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Home My WebLink About2000 12 11 Regular E RFP for Audit Services COMMISSION AGENDA ITEM E CONSENT INFORMATIONAL PUBLIC HEARING REGULAR x Meeting MGR (VIDEPT ';;i ~ Authorization December 11, 2000 REQUEST: The Commission authorize the formation of a 3 member Audit Selection Committee, authorization for the City Manager to issue an RFP for Audit Services in compliance with the Competitive Auditor Selection Procedures set forth in Florida Statutes Section 11.45(3)(a) 6 and 7 (Competitive Negotiations Act) and authorization for the City Manager to negotiate a contract for Audit Services for review and approval by the Commission. PURPOSE: To authorize the City Manager to form an Audit Committee, issue an RFP for Audit Services and negotiate a contract for review and approval by the Commission. CONSIDERATIONS: . Deloitte & Touche elected not to renew our contract for FY 00 audit services as they are reducing their Public Service Sector business. . Pursuant to Section 11.45(3)(a) 6, Florida Statutes, the governing body of a municipality, special district, or charter school must establish an "auditor selection committee" and "competitive auditor selection procedures. FUNDING: Audit fee is currently budgeted in both the General Fund and the Enterprise Fund. RECOMMENDATION: The Finance Department recommends the: 1. Formation of a 3 member Audit Selection Committee comprised ofthe City Manager, Finance Director, and the General Services Director. 2. Issuance of an RFP. 3. City Manager negotiate a contract, subject to Commission approval, for Audit Services based on Audit Selection Committee recommendation. IMPLEMENTATION: . Week of December 4th - Finance Director place general ad in paper, place RFP on Demand Star, send out RFP's to those firms currently doing audits for the local cities in Seminole County, send out RFP's to those audit firms in the OBJ Book of Lists that reference governmental specialties. . Week of December 4th - Finance Director prepares evaluation scoresheet for use by committee members when reviewing proposals. Criteria to use includes 'such things as local presence, governmental experience with Cities of similar size, credentials of staff auditors, ability to meet Cities timeline... . I Friday, December 29th - Proposals due to City from audit firms. . Week of January j't - Committee members independently review proposals and prepare rankings. . Monday, January Sh - Committee members come together to review the results of the members independent review of the proposals, and selects five firms to make oral presentations to the committee. . Monday, January 8th - Schedule oral presentations. . Week of January 91h - January 17th - Conduct oral presentations. . Wednesday, January 17h - The committee selects and ranks three of the five firms that made orals presentations to begin negotiations with. . Thursday, January 18th -City Manager begin negotiations including fee with the #1 rankedfirmfirst. Ifunable to reach agreement, negotiations with the #1 rankedfirm is terminated and negotiations with the #2 firm commence and so forth. If negotiations fail with the first 3 firms, the committee is free to begin negotiations with the remaining firms in ranking order. . Monday, January22nd - Make recommendation to the Commission and gain approval to sign contract for audit services. ATTACHMENTS: Florida Statute Section 11.45(3)(a) 6 and 7 Section 4.12 of the City Charter "Independent Audits" . COMMISSION ACTION: TI/I._._ ----^'~..... ':::.':;.~ Ch.1J.__._~GIS!:ATIVE 9RGANIZATION, PROCEDURES, AND STAFFING F.S. 1999 HisIOry.-S. 3. eh. 67..no; s. J. eh. '69.0f?: s, I. ell, 06.217: 5.1. eh, 91.162; s. t. eh. 9<1 .;122: ~ 1300. ell. 9~.147: s. 2. eh. 95.395: s. 24. eh. 9G.) 10; s. I. eh. 97.2: s. 11. elt 97.1~)(). s. t. ell !J~.<1: 50 2. ell 9!J.JJ;1. NOlc.-Fnll1\t~1 ~ II InJ ~Cfinitions; duties; <Judits; reports.-- ~used in this section. the lerm: (a) "County agency'" for the cxclusivc purposcs 01 this section. mcans a board 01 county commissioners or other legislative and governing body of a county, however styled, including that of a consolidated or met- ropolitan government, a clerk of thc circuit court, a sep- arate or ex officio clerk of IIle county court, a sheriff, a property appraiser, a tax collector, a supervisor of elec- tions, or any other officer in whom any portion of the lis- cal duties of the above are under law separately placed. Each county agency is a local governmental entity for purposes of subparagraph (3)(a)4. (b) "Financial audit" means an examination of financial statements in order to express an opinion on the fairness with which they present financial position, results of operations, and changes in financial position in conformity with generally accepted accounting prin- ciples and an examination to determine whether opera- tions are properly conducted in accordance with legal and regulatory requirements. Financial audits must be conducted in accordance with generally accepted auditing standards and governmental auditing stand- ards as adopted by the Board of Accountancy. (c) "Governmental entity" means a state agency, a county agency, or any other entity, however styled, 1I1at independently exercises any type of state or local gov- ernmental function. (d) "Local governmental entity" means a county agency, municipality, or special district as defined in s. 189.403, but does not include any housing authority established under chapter 421. (e) "Management leller" means a statement of the auditor's comments and recommendations. (f) "Operational audit" means a financial-related audit whose purpose is to evaluate management's per. formance in administering assigned responsibilities in accordance with applicable laws, administrative rules, and other guidelines and to determine the extent to which the internal control, as designed and placed in operation, promotes and encourages Ihe achievement of management's control objectives in the categories of compliance, economic and efficient operations, reliabil- ity of financial records and reports, and safeguarding of assets. (g) "Performance audit" means an examination of a program, activity, or function of a governmental entity, conducted in accordance with applicable government auditing standards or auditing and evaluation stand- ards of other appropriate authoritative bodies. The term includes an examination of issues related to: 1. Economy, efficiency, or effectiveness of the program. 2. Structure or design of the program to accom- plish its goals and objectives. 