Florida Senate - 2017 CS for SB 1478
By the Committee on Governmental Oversight and Accountability;
and Senator Baxley
585-03974-17 20171478c1
1 A bill to be entitled
2 An act relating to inspectors general and auditors;
3 amending s. 14.32, F.S.; requiring the Chief Inspector
4 General to meet specified qualifications applicable to
5 agency inspectors general, to have open and direct
6 access to the Governor, and to prepare an annual
7 report containing specified information; amending s.
8 20.055, F.S.; revising the qualifications of agency
9 inspectors general; revising the auditing duties and
10 responsibilities of agency inspectors general to
11 include the performance of information technology
12 audits; authorizing an agency inspector general and
13 staff to take and record testimony or statements
14 necessary to conduct an investigation or a review;
15 requiring each agency inspector general to include
16 specified budgetary and staffing information in an
17 annual report; revising terminology; amending s.
18 110.205, F.S.; exempting employees of an office of an
19 agency inspector general and auditors of the Division
20 of Accounting and Auditing of the Department of
21 Financial Services from the Career Service System;
22 providing an effective date.
23
24 Be It Enacted by the Legislature of the State of Florida:
25
26 Section 1. Subsection (1) of section 14.32, Florida
27 Statutes, is amended, and paragraph (l) is added to subsection
28 (2) of that section, to read:
29 14.32 Office of Chief Inspector General.—
30 (1) There is created in the Executive Office of the
31 Governor the Office of Chief Inspector General. The Chief
32 Inspector General is responsible for promoting accountability,
33 integrity, and efficiency in the agencies under the jurisdiction
34 of the Governor. The Chief Inspector General shall be appointed
35 by and serve at the pleasure of the Governor and must meet the
36 qualifications specified in s. 20.055(4). However, upon a change
37 in Governors or reelection of the Governor, the Governor shall
38 appoint, or may reappoint, a Chief Inspector General before
39 adjournment sine die of the first regular session of the
40 Legislature that convenes after such change in Governors or
41 reelection of the Governor. The Chief Inspector General shall,
42 at all times, have open and direct access to the Governor.
43 (2) The Chief Inspector General shall:
44 (l) Prepare an annual report that summarizes the activities
45 performed in compliance with this section and includes an
46 aggregate of significant budgetary or administrative changes
47 contained in annual reports prepared by inspectors general for
48 state agencies under the jurisdiction of the Governor pursuant
49 to s. 20.055(8).
50 Section 2. Subsections (4), (6), and (7), paragraph (c) of
51 subsection (8), and subsection (10) of section 20.055, Florida
52 Statutes, are amended to read:
53 20.055 Agency inspectors general.—
54 (4)(a) To ensure that state agency audits are performed in
55 accordance with applicable auditing standards, the inspector
56 general or the director of auditing within the inspector
57 general’s office shall possess the following qualifications:
58 1. A bachelor’s degree from an accredited college or
59 university with a major in accounting, or with a major in
60 business which includes five courses in accounting, and 5 years
61 of experience as an internal auditor or independent postauditor,
62 information technology electronic data processing auditor,
63 accountant, or any combination thereof. The experience shall at
64 a minimum consist of audits of units of government or private
65 business enterprises, operating for profit or not for profit; or
66 2. A master’s degree in accounting, business
67 administration, or public administration from an accredited
68 college or university and 4 years of experience as required in
69 subparagraph 1.; or
70 3. A certified public accountant license issued pursuant to
71 chapter 473 or a certified internal audit certificate issued by
72 the Institute of Internal Auditors or earned by examination, and
73 4 years of experience as required in subparagraph 1.
74 (b) For agencies under the jurisdiction of the Governor,
75 the inspector general shall be selected on the basis of
76 integrity, leadership capability, and experience in accounting,
77 auditing, fraud examination, financial analysis, law, management
78 analysis, program evaluation, public administration,
79 investigation, criminal justice administration, or other closely
80 related field. The inspector general is subject to a level 2
81 background screening pursuant to chapter 435. The inspector
82 general shall have a 4-year degree from an accredited
83 institution of higher learning or have at least 5 years of
84 experience in at least one of the following areas:
85 1. Inspector general.
86 2. Supervisory experience in an office of inspector general
87 or an investigative public agency similar to an office of
88 inspector general.
89 3. Local, state, or federal law enforcement officer.
90 4. Local, state, or federal court judge.
91 5. Senior-level auditor or comptroller.
92 6. The administration and management of complex audits and
93 investigations.
94 7. Managing programs for information security, prevention,
95 examination, detection, elimination of fraud, waste, abuse,
96 mismanagement, malfeasance, or misconduct in government or other
97 organizations.
98
99 An advanced degree in law, accounting, public administration, or
100 other relevant field may substitute for 1 year of required
101 experience.
