Bill Text: FL H5009 | 2011 | Regular Session | Introduced

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Bill Title: Auditor General

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2011-04-07 - Read 3rd time -HJ 463 [H5009 Detail]

Download: Florida-2011-H5009-Introduced.html

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HB 5009

1	A bill to be entitled
2	An act relating to the Auditor General; amending s. 11.45,
3	F.S.; requiring that financial audits be conducted in
4	accordance with certain auditing standards and activities;
5	expanding the definition and standards of "operational
6	audit"; revising the duties of the Auditor General
7	pertaining to financial audits of district boards of
8	trustees of community colleges, district school boards,
9	universities, colleges, the Florida Clerks of Court
10	Operations Corporation, and the Florida School for the
11	Deaf and Blind; revising the time for conducting certain
12	operational audits; revising the requirements for
13	conducting a performance audit of the ad valorem tax laws;
14	deleting the authority of the Auditor General to conduct
15	an audit of the Investment Fraud Restoration Financing
16	Corporation; authorizing the Auditor General to conduct
17	audits or other engagements of certain virtual education
18	providers; expanding the requirements of the annual report
19	to the legislative leadership and Legislative Auditing
20	Committee; amending s. 25.075, F.S.; deleting the
21	requirement that the Auditor General audit certain reports
22	made to the Supreme Court in accordance with the uniform
23	case reporting system established by the court; amending
24	s. 28.35, F.S.; deleting the requirements that the Florida
25	Clerks of Court Operations Corporation submit an annual
26	audited financial statement to the Auditor General and
27	that the Auditor General conduct an audit of the
28	corporation; amending s. 195.096, F.S.; deleting the
29	requirement that the Auditor General conduct a performance
30	audit of the administration of ad valorem tax laws;
31	amending s. 218.31, F.S.; requiring that financial audits
32	be conducted in accordance with certain auditing standards
33	and activities; amending s. 273.05, F.S.; transferring the
34	responsibility of developing rules for surplus property
35	records from the Auditor General to the Chief Financial
36	Officer; amending s. 365.173, F.S.; deleting certain
37	responsibilities of the Auditor General for the Emergency
38	Communications Number E911 System Fund; amending s.
39	943.25, F.S.; deleting certain responsibilities of the
40	Auditor General pertaining to criminal justice trust
41	funds; amending s. 1002.36, F.S.; deleting the requirement
42	that the Auditor General perform annual audits of the
43	Florida School for the Deaf and the Blind; amending s.
44	1009.53, F.S.; revising the criteria for audits for
45	institutions which receive a certain amount of funds from
46	the Bright Futures Scholarship program; providing a date
47	by which certain reports must be submitted; providing that
48	an institution that is not subject to the audit shall
49	attest, under penalty of perjury, that the scholarship
50	proceeds were used in compliance with law; providing that
51	the Department of Education may establish the form and
52	format for the attestation; amending ss. 938.01 and
53	943.17, F.S.; conforming cross-references to changes made
54	by the act; providing an effective date.
55
56	Be It Enacted by the Legislature of the State of Florida:
57
58	Section 1.  Paragraphs (c) and (g) of subsection (1),
59	subsection (2), paragraphs (u), (v), (w), and (x) of subsection
60	(3), and paragraph (h) of subsection (7) of section 11.45,
61	Florida Statutes, are amended, and a new paragraph (x) is added
62	to subsection (3) of that section, to read:
63	11.45  Definitions; duties; authorities; reports; rules.-
64	(1)  DEFINITIONS.-As used in ss. 11.40-11.513, the term:
65	(c)  "Financial audit" means an examination of financial
66	statements in order to express an opinion on the fairness with
67	which they are presented in conformity with generally accepted
68	accounting principles and an examination to determine whether
69	operations are properly conducted in accordance with legal and
70	regulatory requirements. Financial audits must be conducted in
71	accordance with auditing standards generally accepted in the
72	United States auditing standards and government auditing
73	standards as adopted by the Board of Accountancy. When
74	applicable, the scope of financial audits shall encompass the
75	additional activities necessary to establish compliance with the
76	Single Audit Act Amendments of 1996, 31 U.S.C.A. ss. 7501-7507
77	and other applicable federal law.