3. Adequacy of the program to meet the needs identified by the Legislature or governing body. 4. Alternative methods of providing program ser- vices. or products. 5. Goals, objectives, and performance measures used by the agency to monitor and report program :,,""....' accomplishments. . G. The accuracy or adequ3cy 01 public documents, reports. or requests prepared under the program by state agencies. 7. Compliance 01 the program wiih appropriate policies, rules, or laws. 8. Any other issues related to governmental enti- ties as directed by the Legisl3tive Auditing Committee. (h) "Political subdivision" means a separate agency or unit 01 local government cre3ted or established by law and includes, but is not limited to, the following and the officers thereof: authority, board, branch, bureau, city, commission, consolidated government, county, department, district, institution, metropolitan govern- ment, municipality, office, officer, public corporation, town, or village. (i) "State agency" means a separate agency or . unit of state government created or established by law" and includes, but is not limited to, the following and the' officers thereof: aulhority. board, branch, bureau, como' mission, department, division, institution, office. officer, or public corporation, as the case may be, except any:' such agency or unit other than the Florida Public-Ser- . vice Commission within the legislative branch of state government. ". (2) The Auditor General shall make financial audits and performance audits of public records and perform related duties as prescribed by law or concurrent reso- lution of the Legislature. The Auditor General shall per- form his or her duties independently but under the gen- eral policies established by the Legislalive Auditing Commitlee. (3)(a) 1. The Auditor General shall annually make financial audits of the accounts and records of all state agencies, as defined in this section, of all district school boards in counties with populations of fewer than :. 125,000, according to the most recent federal decen2 : nial statewide census, and of all district boards of trust- ees of community colleges. Tile Auditor General shall,:. at least every other year, make operational audits of th~ ~ accounts and records of all state agencies, as defined '; in this section. The Auditor General shall, at least once.t every 3 years. make financial audits of the accounts); and records of all district school boards in counties witl1J populations of 125,000 or more. For each 01 the 2 yea.~~ that the Auditor General does not make the finanCial.. . audit, each district school board shall contract for ~~ . independent certified public accountant to perform';ll financial audit as defined in paragraph (1 )(b). This s8.0 tion does not limit the Auditor General's discretionary authority to conduct performance audits of these gq-h ernrnental entities as authorized in subparagraph 3/~ district school board may select an independent cerfh lied public accountant to perform a financial audit:~ defined in paragraph (1)(b) notwithstanding the notlfi;: cation provisions of this section. In addition, a dist~ school board may employ an internal auditor to perfor;m ongoing financial verification of the financial records~ a school district, who must report directly to the dist '.-' school board or its designee. The Auditor Gene@ shall, at a minimum. provide to the successor E:.S. 1999 .' . - ----~_._-- ....._..~..... "'--r - ----- ...-- ._. .n n.. _ n n results, :::-: '-=~~:::: =;; ~ sis oj bClicll t;nn'::'nrip~ ....:;]-- - - -- 2. E- 228.056 the end of nlHlIlI ,....--p------ The ", selected . ChClI it:/ =: L 0_ .aL_ .' -. ,..... ."- -.--.- tion, and . ....._. ..~ wooo ..--_. - - r his VI :._. .:. I __:_1_.:...... :...~::;~-=.-::-.. -- cildllt::1 "::-' :,. 3. The fin-ftn(:i;:ii ~IJ( and records ant to law. . must be :::; General, '..:~ Committee, way authorit annual finan completed 'A year. If the requirement, board. the e) pursuant to ~ 4. The ( ernment Ace General she audits of stat audit of a ste Analysis and priate. shall if accomoJishin Such a'/terna! if appropriate ernmental un 5. If by , board or loce lied that a fin. 'ormed by subparagrapl nues or exp( speCIal distric more than $51 each district ~ financial audi pleted. within "scal year, by ant retained I Independent ( 10 perform an 20G ~~ !r1ormance measUl.... and report progr,,~' , of public documer,', !"Ider the program t:, am with appropria:.: :0 governmental en' Auditing Com millE;: ns a separate agen,', :ed or established t, Ito, the fOllowing ar.: ard, branch, bureil. ~overnment, COun:. netropolitan gover:' " public corporalio' separate agency; )r established by I;::. the following and Ii'. lranch, bureau, cor itution, office, office. may be, except ill". e Florida Public Sc:' ative branch of sf~:. nake financial audr records and perlor" v or concurrent reSt or General shall pc. Iy but under the gel" Legislative Audilin: shall annually mak.: d records of all slali- I, of all district schor :ions of fewer thilf ~cent federal deeen. strict boards of trusi. uditor General shall 'rational audits of the. Igencies, as definec tI shall, at least onc;' Jits of the account; 3rds in counties will' r each of the 2 years : make the finaneia: ;hall contract for ar. Jntant to perlorm (. 3ph (1)(b). This sec leral's discretiona~: 3udits of these oov' subparagraph 3. A I independent certl' a financial audit as Istanding the noliti: 1 addition, a district 3/ auditor to perlornl financial records of irectly to the district ,e Auditor General to the successor ~ ~ LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING eh,11 ~ndent certified public accountant of a district must report directly to the district school board or its ~ bOard the prior year's working papers, including designee. A management letter must be prepared and dOCumentation of planning, internal control, audit included as a part of each financial audit report. Each ~. and other mailers of continuing. accounting and local government finance commission, board, or coun- ou6ting significance, such as the working paper analy- cil, and each municipal power corporation, created as oJISoI balance sheet accounts and those relating to con- a separate legal or administrative entity by interlocal angeocies. agreement under s. 163.01 (7), shall provide the Auditor 2. Each charter school established under s. General, within 12 months after the end of its fiscal m.056 shall have an annual financial audit of its year, with an annual financial audit report of its O(COUnts and records completed within 12 months after accounts and records and a wrillen statement or expla- ItlO end of its fiscal year by an independent certified nation or rebullal concerning the auditor's comments, P'JbIic accountant retained by it and paid from its funds. including corrective action to be taken. The county The independent certified public accountant who is audit shall be one document that includes a separate 6-Il/cCted to perform an annual financial audit of the audit of each county agency. The county audit must cNrter school shall provide a copy of the audit report include an audit of the deposits into and expenditures ro the district school board, the Department of Educa- from the Public Records Modernization Trust Fund. !)