102 (c) The inspector general shall possess at appointment, or
103 obtain within the first year after appointment, a certification
104 from the Association of Inspectors General as a certified
105 inspector general. The inspector general must have one or more
106 other professional certifications, such as certified inspector
107 general investigator, certified inspector general auditor,
108 certified public accountant, certified internal auditor,
109 certified governmental financial manager, or certified fraud
110 examiner, certified financial crimes investigator or other
111 related certification, or be a licensed attorney.
112 (d) The inspector general may not hold, or be a candidate
113 for, an elective office of the state or a municipality, county,
114 or other political subdivision of the state while inspector
115 general, and a current officer or employee of an office of
116 inspector general may not hold, or be a candidate for, an
117 elective office of the state or a municipality, county, or other
118 political subdivision of the state. The inspector general shall
119 be appointed without regard to political affiliation. The
120 inspector general may not hold office in a political party or
121 political committee. An employee of an office of inspector
122 general may not hold office in a political party or political
123 committee while employed in the office of inspector general.
124 (6) In carrying out the auditing duties and
125 responsibilities of this section act, each inspector general
126 shall review and evaluate internal controls necessary to ensure
127 the fiscal accountability of the state agency. The inspector
128 general shall conduct financial, compliance, information
129 technology electronic data processing, and performance audits of
130 the agency and prepare audit reports of his or her findings. The
131 scope and assignment of the audits shall be determined by the
132 inspector general; however, the agency head may at any time
133 request the inspector general to perform an audit of a special
134 program, function, or organizational unit. The performance of
135 the audit shall be under the direction of the inspector general,
136 except that if the inspector general does not possess the
137 qualifications specified in subsection (4), the director of
138 auditing shall perform the functions listed in this subsection.
139 (a) Such audits shall be conducted in accordance with the
140 current International Standards for the Professional Practice of
141 Internal Auditing as published by the Institute of Internal
142 Auditors, Inc., or, where appropriate, in accordance with
143 generally accepted governmental auditing standards. All audit
144 reports issued by internal audit staff shall include a statement
145 that the audit was conducted pursuant to the appropriate
146 standards.
147 (b) Audit workpapers and reports shall be public records to
148 the extent that they do not include information which has been
149 made confidential and exempt from the provisions of s. 119.07(1)
150 pursuant to law. However, when the inspector general or a member
151 of the staff receives from an individual a complaint or
152 information that falls within the definition provided in s.
153 112.3187(5), the name or identity of the individual may not be
154 disclosed to anyone else without the written consent of the
155 individual, unless the inspector general determines that such
156 disclosure is unavoidable during the course of the audit or
157 investigation.
158 (c) The inspector general and the staff shall have access
159 to any records, data, and other information of the state agency
160 he or she deems necessary to carry out his or her duties. The
161 inspector general may also request such information or
162 assistance as may be necessary from the state agency or from any
163 federal, state, or local government entity.
164 (d) At the conclusion of each audit, the inspector general
165 shall submit preliminary findings and recommendations to the
166 person responsible for supervision of the program function or
167 operational unit who shall respond to any adverse findings
168 within 20 working days after receipt of the preliminary
169 findings. Such response and the inspector general’s rebuttal to
170 the response shall be included in the final audit report.
171 (e) At the conclusion of an audit in which the subject of
172 the audit is a specific entity contracting with the state or an
173 individual substantially affected, if the audit is not
174 confidential or otherwise exempt from disclosure by law, the
175 inspector general shall, consistent with s. 119.07(1), submit
176 the findings to the entity contracting with the state or the
177 individual substantially affected, who shall be advised in
178 writing that they may submit a written response within 20
179 working days after receipt of the findings. The response and the
180 inspector general’s rebuttal to the response, if any, must be
181 included in the final audit report.
182 (f) The inspector general shall submit the final report to
183 the agency head, the Auditor General, and, for state agencies
184 under the jurisdiction of the Governor, the Chief Inspector
185 General.
186 (g) The Auditor General, in connection with the independent
187 postaudit of the same agency pursuant to s. 11.45, shall give
188 appropriate consideration to internal audit reports and the
189 resolution of findings therein. The Legislative Auditing
190 Committee may inquire into the reasons or justifications for
191 failure of the agency head to correct the deficiencies reported
192 in internal audits that are also reported by the Auditor General
193 and shall take appropriate action.
194 (h) The inspector general shall monitor the implementation
195 of the state agency’s response to any report on the state agency
196 issued by the Auditor General or by the Office of Program Policy
197 Analysis and Government Accountability. No later than 6 months
198 after the Auditor General or the Office of Program Policy
199 Analysis and Government Accountability publishes a report on the
200 state agency, the inspector general shall provide a written
201 response to the agency head or, for state agencies under the
202 jurisdiction of the Governor, the Chief Inspector General on the
203 status of corrective actions taken. The inspector general shall
204 file a copy of such response with the Legislative Auditing
205 Committee.
206 (i) The inspector general shall develop long-term and
207 annual audit plans based on the findings of periodic risk
208 assessments. The plan, where appropriate, should include
209 postaudit samplings of payments and accounts. The plan shall
210 show the individual audits to be conducted during each year and
211 related resources to be devoted to the respective audits. The
212 Chief Financial Officer, to assist in fulfilling the
213 responsibilities for examining, auditing, and settling accounts,
214 claims, and demands pursuant to s. 17.03(1), and examining,
215 auditing, adjusting, and settling accounts pursuant to s. 17.04,
216 may use audits performed by the inspectors general and internal
217 auditors. For state agencies under the jurisdiction of the
218 Governor, the audit plans shall be submitted to the Chief
219 Inspector General. The plan shall be submitted to the agency
220 head for approval. A copy of the approved plan shall be
221 submitted to the Auditor General.
