Bill Text: FL S7104 | 2011 | Regular Session | Introduced
Bill Title: Auditor General
Spectrum: Committee Bill
Status: (N/A - Dead) 2011-04-01 - Submit as committee bill by Budget (SB 2110) [S7104 Detail]
Download: Florida-2011-S7104-Introduced.html
Florida Senate - 2011 (PROPOSED COMMITTEE BILL) SPB 7104 FOR CONSIDERATION By the Committee on Budget 576-02135B-11 20117104__ 1 A bill to be entitled 2 An act relating to the Auditor General; amending s. 3 11.45, F.S.; redefining the term “financial audit” to 4 conform with applicable auditing standards; defining 5 the term “operational audit” to provide the objectives 6 of such audits; clarifying the requirement for the 7 Auditor General to conduct financial audits of the 8 accounts and records of all district school boards in 9 counties of a specified size once every 3 years; 10 revising duties and responsibilities of the Auditor 11 General; requiring that the Auditor General conduct 12 operational audits at least every 3 years of certain 13 additional state entities and district school boards 14 and report on the activities of the ad valorem tax 15 program of the Department of Revenue; amending ss. 16 25.075 and 28.35, F.S.; revising the duties of the 17 Auditor General with respect to responsibilities for 18 auditing certain reports made to the State Supreme 19 Court and the operations of the Florida Clerks of 20 Court Operations Corporation, respectively; repealing 21 s. 195.096(7), F.S., relating to the Auditor General’s 22 responsibility for conducting a performance audit of 23 the Department of Revenue’s administration of ad 24 valorem tax laws; amending s. 218.31, F.S.; redefining 25 the term ”financial audit” to conform with applicable 26 auditing standards; amending s. 273.05, F.S.; revising 27 requirements to issue rules for surplus property; 28 repealing ss. 365.173(3) and 943.25(3), F.S., relating 29 to the Auditor General’s responsibilities for auditing 30 the Emergency Communications Number E911 System Fund 31 and criminal justice trust funds, respectively; 32 amending s. 1002.36, F.S.; conforming provisions to 33 changes made by the act; amending s. 1009.53, F.S.; 34 requiring colleges and universities that receive 35 Florida Bright Futures Scholarship Program moneys to 36 submit to the Department of Education a financial 37 audit prepared by an independent certified public 38 accountant or the Auditor General if the college or 39 university expended more than a specified amount of 40 program money; requiring that the audit include an 41 examination of the institute’s administration of the 42 program; providing that the audit be submitted to the 43 department within a certain time; requiring any 44 institution that is not subject to the audit to 45 attest, under penalty of perjury, that the moneys were 46 used in compliance with the law; providing for the 47 attestation be made annually in a form and format 48 determined by the Department of Education; reenacting 49 s. 11.40(3), F.S., relating to the Legislative 50 Auditing Committee, to incorporate the amendments made 51 to s. 11.45, F.S., in a reference thereto; providing 52 an effective date. 53 54 Be It Enacted by the Legislature of the State of Florida: 55 56 Section 1. Section 11.45, Florida Statutes, is amended to 57 read: 58 11.45 Definitions; duties; authorities; reports; rules.— 59 (1) DEFINITIONS.—As used in ss. 11.40-11.513, the term: 60 (a) “Audit” means a financial audit, operational audit, or 61 performance audit. 62 (b) “County agency” means a board of county commissioners 63 or other legislative and governing body of a county, however 64 styled, including that of a consolidated or metropolitan 65 government, a clerk of the circuit court, a separate or ex 66 officio clerk of the county court, a sheriff, a property 67 appraiser, a tax collector, a supervisor of elections, or any 68 other officer in whom any portion of the fiscal duties of the 69 above are under law separately placed. 70 (c) “Financial audit” means an examination of financial 71 statements in order to express an opinion on the fairness with 72 which they are presented in conformity with generally accepted 73 accounting principles and an examination to determine whether 74 operations are properly conducted in accordance with legal and 75 regulatory requirements. Financial audits must be conducted in 76 accordance with auditing standards generally accepted in the 77 United Statesauditing standardsand government auditing 78 standards as adopted by the Board of Accountancy. When 79 applicable, the scope of financial audits shall encompass the 80 additional activities necessary to establish compliance with the 81 Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and 82 other applicable federal law. 83 (d) “Governmental entity” means a state agency, a county 84 agency, or any other entity, however styled, that independently 85 exercises any type of state or local governmental function. 