(j(l. and the Auditor General. A management leller The Auditor General shall tabulate the results of the must be prepared and included as a part of each finan- audits of the Public Records Modernization Trust Fund (..11 audit report. The Auditor General may, pursuant to and report a summary of the audits to the Legislature rlls or her own authority or at the direction of the JOint~IY, legislative Auditing Commillee, conduct an audit of a 6. The governing body of a municipality, special cn.lrter school. . trict, or charter school must establish an auditor 3. The Auditor General may at any time make selection committee and competitive auditor selection hnancial audits and performance audits of the accounts procedures. The governing board may elect to use its .1nd records of all governmental entities created pursu- own competitive auditor selection procedures or the .1ntto law. The audits referred to in this subparagraph aedures outlined in subparagraph 7. must be made whenever determined by the Auditor 7 The governing body of a noncharter county or ~ G(!ner~I, whenever directed by t~e Legislative Auditing strict school board that retains a cert!fied publ.ic Committee, or whenever otherwIse required by law or accountant must establish an auditor selection commlt- concurrent resolution. A district school board, express- tee and select an independent certified public account- "Nay authority, or bridge authority may require that the ant according to the following procedure: .1nnual financial audit of its accounts and records be a. For each noncharter county, the auditor selec- completed within 12 months after the end of its fiscal tion committee must consist of the county officers . year. If the Auditor General is unable to meet that elected pursuant to s. 1 (d), Art. VIII of the State Consti- requirement, the Auditor General shall notify the school tution. and one member of the board of county com mis- board, the expressway authority, or the bridge authority sioners or its designee. Pursuant to subparagraph 5. b. The committee shall publicly announce, in a 4. The Office of Program Policy Analysis and Gov- uniform and consistent manner, each occasion when ernment Accountability within the Office of the Auditor auditing services are required to be purchased. Public General shall maintain a schedule of performance notice must include a general description of the audit .1udltS of state programs. In conducting a perlormance and must indicate how interested certified public audit o! a state program, the Office of Program Policy accountants can apply for consideration. AnalYSIS and Government Accountability, when appro- c. The committee shall encourage firms engaged pnate, shall identify and comment upon alternatives for in the lawful practice of public accounting who desire to accomplishing the goals of the program being audiled. provide professional services to submit annually a Such alternatives may include funding techniques and, slatement of qualifications and perlormance data. " appropriate, must describe how other states or gov- d. Any certified public accountant desiring to pro- emmentaf units accomplish similar goals. vide auditing services must first be qualified pursuant to 5. It by July 1 irl any fiscal year a district school law. The committee shall make a finding that the firm or board or local governmental entity has not been noti- individual to be employed is fully qualified to render the lied that a financial audit for that fiscal year will be per- required services. Among the factors to be considered formed by the Auditor General pursuant to in making this finding are the capabilities, adequacy of Subparagraph 3.. each municipality with either reve- personnel, past record, and experience of the firm or nues or expenditures of more than $100.000. each individual. speCial district with either revenues or expendilures of e. The commillee shall adopt procedures for the ~ore t~an.$50,oOO, and each county agency shall. and evaluation of proIessional services, including, but not fiach ?,stnct school board may, require thai an annual limited to, capabilities, adequacy of personnel, past nanclal audit of its accounts and records be com- record, experience, results of recent external quality fleted. within 12 months after the end of its respective control reviews, and such other factors as may be lseal year, by an independent certified public account- determined by the commillee to be applicable to its par- ~nt retained by it and paid from its public funds. An ticular requirements. :ndependent certified public accountant who is selected f. The public must not be excluded from the pro- o perform an annual financial audit of a school district ceedings under this subparagraph. ~ 207 - Ch.11 LEGISLATIVE ORGANIZATION, PROCEDURES, AND_.?TAFFING F.S. 1999 - g. The commillee shall evaluate current. state- ments of qualifications and performance data on file with the commillee, together with those that may be submilled by other firms regarding the proposed audit, and shall conduct discussions with, and m<lY require public presenlalions I)y, no fewer than three lirms regarding their qualific<ltions, approach to the audit and <lbitity to furnish the required services. h. The commillee shall select no fewer than three firms deemed to be the most highly qualified to perform the required services alter considering such factors as the ability of professional personnel; past performance; willingness to meet time requirements: location; recent, current, and projected workloads of the firms: and the volume of work previously awarded to the firm by the agency, with the object of effecting an equitable distri- bution of contracts among qualified firms, provided such distribution does not violate the principle of selec- tion of the most highly qualified firms. If fewer than three firms desire to perform the services, the commit- tee.shall recommend such firms as it determines to be qualified. I. If the governing board receives more than one proposal for the same engagement, the board may rank, in order of preference, the