective
   86  operation of internal controls, including controls designed to
   87  prevent and detect fraud, waste, and abuse; to ensure the
   88  administration of assigned public duties and responsibilities in
   89  accordance with applicable laws, rules, contracts, grant
   90  agreements, and best practices; to promote and encourage
   91  economic and efficient operations; to ensure the reliability of
   92  financial records and reports; and to safeguard assets.
   93         Section 4. Subsections (6) and (7) of section 43.16,
   94  Florida Statutes, are renumbered as subsections (7) and (8),
   95  respectively, and a new subsection (6) is added to that section
   96  to read:
   97         43.16 Justice Administrative Commission; membership, powers
   98  and duties.—
   99         (6) The commission, each state attorney, public defender,
  100  and criminal conflict and civil regional counsel, the Guardian
  101  Ad Litem program, and the Florida Clerks of Court Operations
  102  Corporation must establish, maintain, and document the effective
  103  operation of internal controls, including controls designed to
  104  prevent and detect fraud, waste, and abuse; to ensure the
  105  administration of assigned public duties and responsibilities in
  106  accordance with applicable laws, rules, contracts, grant
  107  agreements, and best practices; to promote and encourage
  108  economic and efficient operations; to ensure the reliability of
  109  financial records and reports; and to safeguard assets.
  110         Section 5. Subsection (3) of section 218.33, Florida
  111  Statutes, is renumbered as subsection (4), and a new subsection
  112  (3) is added to that section to read:
  113         218.33 Local governmental entities; establishment of
  114  uniform fiscal years and accounting practices and procedures.—
  115         (3) Each local governmental entity must establish,
  116  maintain, and document the effective operation of internal
  117  controls designed to prevent and detect fraud, waste, and abuse;
  118  to ensure the administration of assigned public duties and
  119  responsibilities in accordance with applicable laws, rules,
  120  contracts, grant agreements, and best practices; to promote and
  121  encourage economic and efficient operations; to ensure the
  122  reliability of financial records and reports; and to safeguard
  123  assets.
  124         Section 6. Paragraph (l) of subsection (12) of section
  125  1001.42, Florida Statutes, is amended to read:
  126         1001.42 Powers and duties of district school board.—The
  127  district school board, acting as a board, shall exercise all
  128  powers and perform all duties listed below:
  129         (12) FINANCE.—Take steps to assure students adequate
  130  educational facilities through the financial procedure
  131  authorized in chapters 1010 and 1011 and as prescribed below:
  132         (l) Internal auditor.—May employ an internal auditor to
  133  perform ongoing financial verification of the financial records
  134  of the school district and such other audits and reviews as the
  135  district school board directs for the purpose of establishing,
  136  maintaining, and documenting the effective operation of internal
  137  controls, including controls designed to prevent and detect
  138  fraud, waste, and abuse; to ensure the administration of
  139  assigned public duties and responsibilities in accordance with
  140  applicable laws, rules, contracts, grant agreements, school
  141  board-approved policies, and best practices; to promote and
  142  encourage economic and efficient operations; to ensure the
  143  reliability of financial records and reports; and to safeguard
  144  assets. The internal auditor shall report directly to the
  145  district school board or its designee.
  146         Section 7. Paragraph (j) of subsection (9) of section
  147  1002.33, Florida Statutes, is amended to read:
  148         1002.33 Charter schools.—
  149         (9) CHARTER SCHOOL REQUIREMENTS.—
  150         (j) The governing body of the charter school shall be
  151  responsible for:
  152         1. Establishing, maintaining, and documenting the effective
  153  operation of internal controls, including controls designed to
  154  prevent and detect fraud, waste, and abuse; to ensure the
  155  administration of assigned public duties and responsibilities in
  156  accordance with applicable laws, rules, contracts, grant
  157  agreements, and best practices; to promote and encourage
  158  economic and efficient operations; to ensure the reliability of
  159  financial records and reports; and to safeguard assets.
  160         2.1. Ensuring that the charter school has retained the
  161  services of a certified public accountant or auditor for the
  162  annual financial audit, pursuant to s. 1002.345(2), who shall
  163  submit the report to the governing body.
  164         3.2. Reviewing and approving the audit report, including
  165  audit findings and recommendations for the financial recovery
  166  plan.
  167         4.3.a. Performing the duties in s. 1002.345, including
  168  monitoring a corrective action plan.
  169         b. Monitoring a financial recovery plan in order to ensure
  170  compliance.
  171         5.4. Participating in governance training approved by the
  172  department which must include government in the sunshine,
  173  conflicts of interest, ethics, and financial responsibility.
  174         Section 8. Subsections (3) and (4) of section 1010.01,
  175  Florida Statutes, are renumbered as subsections (4) and (5),
  176  respectively, and new subsections (3) and (6) are added to that
  177  section, to read:
  178         1010.01 Uniform records and accounts.—
  179         (3) Each Florida College System institution shall annually
  180  file with the State Board of Education financial statements
  181  prepared in conformity with accounting principles generally
  182  accepted by the United States and the uniform classification of
  183  accounts prescribed by the State Board of Education. The State
  184  Board of Education’s rules shall prescribe the filing deadline
  185  for the financial statements.
  186         (6) Each school district, Florida College System
  187  institution, and state university shall establish, maintain, and
  188  document the effective operation of internal controls, including
  189  controls designed to prevent and detect fraud, waste, and abuse;
  190  to ensure the administration of assigned public duties and
  191  responsibilities in accordance with applicable laws, rules,
  192  contracts, grant agreements, and best practices; to promote and
  193  encourage economic and efficient operations; to ensure the
  194  reliability of financial records and reports; and to safeguard
  195  assets.
  196         Section 9. This act shall take effect July 1, 2014.