86 (e) “Local governmental entity” means a county agency, 87 municipality, or special district as defined in s. 189.403, but 88 does not include any housing authority established under chapter 89 421. 90 (f) “Management letter” means a statement of the auditor’s 91 comments and recommendations. 92 (g) “Operational audit” means ana financial-relatedaudit 93 whose purpose is to evaluate management’s performance in 94 establishing and maintaining internal controls, including 95 controls designed to prevent and detect fraud, waste, and abuse, 96 and in administering assigned responsibilities in accordance 97 with applicable laws, administrative rules, contracts, grant 98 agreements and other guidelines. Operational audits must be 99 conducted in accordance with government auditing standards. Such 100 audits examineand to determine the extent to which theinternal 101 controls that arecontrol,asdesigned and placed in operation 102 to promote, promotesand encourageencouragesthe achievement of 103 management’s control objectives in the categories of compliance, 104 economic and efficient operations, reliability of financial 105 records and reports, and safeguarding of assets, and identify 106 weaknesses in those internal controls. 107 (h) “Performance audit” means an examination of a program, 108 activity, or function of a governmental entity, conducted in 109 accordance with applicable government auditing standards or 110 auditing and evaluation standards of other appropriate 111 authoritative bodies. The term includes an examination of issues 112 related to: 113 1. Economy, efficiency, or effectiveness of the program. 114 2. Structure or design of the program to accomplish its 115 goals and objectives. 116 3. Adequacy of the program to meet the needs identified by 117 the Legislature or governing body. 118 4. Alternative methods of providing program services or 119 products. 120 5. Goals, objectives, and performance measures used by the 121 agency to monitor and report program accomplishments. 122 6. The accuracy or adequacy of public documents, reports, 123 or requests prepared under the program by state agencies. 124 7. Compliance of the program with appropriate policies, 125 rules, or laws. 126 8. Any other issues related to governmental entities as 127 directed by the Legislative Auditing Committee. 128 (i) “Political subdivision” means a separate agency or unit 129 of local government created or established by law and includes, 130 but is not limited to, the following and the officers thereof: 131 authority, board, branch, bureau, city, commission, consolidated 132 government, county, department, district, institution, 133 metropolitan government, municipality, office, officer, public 134 corporation, town, or village. 135 (j) “State agency” means a separate agency or unit of state 136 government created or established by law and includes, but is 137 not limited to, the following and the officers thereof: 138 authority, board, branch, bureau, commission, department, 139 division, institution, office, officer, or public corporation, 140 as the case may be, except any such agency or unit within the 141 legislative branch of state government other than the Florida 142 Public Service Commission. 143 (2) DUTIES.—The Auditor General shall: 144 (a) Conduct audits of records and perform related duties as 145 prescribed by law, concurrent resolution of the Legislature, or 146 as directed by the Legislative Auditing Committee. 147 (b) Annually conduct a financial audit of state government. 148 (c) Annually conduct financial audits of all state 149 universities and statedistrict boards of trustees of community150 colleges. 151 (d) Annually conduct financial audits of the accounts and 152 records of all district school boards in counties with 153 populations of fewer than 150,000, according to the most recent 154 federal decennial statewide census. 155 (e) Once every 3 years, conduct financial audits of the 156 accounts and records of all district school boards in counties 157 that have populations of 150,000 or more, according to the most 158 recent federal decennial statewide census.Through fiscal year1592008-2009, annually conduct an audit of the Wireless Emergency160Telephone System Fund as described in s.365.173.161(f) Annually conduct audits of the accounts and records of162the Florida School for the Deaf and the Blind.163 (f)(g)At least every 32years, conduct operational audits 164 of the accounts and records of state agencies, stateand165 universities, state colleges, district school boards, the 166 Florida Clerks of Court Operations Corporation, water management 167 districts, and the Florida School for the Deaf and the Blind.In168connection with these audits, the Auditor General shall give169appropriate consideration to reports issued by state agencies’170inspectors general or universities’ inspectors general and the171resolution of findings therein.172 (g)(h)At least every 32years, conduct a performance 173 audit of the local government financial reporting system, which, 174 for the purpose of this chapter, means