firms to perform the engagement. The firm ranked first may then negotiate a contract with the board giving, among other things, a basis of its fee for thai engagement. If the board is unable to negotiate a satisfactory contract wilh that firm, negotiations with that firm shall be formally termi- nated, and the board shall then undertake negotiations with the second-ranked firm. Failing accord with the second-ranked firm, negotiations shall then be termi- nated with that firm and undertaken with the third- ranked firm. Negotiations with the other ranked firms shall be undertaken in the same manner. The board, in negotiating with firms, may reopen formal negotiations with anyone of the three top-ranked firms. but it may not negotiate with more than one firm at a time. The board shall also negotiate on the scope and quality of services. In making suct) determination. the board shall conduct a detailed analysis of the cost of the profes- sional services required in addition to considerin their scope and complexit. or c cts over $50,000, the rd shall requ e e firm receiving the award to exe- cute a truth-in-negotiation certificate stating that the rates of compensation and other factual unit costs sup- porting the compensation are accurale, complete. and current at the time of contracting. Such certificate shall also contain a description and disclosure of any under- standing that places a limit on current or future years' audit contract fees, including any arrangements under which fixed limits on fees will not be subject to reconsid- eration if unexpected accounting or auditing issues are encountered. Such certificate shall also contain a description of any services rendered by the certified public accountant or lirm of certified public accountants at rates or terms that are not customary. Any auditing service contract under which such a certificate is required must contain a provision that the original con- tract price and any additions thereto shall be adjusted exclude any significant sums by which the board determines the contract price W<lS increased due to inaccurate or incomplete factual unit costs. All SUch contracl adjuslments shall be made within 1 year 101. lowing the end of the conlract. j. If the board is unable to negotiate <I satisfactory contr~lcl with nny of Ihe selected firms, the committee shall select nddilion<1I Illms. 'Jnd the bomd shall cOn. linuc negotiatiolls ill accordnnce wilh this subsection until nn [I( reement is reached. AI thc conclusion 01 the au II ield work, the II1dependenl certified public accountant shall discuss with the head of each local governmental entity or the chair's designee or wilh the chair of the district SchOOl board or 1118 chair's designee, or with the chair of the board of the chnrter school or the chair's designee. as appropriate, all 01 the auditor's comments that will be included in the audit report. If the officer is not available to discuss the auditor's comments, their discussion is presumed when the comments are delivered in writing 10 his or her office. The auditor shall notify each memo ber of ~he governing body of a .Iocal governme~tal entity for which deteriorating frnanclal conditions eXist which may cause a condition described in s. 218.503(1) to occur if actions are not taken to address such condi- tions. 9. The officer's written statement of explanation 01 rebuttal concerning the auditor's comments, including corrective action 10 be taken, must be filed with the gov- erning body of the local governmental entity, district school boarct, or charter school within 30 days after the delivery olthe financial audit report. to. The Auditor General, in consultation with the Board of Accountancy. shall adopt rules for the lorm and conduct 01 all financial audits subject to this section and conducted by independent certified public accoun- tants. The Auetilor General, in consultation with the Department of Eclucation, shall develop a compliance supplement for Ole financial audit of a district school board conducted by an independent certified public accounlant. The rules lor audits of local governmental entities and district school boards must include, but are nollimited la, requirements for the reporting of informa. tion necessary to carry out the purposes of the Local Government Financial Emergencies Act as stated in s. 2t8.501. 11. Any local governmental entity or district school board financial audit report required under subparagraph 5. or charter school financial audit report required under subparagraph 2. and the officer's writ- ten statement of explanation or rebuttal concerning the auditor's comments, including COrrective action to be taken, must be submitted to the Auditor General within 45 days after delivery of the audit report to the local governmental entity, district school board, or charier school, but no laler than 12 months alter the end of the fiscal year. II the Auditor General does not receive the financial audit report within the prescribed period, he 01 she must notify the Legislative Auditing Committee that the governmental entity or charter school has not corn- plied with this subparagraph. Following notification of failure to submit the required audit report or items required by rule adopted by the Auditor General, a hearing must be scheduled by rule of the committee. Alter the hearing. the committee shall determine which 208 f.S. 1999 --- governmental . ....J i_' -oL J""""'- - go.ver~~~_t~1 a. :n :he. !rict school ' v....,... ~. ~-____._I ~ -:JV' - ~;,-:~:~-,,=-~?! ~._..=-~:: :. b. In the, Depal1ment of ( :ricl has failed :cceipt of (Il)iiii, Affairs shall -;- 189.422. 12.a. '-L.. - A 30ard of Accou submitted pursu 3eneral shall re )mitted in violal Jeneral. The ite after Ihe date O' joes not receive 10tify the Joint L' b. The Audit 3nd the Joint Le 3udit repon revi, :ontains a stalerr ;f district school ;ency as provide, 1 reviewing any i '1ation which in! :nlily or district sc :;al emergency a :;eneral shall reQ; )Cal government '~quesled cfaritici :ller the dale 01 joes not receive' ihafl notify the Joi :fter obtaining th! Jcneral determin, )r district school 1 ;~ncy as providee :'1c Governor and ."iltee. c. The Audito :ransmit to the Pre . :'le House of Repr. ~uditing COmmittE 3nd financial trend "'ental entities, c ichools periormec 3Ccountants. 