78	(g)  "Operational audit" means an a financial-related audit
79	whose purpose is to evaluate management's performance in
80	establishing and maintaining internal controls, including
81	controls designed to prevent and detect fraud, waste, and abuse,
82	and in administering assigned responsibilities in accordance
83	with applicable laws, administrative rules, regulations,
84	contracts, grant agreements, and other guidelines. Operational
85	audits must be conducted in accordance with government auditing
86	standards. Operational audits examine and to determine the
87	extent to which the internal controls control, as designed and
88	placed in operation to, promote promotes and encourage
89	encourages the achievement of management's control objectives in
90	the categories of compliance, economic and efficient operations,
91	reliability of financial records and reports, and safeguarding
92	of assets and the identification of weaknesses in those internal
93	controls.
94	(2)  DUTIES.-The Auditor General shall:
95	(a)  Conduct audits of records and perform related duties
96	as prescribed by law, concurrent resolution of the Legislature,
97	or as directed by the Legislative Auditing Committee.
98	(b)  Annually conduct a financial audit of state
99	government.
100	(c)  Annually conduct financial audits of all state
101	universities and district boards of trustees of community
102	colleges.
103	(d)  Annually conduct financial audits of the accounts and
104	records of all district school boards in counties with
105	populations of fewer than 150,000, according to the most recent
106	federal decennial statewide census.
107	(e)  Once every 3 years, conduct financial audits of the
108	accounts and records of all district school boards in counties
109	with populations of 150,000 or more, according to the most
110	recent federal decennial statewide census. Through fiscal year
111	2008-2009, annually conduct an audit of the Wireless Emergency
112	Telephone System Fund as described in s. 365.173.
113	(f)  Annually conduct audits of the accounts and records of
114	the Florida School for the Deaf and the Blind.
115	(f)(g)  At least every 3 2 years, conduct operational
116	audits of the accounts and records of state agencies, and
117	universities, colleges, district school boards, the Florida
118	Clerks of Court Operations Corporation, and the Florida School
119	for the Deaf and the Blind. In connection with these audits, the
120	Auditor General shall give appropriate consideration to reports
121	issued by state agencies' inspectors general or universities'
122	inspectors general and the resolution of findings therein.
123	(g)(h)  At least every 3 2 years, conduct a performance
124	audit of the local government financial reporting system, which,
125	for the purpose of this chapter, means any statutory provisions
126	related to local government financial reporting. The purpose of
127	such an audit is to determine the accuracy, efficiency, and
128	effectiveness of the reporting system in achieving its goals and
129	to make recommendations to the local governments, the Governor,
130	and the Legislature as to how the reporting system can be
131	improved and how program costs can be reduced. The Auditor
132	General shall determine the scope of such audits. The local
133	government financial reporting system should provide for the
134	timely, accurate, uniform, and cost-effective accumulation of
135	financial and other information that can be used by the members
136	of the Legislature and other appropriate officials to accomplish
137	the following goals:
138	1.  Enhance citizen participation in local government;
139	2.  Improve the financial condition of local governments;
140	3.  Provide essential government services in an efficient
141	and effective manner; and
142	4.  Improve decisionmaking on the part of the Legislature,
143	state agencies, and local government officials on matters
144	relating to local government.
145	(h)(i)  At least Once every 3 years, conduct a performance
146	audit audits of the Department of Revenue's administration of
147	the ad valorem tax laws as described in s. 195.096. The
148	performance audit shall report on the activities of the ad
149	valorem tax program of the Department of Revenue related to the
150	ad valorem tax rolls. The Auditor General shall include, for at
151	least four counties so reviewed, findings as to the accuracy of
152	assessment procedures, projections, and computations made by the
153	division, using the same generally accepted appraisal standards
154	and procedures to which the division and the property appraisers
155	are required to adhere. However, the report may not include any
156	findings or statistics related to any ad valorem tax roll that
157	is in litigation between the state and county officials at the
158	time the report is to be issued.
159	(j)  Once every 3 years, conduct financial audits of the
160	accounts and records of all district school boards in counties
161	with populations of 125,000 or more, according to the most
162	recent federal decennial statewide census.
