Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. CS for SB 354 Ì110202SÎ110202 LEGISLATIVE ACTION Senate . House Comm: RCS . 03/02/2018 . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Appropriations (Stargel) recommended the following: 1 Senate Amendment to Amendment (522564) (with title 2 amendment) 3 4 Delete lines 779 - 947 5 and insert: 6 career center may not serve as a voting member of an audit 7 committee established under this subsection but may serve in a 8 nonvoting advisory capacity. 9 (d) At least one member of the audit committee should have 10 experience in finance, business, or government operations. 11 (e) The primary purpose of the audit committee is to assist 12 the governing body in selecting an auditor to conduct the annual 13 financial audit required in s. 218.39; however, the audit 14 committee may serve other audit oversight purposes as determined 15 by the entity’s governing body. The public mayshallnot be 16 excluded from the proceedings under this section. 17 (9) For each audit required by s. 218.39, the auditor shall 18 include the following information in the management letter 19 prepared pursuant to s. 218.39(4): 20 (a) The date the entity’s governing body approved the 21 selection of the auditor and the date the entity and the auditor 22 executed the most recent contract pursuant to subsection (7); 23 (b) The first fiscal year for which the auditor conducted 24 the audit under the most recently executed contract pursuant to 25 subsection (7); and 26 (c) The contract period, including renewals, and conditions 27 under which the contract may be terminated or renewed. 28 (10) On each occasion that an entity contracts with an 29 auditor to conduct an audit pursuant to s. 218.39, an affidavit 30 shall be executed by the chair of the entity’s governing body in 31 a format prescribed in accordance with rules adopted by the 32 Auditor General, affirming that the auditor was selected in 33 compliance with the requirements of subsections (3)-(6). The 34 affidavit must, as a separate document, accompany the entity’s 35 first audit report prepared by the auditor under the most 36 recently executed contract pursuant to subsection (7). The 37 affidavit shall include the following information: 38 (a) The date the entity’s governing body approved the 39 selection of the auditor; 40 (b) The first fiscal year for which the auditor conducted 41 the audit; and 42 (c) The contract period, including renewals, and conditions 43 under which the contract may be terminated or renewed. 44 (11) If the entity fails to select the auditor in 45 accordance with the requirements of subsections (3)-(6), the 46 entity shall again perform the auditor selection process in 47 accordance with this section to select an auditor to conduct 48 audits for subsequent fiscal years if the original audit was 49 performed under a multiyear contract. 50 (a) If performing the auditor selection process again in 51 accordance with this section would preclude the entity from 52 timely completing the annual financial audit required by s. 53 218.39, the entity shall again perform the auditor selection 54 process in accordance with this section for the subsequent 55 annual financial audit. A multiyear contract entered into 56 between an entity and an auditor after the effective date of 57 this act may not prohibit or restrict an entity from complying 58 with the section. 59 (b) If the entity fails to perform the auditor selection 60 process again, pursuant to this subsection, the Legislative 61 Auditing Committee shall determine whether the entity should be 62 subject to state action pursuant to s. 11.40(2). 63 (12) If the entity fails to provide the Auditor General 64 with the affidavit required by subsection (10), the Auditor 65 General shall request that the entity provide the affidavit. The 66 affidavit must be provided within 45 days after the date of the 67 request. If the entity does not comply with the Auditor 68 General’s request, the Legislative Auditing Committee shall 69 determine whether the entity should be subject to state action 70 pursuant to s. 11.40(2). 71 (13) If the entity provides the Auditor General with the 72 affidavit required in subsection (10) but failed to select the 73 auditor in accordance with the requirements of subsections (3) 74 (6), the Legislative Auditing Committee shall determine whether 75 the entity should be subject to state action pursuant to s. 76 11.40(2). 77 Section 17. Subsection (2) of section 286.0114, Florida 78 Statutes, is amended to read: 79 286.0114 Public meetings; reasonable opportunity to be 80 heard; attorney fees.— 81 (2) Members of the public shall be given a reasonable 82 opportunity to be heard on a proposition before a board or 83 commission. The opportunity to be heard need not occur at the 84 same meeting at which the board or commission takes official 85 action on the proposition if the opportunity occurs at a meeting 86 that is during the decisionmaking process and is within 87 reasonable proximity in time before the meeting at which the 88 board or commission takes the official action. A board or 89 commission may not require a member of the public to provide an 90 advance written copy of his or her testimony or comments as a 91 condition of being given the opportunity to be heard at a 92 meeting. This section does not prohibit a board or commission 93 from maintaining orderly conduct or proper decorum in a public 94 meeting. The opportunity to be heard is subject to rules or 95 policies adopted by the board or commission, as provided in 96 subsection (4). 97 Section 18. Paragraph (e) of subsection (4), paragraph (d) 98 of subsection (5), and paragraph (d) of subsection (6) of 99 section 373.536, Florida Statutes, are amended, and paragraphs 100 (e) and (f) are added to subsection (6) of that section, to 101 read: 102 373.536 District budget and hearing thereon.— 103 (4) BUDGET CONTROLS; FINANCIAL INFORMATION.— 104 (e)By September 1, 2012,Each district shall provide a 105 monthly financial statement in the form and manner prescribed by 106 the Department of Financial Services to the district’s governing 107 board and make such monthly financial statement available for 108 public access on its website. 109 (5) TENTATIVE BUDGET CONTENTS AND SUBMISSION; REVIEW AND 110 APPROVAL.