13. In conduc 3gency, the Audito ::gic Plan 01 the ae ,: the agency. . . (b) The Legisla .he AUditor Gener. -:Junicipality whene :ercenl of the elecl. .... ........pI/' F.S.1999 ;. All such year to I. ;atisfactory committee I shall con. subsection j work, the nail discuss entity or the strict school chair 01 the Jesignee. as ; that will be not available jiscUSSion is red in writing y each memo Imental entity s exist which ~18.503(1) to 3 such condi. ~xplanation or lnts, including j with the gov, entity, district days after thE :ation with thE: 's lor the lorm t to this section public accoun' tation with thE: ) a compliancE . district sell00 certified publiC II governmentc. include, but arc rting of inform;;'. ;es of the Locc. ;t as stated in ~ )r district schOO' lquired unde: ~cial audit repor: :he ollicer's wri:' II concerning Ihe tive action 10 bE )r General wilhl~ lport to the local )oard, or cllartel ter the end ollhE lS not receive thE ibed period. Ile 0', Ig Committee 1110' ~ool has not com' 'jng notification- o~ \ report or Itefll- uditor General, a 01 the commitleeh II determine WhlC LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING Ch.11 F.S. 1999 governmental entities or charter schools will be sub- jected to lurther state action. If it finds that one or more governmental entities or charter schools should be subjected to further state action, the committee shall: a. In the case of a local governmental entity, dis- trict school board, or charter school, request the Department of Revenue and the Department of Bank- ing and Finance to withhold any funds payable to such governmental entity or charter school until the required financial audit is received by the Auditor General. b. In the case of a special district, notify the Department of Community Allairs that the special dis- trict has failed to provide the required audits. Upon receipt of notification, the Department of Community Allairs shall proceed pursuant to sS. 189.421 and 189.422. 12.a. The Auditor General, in consultation with the Board of Accountancy, shall review all audit reports submitted pursuant to subparagraph 11. The Auditor General shall request any significant items that were omilled in violation of a rule adopted by the Auditor General. The items must be provided within 45 days after the date of the request. If the Auditor General does not receive the requested items, he or she shall notify the Joint Legislative Auditing Commillee. b. The Auditor General shall notify the Governor and the Joint Legislative Auditing Committee 01 any audit report reviewed by the Auditor General which contains a statement that the local governmental entity or district school board is in a state of financial emer- gency as provided in s. 218.503. If the Auditor General, in reviewing any audit report, identifies additional infor- mation which indicates that the local governmental entity or district school board may be in a state of finan- cial emergency as provided in S. 218.503, the Auditor General shall request appropriate clarification from the local governmental entity or district school board. The requested clarification must be provided within 45 days after the date of the request. If the Auditor General does not receive the requested clarification, he or she shall notify the Joint Legislative Auditing Commillee. If, after obtaining the requested clarification, the Auditor General determines that the local governmental entity or district school board is in a state of financial emer- gency as provided in s. 218.503, he or she shall notify th~ Governor and the Joint Legislative Auditing Com- mittee. C. The Auditor General shall annually compile and transmit to the President of the Senate, the Speaker of the House of Representatives, and the Joint Legislative AUditing Commillee a summary of significant findings and financial trends identified in audits 01 local govern- mental entities, district school boards, and charter SChools performed by the independent certified public aCCountants. 13. In conducting a performance Lludit of <:lny ~9~ncy, the Auditor General shall use the Agency Stra. o(llC Plan of the agency in evaluating the performance the agency. 111 (b) The Legislative Auditing Commillee shall direct III e ~~d'tor General to make a financial audit of any PeUl)lClpahty whenever petitioned to do so by at least 20 rcent olthe electors of that municipality. The supervi- l sor of elections of the county in which the municipality is located shall certify whether or not the petition con- tains the signatures of at least 20 percent of the elec- tors 01 the municipality. After the completion of the audit, the Auditor General shall determine whether the municipality has the fiscal resources necessary to pay the cosl of the audit. The municipality shall pay the cost of the audit within 90 days after the Auditor General's determination that the municipality has the available resources. If the municipality faifs to pay the cost of the audit, the Department of Revenue shall, upon certifica- tion of the Auditor General, withhold from that portion of the municipal financial assistance trust fund for munici- palities which is derived from thecigarelle tax imposed under chapter 210, and which i:; distributable to such municipality, a sum sufficient to pay the co~t of the audit and shall deposit that sum into the General Revenue Fund 01 the state. (c) The Auditor General shall at least every 2 years make a performance audit of the local government financial reporting system, which, for the purpose 01 this chapter. means the reporting provisions of this sub- section and subsection (4); s. 27.3455(1) and (2); part VII of chapter 112; s. 163.05; s. 166.241; chapter 189; parts III and V of chapter 218; and S. 925.037(5). The performance audit shall analyze each component 01 the reporting system separately and analyze the report- ing system as a whole. The purpose of such an audit is to determine the accuracy, efficiency, and effective- ness 01 the reporting system in achieving its goals and objectives and to make recommendations to the local governments, the Governor, and the Legislature as to how the reporling system can be improved and how program costs can be reduced. Such goals and objec- tives must include, but need not be limited to, the timely, accurate, uniform, and cost-effective accumula- tion of financial and other information that can be used by the members of the Legislature and other appropri- ate officials in order to: 1. Compare and contrast revenue sources and expenditures of local governmental entities; 2. Assess the fiscal impact of the formation, disso- lution. and activity of special districts; 3. Evaluate the liscal impact of state mandates on local governmental entities; 4. Assess financial or economic conditions 01 local governmental entities; and 5. Improve communication and coordination among state agencies and local governmental entities. (d) Whenever a local governmental entity requests the Auditor General to conduct an audit of all or parl of its operations and the Auditor General conducts the Lludil under his or her own authority or at the direction of the Legislative Auditing Committee, the expenses 01 the audit shall be paid by the local governmental entity. The Auditor Gcneral shall estimate the cost of the audit. Filly pcrcent of Ihe cost estimate shall be pLlid by the local governmental entity before the initiation of the Lludit and deposited into the General Revenue Fund of Ihe slate. After the completion of the audit, the Auditor Gener<:11 shall forward the actual cost of the audit to the local governmental entity. The local governmental entity shall remil the remainder of the cost of the audit 209 :~ :'~~~ F.S.1999';' F.S. 1999 ~-- Ch.l1 LEGISLATlYE ORGANI~:!.ION~_OCEDURES, AND STAFFING to the Auditor General for deposit into the General liev- enue Fund of the slate. 