222 (7)(a) In carrying out the investigative duties and
223 responsibilities specified in this section, each inspector
224 general shall initiate, conduct, supervise, and coordinate
225 investigations designed to detect, deter, prevent, and eradicate
226 fraud, waste, mismanagement, misconduct, and other abuses in
227 state government. For these purposes, each inspector general
228 shall:
229 1.(a) Receive complaints and coordinate all activities of
230 the agency as required by the Whistle-blower’s Act pursuant to
231 ss. 112.3187-112.31895.
232 2.(b) Receive and consider the complaints that which do not
233 meet the criteria for an investigation under the Whistle
234 blower’s Act and conduct, supervise, or coordinate such
235 inquiries, investigations, or reviews as the inspector general
236 deems appropriate.
237 3.(c) Report expeditiously to the Department of Law
238 Enforcement or other law enforcement agencies, as appropriate,
239 whenever the inspector general has reasonable grounds to believe
240 that there has been a violation of criminal law.
241 4.(d) Conduct investigations and other inquiries free of
242 actual or perceived impairment to the independence of the
243 inspector general or the inspector general’s office. This shall
244 include freedom from any interference with investigations and
245 timely access to records and other sources of information.
246 5.(e) At the conclusion of each investigation in which the
247 subject of the investigation is a specific entity contracting
248 with the state or an individual substantially affected as
249 defined by this section, and if the investigation is not
250 confidential or otherwise exempt from disclosure by law, the
251 inspector general shall, consistent with s. 119.07(1), submit
252 findings to the subject that is a specific entity contracting
253 with the state or an individual substantially affected, who
254 shall be advised in writing that they may submit a written
255 response within 20 working days after receipt of the findings.
256 Such response and the inspector general’s rebuttal to the
257 response, if any, shall be included in the final investigative
258 report.
259 6.(f) Submit in a timely fashion final reports on
260 investigations conducted by the inspector general to the agency
261 head, except for whistle-blower’s investigations, which shall be
262 conducted and reported pursuant to s. 112.3189.
263 (b) The inspector general and his or her staff may take and
264 record testimony or statements of any person as reasonably
265 necessary for the furtherance of an investigation or a review
266 undertaken by the inspector general.
267 (8)
268 (c) The final reports prepared pursuant to paragraphs (a)
269 and (b) shall be provided to the heads of the respective
270 agencies and, for state agencies under the jurisdiction of the
271 Governor, the Chief Inspector General. Such reports shall
272 include, but need not be limited to:
273 1. A description of activities relating to the development,
274 assessment, and validation of performance measures.
275 2. A description of significant abuses and deficiencies
276 relating to the administration of programs and operations of the
277 agency disclosed by investigations, audits, reviews, or other
278 activities during the reporting period.
279 3. A description of the recommendations for corrective
280 action made by the inspector general during the reporting period
281 with respect to significant problems, abuses, or deficiencies
282 identified.
283 4. The identification of each significant recommendation
284 described in previous annual reports on which corrective action
285 has not been completed.
286 5. A summary of each audit and investigation completed
287 during the reporting period.
288 6. Any increase or decrease in the total allocations or
289 total expenditures in the inspector general’s budget for the
290 preceding state fiscal year compared to the total allocations or
291 total expenditures in the budget for the prior state fiscal year
292 and any increase or decrease in the number of permanent,
293 temporary, loaned, grant-funded, or full-time equivalent staff
294 within the office of the inspector general.
295 (10) Each agency inspector general shall, to the extent
296 both necessary and practicable, include on his or her staff
297 individuals with information technology electronic data
298 processing auditing experience.
299 Section 3. Paragraphs (y) and (z) are added to subsection
300 (2) of section 110.205, Florida Statutes, to read:
301 110.205 Career service; exemptions.—
302 (2) EXEMPT POSITIONS.—The exempt positions that are not
303 covered by this part include the following:
304 (y) All employees of an office of an agency inspector
305 general shall be assigned to the Selected Exempt Service, except
306 for agency inspectors general, who shall be included in the
307 Senior Management Service.
308 (z) Auditors employed within the Division of Accounting and
309 Auditing of the Department of Financial Services. Unless
310 otherwise fixed by law, the Department of Financial Services
311 shall establish the salary and benefits for these positions in
312 accordance with the rules established for the Selected Exempt
313 Service.
314 Section 4. This act shall take effect July 1, 2017.