Florida Senate - 2015 COMMITTEE AMENDMENT
Bill No. SB 1304
Ì379686eÎ379686
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/23/2015 .
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The Committee on Governmental Oversight and Accountability
(Latvala) recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete lines 27 - 353
4 and insert:
5 (a) Hire or retain legal counsel.
6 (b) Issue and serve subpoenas and subpoenas duces tecum to
7 compel the attendance of witnesses and the production of
8 documents, reports, answers, records, accounts, and other data
9 in any medium.
10 (c) Require or allow a person to file a statement in
11 writing, under oath or otherwise, as to all the facts and
12 circumstances concerning the matter to be audited, examined, or
13 investigated.
14
15 In the event of noncompliance with a subpoena issued pursuant to
16 this subsection, the Chief Inspector General may petition the
17 circuit court of the county in which the person subpoenaed
18 resides or has his or her principal place of business for an
19 order requiring the person subpoenaed to appear and testify and
20 to produce documents, reports, answers, records, accounts, or
21 other data as specified in the subpoena.
22 Section 2. Present subsections (1) through (5) of section
23 20.055, Florida Statutes, are amended, new subsections (5) and
24 (6) are added to that section, and present subsections (6)
25 through (9) are redesignated as subsections (8) through (11),
26 respectively, to read:
27 20.055 Agency inspectors general.—
28 (1) As used in this section, the term:
29 (a) “Agency head” means the Governor, a Cabinet officer, or
30 a secretary or executive director as those terms are defined in
31 s. 20.03, the chair of the Public Service Commission, the
32 Director of the Office of Insurance Regulation of the Financial
33 Services Commission, the Director of the Office of Financial
34 Regulation of the Financial Services Commission, the board of
35 directors of the Florida Housing Finance Corporation, the
36 Executive Director of the State Board of Administration, the
37 Executive Director of the Office of Early Learning, and the
38 Chief Justice of the State Supreme Court.
39 (b) “Entities contracting with the state” means for-profit
40 and not-for-profit organizations or businesses that have a legal
41 existence, such as corporations or partnerships, as opposed to
42 natural persons, which have entered into a relationship with a
43 state agency to provide for consideration certain goods or
44 services to the state agency or on behalf of the state agency.
45 The relationship may be evidenced by payment by warrant or
46 purchasing card, contract, purchase order, provider agreement,
47 or other such mutually agreed upon relationship. The term does
48 not apply to entities that are the subject of audits or
49 investigations conducted pursuant to ss. 112.3187-112.31895 or
50 s. 409.913 or which are otherwise confidential and exempt under
51 s. 119.07.
52 (c) “Individuals substantially affected” means natural
53 persons who have established a real and sufficiently immediate
54 injury in fact due to the findings, conclusions, or
55 recommendations of a final report of a state agency inspector
56 general, who are the subject of the audit or investigation, and
57 who do not have or are not currently afforded an existing right
58 to an independent review process. The term does not apply to
59 employees of the state, including career service, probationary,
60 other personal service, Selected Exempt Service, and Senior
61 Management Service employees; former employees of the state if
62 the final report of the state agency inspector general relates
63 to matters arising during a former employee’s term of state
64 employment; or persons who are the subject of audits or
65 investigations conducted pursuant to ss. 112.3187-112.31895 or
66 s. 409.913 or which are otherwise confidential and exempt under
67 s. 119.07.
68 (d) “State agency” means each department created pursuant
69 to this chapter and the Executive Office of the Governor, the
70 Department of Military Affairs, the Fish and Wildlife
71 Conservation Commission, the Office of Insurance Regulation of
72 the Financial Services Commission, the Office of Financial
73 Regulation of the Financial Services Commission, the Public
74 Service Commission, the Board of Governors of the State
75 University System, the Florida Housing Finance Corporation, the
76 Agency for State Technology, the State Board of Administration,
77 the Office of Early Learning, and the state courts system.
78 (2) An The office of Inspector General is established in
79 each state agency to provide a central point for coordination of
80 and responsibility for activities that promote accountability,
81 integrity, and efficiency in government. It is the duty and
82 responsibility of each inspector general, with respect to the
83 state agency in which the office is established, to:
84 (a) Advise in the development of performance measures,
85 standards, and procedures for the evaluation of state agency
86 programs.
87 (b) Assess the reliability and validity of the information
88 provided by the state agency on performance measures and
89 standards, and make recommendations for improvement, if
90 necessary, before submission of such information pursuant to s.
