Florida Senate - 2017                        COMMITTEE AMENDMENT
       Bill No. SB 1478
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/17/2017           .                                

       The Committee on Governmental Oversight and Accountability
       (Baxley) recommended the following:
    1         Senate Amendment (with title amendment)
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (1) of section 14.32, Florida
    6  Statutes, is amended, and paragraph (l) is added to subsection
    7  (2) of that section, to read:
    8         14.32 Office of Chief Inspector General.—
    9         (1) There is created in the Executive Office of the
   10  Governor the Office of Chief Inspector General. The Chief
   11  Inspector General is responsible for promoting accountability,
   12  integrity, and efficiency in the agencies under the jurisdiction
   13  of the Governor. The Chief Inspector General shall be appointed
   14  by and serve at the pleasure of the Governor and must meet the
   15  qualifications specified in s. 20.055(4). However, upon a change
   16  in Governors or reelection of the Governor, the Governor shall
   17  appoint, or may reappoint, a Chief Inspector General before
   18  adjournment sine die of the first regular session of the
   19  Legislature that convenes after such change in Governors or
   20  reelection of the Governor. The Chief Inspector General shall,
   21  at all times, have open and direct access to the Governor.
   22         (2) The Chief Inspector General shall:
   23         (l)Prepare an annual report that summarizes the activities
   24  performed in compliance with this section and includes an
   25  aggregate of significant budgetary or administrative changes
   26  contained in annual reports prepared by inspectors general for
   27  state agencies under the jurisdiction of the Governor pursuant
   28  to s. 20.055(8).
   29         Section 2. Subsections (4), (6), and (7), paragraph (c) of
   30  subsection (8), and subsection (10) of section 20.055, Florida
   31  Statutes, are amended to read:
   32         20.055 Agency inspectors general.—
   33         (4)(a) To ensure that state agency audits are performed in
   34  accordance with applicable auditing standards, the inspector
   35  general or the director of auditing within the inspector
   36  general’s office shall possess the following qualifications:
   37         1. A bachelor’s degree from an accredited college or
   38  university with a major in accounting, or with a major in
   39  business which includes five courses in accounting, and 5 years
   40  of experience as an internal auditor or independent postauditor,
   41  information technology electronic data processing auditor,
   42  accountant, or any combination thereof. The experience shall at
   43  a minimum consist of audits of units of government or private
   44  business enterprises, operating for profit or not for profit; or
   45         2. A master’s degree in accounting, business
   46  administration, or public administration from an accredited
   47  college or university and 4 years of experience as required in
   48  subparagraph 1.; or
   49         3. A certified public accountant license issued pursuant to
   50  chapter 473 or a certified internal audit certificate issued by
   51  the Institute of Internal Auditors or earned by examination, and
   52  4 years of experience as required in subparagraph 1.
   53         (b) For agencies under the jurisdiction of the Governor,
   54  the inspector general shall be selected on the basis of
   55  integrity, leadership capability, and experience in accounting,
   56  auditing, fraud examination, financial analysis, law, management
   57  analysis, program evaluation, public administration,
   58  investigation, criminal justice administration, or other closely
   59  related field. The inspector general is subject to a level 2
   60  background screening pursuant to chapter 435. The inspector
   61  general shall have a 4-year degree from an accredited
   62  institution of higher learning or have at least 5 years of
   63  experience in at least one of the following areas:
   64         1. Inspector general.
   65         2. Supervisory experience in an office of inspector general
   66  or an investigative public agency similar to an office of
   67  inspector general.
   68         3. Local, state, or federal law enforcement officer.
   69         4. Local, state, or federal court judge.
   70         5. Senior-level auditor or comptroller.
   71         6. The administration and management of complex audits and
   72  investigations.
   73         7. Managing programs for information security, prevention,
   74  examination, detection, elimination of fraud, waste, abuse,
   75  mismanagement, malfeasance, or misconduct in government or other
   76  organizations.