any statutory provision 175provisionsrelated to local government financial reporting. The 176 purpose of such an audit is to determine the accuracy, 177 efficiency, and effectiveness of the reporting system in 178 achieving its goals and to make recommendations to the local 179 governments, the Governor, and the Legislature as to how the 180 reporting system can be improved and how program costs can be 181 reduced. The Auditor General shall determine the scope of the 182suchaudits. The local government financial reporting system 183 should provide for the timely, accurate, uniform, and cost 184 effective accumulation of financial and other information that 185 can be used by the members of the Legislature and other 186 appropriate officials to accomplish the following goals: 187 1. Enhance citizen participation in local government; 188 2. Improve the financial condition of local governments; 189 3. Provide essential government services in an efficient 190 and effective manner; and 191 4. Improve decisionmaking on the part of the Legislature, 192 state agencies, and local government officials on matters 193 relating to local government. 194 (h)(i)At leastOnceevery 3 years, conduct a performance 195 auditauditsof the Department of Revenue’s administration of 196 the ad valorem tax laws as described in s. 195.096. The audit 197 report shall report on the activities of the ad valorem tax 198 program of the Department of Revenue related to the ad valorem 199 tax rolls. The Auditor General shall include, for at least four 200 counties reviewed, findings as to the accuracy of assessment 201 procedures, projections, and computations made by the 202 department, using the same generally accepted appraisal 203 standards and procedures to which the department and the 204 property appraisers are required to adhere. However, the report 205 may not include any findings or statistics related to any ad 206 valorem tax roll that is in litigation between the state and 207 county officials at the time the report is issued. 208(j) Once every 3 years, conduct financial audits of the209accounts and records of all district school boards in counties210with populations of 125,000 or more, according to the most211recent federal decennial statewide census.212 (i)(k)Once every 3 years, review a sample ofeach state213agency’sinternal audit reports at each state agency, as defined 214 in s. 20.055(1), to determine compliance with current Standards 215 for the Professional Practice of Internal Auditing or, if 216 appropriate, government auditing standards. 217 (j)(l)Conduct audits of local governmental entities when 218 determined to be necessary by the Auditor General, when directed 219 by the Legislative Auditing Committee, or when otherwise 220 required by law. No later than 18 months after the release of 221 the audit report, the Auditor General shall perform such 222 appropriate followup procedures as he or she deems necessary to 223 determine the audited entity’s progress in addressing the 224 findings and recommendations contained within the Auditor 225 General’s previous report. The Auditor General shall notify 226provide a copy of his or her determination toeach member of the 227 audited entity’s governing body andtothe Legislative Auditing 228 Committee of the results of his or her determination. 229 230 The Auditor General shall perform his or her duties 231 independently but under the general policies established by the 232 Legislative Auditing Committee. This subsection does not limit 233 the Auditor General’s discretionary authority to conduct other 234 audits or engagements of governmental entities as authorized in 235 subsection (3). 236 (3) AUTHORITY FOR AUDITS AND OTHER ENGAGEMENTS.—The Auditor 237 General may, pursuant to his or her own authority, or at the 238 direction of the Legislative Auditing Committee, conduct audits 239 or other engagements as determined appropriate by the Auditor 240 General of: 241 (a) The accounts and records of any governmental entity 242 created or established by law. 243 (b) The information technology programs, activities, 244 functions, or systems of any governmental entity created or 245 established by law. 246 (c) The accounts and records of any charter school created 247 or established by law. 248 (d) The accounts and records of any direct-support 249 organization or citizen support organization created or 250 established by law. The Auditor General is authorized to require 251 and receive any records from the direct-support organization or 252 citizen support organization, or from its independent auditor. 253 (e) The public records associated with any appropriation 254 made by the Legislature to a nongovernmental agency, 255 corporation, or person. All records of a nongovernmental agency, 256 corporation, or person with respect to the receipt and 257 expenditure of such an appropriation shall be public records and 258 shall be treated in the same manner as other public records are 259 under general law. 260 (f) State financial assistance provided to any nonstate 261 entity as defined by s. 215.97. 