11 the local governmental entity fails to pay the cost of the audit, the Auditor Gener<ll shall notify the Legislative AlIdilinu Comllliltec. Follow. ing the notification. the comlllitlcC I1wy ~;cI1ecJlIle <I hearing. Alter the hearing. the cOlllmiltee Sh;ll1 delcr. mine if the local governmental entity should l)e subject to further state action. If the cOlllllliltee determines lliat the local governmental entity should t)(~ subjecl to fur- ther state action, the commiltee shall: 1. In the case of a local governmental entity. request the Department 01 Revenue and the Dep<lrt- ment of Banking and Finance to withhold any lunds payable to the governmental entity until the required payment is received by the Auditor General. 2_ In the case of a special district. notify the Department of Community Alfairs that the speciJI dis- trict has failed to pay for the cost of the audit. Upon receipt of notification, the Department of Community Affairs shall proceed pursuant to Ihe provisions speci- fied in ss. 189.421 and 189.422. (4) If the Auditor General conducts an audit of a special district which indicates in its lindings problems related to debt policy or practice, including failure to meet debt service payments, failure to comply with sig- nificant bond covenants, failure to meel bond reserve requirements, and significant erosion 01 J special dis- trict's revenue-producing capacity, a copy of the audit shall be submitted to the Division of Bond Finance of the State Board of Administration for review and com- ment. Upon receipt 01 this notification lrolllthe Auditor General, the Division of Bond Finance shall prepare a brief report describing the previous debt issued by the special district and submit the report 10 the Legislative Auditing Committee for their review and consideration. (5) Each audit required or auttlorized by this sec- tion, when practicable, shall be made and completed within not more than 12 months following the end of each fiscal year of the state agency or political subdivi- sion, if an annual audit. or at such lesser time which may be provided by law or concurrent resolution or directed by the Legislative Auditing Committee. When the Auditor General is required by law to make a finan- cial audit of the whole or a portion of a fiscal year of a political subdivision and his or her current workload of audits of state agencies and polilical subdivisions is so great that il is not practicable within the required lime to perform such audit and also to make financial audits of that political subdivision as to any other period not pre- viously audited by him or her, then in his or her discre- tion the Auditor General may temporarily or indefinitely postpone audits of such other period or any portion thereof unless otherwise directed by the committee. (6) The Legislative Auditing Cornmiltee may at any time, without regard 10 whettler the Legislature is then in session or out of session, take under investigation any matter within the scope of an audit either com- pleted or then being conducted by the Auditor General, and in connection with such investigation may exercise the powers of subpoena by law vested in a standing committee of the Legislature. (7)(a) The Auditor General may, when in his or her judgment it is necessary, designate ond direct any auditor employed by the Auditor General to audit any occounls or records within the power 01 the Auditor General to audit. The auditor shall report his or her find- ings for review by the Auditor General. who shall pre- p,lIe the audit report. (I)) The oudit report when final Slwlll)c ,1 public rec- ord. The audit workpapers and notes arc not a public record; however, those workpapcrs necessary to sup- port the computations in the final audit report may be made available by a majority vote of the Legislative Auditing Committee after a public hearing showing proper cause. The audit workpapers and notes stlall be retained by the Auditor General until no longer useful in his or her proper functions, after which time they may be destroyed. (c) The audit report must make special mention of: 1. Any violation of the laws within the scope of the audit; and 2. Any illegal or improper expenditure, any improper accounting procedures, all failures to properly record financial transactions, and all other inaccura- cies, irregularities, shortages, and defalcations. (d) At the conclusion of the audit. the Auditor Gen- eral or the Auditor General's designated representative shall discuss the audit with the official whose office is subject to audit and submit to that official a list of the Auditor General's adverse findings Wllich may be included in the audit report. If the official is not available for receipt of the list of adverse audit findings. clearly designated as such, then delivery thereof is presumed to be made when it is delivered to Ilis or her office. The official shall submit to the Auditor General or the desig- nated representative, within 30 days after the receipt of the list of findings, his or her written statement of expla- nation or rebullal concerning all of the findings, includ- ing therein corrective action to be taken 10 preclude a recurrence of all adverse findings. Whenever neces- sary, the Office of Program Policy Analysis and Gov- ernment Accountability may request the official to sub- mit his or her written statement of explanation or rebut- tal within 15 days after the receipt of the list of findings. (e) Each agency head shall provide to the Legisla- tive Auditing Committee, within 6 months alter tile pub- lished date of an audit report, a written explanation of the status of recommendations contained in tile report. (f) No later than 18 montlls after the release of a performance audit report, the agencies which are the subject of that report shall provide data and other infor- mation that describes with specificity what the agencies. have done to respond to the recommendations con~; . tained in the report. The Auditor General or the Office. of Program Poticy Analysis and Government Account-) ability may verify the data and information provided by. the agencies. If the data and information provided bY,; the agencies are deemed sufficient and accurate, th~: Auditor General or the Office of program Policy AnaIY-i; sis and Government Accountability shall report to th~;. Joint Legislative Auditing Committee and to the legisla;( live standing committees concerned with the subjey!: areas of the audit. The report shall includ~ a summary,i of the agencies' responses, the evaluation of thoS~f responses, and any recommendations deemed to ~.