   78  An advanced degree in law, accounting, public administration, or
   79  other relevant field may substitute for 1 year of required
   80  experience.
   81         (c) The inspector general shall possess at appointment, or
   82  obtain within the first year after appointment, a certification
   83  from the Association of Inspectors General as a certified
   84  inspector general. The inspector general must have one or more
   85  other professional certifications, such as certified inspector
   86  general investigator, certified inspector general auditor,
   87  certified public accountant, certified internal auditor,
   88  certified governmental financial manager, or certified fraud
   89  examiner, certified financial crimes investigator or other
   90  related certification, or be a licensed attorney.
   91         (d) The inspector general may not hold, or be a candidate
   92  for, an elective office of the state or a municipality, county,
   93  or other political subdivision of the state while inspector
   94  general, and a current officer or employee of an office of
   95  inspector general may not hold, or be a candidate for, an
   96  elective office of the state or a municipality, county, or other
   97  political subdivision of the state. The inspector general shall
   98  be appointed without regard to political affiliation. The
   99  inspector general may not hold office in a political party or
  100  political committee. An employee of an office of inspector
  101  general may not hold office in a political party or political
  102  committee while employed in the office of inspector general.
  103         (6) In carrying out the auditing duties and
  104  responsibilities of this section act, each inspector general
  105  shall review and evaluate internal controls necessary to ensure
  106  the fiscal accountability of the state agency. The inspector
  107  general shall conduct financial, compliance, information
  108  technology electronic data processing, and performance audits of
  109  the agency and prepare audit reports of his or her findings. The
  110  scope and assignment of the audits shall be determined by the
  111  inspector general; however, the agency head may at any time
  112  request the inspector general to perform an audit of a special
  113  program, function, or organizational unit. The performance of
  114  the audit shall be under the direction of the inspector general,
  115  except that if the inspector general does not possess the
  116  qualifications specified in subsection (4), the director of
  117  auditing shall perform the functions listed in this subsection.
  118         (a) Such audits shall be conducted in accordance with the
  119  current International Standards for the Professional Practice of
  120  Internal Auditing as published by the Institute of Internal
  121  Auditors, Inc., or, where appropriate, in accordance with
  122  generally accepted governmental auditing standards. All audit
  123  reports issued by internal audit staff shall include a statement
  124  that the audit was conducted pursuant to the appropriate
  125  standards.
  126         (b) Audit workpapers and reports shall be public records to
  127  the extent that they do not include information which has been
  128  made confidential and exempt from the provisions of s. 119.07(1)
  129  pursuant to law. However, when the inspector general or a member
  130  of the staff receives from an individual a complaint or
  131  information that falls within the definition provided in s.
  132  112.3187(5), the name or identity of the individual may not be
  133  disclosed to anyone else without the written consent of the
  134  individual, unless the inspector general determines that such
  135  disclosure is unavoidable during the course of the audit or
  136  investigation.
  137         (c) The inspector general and the staff shall have access
  138  to any records, data, and other information of the state agency
  139  he or she deems necessary to carry out his or her duties. The
  140  inspector general may also request such information or
  141  assistance as may be necessary from the state agency or from any
  142  federal, state, or local government entity.
  143         (d) At the conclusion of each audit, the inspector general
  144  shall submit preliminary findings and recommendations to the
  145  person responsible for supervision of the program function or
  146  operational unit who shall respond to any adverse findings
  147  within 20 working days after receipt of the preliminary
  148  findings. Such response and the inspector general’s rebuttal to
  149  the response shall be included in the final audit report.
  150         (e) At the conclusion of an audit in which the subject of
  151  the audit is a specific entity contracting with the state or an
  152  individual substantially affected, if the audit is not
  153  confidential or otherwise exempt from disclosure by law, the
  154  inspector general shall, consistent with s. 119.07(1), submit
  155  the findings to the entity contracting with the state or the
  156  individual substantially affected, who shall be advised in
  157  writing that they may submit a written response within 20
  158  working days after receipt of the findings. The response and the
  159  inspector general’s rebuttal to the response, if any, must be
  160  included in the final audit report.