— 111 (d) Each district shall, by August 1 of each year, submit 112 for review a tentative budget and a description of any 113 significant changes from the preliminary budget submitted to the 114 Legislature pursuant to s. 373.535 to the Governor, the 115 President of the Senate, the Speaker of the House of 116 Representatives, the chairs of all legislative committees and 117 subcommittees having substantive or fiscal jurisdiction over 118 water management districts, as determined by the President of 119 the Senate or the Speaker of the House of Representatives, as 120 applicable, the secretary of the department, and the governing 121 body of each county in which the district has jurisdiction or 122 derives any funds for the operations of the district. The 123 tentative budget must be posted on the district’s official 124 website at least 2 days before budget hearings held pursuant to 125 s. 200.065 or other law and must remain on the website for at 126 least 45 days. 127 (6) FINAL BUDGET; ANNUAL AUDIT; CAPITAL IMPROVEMENTS PLAN; 128 WATER RESOURCE DEVELOPMENT WORK PROGRAM.— 129 (d) The final adopted budget must be posted on the water 130 management district’s official website within 30 days after 131 adoption and must remain on the website for at least 2 years. 132 (e) Beginning in the 2018-2019 fiscal year, the water 133 management district budget officer shall electronically submit 134 information regarding the final budget to the Office of Economic 135 and Demographic Research in the format specified by the office 136 within 30 days after adoption of the final budget. If the 137 Governor declares a state of emergency under s. 252.36(2) within 138 30 days after the submission deadline, the office may extend the 139 deadline up to an additional 90 days. The water management 140 district budget officer shall also electronically submit to the 141 clerk of the court in each county in which the district 142 operates: 143 1. A copy of the information that was submitted to the 144 office. 145 2. A copy of the final budget that was posted on the water 146 management district’s website. 147 3. A statement certifying that the items in subparagraphs 148 1. and 2. were timely submitted and posted. 149 (f) Beginning in the 2018-2019 fiscal year and 150 notwithstanding any other penalty or remedy that may be 151 authorized by law, if a water management district budget officer 152 fails to submit information to the clerk of the court as 153 required in paragraph (e), the clerk of the court shall notify 154 the appropriate fiscal officer to suspend future salary payments 155 for the executive director of that district. The clerk shall 156 notify the fiscal officer to resume payments when the clerk 157 receives the information. 158 Section 19. Paragraphs (b) and (l) of subsection (12) of 159 section 1001.42, Florida Statutes, are amended to read: 160 1001.42 Powers and duties of district school board.—The 161 district school board, acting as a board, shall exercise all 162 powers and perform all duties listed below: 163 (12) FINANCE.—Take steps to assure students adequate 164 educational facilities through the financial procedure 165 authorized in chapters 1010 and 1011 and as prescribed below: 166 (b) Annual budget.— 167 1. Cause to be prepared, adopt, and have submitted to the 168 Department of Education as required by law and rules of the 169 State Board of Education, the annual school budget, such budget 170 to be so prepared and executed as to promote the improvement of 171 the district school system. 172 2. An individual school board member may request and shall 173 receive any proposed, tentative, and official budget documents, 174 including all supporting and background information. 175 (l) Internal auditor.—May or, in the case of a school 176 district receiving annual federal, state, and local funds in 177 excess of $500 million, shall employ an internal auditor. The 178 scope of the internal auditor may not be restricted and must 179 include every functional and program area of the school system. 180 1. The internal auditor shalltoperform ongoing financial 181 verification of the financial records of the school district, a 182 comprehensive risk assessment of all areas of the school system 183 every 5 years, and other audits and reviews as the district 184 school board directs for determining: 185 a. The adequacy of internal controls designed to prevent 186 and detect fraud, waste, and abuse. 187 b. Compliance with applicable laws, rules, contracts, grant 188 agreements, district school board-approved policies, and best 189 practices. 190 c. The efficiency of operations. 191 d. The reliability of financial records and reports. 192 e. The safeguarding of assets. 193 f. Financial solvency. 194 g. Projected revenues and expenditures. 195 h. The rate of change in the general fund balance. 196 2. The internal auditor shall prepare audit reports of his 197 or her findings and report directly to the district school board 198 or its designee. 199 3. Any person responsible for furnishing or producing any 200 book, record, paper, document, data, or sufficient information 201 necessary to conduct a proper audit or examination which the 202 internal auditor is by law authorized to perform is subject to 203 the provisions of s. 11.47(3) and (4). 204 205 ================= T I T L E A M E N D M E N T ================ 206 And the title is amended as follows: 207 Delete lines 1596 - 1623 208 and insert: 209 audit committees; prohibiting an employee, a chief 210 executive officer, or a chief financial officer of the 211 respective governmental entity from serving as a 212 voting member of an audit committee; requiring an 213 auditor to include certain information in a management 214 letter; requiring the chair of a governmental entity’s 215 governing body to submit an affidavit containing 216 certain information when the entity contracts with an 217 auditor to conduct an audit; providing requirements 218 and procedures for selecting an auditor; requiring the 219 Legislative Auditing Committee to determine whether a 220 governmental entity should be subject to state action 221 under certain circumstances; amending s. 286.0114, 222 F.S.; prohibiting a board or commission from requiring 223 an advance copy of testimony or comments from a member 224 of the public as a precondition to being given the 225 opportunity to be heard at a public meeting; amending 226 s. 373.536, F.S.; deleting obsolete language; 227 requiring water management districts to maintain 228 certain budget documents on the districts’ websites 229 for a specified period; requiring district budget 230 officers to submit certain budget information to 231 specified entities within a certain timeframe; 232 providing for the suspension of salary payments of a 233 district executive director if the district does not 234 submit such information; amending s. 1001.42, F.S.; 235 authorizing district school board members to request 236 and receive specified budget information; requiring 237 employment of internal auditors in certain school 238 districts; revising provisions relating to the scope 239 of such internal auditors; amending s. 1002.33, F.S.;