262 (g) The Tobacco Settlement Financing Corporation created 263 pursuant to s. 215.56005. 264 (h) Any purchases of federal surplus lands for use as sites 265 for correctional facilities as described in s. 253.037. 266 (i) Enterprise Florida, Inc., including any of its boards, 267 advisory committees, or similar groups created by Enterprise 268 Florida, Inc., and programs. The audit report may not reveal the 269 identity of any person who has anonymously made a donation to 270 Enterprise Florida, Inc., pursuant to this paragraph. The 271 identity of a donor or prospective donor to Enterprise Florida, 272 Inc., who desires to remain anonymous and all information 273 identifying such donor or prospective donor are confidential and 274 exempt from the provisions of s. 119.07(1) and s. 24(a), Art. I 275 of the State Constitution. Such anonymity shall be maintained in 276 the auditor’s report. 277 (j) The Florida Development Finance Corporation or the 278 capital development board or the programs or entities created by 279 the board. The audit or report may not reveal the identity of 280 any person who has anonymously made a donation to the board 281 pursuant to this paragraph. The identity of a donor or 282 prospective donor to the board who desires to remain anonymous 283 and all information identifying such donor or prospective donor 284 are confidential and exempt from the provisions of s. 119.07(1) 285 and s. 24(a), Art. I of the State Constitution. Such anonymity 286 shall be maintained in the auditor’s report. 287 (k) The records pertaining to the use of funds from 288 voluntary contributions on a motor vehicle registration 289 application or on a driver’s license application authorized 290 pursuant to ss. 320.023 and 322.081. 291 (l) The records pertaining to the use of funds from the 292 sale of specialty license plates described in chapter 320. 293 (m) The transportation corporations under contract with the 294 Department of Transportation that are acting on behalf of the 295 state to secure and obtain rights-of-way for urgently needed 296 transportation systems and to assist in the planning and design 297 of such systems pursuant to ss. 339.401-339.421. 298 (n) The acquisitions and divestitures related to the 299 Florida Communities Trust Program created pursuant to chapter 300 380. 301 (o) The Florida Water Pollution Control Financing 302 Corporation created pursuant to s. 403.1837. 303 (p) The school readiness system, including the early 304 learning coalitions, created under s. 411.01. 305 (q) The Florida Special Disability Trust Fund Financing 306 Corporation created pursuant to s. 440.49. 307 (r) Workforce Florida, Inc., or the programs or entities 308 created by Workforce Florida, Inc., created pursuant to s. 309 445.004. 310 (s) The corporation defined in s. 455.32 that is under 311 contract with the Department of Business and Professional 312 Regulation to provide administrative, investigative, 313 examination, licensing, and prosecutorial support services in 314 accordance with the provisions of s. 455.32 and the practice act 315 of the relevant profession. 316 (t) The Florida Engineers Management Corporation created 317 pursuant to chapter 471. 318(u) The Investment Fraud Restoration Financing Corporation319created pursuant to chapter 517.320 (u)(v)The books and records of any permitholder that 321 conducts race meetings or jai alai exhibitions under chapter 322 550. 323 (v)(w)The corporation defined in part II of chapter 946, 324 known as the Prison Rehabilitative Industries and Diversified 325 Enterprises, Inc., or PRIDE Enterprises. 326 (w)(x)The Florida Virtual School pursuant to s. 1002.37. 327 (4) SCHEDULING AND STAFFING OF AUDITS.— 328 (a) Each financial audit required or authorized by this 329 section, when practicable, shall be made and completed within 330 not more than 9 months following the end of each audited fiscal 331 year of the state agency or political subdivision, or at such 332 lesser time which may be provided by law or concurrent 333 resolution or directed by the Legislative Auditing Committee. 334 When the Auditor General determines that conducting any audit or 335 engagement otherwise required by law would not be possible due 336 to workload or would not be an efficient or effective use of his 337 or her resources based on an assessment of risk, then, in his or 338 her discretion, the Auditor General may temporarily or 339 indefinitely postpone such audits or other engagements for such 340 period or any portion thereof, unless otherwise directed by the 341 committee. 342 (b) The Auditor General may, when in his or her judgment it 343 is necessary, designate and direct any auditor employed by the 344 Auditor General to audit any accounts or records within the 345 authority of the Auditor General to audit. The auditor shall 346 report his or her findings for review by the Auditor General, 347 who shall prepare the audit report. 