~ appropriate. The followup report required by this par~~l ~'-r . ,,- - - & :~~ -_--:.0:'::-:::- lailvt:$ UfJUI Oltice 01 ;-' (8) If ~~ olticer, g~;: . ~Ie, n,otify in "'r----- - who, ~- -- --- mitlees, '--::-:: Senate al . ;-::=- j--' ~ '- Ihe 1 Oiil day the person i .L_ _............ tilt; ,;;)'0";' expiain in wr Speaker .;: Legislative P tions for suc cies and the agency. (9) All a defined here boards of tru. power to ha\ their accounl public accou public lunds. (10) The I of those spe Ihis section a not in compli trictlnformati nity Affairs. Hislory.-s. 6. C s. I. ch. 75.122: s. 79.589: s. 1. ch. 81 85.60: s. 14. ch. 81 th. 89-169: s. 9. ct s 2. ch. 91.429: s. 94.249: s. 1309 ct s. 26. ch. 96-318: 97.255: s. 26. ch. ! 'Nole.- The pan deleled by s. 26. d NOle.-Forme' s 11.46 Ac. ( 1 ) ACCOl in Ihis sectior ments of gen principles an in keeping w accounts, ref colleges anc general gave (2) State section mear t 1.47. (3) State maintain prol (4) In ad( Auditor Gen. 210 F.S.1999 al to audit any of lhe Audilor his or her find. who shall pre. Je a public rec. re not a public :essary to sup. report may be the Legislative aring showing t notes shall be !onger useful in lime they may :ial mention of: 1e scope of the enditure, any Jres to properly )ther inaccura. Ications. Ie Auditor Gen. representative whose office is ;ial a list of the Nhich may be is not available indings, clearly .of is presumed . her office. The .al or the desig. :!r the receipt 01 ::!ment of expla. indings, includ. n to preclude a lenever neces. t1ysis and Gov. ! official to sub. nation or rebut. , list of findingS. , to the Legisla. s after the pub' I explanation of ~d in the report. he release of a ; which are the and other infor. al the agencies endations con' 'al or the Office lment Account. ion provided by on provided by d accurate. the n Policy Analy' 311 report to Ihe d to the legis1o. lith the subjeCI Jde a SUr11lnory wtion of 1l1OSe deemed 10 be ~d by this p,lIo. -- F.S.1999 LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING Ch.11 graph may be waived by joint action 01 the President of the Senate and the Speaker of the House of Represen- talives upon the recommendation of the Director of the Office of Program Policy Analysis and Governmenl Accountability. (8) If the Auditor General discovers any errors, unusual practices, or any other discrepancies in con- nection with his or her audits of a state agency or state officer, the Auditor General shall, as soon as practica- ble, notify in writing the President of Ihe Senate and the Speaker of the House of Representatives, respectively, who, in turn, shall promplly thereafter forward a copy thereof to the chairs of the respective legislative com- mil1ees, which in the judgmenl of the President of the Senate and the Speaker of the House of 'Representatives. Thereafter. and in no even I later than the 10th day of the next succeeding legislative session, the person in charge of the state agency involved, or the state officer involved, as the case may be, shall explain in writing to the President of the Senate and the Speaker of the House of Representatives and to the Legislative Auditing Committee the reasons or justifica- tions for such errors, unusual practices. or discrepan- cies and the corrective measures, il any, taken by the agency. (9) All agencies, other than state agencies as defined herein, and all district school boards and district boards of trustees of community colleges shall have the power to have a performance audit or financial audit of their accounts and records by an independent certified public accountant retained by Ihem and paid from their public funds. (10) The Auditor General shall provide annually a list of those special districts which are in compliance with this section and a list of those special districts which are n?t in compliance with this section for the Special Dis- t~ct Information Program of the Depallment of Commu- My Atfairs. His1ory.-s. 6. ch. 67.470; S. 6. ch. 69.82: s. 1, ch. "/2.6: 55. 1.2. ell. 73.234; I.l,ch. 75-122; s. 1. ch. 76-73: s. I, ch. 77-102; s. 2. ch. 79.183: S5. 1,3.6. ch. ~: S. I, eh. 81.167; S. 1. eh. 03.55: s. 1. eh. 83.106; s. 1. ell. 84.241; S. 1, eh. ,S. 14. eh. 86.204: s. 2. eh. 86.217: s. I. eh. 87.114: s. 4. eh. 09.07: s. 30. th. 89.169: s. 9. eh. 90-110: s. 19. eh. 90.227: s. 65. eh. 9'.45: s. 17. eh. 91.282: ~.ch. 91.429: s. 91. eh. 92.142; S. 136. eh. 92.279: s. 55. eh. 92.326: s. 15. eh. 249: s. 1309. eh. 95.147: s. 1. eh. 95.214: s. 1. eh. 95.300: 5.12. eh. 95.396: ;:, 25. ch. 96-310: s. 1. eh. 96.324: s. 21. eh. 97.96: s. I. eh. 97.111: s. 1. eh. .255: s. 26. eh. 97.271' s. 3. eh 99.333. ~Ho1e.- The part ollhis' senlenc~ fhal followed The word 'Rep'escnlnlivcs~ was Ieted by s. 26. eh. 96.318. Note.-Formcr s. 11. 18G. 11.46 Accounting procedures.- . (1) Accounting systems and procedures referred to In thls.section mean those designed to fulfill the require- m~nt~ of generally accepted governmental accounting pnnclples and practices and good internal conlrol and 10 keeping with generally accepted accounting forms, aCCounts, records, methods, and practices relating 10 COlleges and universilies, hospitals. institutions, and ..general government. (2) State officers and agencies referred to in this ~~lion mean any state agency as defined in ss. 11.'10- .47. III (?) State officers clOd agencies sholl at all limes alOlain proper accounling systems 3nd procedures. AJ4) In addition 10 the postouditing lunctions of the dltor General he or st1e Sh311 have the following ~r.t..e'~:; duties with respect to accounting syslems and proce- dures: (a) To develop and promulgale an overall plan for management accounting and reporting designed to provide an economical and efficient management accounting system for state officers and agencies consistent with