91 216.1827.
92 (c) Review the actions taken by the state agency to improve
93 program performance and meet program standards and make
94 recommendations for improvement, if necessary.
95 (d) Provide direction for, supervise, and coordinate
96 audits, investigations, and management reviews relating to the
97 programs and operations of the state agency, except that when
98 the inspector general does not possess the qualifications
99 specified in subsection (4), the director of auditing shall
100 conduct such audits.
101 (e) Conduct, supervise, or coordinate other activities
102 carried out or financed by that state agency for the purpose of
103 promoting economy and efficiency in the administration of, or
104 preventing and detecting fraud and abuse in, its programs and
105 operations.
106 (f) Keep the agency head or, for state agencies under the
107 jurisdiction of the Governor, the Chief Inspector General
108 informed concerning fraud, abuses, and deficiencies relating to
109 programs and operations administered or financed by the state
110 agency, recommend corrective action concerning fraud, abuses,
111 and deficiencies, and report on the progress made in
112 implementing corrective action.
113 (g) Ensure effective coordination and cooperation between
114 the Auditor General, federal auditors, and other governmental
115 bodies with a view toward avoiding duplication.
116 (h) Review, as appropriate, rules relating to the programs
117 and operations of such state agency and make recommendations
118 concerning their impact.
119 (i) Ensure that an appropriate balance is maintained
120 between audit, investigative, and other accountability
121 activities.
122 (j) Comply with the General Principles and Standards for
123 Offices of Inspector General as published and revised by the
124 Association of Inspectors General.
125 (3)(a)1. For state agencies under the jurisdiction of the
126 Cabinet or the Governor and Cabinet, the inspector general shall
127 be appointed by the agency head. For state agencies under the
128 jurisdiction of the Governor, the inspector general shall be
129 appointed by the Chief Inspector General. The agency head or
130 Chief Inspector General shall notify the Governor in writing of
131 his or her intention to hire the inspector general at least 7
132 days before an offer of employment. The inspector general shall
133 be appointed without regard to political affiliation.
134 2. Within 60 days after a vacancy or anticipated vacancy in
135 the position of inspector general, the agency head or, for
136 agencies under the jurisdiction of the Governor, the Chief
137 Inspector General, shall initiate a national search for an
138 inspector general and shall set the salary of the inspector
139 general. In the event of a vacancy in the position of inspector
140 general, the agency head or, for agencies under the jurisdiction
141 of the Governor, the Chief Inspector General, may appoint other
142 office of inspector general management personnel as interim
143 inspector general until such time as a successor inspector
144 general is appointed.
145 3. A former or current elected official may not be
146 appointed inspector general within 5 years after the end of such
147 individual’s period of service. This restriction does not
148 prohibit the reappointment of a current inspector general.
149 4. Upon appointment as inspector general, an individual’s
150 initial term shall be 3 years. Subsequent 3-year terms may be
151 renewed at the discretion of the agency head or, for agencies
152 under the jurisdiction of the Governor, the Chief Inspector
153 General. Notwithstanding this term of appointment, an inspector
154 general may be removed from office for cause by the agency head
155 or, for agencies under the jurisdiction of the Governor, the
156 Chief Inspector General, as provided in paragraph (c).
157 (b) The inspector general shall report to and be under the
158 general supervision of the agency head and is not subject to
159 supervision by any other employee of the state agency in which
160 the office is established. For state agencies under the
161 jurisdiction of the Governor, the inspector general shall be
162 under the general supervision of the agency head for
163 administrative purposes, shall report to the Chief Inspector
164 General, and may hire and remove staff within the office of the
165 inspector general in consultation with the Chief Inspector
166 General but independently of the agency.
167 (c) For state agencies under the jurisdiction of the
168 Cabinet or the Governor and Cabinet, the inspector general may
169 be removed from office by the agency head. For state agencies
170 under the jurisdiction of the Governor, the inspector general
171 may only be removed from office by the Chief Inspector General
172 for cause, including concerns regarding performance,
173 malfeasance, misfeasance, misconduct, or failure to carry out
174 his or her duties under this section. The Chief Inspector
175 General shall notify the Governor in writing of his or her
176 intention to remove the inspector general at least 21 days
177 before the removal. For state agencies under the jurisdiction of
178 the Governor and Cabinet, the agency head shall notify the
179 Governor and Cabinet in writing of his or her intention to
180 remove the inspector general at least 21 days before the
181 removal. If the inspector general disagrees with the removal,
182 the inspector general may present objections in writing to the
183 Governor within the 21-day period.
184 (d) The Governor, the Governor and Cabinet, the agency
185 head, or agency staff may not prevent or prohibit the inspector
186 general from initiating, carrying out, or completing any audit
187 or investigation.