348 (c) The audit report when final shall be a public record. 349 The audit workpapers and notes are not a public record; however, 350 those workpapers necessary to support the computations in the 351 final audit report may be made available by a majority vote of 352 the Legislative Auditing Committee after a public hearing 353 showing proper cause. The audit workpapers and notes shall be 354 retained by the Auditor General until no longer useful in his or 355 her proper functions, after which time they may be destroyed. 356 (d) At the conclusion of the audit, the Auditor General or 357 the Auditor General’s designated representative shall discuss 358 the audit with the official whose office is subject to audit and 359 submit to that official a list of the Auditor General’s findings 360 which may be included in the audit report. If the official is 361 not available for receipt of the list of audit findings, then 362 delivery is presumed to be made when it is delivered to his or 363 her office. The official shall submit to the Auditor General or 364 the designated representative, within 30 days after the receipt 365 of the list of findings, his or her written statement of 366 explanation or rebuttal concerning all of the findings, 367 including corrective action to be taken to preclude a recurrence 368 of all findings. 369 (e) The Auditor General shall provide the successor 370 independent certified public accountant of a district school 371 board with access to the prior year’s working papers in 372 accordance with the Statements on Auditing Standards, including 373 documentation of planning, internal control, audit results, and 374 other matters of continuing accounting and auditing 375 significance, such as the working paper analysis of balance 376 sheet accounts and those relating to contingencies. 377 (5) PETITION FOR AN AUDIT BY THE AUDITOR GENERAL.— 378 (a) The Legislative Auditing Committee shall direct the 379 Auditor General to make an audit of any municipality whenever 380 petitioned to do so by at least 20 percent of the registered 381 electors in the last general election of that municipality 382 pursuant to this subsection. The supervisor of elections of the 383 county in which the municipality is located shall certify 384 whether or not the petition contains the signatures of at least 385 20 percent of the registered electors of the municipality. After 386 the completion of the audit, the Auditor General shall determine 387 whether the municipality has the fiscal resources necessary to 388 pay the cost of the audit. The municipality shall pay the cost 389 of the audit within 90 days after the Auditor General’s 390 determination that the municipality has the available resources. 391 If the municipality fails to pay the cost of the audit, the 392 Department of Revenue shall, upon certification of the Auditor 393 General, withhold from that portion of the distribution pursuant 394 to s. 212.20(6)(d)5. which is distributable to such 395 municipality, a sum sufficient to pay the cost of the audit and 396 shall deposit that sum into the General Revenue Fund of the 397 state. 398 (b) At least one registered elector in the most recent 399 general election must file a letter of intent with the municipal 400 clerk prior to any petition of the electors of that municipality 401 for the purpose of an audit. Each petition must be submitted to 402 the supervisor of elections and contain, at a minimum: 403 1. The elector’s printed name; 404 2. The signature of the elector; 405 3. The elector’s residence address; 406 4. The elector’s date of birth; and 407 5. The date signed. 408 409 All petitions must be submitted for verification within 1 410 calendar year after the audit petition origination by the 411 municipal electors. 412 (6) REQUEST BY A LOCAL GOVERNMENTAL ENTITY FOR AN AUDIT BY 413 THE AUDITOR GENERAL.—Whenever a local governmental entity 414 requests the Auditor General to conduct an audit of all or part 415 of its operations and the Auditor General conducts the audit 416 under his or her own authority or at the direction of the 417 Legislative Auditing Committee, the expenses of the audit shall 418 be paid by the local governmental entity. The Auditor General 419 shall estimate the cost of the audit. Fifty percent of the cost 420 estimate shall be paid by the local governmental entity before 421 the initiation of the audit and deposited into the General 422 Revenue Fund of the state. After the completion of the audit, 423 the Auditor General shall notify the local governmental entity 424 of the actual cost of the audit. The local governmental entity 425 shall remit the remainder of the cost of the audit to the 426 Auditor General for deposit into the General Revenue Fund of the 427 state. If the local governmental entity fails to comply with 428 paying the remaining cost of the audit, the Auditor General 429 shall notify the Legislative Auditing Committee. The committee 430 shall proceed in accordance with s. 11.40(5). 