163	(i)(k)  Once every 3 years, review a sample of each state
164	agency's internal audit reports at each state agency, as defined
165	in s. 20.0551(1)(a), to determine compliance with current
166	Standards for the Professional Practice of Internal Auditing or,
167	if appropriate, government auditing standards.
168	(j)(l)  Conduct audits of local governmental entities when
169	determined to be necessary by the Auditor General, when directed
170	by the Legislative Auditing Committee, or when otherwise
171	required by law. No later than 18 months after the release of
172	the audit report, the Auditor General shall perform such
173	appropriate followup procedures as he or she deems necessary to
174	determine the audited entity's progress in addressing the
175	findings and recommendations contained within the Auditor
176	General's previous report. The Auditor General shall notify
177	provide a copy of his or her determination to each member of the
178	audited entity's governing body and to the Legislative Auditing
179	Committee of the results of his or her determination.
180
181	The Auditor General shall perform his or her duties
182	independently but under the general policies established by the
183	Legislative Auditing Committee. This subsection does not limit
184	the Auditor General's discretionary authority to conduct other
185	audits or engagements of governmental entities as authorized in
186	subsection (3).
187	(3)  AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.-The
188	Auditor General may, pursuant to his or her own authority, or at
189	the direction of the Legislative Auditing Committee, conduct
190	audits or other engagements as determined appropriate by the
191	Auditor General of:
192	(u)  The Investment Fraud Restoration Financing Corporation
193	created pursuant to chapter 517.
194	(u)(v)  The books and records of any permitholder that
195	conducts race meetings or jai alai exhibitions under chapter
196	550.
197	(v)(w)  The corporation defined in part II of chapter 946,
198	known as the Prison Rehabilitative Industries and Diversified
199	Enterprises, Inc., or PRIDE Enterprises.
200	(w)(x)  The Florida Virtual School pursuant to s. 1002.37.
201	(x)  Virtual education providers receiving state funds or
202	funds from local ad valorem taxes.
203	(7)  AUDITOR GENERAL REPORTING REQUIREMENTS.-
204	(h)  The Auditor General shall compile and transmit to the
205	President of the Senate, the Speaker of the House of
206	Representatives, and the Legislative Auditing Committee by
207	December 1 of each year an annual report, which shall include a
208	projected 2-year work plan identifying the audits and other
209	accountability activities to be undertaken and a list of
210	statutory and fiscal changes recommended by the Auditor General.
211	The Auditor General may also transmit recommendations at other
212	times of the year when the information would be timely and
213	useful for the Legislature.
214	Section 2.  Subsection (3) of section 25.075, Florida
215	Statutes, is amended to read:
216	25.075  Uniform case reporting system.-
217	(3)  The Auditor General shall audit the reports made to
218	the Supreme Court in accordance with the uniform system
219	established by the Supreme Court.
220	Section 3.  Subsection (5) of section 28.35, Florida
221	Statutes, is amended to read:
222	28.35  Florida Clerks of Court Operations Corporation.-
223	(5)(a)  The corporation shall submit an annual audited
224	financial statement to the Auditor General in a form and manner
225	prescribed by the Auditor General. The Auditor General shall
226	conduct an annual audit of the operations of the corporation,
227	including the use of funds and compliance with the provisions of
228	this section and ss. 28.36 and 28.37.
229	(b)  Certified public accountants conducting audits of
230	counties pursuant to s. 218.39 shall report, as part of the
231	audit, whether or not the clerks of the courts have complied
232	with the requirements of this section and s. 28.36. In addition,
233	each clerk of court shall forward a copy of the portion of the
234	financial audit relating to the court-related duties of the
235	clerk of court to the Supreme Court. The Auditor General shall
236	develop a compliance supplement for the audit of compliance with
237	the budgets and applicable performance standards certified by
238	the corporation.
