Florida Senate - 2016 SB 1636
By Senator Gibson
24-01614-16 20161636__
1 A bill to be entitled
2 An act relating to duties of the Legislative Auditing
3 Committee; amending s. 11.40, F.S.; repealing
4 provisions requiring compensation report audits of
5 legislative branch and executive branch lobbying firms
6 by independent contract auditors, specifying
7 procedures for selecting independent contract
8 auditors, and requiring audit reports to be provided
9 to specified legislative and executive entities;
10 amending s. 11.45, F.S.; repealing a requirement that
11 the Auditor General conduct specified audits of local
12 government entities under certain circumstances;
13 amending s. 215.985, F.S.; repealing provisions
14 requiring the committee’s input related to the website
15 of the Executive Office of the Governor; amending s.
16 218.39, F.S.; repealing provisions regarding the
17 committee’s duties related to certain annual financial
18 audit reports; amending s. 1002.395, F.S.; correcting
19 a cross-reference; providing an effective date.
20
21 Be It Enacted by the Legislature of the State of Florida:
22
23 Section 1. Subsection (3) of section 11.40, Florida
24 Statutes, is amended to read:
25 11.40 Legislative Auditing Committee.—
26 (3)(a) As used in this subsection, “independent contract
27 auditor” means a state-licensed certified public accountant or
28 firm with which a state-licensed certified public accountant is
29 currently employed or associated who is actively engaged in the
30 accounting profession.
31 (b) Audits specified in this subsection cover the quarterly
32 compensation reports for the previous calendar year for a random
33 sample of 3 percent of all legislative branch lobbying firms and
34 a random sample of 3 percent of all executive branch lobbying
35 firms calculated using as the total number of such lobbying
36 firms those filing a compensation report for the preceding
37 calendar year. The committee shall provide for a system of
38 random selection of the lobbying firms to be audited.
39 (c) The committee shall create and maintain a list of not
40 less than 10 independent contract auditors approved to conduct
41 the required audits. Each lobbying firm selected for audit in
42 the random audit process may designate one of the independent
43 contract auditors from the committee’s approved list. Upon
44 failure for any reason of a lobbying firm selected in the random
45 selection process to designate an independent contract auditor
46 from the committee’s list within 30 calendar days after being
47 notified by the committee of its selection, the committee shall
48 assign one of the available independent contract auditors from
49 the approved list to perform the required audit. No independent
50 contract auditor, whether designated by the lobbying firm or by
51 the committee, may perform the audit of a lobbying firm where
52 the auditor and lobbying firm have ever had a direct personal
53 relationship or any professional accounting, auditing, tax
54 advisory, or tax preparing relationship with each other. The
55 committee shall obtain a written, sworn certification subject to
56 s. 837.06, both from the randomly selected lobbying firm and
57 from the proposed independent contract auditor, that no such
58 relationship has ever existed.
59 (d) Each independent contract auditor shall be engaged by
60 and compensated solely by the state for the work performed in
61 accomplishing an audit under this subsection.
62 (e) Any violations of law, deficiencies, or material
63 misstatements discovered and noted in an audit report shall be
64 clearly identified in the audit report and be determined under
65 the rules of either house of the Legislature or under the joint
66 rules, as applicable.
67 (f) If any lobbying firm fails to give full, frank, and
68 prompt cooperation and access to books, records, and associated
69 backup documents as requested in writing by the auditor, that
70 failure shall be clearly noted by the independent contract
71 auditor in the report of audit.
72 (g) The committee shall establish procedures for the
73 selection of independent contract auditors desiring to enter
74 into audit contracts pursuant to this subsection. Such
75 procedures shall include, but not be limited to, a rating system
76 that takes into account pertinent information, including the
77 independent contract auditor’s fee proposals for participating
78 in the process. All contracts under this subsection between an
79 independent contract auditor and the Speaker of the House of
80 Representatives and the President of the Senate shall be
81 terminable by either party at any time upon written notice to
82 the other, and such contracts may contain such other terms and
83 conditions as the Speaker of the House of Representatives and
84 the President of the Senate deem appropriate under the
85 circumstances.
86 (h) The committee shall adopt guidelines that govern random
87 audits and field investigations conducted pursuant to this
88 subsection. The guidelines shall ensure that similarly situated
89 compensation reports are audited in a uniform manner. The
90 guidelines shall also be formulated to encourage compliance and
91 detect violations of the legislative and executive lobbying
92 compensation reporting requirements in ss. 11.045 and 112.3215
93 and to ensure that each audit is conducted with maximum
94 efficiency in a cost-effective manner. In adopting the
95 guidelines, the committee shall consider relevant guidelines and
96 standards of the American Institute of Certified Public
97 Accountants to the extent that such guidelines and standards are
98 applicable and consistent with the purposes set forth in this
99 subsection.
100 (i) All audit reports of legislative lobbying firms shall,
101 upon completion by an independent contract auditor, be delivered
102 to the President of the Senate and the Speaker of the House of
103 Representatives for their respective review and handling. All
104 audit reports of executive branch lobbyists, upon completion by
105 an independent contract auditor, shall be delivered by the
106 auditor to the Commission on Ethics.