188 (4)(a) To ensure that state agency audits are performed in
189 accordance with applicable auditing standards, the inspector
190 general or the director of auditing within the inspector
191 general’s office shall possess the following qualifications:
192 1.(a) A bachelor’s degree from an accredited college or
193 university with a major in accounting, or with a major in
194 business which includes five courses in accounting, and 5 years
195 of experience as an internal auditor or independent postauditor,
196 electronic data processing auditor, accountant, or any
197 combination thereof. At a minimum, the experience must shall at
198 a minimum consist of audits of units of government or private
199 business enterprises, operating for profit or not for profit; or
200 2.(b) A master’s degree in accounting, business
201 administration, or public administration from an accredited
202 college or university and 4 years of the professional experience
203 as required under subparagraph 1. in paragraph (a); or
204 3.(c) A certified public accountant license issued pursuant
205 to chapter 473 or a certified internal audit certificate issued
206 by the Institute of Internal Auditors or earned by examination,
207 and 4 years of the professional experience as required under
208 subparagraph 1. in paragraph (a).
209 (b) For agencies under the jurisdiction of the Governor,
210 the inspector general shall be selected on the basis of
211 integrity, leadership capability, and experience in accounting,
212 auditing, financial analysis, law, management analysis, program
213 evaluation, public administration, investigation, criminal
214 justice administration, or another closely related field. The
215 inspector general is subject to level 2 background screening.
216 The inspector general shall have a 4-year degree from an
217 accredited institution of higher learning or at least 5 years of
218 experience in at least one of the following areas:
219 1. Inspector general.
220 2. Supervisory experience in an office of inspector general
221 or an investigative public agency similar to an office of
222 inspector general.
223 3. Local, state, or federal law enforcement officer.
224 4. Local, state, or federal court judge.
225 5. Senior-level auditor or comptroller.
226 6. Experience in the administration and management of
227 complex audits and investigations.
228 7. Experience managing programs for prevention,
229 examination, detection, elimination of fraud, waste, abuse,
230 mismanagement, malfeasance, or misconduct in government or
231 organizations.
232 8. An advanced degree in law, accounting, public
233 administration, or another relevant field may substitute for one
234 year of required experience.
235 (c) The inspector general shall possess at appointment, or
236 obtain within the first year after appointment, certification
237 from the Association of Inspectors General as a certified
238 inspector general. The inspector general shall have at least one
239 other related professional certification, such as certified
240 inspector general investigator, certified inspector general
241 auditor, certified public accountant, certified internal
242 auditor, certified governmental financial manager, certified
243 fraud examiner, or certified financial crimes investigator, or
244 be a licensed attorney.
245 (d) The inspector general may not hold, or be a candidate
246 for, an elective office while inspector general, and a current
247 officer or employee of an office of inspector general may not
248 hold, or be a candidate for, an elective office. The inspector
249 general may not hold office in a political party or political
250 committee. An employee of an office of inspector general may not
251 hold office in a political party or political committee while
252 employed in the office of inspector general.
253 (5) The inspector general and his or her staff shall have
254 access to any records, data, and other information of the state
255 agency which he or she deems necessary to carry out his or her
256 duties. At all times, the inspector general shall have access to
257 a building or facility that is owned, operated, or leased by a
258 department, agency, board, or commission, or a property held in
259 trust to the state.
260 (6) It is the duty of every state officer, employee,
261 agency, special district, board, commission, contractor,
262 subcontractor, licensee, and applicant for certification of
263 eligibility for a contract or program, to cooperate with the
264 inspector general in any investigation, audit, inspection,
265 review, or hearing conducted pursuant to this section. Each
266 contract, bid, proposal, and application or solicitation for a
267 contract shall contain a statement that the corporation,
268 partnership, or person understands and will comply with this
269 subsection.
270 (7)(5) In carrying out the auditing duties and
271 responsibilities specified in of this section act, each
272 inspector general shall review and evaluate internal controls
273 necessary to ensure the fiscal accountability of the state
274 agency. The inspector general shall conduct financial,
275 compliance, electronic data processing, and performance audits
276 of the agency and prepare audit reports of his or her findings.