431 (7) AUDITOR GENERAL REPORTING REQUIREMENTS.— 432 (a) The Auditor General shall notify the Legislative 433 Auditing Committee of any local governmental entity, district 434 school board, charter school, or charter technical career center 435 that does not comply with the reporting requirements of s. 436 218.39. The committee shall proceed in accordance with s. 437 11.40(5). 438 (b) The Auditor General, in consultation with the Board of 439 Accountancy, shall review all audit reports submitted pursuant 440 to s. 218.39. The Auditor General shall request any significant 441 items that were omitted in violation of a rule adopted by the 442 Auditor General. The items must be provided within 45 days after 443 the date of the request. If the governmental entity does not 444 comply with the Auditor General’s request, the Auditor General 445 shall notify the Legislative Auditing Committee. The committee 446 shall proceed in accordance with s. 11.40(5). 447 (c) The Auditor General shall provide annually a list of 448 those special districts which are not in compliance with s. 449 218.39 to the Special District Information Program of the 450 Department of Community Affairs. 451 (d) During the Auditor General’s review of audit reports, 452 he or she shall contact those units of local government, as 453 defined in s. 218.403, that are not in compliance with s. 454 218.415 and request evidence of corrective action. The unit of 455 local government shall provide the Auditor General with evidence 456 of corrective action within 45 days after the date it is 457 requested by the Auditor General. If the unit of local 458 government fails to comply with the Auditor General’s request, 459 the Auditor General shall notify the Legislative Auditing 460 Committee. The committee shall proceed in accordance with s. 461 11.40(5). 462 (e) The Auditor General shall notify the Governor or the 463 Commissioner of Education, as appropriate, and the Legislative 464 Auditing Committee of any audit report reviewed by the Auditor 465 General pursuant to paragraph (b) which contains a statement 466 that a local governmental entity, charter school, charter 467 technical career center, or district school board has met one or 468 more of the conditions specified in s. 218.503. If the Auditor 469 General requests a clarification regarding information included 470 in an audit report to determine whether a local governmental 471 entity, charter school, charter technical career center, or 472 district school board has met one or more of the conditions 473 specified in s. 218.503, the requested clarification must be 474 provided within 45 days after the date of the request. If the 475 local governmental entity, charter school, charter technical 476 career center, or district school board does not comply with the 477 Auditor General’s request, the Auditor General shall notify the 478 Legislative Auditing Committee. If, after obtaining the 479 requested clarification, the Auditor General determines that the 480 local governmental entity, charter school, charter technical 481 career center, or district school board has met one or more of 482 the conditions specified in s. 218.503, he or she shall notify 483 the Governor or the Commissioner of Education, as appropriate, 484 and the Legislative Auditing Committee. 485 (f) The Auditor General shall annually compile and transmit 486 to the President of the Senate, the Speaker of the House of 487 Representatives, and the Legislative Auditing Committee a 488 summary of significant findings and financial trends identified 489 in audit reports reviewed in paragraph (b) or otherwise 490 identified by the Auditor General’s review of such audit reports 491 and financial information, and identified in audits of district 492 school boards conducted by the Auditor General. The Auditor 493 General shall include financial information provided pursuant to 494 s. 218.32(1)(e) for entities with fiscal years ending on or 495 after June 30, 2003, within his or her reports submitted 496 pursuant to this paragraph. 497 (g) If the Auditor General discovers significant errors, 498 improper practices, or other significant discrepancies in 499 connection with his or her audits of a state agency or state 500 officer, the Auditor General shall notify the President of the 501 Senate, the Speaker of the House of Representatives, and the 502 Legislative Auditing Committee. The President of the Senate and 503 the Speaker of the House of Representatives shall promptly 504 forward a copy of the notification to the chairs of the 505 respective legislative committees, which in the judgment of the 506 President of the Senate and the Speaker of the House of 507 Representatives are substantially concerned with the functions 508 of the state agency or state officer involved. Thereafter, and 509 in no event later than the 10th day of the next succeeding 510 legislative session, the person in charge of the state agency 511 involved, or the state officer involved, as the case may be, 512 shall explain in writing to the President of the Senate, the 513 Speaker of the House of Representatives, and to the Legislative 514 Auditing Committee the reasons or justifications for such 515 errors, improper practices, or other significant discrepancies 516 and the corrective measures, if any, taken by the agency. 