107 Section 2. Paragraph (j) of subsection (2) of section
108 11.45, Florida Statutes, is amended, and present paragraph (k)
109 of that subsection is redesignated as paragraph (j), to read:
110 11.45 Definitions; duties; authorities; reports; rules.—
111 (2) DUTIES.—The Auditor General shall:
112 (j) Conduct audits of local governmental entities when
113 determined to be necessary by the Auditor General, when directed
114 by the Legislative Auditing Committee, or when otherwise
115 required by law. No later than 18 months after the release of
116 the audit report, the Auditor General shall perform such
117 appropriate followup procedures as he or she deems necessary to
118 determine the audited entity’s progress in addressing the
119 findings and recommendations contained within the Auditor
120 General’s previous report. The Auditor General shall notify each
121 member of the audited entity’s governing body and the
122 Legislative Auditing Committee of the results of his or her
123 determination.
124
125 The Auditor General shall perform his or her duties
126 independently but under the general policies established by the
127 Legislative Auditing Committee. This subsection does not limit
128 the Auditor General’s discretionary authority to conduct other
129 audits or engagements of governmental entities as authorized in
130 subsection (3).
131 Section 3. Subsection (2) and present subsections (7), (8),
132 (9), and (13) of section 215.985, Florida Statutes, are amended,
133 and present subsections (10), (11), (12), and (14) of that
134 section are renumbered as subsections (7) through (10),
135 respectively, to read:
136 215.985 Transparency in government spending.—
137 (2) As used in this section, the term:
138 (a) “Committee” means the Legislative Auditing Committee
139 created in s. 11.40.
140 (a)(b) “Contract” means a written agreement or purchase
141 order issued for the purchase of goods or services or a written
142 agreement for the receipt of state or federal financial
143 assistance.
144 (b)(c) “Governmental entity” means a state, regional,
145 county, municipal, special district, or other political
146 subdivision whether executive, judicial, or legislative,
147 including, but not limited to, a department, division, bureau,
148 commission, authority, district, or agency thereof, or public
149 school, Florida College System institution, state university, or
150 associated board.
151 (c)(d) “Website” means a site on the Internet which is
152 easily accessible to the public at no cost and does not require
153 the user to provide information.
154 (7) By November 1, 2013, and annually thereafter, the
155 committee shall recommend to the President of the Senate and the
156 Speaker of the House of Representatives:
157 (a) Additional information to be added to a website, such
158 as whether to expand the scope of the information provided to
159 include state universities, Florida College System institutions,
160 school districts, charter schools, charter technical career
161 centers, local government units, and other governmental
162 entities.
163 (b) A schedule for adding information to the website by
164 type of information and governmental entity, including
165 timeframes and development entity.
166 (c) A format for collecting and displaying the additional
167 information.
168 (8) The manager of each website described in subsections
169 (4), (5), and (6) shall submit to the committee information
170 relating to the cost of creating and maintaining such website,
171 and the number of times the website has been accessed.
172 (9) The committee shall coordinate with the Financial
173 Management Information Board in developing recommendations for
174 including information on the website which is necessary to meet
175 the requirements of s. 215.91(8).
176 (13) The committee shall prepare an annual report detailing
177 progress in establishing the single website and providing
178 recommendations for enhancement of the content and format of the
179 website and related policies and procedures. The report shall be
180 submitted to the Governor, the President of the Senate, and the
181 Speaker of the House of Representatives by November 1.
182 Section 4. Present subsection (8) of section 218.39,
183 Florida Statutes, is amended, and present subsections (9)
184 through (12) of that section are renumbered as subsections (8)
185 through (11), respectively, to read:
186 218.39 Annual financial audit reports.—
187 (8) The Auditor General shall notify the Legislative
188 Auditing Committee of any audit report prepared pursuant to this
189 section which indicates that an audited entity has failed to
190 take full corrective action in response to a recommendation that
191 was included in the two preceding financial audit reports.
192 (a) The committee may direct the governing body of the
193 audited entity to provide a written statement to the committee
194 explaining why full corrective action has not been taken or, if
195 the governing body intends to take full corrective action,
196 describing the corrective action to be taken and when it will
197 occur.
198 (b) If the committee determines that the written statement
199 is not sufficient, it may require the chair of the governing
200 body of the local governmental entity or the chair’s designee,
201 the elected official of each county agency or the elected
202 official’s designee, the chair of the district school board or
203 the chair’s designee, the chair of the board of the charter
204 school or the chair’s designee, or the chair of the board of the
205 charter technical career center or the chair’s designee, as
206 appropriate, to appear before the committee.
207 (c) If the committee determines that an audited entity has
208 failed to take full corrective action for which there is no
209 justifiable reason for not taking such action, or has failed to
210 comply with committee requests made pursuant to this section,
211 the committee may proceed in accordance with s. 11.40(2).
212 Section 5. Paragraph (d) of subsection (9) of section
213 1002.395, Florida Statutes, is amended to read:
214 1002.395 Florida Tax Credit Scholarship Program.—
215 (9) DEPARTMENT OF EDUCATION OBLIGATIONS.—The Department of
216 Education shall:
217 (d) Annually verify the eligibility of expenditures as
218 provided in paragraph (6)(d) using the audit required by
219 paragraph (6)(m) and s. 11.45(2)(j) 11.45(2)(k).
220 Section 6. This act shall take effect July 1, 2016.