  161         (f) The inspector general shall submit the final report to
  162  the agency head, the Auditor General, and, for state agencies
  163  under the jurisdiction of the Governor, the Chief Inspector
  164  General.
  165         (g) The Auditor General, in connection with the independent
  166  postaudit of the same agency pursuant to s. 11.45, shall give
  167  appropriate consideration to internal audit reports and the
  168  resolution of findings therein. The Legislative Auditing
  169  Committee may inquire into the reasons or justifications for
  170  failure of the agency head to correct the deficiencies reported
  171  in internal audits that are also reported by the Auditor General
  172  and shall take appropriate action.
  173         (h) The inspector general shall monitor the implementation
  174  of the state agency’s response to any report on the state agency
  175  issued by the Auditor General or by the Office of Program Policy
  176  Analysis and Government Accountability. No later than 6 months
  177  after the Auditor General or the Office of Program Policy
  178  Analysis and Government Accountability publishes a report on the
  179  state agency, the inspector general shall provide a written
  180  response to the agency head or, for state agencies under the
  181  jurisdiction of the Governor, the Chief Inspector General on the
  182  status of corrective actions taken. The inspector general shall
  183  file a copy of such response with the Legislative Auditing
  184  Committee.
  185         (i) The inspector general shall develop long-term and
  186  annual audit plans based on the findings of periodic risk
  187  assessments. The plan, where appropriate, should include
  188  postaudit samplings of payments and accounts. The plan shall
  189  show the individual audits to be conducted during each year and
  190  related resources to be devoted to the respective audits. The
  191  Chief Financial Officer, to assist in fulfilling the
  192  responsibilities for examining, auditing, and settling accounts,
  193  claims, and demands pursuant to s. 17.03(1), and examining,
  194  auditing, adjusting, and settling accounts pursuant to s. 17.04,
  195  may use audits performed by the inspectors general and internal
  196  auditors. For state agencies under the jurisdiction of the
  197  Governor, the audit plans shall be submitted to the Chief
  198  Inspector General. The plan shall be submitted to the agency
  199  head for approval. A copy of the approved plan shall be
  200  submitted to the Auditor General.
  201         (7)(a) In carrying out the investigative duties and
  202  responsibilities specified in this section, each inspector
  203  general shall initiate, conduct, supervise, and coordinate
  204  investigations designed to detect, deter, prevent, and eradicate
  205  fraud, waste, mismanagement, misconduct, and other abuses in
  206  state government. For these purposes, each inspector general
  207  shall:
  208         1.(a) Receive complaints and coordinate all activities of
  209  the agency as required by the Whistle-blower’s Act pursuant to
  210  ss. 112.3187-112.31895.
  211         2.(b) Receive and consider the complaints that which do not
  212  meet the criteria for an investigation under the Whistle
  213  blower’s Act and conduct, supervise, or coordinate such
  214  inquiries, investigations, or reviews as the inspector general
  215  deems appropriate.
  216         3.(c) Report expeditiously to the Department of Law
  217  Enforcement or other law enforcement agencies, as appropriate,
  218  whenever the inspector general has reasonable grounds to believe
  219  that there has been a violation of criminal law.
  220         4.(d) Conduct investigations and other inquiries free of
  221  actual or perceived impairment to the independence of the
  222  inspector general or the inspector general’s office. This shall
  223  include freedom from any interference with investigations and
  224  timely access to records and other sources of information.
  225         5.(e) At the conclusion of each investigation in which the
  226  subject of the investigation is a specific entity contracting
  227  with the state or an individual substantially affected as
  228  defined by this section, and if the investigation is not
  229  confidential or otherwise exempt from disclosure by law, the
  230  inspector general shall, consistent with s. 119.07(1), submit
  231  findings to the subject that is a specific entity contracting
  232  with the state or an individual substantially affected, who
  233  shall be advised in writing that they may submit a written
  234  response within 20 working days after receipt of the findings.