239	Section 4.  Subsections (7), (8), and (9) of section
240	195.096, Florida Statutes, are amended to read:
241	195.096  Review of assessment rolls.-
242	(7)  The Auditor General shall conduct a performance audit
243	of the administration of ad valorem tax laws by the department
244	triennially following completion of reviews conducted pursuant
245	to this section. The audit report shall be submitted to the
246	Legislature no later than April 1, on a triennial basis,
247	reporting on the activities of the ad valorem tax program of the
248	Department of Revenue related to the ad valorem tax rolls. The
249	Auditor General shall include, for at least four counties so
250	reviewed, findings as to the accuracy of assessment procedures,
251	projections, and computations made by the division, utilizing
252	the same generally accepted appraisal standards and procedures
253	to which the division and the property appraisers are required
254	to adhere. However, the report shall not include any findings or
255	statistics related to any ad valorem tax roll which is in
256	litigation between the state and county officials at the time
257	the report is to be issued.
258	(7)(8)  When a roll is prepared as an interim roll pursuant
259	to s. 193.1145, the department shall compute assessment levels
260	for both the interim roll and the final approved roll.
261	(8)(9)  Chapter 120 does shall not apply to this section.
262	Section 5.  Subsection (17) of section 218.31, Florida
263	Statutes, is amended to read:
264	218.31  Definitions.-As used in this part, except where the
265	context clearly indicates a different meaning:
266	(17)  "Financial audit" means an examination of financial
267	statements in order to express an opinion on the fairness with
268	which they are presented in conformity with generally accepted
269	accounting principles and an examination to determine whether
270	operations are properly conducted in accordance with legal and
271	regulatory requirements. Financial audits must be conducted in
272	accordance with auditing standards generally accepted in the
273	United States auditing standards and government auditing
274	standards as adopted by the Board of Accountancy and as
275	prescribed by rules promulgated by the Auditor General. When
276	applicable, the scope of financial audits shall encompass the
277	additional activities necessary to establish compliance with the
278	Single Audit Act Amendments of 1996, 31 U.S.C.A. ss. 7501-7507
279	and other applicable federal law.
280	Section 6.  Subsection (5) of section 273.05, Florida
281	Statutes, is amended to read:
282	273.05  Surplus property.-
283	(5)  The custodian shall maintain records of property that
284	is certified as surplus with information indicating the value
285	and condition of the property. Agency records for property
286	certified as surplus shall comply with rules issued by the Chief
287	Financial Officer Auditor General.
288	Section 7.  Subsection (3) of section 365.173, Florida
289	Statutes, is amended to read:
290	365.173  Emergency Communications Number E911 System Fund.-
291	(3)  The Auditor General shall annually audit the fund to
292	ensure that moneys in the fund are being managed in accordance
293	with this section and s. 365.172. The Auditor General shall
294	provide a report of the annual audit to the board.
295	Section 8.  Subsections (3) and (4) and paragraph (d) of
296	subsection (5) of section 943.25, Florida Statutes, are amended,
297	and present subsections (4) through (12) are renumbered as
298	subsections (3) through (11), respectively, to read:
299	943.25  Criminal justice trust funds; source of funds; use
300	of funds.-
301	(3)  The Auditor General is directed in her or his audit of
302	courts to ascertain that such assessments have been collected
303	and remitted and shall report to the Legislature. All such
304	records of the courts shall be open for her or his inspection.
305	The Auditor General is further directed to conduct audits of the
306	expenditures of the trust funds and to report to the
307	Legislature. Such audits shall be conducted in accordance with
308	s. 11.45.
309	(3)(4)  The commission shall, by rule, establish,
310	implement, supervise, and evaluate the expenditures of the
311	Criminal Justice Standards and Training Trust Fund for approved
312	advanced and specialized training program courses. Criminal
313	justice training school enhancements may be authorized by the
314	commission subject to the provisions of subsection (6) (7). The
315	commission may approve the training of appropriate support
316	personnel when it can be demonstrated that these personnel
317	directly support the criminal justice function.
318	(4)(5)  The commission shall authorize the establishment of
319	regional training councils to advise and assist the commission
320	in developing and maintaining a plan assessing regional criminal
321	justice training needs and to act as an extension of the
322	commission in the planning, programming, and budgeting for
323	expenditures of the moneys in the Criminal Justice Standards and
324	Training Trust Fund.
325	(d)  A public criminal justice training school must be
326	designated by the commission to receive and distribute the
327	disbursements authorized under subsection (8) (9).