517 (h) The Auditor General shall annually compile and transmit 518 to the President of the Senate, the Speaker of the House of 519 Representatives, and the Legislative Auditing Committee by 520 December 1 of each year a report that includes a projected 2 521 year work plan identifying the audit and other accountability 522 activities to be undertaken and a list of statutory and fiscal 523 changes recommended by the Auditor General. The Auditor General 524 may also transmit recommendations at other times of the year 525 when the information would be timely and useful for the 526 Legislature. 527 (8) RULES OF THE AUDITOR GENERAL.—The Auditor General, in 528 consultation with the Board of Accountancy, shall adopt rules 529 for the form and conduct of all financial audits performed by 530 independent certified public accountants pursuant to ss. 531 215.981, 218.39, 1001.453, 1004.28, and 1004.70. The rules for 532 audits of local governmental entities, charter schools, charter 533 technical career centers, and district school boards must 534 include, but are not limited to, requirements for the reporting 535 of information necessary to carry out the purposes of the Local 536 Governmental Entity, Charter School, Charter Technical Career 537 Center, and District School Board Financial Emergencies Act as 538 stated in s. 218.501. 539 (9) TECHNICAL ADVICE PROVIDED BY THE AUDITOR GENERAL.—The 540 Auditor General may provide technical advice to: 541 (a) The Department of Education in the development of a 542 compliance supplement for the financial audit of a district 543 school board conducted by an independent certified public 544 accountant. 545 (b) Governmental entities on their financial and accounting 546 systems, procedures, and related matters. 547 (c) Governmental entities on promoting the building of 548 competent and efficient accounting and internal audit 549 organizations in their offices. 550 Section 2. Section 25.075, Florida Statutes, is amended to 551 read: 552 25.075 Uniform case reporting system.— 553 (1) The Supreme Court shall develop a uniform case 554 reporting system, including a uniform means of reporting 555 categories of cases, time required in the disposition of cases, 556 and manner of disposition of cases. 557 (2) If any clerkshallwillfully failsfailto report to 558 the Supreme Court as directed by the court, the clerk shall be 559 guilty of misfeasance in office. 560(3) The Auditor General shall audit the reports made to the561Supreme Court in accordance with the uniform system established562by the Supreme Court.563 Section 3. Subsection (5) of section 28.35, Florida 564 Statutes, is amended to read: 565 28.35 Florida Clerks of Court Operations Corporation.— 566 (5)(a) The corporation shall submit an annual audited567financial statement to the Auditor General in a form and manner568prescribed by the Auditor General. The Auditor General shall569conduct an annual audit of the operations of the corporation,570including the use of funds and compliance with the provisions of571this section and ss.28.36and28.37.572(b)Certified public accountants conducting audits of 573 counties pursuant to s. 218.39 shall report, as part of the 574 audit, whether or not the clerks of the courts have complied 575 with the requirements of this section and s. 28.36. In addition, 576 each clerk of court shall forward a copy of the portion of the 577 financial audit relating to the court-related duties of the 578 clerk of court to the Supreme Court. The Auditor General shall 579 develop a compliance supplement for the audit of compliance with 580 the budgets and applicable performance standards certified by 581 the corporation. 582 Section 4. Subsection (7) of section 195.096, Florida 583 Statutes, is repealed. 584 Section 5. Subsection (17) of section 218.31, Florida 585 Statutes, is amended to read: 586 218.31 Definitions.—As used in this part, except where the 587 context clearly indicates a different meaning: 588 (17) “Financial audit” means an examination of financial 589 statements in order to express an opinion on the fairness with 590 which they are presented in conformity with generally accepted 591 accounting principles and an examination to determine whether 592 operations are properly conducted in accordance with legal and 593 regulatory requirements. Financial audits must be conducted in 594 accordance with auditing standards generally accepted in the 595 United Statesauditing standardsand government auditing 596 standards as adopted by the Board of Accountancy and as 597 prescribed by rules promulgated by the Auditor General. When 598 applicable, the scope of financial audits shall encompass the 599 additional activities necessary to establish compliance with the 600 Single Audit Act Amendments of 1996, 31 U.S.C. ss. 7501-7507 and 601 other applicable federal law. 602 Section 6. Subsection (5) of section 273.05, Florida 603 Statutes, is amended to read: 604 273.05 Surplus property.