  235  Such response and the inspector general’s rebuttal to the
  236  response, if any, shall be included in the final investigative
  237  report.
  238         6.(f) Submit in a timely fashion final reports on
  239  investigations conducted by the inspector general to the agency
  240  head, except for whistle-blower’s investigations, which shall be
  241  conducted and reported pursuant to s. 112.3189.
  242         (b)The inspector general and his or her staff may take and
  243  record testimony or statements of any person as reasonably
  244  necessary for the furtherance of an investigation or a review
  245  undertaken by the inspector general.
  246         (8)
  247         (c) The final reports prepared pursuant to paragraphs (a)
  248  and (b) shall be provided to the heads of the respective
  249  agencies and, for state agencies under the jurisdiction of the
  250  Governor, the Chief Inspector General. Such reports shall
  251  include, but need not be limited to:
  252         1. A description of activities relating to the development,
  253  assessment, and validation of performance measures.
  254         2. A description of significant abuses and deficiencies
  255  relating to the administration of programs and operations of the
  256  agency disclosed by investigations, audits, reviews, or other
  257  activities during the reporting period.
  258         3. A description of the recommendations for corrective
  259  action made by the inspector general during the reporting period
  260  with respect to significant problems, abuses, or deficiencies
  261  identified.
  262         4. The identification of each significant recommendation
  263  described in previous annual reports on which corrective action
  264  has not been completed.
  265         5. A summary of each audit and investigation completed
  266  during the reporting period.
  267         6.Any increase or decrease in the total allocations or
  268  total expenditures in the inspector general’s budget for the
  269  preceding state fiscal year compared to the total allocations or
  270  total expenditures in the budget for the prior state fiscal year
  271  and any increase or decrease in the number of permanent,
  272  temporary, loaned, grant-funded, or full-time equivalent staff
  273  within the office of the inspector general.
  274         (10) Each agency inspector general shall, to the extent
  275  both necessary and practicable, include on his or her staff
  276  individuals with information technology electronic data
  277  processing auditing experience.
  278         Section 3. Paragraphs (y) and (z) are added to subsection
  279  (2) of section 110.205, Florida Statutes, to read:
  280         110.205 Career service; exemptions.—
  281         (2) EXEMPT POSITIONS.—The exempt positions that are not
  282  covered by this part include the following:
  283         (y) All employees of an office of an agency inspector
  284  general shall be assigned to the Selected Exempt Service, except
  285  for agency inspectors general, who shall be included in the
  286  Senior Management Service.
  287         (z) Auditors employed within the Division of Accounting and
  288  Auditing of the Department of Financial Services. Unless
  289  otherwise fixed by law, the Department of Financial Services
  290  shall establish the salary and benefits for these positions in
  291  accordance with the rules established for the Selected Exempt
  292  Service.
  293         Section 4. This act shall take effect July 1, 2017.
  295  ================= T I T L E  A M E N D M E N T ================
  296  And the title is amended as follows:
  297         Delete everything before the enacting clause
  298  and insert:
  299                        A bill to be entitled                      
  300         An act relating to inspectors general and auditors;
  301         amending s. 14.32, F.S.; requiring the Chief Inspector
  302         General to meet specified qualifications applicable to
  303         agency inspectors general, to have open and direct
  304         access to the Governor, and to prepare an annual
  305         report containing specified information; amending s.
  306         20.055, F.S.; revising the qualifications of agency
  307         inspectors general; revising the auditing duties and
  308         responsibilities of agency inspectors general to
  309         include the performance of information technology
  310         audits; authorizing an agency inspector general and
  311         staff to take and record testimony or statements
  312         necessary to conduct an investigation or a review;
  313         requiring each agency inspector general to include
  314         specified budgetary and staffing information in an
  315         annual report; revising terminology; amending s.
  316         110.205, F.S.; exempting employees of an office of an
  317         agency inspector general and auditors of the Division
  318         of Accounting and Auditing of the Department of
  319         Financial Services from the Career Service System;
  320         providing an effective date.