277 The scope and assignment of the audits shall be determined by
278 the inspector general; however, the agency head may at any time
279 request the inspector general to perform an audit of a special
280 program, function, or organizational unit. The performance of
281 the audit shall be under the direction of the inspector general,
282 except that if the inspector general does not possess the
283 qualifications specified in subsection (4), the director of
284 auditing shall perform the functions listed in this subsection.
285 (a) Such audits shall be conducted in accordance with the
286 current International Standards for the Professional Practice of
287 Internal Auditing as published by the Institute of Internal
288 Auditors, Inc., or, where appropriate, in accordance with
289 generally accepted governmental auditing standards. All audit
290 reports issued by internal audit staff shall include a statement
291 that the audit was conducted pursuant to the appropriate
292 standards.
293 (b) Audit workpapers and reports shall be public records to
294 the extent that they do not include information which has been
295 made confidential and exempt from the provisions of s. 119.07(1)
296 pursuant to law. However, when the inspector general or a member
297 of the staff receives from an individual a complaint or
298 information that falls within the definition provided in s.
299 112.3187(5), the name or identity of the individual may not be
300 disclosed to anyone else without the written consent of the
301 individual, unless the inspector general determines that such
302 disclosure is unavoidable during the course of the audit or
303 investigation.
304 (c) The inspector general and the staff shall have access
305 to any records, data, and other information of the state agency
306 he or she deems necessary to carry out his or her duties. The
307 inspector general may also request such information or
308 assistance as may be necessary from the state agency or from any
309 federal, state, or local government entity.
310 (d) At the conclusion of each audit, the inspector general
311 shall submit preliminary findings and recommendations to the
312 person responsible for supervision of the program function or
313 operational unit who shall respond to any adverse findings
314 within 20 working days after receipt of the preliminary
315 findings. Such response and the inspector general’s rebuttal to
316 the response shall be included in the final audit report.
317 (d)(e) At the conclusion of an audit in which the subject
318 of the audit is a specific entity contracting with the state or
319 an individual substantially affected, if the audit is not
320 confidential or otherwise exempt from disclosure by law, the
321 inspector general shall, consistent with s. 119.07(1), submit
322 the findings to the entity contracting with the state or the
323 individual substantially affected, who shall be advised in
324 writing that they may submit a written response within 20
325 working days after receipt of the findings. The response and the
326 inspector general’s rebuttal to the response, if any, must be
327 included in the final audit report.
328 (e)(f) The inspector general shall submit the final report
329 to the agency head, the Auditor General, and, for state agencies
330 under the jurisdiction of the Governor, the Chief Inspector
331 General.
332 (f)(g) The Auditor General, in connection with the
333 independent postaudit of the same agency pursuant to s. 11.45,
334 shall give appropriate consideration to internal audit reports
335 and the resolution of findings therein. The Legislative Auditing
336 Committee may inquire into the reasons or justifications for
337 failure of the agency head to correct the deficiencies reported
338 in internal audits that are also reported by the Auditor General
339 and shall take appropriate action.
340 (g)(h) The inspector general shall monitor the
341 implementation of the state agency’s response to any report on
342 the state agency issued by the Auditor General or by the Office
343 of Program Policy Analysis and Government Accountability. No
344 later than 6 months after the Auditor General or the Office of
345 Program Policy Analysis and Government Accountability publishes
346 a report on the state agency, the inspector general shall
347 provide a written response to the agency head or, for state
348 agencies under the jurisdiction of the Governor, the Chief
349 Inspector General on the status of corrective actions taken. The
350 inspector general shall file a copy of such response with the
351 Legislative Auditing Committee.
352 (h)(i) The inspector general shall develop long-term and
353
354 ================= T I T L E A M E N D M E N T ================
355 And the title is amended as follows:
356 Delete lines 4 - 17
357 and insert:
358 or his or her designee to retain legal counsel and
359 issue and enforce subpoenas under certain
360 circumstances; amending s. 20.055, F.S.; revising the
361 definitions of the terms “agency head” and “state
362 agency” to include the State Board of Administration
363 and the Office of Early Learning of the Department of
364 Education; prescribing additional hiring requirements,
365 employment qualifications, and terms of employment for
366 inspectors general and staff of the office of
367 inspector general; specifying that an inspector
368 general is entitled to access to specified buildings
369 or facilities; establishing the duty of specified
370 persons and entities with respect to cooperation with
371 an inspector general’s official duties; requiring
372 contracts and other specified documents to contain a
373 statement regarding compliance with an inspector
374 general’s official duties;