— 605 (5) The custodian shall maintain records of property that 606 is certified as surplus with information indicating the value 607 and condition of the property. Agency records for property 608 certified as surplus shall comply with rules issued by the Chief 609 Financial OfficerAuditor General. 610 Section 7. Subsection (3) of section 365.173, Florida 611 Statutes, is repealed. 612 Section 8. Subsection (3) of section 943.25, Florida 613 Statutes, is repealed. 614 Section 9. Subsection (3) of section 1002.36, Florida 615 Statutes, is amended to read: 616 1002.36 Florida School for the Deaf and the Blind.— 617 (3) AUDITS.—The Auditor General shall conductannualaudits 618 of the accounts and records of the Florida School for the Deaf 619 and the Blind as provided in s. 11.45. The Department of 620 Education’s Inspector General is authorized to conduct 621 investigations at the school as provided in s. 1001.20(4)(e). 622 Section 10. Subsection (5) of section 1009.53, Florida 623 Statutes, is amended to read: 624 1009.53 Florida Bright Futures Scholarship Program.— 625 (5) The department shall issue awards from the scholarship 626 program annually. Annual awards may be for up to 45 semester 627 credit hours or the equivalent. Before the registration period 628 each semester, the department shall transmit payment for each 629 award to the president or director of the postsecondary 630 education institution, or his or her representative, except that 631 the department may withhold payment if the receiving institution 632 fails to report or to make refunds to the department as required 633 in this section. 634 (a) Within 30 days after the end of regular registration 635 each semester, the educational institution shall certify to the 636 department the eligibility status of each student who receives 637 an award. After the end of the drop and add period, an 638 institution is not required to reevaluate or revise a student’s 639 eligibility status; however, an institution must make a refund 640 to the department within 30 days after the end of the semester 641 of any funds received for courses dropped by a student or 642 courses from which a student has withdrawn after the end of the 643 drop and add period, unless the student has been granted an 644 exception by the department pursuant to subsection (11). 645 (b) An institution that receives funds from the program 646 shall certify to the department the amount of funds disbursed to 647 each student and shall remit to the department any undisbursed 648 advances within 60 days after the end of regular registration. 649 (c) Each institution that receives moneys through this 650 program shall provide for aprepare an annual report that651includes an annualfinancial audit, as defined in s. 11.45, 652 conducted by an independent certified public accountant or the 653 Auditor General for each fiscal year in which the institution 654 expends program moneys in excess of $100,000. At least every 2 655 years, the auditreportshall include an examinationauditof 656 the institution’s administration of the program and the 657 institution’sa completeaccounting of the moneys for the 658 program since the last examination of the institution’s 659 administration of the program. TheThisreport on the audit must 660 be submitted to the department within 9 months after the end of 661 the fiscal yearannually by March 1. The department may conduct 662 its own annual audit of an institution’s administration of the 663 program. The department may request a refund of any moneys 664 overpaid to the institution for the program. The department may 665 suspend or revoke an institution’s eligibility to receive future 666 moneys for the program if the department finds that an 667 institution has not complied with this section. The institution 668 must remit within 60 days any refund requested in accordance 669 with this subsection. 670 (d) Any institution that is not subject to an audit 671 pursuant to this subsection shall attest, under penalty of 672 perjury, that the moneys were used in compliance with law. The 673 attestation shall be made annually in a form and format 674 determined by the department. 675 Section 11. For the purpose of incorporating the amendment 676 made by this act to section 11.45, Florida Statutes, in a 677 reference thereto, subsection (3) of section 11.40, Florida 678 Statutes, is reenacted to read: 679 11.40 Legislative Auditing Committee.— 680 (3) The Legislative Auditing Committee may direct the 681 Auditor General or the Office of Program Policy Analysis and 682 Government Accountability to conduct an audit, review, or 683 examination of any entity or record described in s. 11.45(2) or 684 (3). 685 Section 12. This act shall take effect July 1, 2011.