generally accepted governmental accounting principles, practices, and internal control, within the requirements and spirit of the laws of Florida; (b) Consistent with such overall plan, to expedite, guide, and assist in the installation of modern account- ing and data processing systems and procedures in the offices administered by state officers and agencies; (c) To stimulate the building 01 competent and effi- cient accounting and internal audit organizations in Ihe offices administered by state officers and agencies; (d) To provide to state officers and agencies con- sultation services on their financi31 and accounting sys- tems and procedures and related problems; (e) To conduct field studies of fisc31 and accounting problems of state officers and 3gencies; (f) Whenever in the Auditor Genewl's judgment it is practicable, to develop and recommend uniform accounling systems and procedures lor stale officers and agencies insofar as their accounting and proce- dural requirements are similar; and (g) To report annually to the Legislative Auditing Committee concerning accounting systems and proce- dures employed by state officers and agencies. (5) ff the Auditor General finds that any state offi- cers and agencies have failed to install an adequate management accounting system he or she shall imme- diately report the findings in detail to the Legislative Auditing Committee, together with recommendations for corrective action. ttislory.-s. 7, ctl. 69-82; S. 21. ch. 95-147: s. 3. Ch. 99-2. 11.47 Penalties; failure to make a proper audil; making a false audit report; failure to produce docu- ments or information.- (1) All officers whose respective ollices the Auditor General is authorized to audit shall enter into their pub- lic records sufficient information for proper audit, and shall make the same available 10 the Auditor General on demand. (2) The willful failure or refusal of the Auditor Gen- eral or any auditor employed by the Auditor General to make a proper audit in line with his or her duty, the will- ful making 01 a false report as to any audit, or the willful failure or refusal 10 report a shortage or misappropria- tion 01 funds or property shall be cause for removal from such office or employment, and the Audilor Gen- eral or auditor shall be guilty of a misdeme3nor of the first degree. punishable as provided in s. 775.082 or s. 775.083. (3) Any person who willfully fails or refuses 10 fur- nish or produce any book, record, p<lper, document, data. or sullicient inform3tion necessory to a proper audit which the Auditor GenerClI is by IClW authorized to perform shall be guilty of 3 misdcrncClnor 01 the first degree, punislwble <lS provided in s. 775.082 or s. 775.083. (4) Any olficer who willlully l<lils or refuscs to fur- nish or produce any book, record. paper. documenl. 211 ~ 4.09 WINTER SPRINGS COlli-: notified by certified mail and shall be entitled to a public hearing on demand, and notice of such hearing shall be published in one or more news- papers of a general circulation in the city at least one week in advance of the hearing. Decisions made by the commission under this section shall be subject to review by the courts. Section 4.10. City clerk. The mayor shall appoint an officer of the city who shall have the title of city clerk and who shall be approved by the city commission. The city clerk shall give notice of commission meetings to its members 'and the public, keep the journal of its proceedings and perform such other duties as are assigned to him by this Charter or by the commis- SIOn. Section 4.11. Investigations. The commission may make investigations into the affairs of the city and the conduct of any city department, office or agency and for this purpose may subpoena witnesses, administer oaths, take testimony and require the production of evidence. Any person who fails or refuses to obey a lawful order issued in the exercise of these powers by the commission shall be guilty of a misdemeanor and punishable by a fine of not more than five hun- dred dollars ($500.00) or by imprisonment for not more than ninety (90) days or both. ~~. Independen~ The commission shall provide for an indepen- dent audit of all city accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be made by a certified public accountant or firm of accountants who have no personal interest, direct or indirect in the fiscal affairs of the city government or any of its officers. The commission may designate such accountant or firm annually or for a period not exceeding three (3) years provided that the designation for any particular fiscal year shall be made no later than six (6) months after the beginning of such fiscal year. If the state makes such an audit the commission may accept it as satisfying the re- quirement of this section. (Ord. No. 390, ~ I, 8-10-87; adopted referendum, November 3, 1987) Section 4.I:J. Procedure. (a) Meelings. The commission shall meet reg- ularly at least once every month at such times and places as the commission may prescribe by rule. Special meetings shall be held on the call of the mayor or three (3) or more members and whenever practicable, upon no less than twelve (12) hours' notice to each member. All meetings shall be pu blic. (b) Rules and journal. The commission shall determine its own rules and order of business and shall provide for keeping a journal of its proceed- ings. This journal shall be a public record. (c) VOling. Voting, except on procedural mat- ters, shall be by roll call and the ayes and nays shall be recorded in the journal. Three (3) mem- bers of the commission shall constitute a quorum but a smaller number may compel the attendance of absent members in the manner and subject to the penalties prescribed by the rules of the com- mission. No action of the commission shall be valid or binding unless adopted by the affirmative vote of three (3) or more members of the commis- sIOn. Section 4.14. Actions requiring an ordi- nance. In addition to other acts required by law or by specific provisions of this Charter to be done by ordinance, those acts of the city commission shall be done by ordinance which: (1) Adopt or amend an administrative code or establish or alter or abolish any city de- partment, office or agency; (2) Provide for a fine or other penalty or establish a rule or regulation for violation of which a fine or other penalty is im- posed; (3) Levy taxes, except as otherwise provided in Article VII with respect to the property tax levied by the adoption of the budget; (4) Grant or renew or extend a franchise; (5) Hegulate the rate chnrgecl for its services by the public utility, except telephone and 6 ( ( (