328	Section 9.  Subsection (3) of section 1002.36, Florida
329	Statutes, is amended to read:
330	1002.36  Florida School for the Deaf and the Blind.-
331	(3)  AUDITS.-The Auditor General shall conduct annual
332	audits of the accounts and records of the Florida School for the
333	Deaf and the Blind as provided in s. 11.45. The Department of
334	Education's Inspector General is authorized to conduct
335	investigations at the school as provided in s. 1001.20(4)(e).
336	Section 10.  Paragraph (c) of subsection (5) of section
337	1009.53, Florida Statutes, is amended, and paragraph (d) is
338	added to that subsection, to read:
339	1009.53  Florida Bright Futures Scholarship Program.-
340	(5)  The department shall issue awards from the scholarship
341	program annually. Annual awards may be for up to 45 semester
342	credit hours or the equivalent. Before the registration period
343	each semester, the department shall transmit payment for each
344	award to the president or director of the postsecondary
345	education institution, or his or her representative, except that
346	the department may withhold payment if the receiving institution
347	fails to report or to make refunds to the department as required
348	in this section.
349	(c)  Each institution that receives moneys through this
350	program shall provide for a prepare an annual report that
351	includes an annual financial audit, as defined in s.
352	11.45(1)(c), conducted by an independent certified public
353	accountant or the Auditor General, for each fiscal year in which
354	the institution expends program moneys in excess of $100,000. At
355	least every 2 years, the audit The report shall include an
356	examination audit of the institution's administration of the
357	program and the institution's a complete accounting of the
358	moneys for the program since the last examination of the
359	institution's administration of the program. The This report on
360	the audit must be submitted to the department within 9 months
361	after the end of the fiscal year annually by March 1. The
362	department may conduct its own annual audit of an institution's
363	administration of the program. The department may request a
364	refund of any moneys overpaid to the institution for the
365	program. The department may suspend or revoke an institution's
366	eligibility to receive future moneys for the program if the
367	department finds that an institution has not complied with this
368	section. The institution must remit within 60 days any refund
369	requested in accordance with this subsection.
370	(d)  Any institution not subject to audit pursuant to this
371	subsection shall attest, under penalties of perjury, that
372	proceeds received under this subsection were used in compliance
373	with the applicable law. The attestation shall be made annually
374	in a form and format determined by the department.
375	Section 11.  Paragraph (b) of subsection (1) of section
376	938.01, Florida Statutes, is amended to read:
377	938.01  Additional Court Cost Clearing Trust Fund.-
378	(1)  All courts created by Art. V of the State Constitution
379	shall, in addition to any fine or other penalty, require every
380	person convicted for violation of a state penal or criminal
381	statute or convicted for violation of a municipal or county
382	ordinance to pay $3 as a court cost. Any person whose
383	adjudication is withheld pursuant to the provisions of s.
384	318.14(9) or (10) shall also be liable for payment of such cost.
385	In addition, $3 from every bond estreature or forfeited bail
386	bond related to such penal statutes or penal ordinances shall be
387	remitted to the Department of Revenue as described in this
388	subsection. However, no such assessment may be made against any
389	person convicted for violation of any state statute, municipal
390	ordinance, or county ordinance relating to the parking of
391	vehicles.
392	(b)  All funds in the Department of Law Enforcement
393	Criminal Justice Standards and Training Trust Fund shall be
394	disbursed only in compliance with s. 943.25(8)(9).
395	Section 12.  Paragraph (c) of subsection (1) of section
396	943.17, Florida Statutes, is amended to read:
397	943.17  Basic recruit, advanced, and career development
398	training programs; participation; cost; evaluation.-The
399	commission shall, by rule, design, implement, maintain,
400	evaluate, and revise entry requirements and job-related
401	curricula and performance standards for basic recruit, advanced,
402	and career development training programs and courses. The rules
403	shall include, but are not limited to, a methodology to assess
404	relevance of the subject matter to the job, student performance,
405	and instructor competency.
406	(1)  The commission shall:
407	(c)  Design, implement, maintain, evaluate, revise, or
408	adopt a career development training program which is limited to
409	those courses related to promotion to a higher rank or position.
410	Career development courses will not be eligible for funding as
411	provided in s. 943.25(8)(9).
412	Section 13.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.