Chapter 102 - AUDITING REGULATIONS

TITLE V - ADMINISTRATION AND PERSONNEL Chapter 104 - BONDS Chapter 102 - AUDITING REGULATIONS[1]

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Charter reference— Auditor, § 5.10; independent audit, § 5.11.

State Law reference— General state policy on public records, F.S. § 119.01; records made public by public fund use, F.S. § 119.012; annual financial reports, F.S. § 116.241(1).

Sec. 102.101. - Management audit.

In the course of conducting continuous internal audits of the fiscal operations of the Consolidated Government and its independent agencies, the Council Auditor shall report the results thereof in writing to the Council from time to time, upon completion of each audit, and shall include in each report appropriate commentary on the management efficiency of the office, department or agency audited as it affects the collection, expenditure, custody and safekeeping of public funds and assets.

(Ord. 71-1316-503, § 1; Ord. 83-591-400, § 1)

Note— Former § 129.101.

Sec. 102.102. - Special reports.

The Council Auditor shall provide special oral or written reports of financial analysis and information pertaining to the operations of the City or any of its independent agencies when requested by the Council as a whole, a standing or special committee thereof or a member of the Council. The Council Auditor shall schedule the work load of his office, giving primary consideration to the following priorities:

(a)

Charter requirements and requests by the Council as a whole.

(b)

Attendance at meetings of the Council and its standing and special committees, upon request.

(c)

Requests by the Council President.

(d)

Written requests from the chairmen of standing and special committees.

(e)

Written requests from members of the Council.

The Council Auditor shall also respond to oral requests for assistance from individual members of the Council if the response requires a relatively minor effort which can be accomplished without disruption to the foregoing priorities. Conflicts in priorities which cannot be resolved by the Council Auditor and the affected persons shall be resolved by the Council President.

(Ord. 71-1316-503, § 1; Ord. 83-591-400, § 1)

Note— Former § 129.102.

Sec. 102.103. - Reporting violations of Code of Ethics.

Consistent with Section 602.1106 (Reporting of Violations By Council Auditor), when the Council Auditor has reasonable grounds to believe that a violation of the Code of Ethics contained in F.S. Ch. 112, Pt. III has occurred, the Council Auditor shall report the facts relating to the probable violation to the General Counsel in writing.

(Ord. 73-174-116, § 1; Ord. 83-591-400, § 1; Ord. 2007-329-E, § 1)

Note— Former § 129.103.

Sec. 102.104. - Losses, unexplained disappearances or thefts of public funds or property to be reported to Council Auditor's Office.

Whenever a custodian, property officer or accountable officer responsible for public funds or public property discovers a loss, unexplained disappearance or theft of the funds or property for which he is responsible or accountable, he shall report the apparent loss, unexplained disappearance or theft to the Council Auditor's Office at the same time as it is reported to the Office of the Sheriff as required by Section 122.810.

(Ord. 83-591-400, § 1)

Sec. 102.105. - Audits of Consolidated Government agencies; discussion with agency heads; written reply by agency heads.

The agencies of the Consolidated Government, including the independent agencies, shall be subject to audit by the Council Auditor's Office. When an audit is performed under this Section, the auditor shall discuss with the head of the agency so audited, or his designee, all of the auditor's comments which will be included in the report containing the auditor's comments for the area within his responsibility. If the head of the agency, or his designee, is not available to discuss the auditor's comments, their discussion is presumed when the comments are delivered in writing to his office. The agency head's written statement of explanation or rebuttal concerning the auditor's comments, including corrective action to be taken, shall be filed with the Council Auditor's Office within 20 days of the delivery of the audit report.

(Ord. 83-591-400, § 1)

Sec. 102.106. - Audits of nongovernmental agencies receiving public funds; audits by independent certified public accountants; discussion and reply.

All nongovernmental agencies which receive funds from the Consolidated Government shall be subject to audit by the Council Auditor's Office. If the agency is required to have an audit made by an independent certified public accountant, a copy of the audit report must be filed with the Council Auditor's Office; but the acceptance of a report by the Council Auditor shall not prohibit the Council Auditor's Office from conducting an independent examination and audit of the agency in those cases where the Council Auditor so orders. The results of the audit shall be discussed with the agency, or its representative, in the same manner as discussions with the heads of agencies of the Consolidated Government and a written statement shall be filed with the Council Auditor's Office within 20 days of the delivery of the audit report. For the purposes of this Section, the term nongovernmental agency means an agency that is not a part of the legislative, executive or judicial branches of the Consolidated Government or an independent agency and includes agencies which are private, public or a combination of both.

(Ord. 83-591-400, § 1)

Sec. 102.107. - Time for audits; temporary postponement of audits.

Each audit authorized by this Chapter shall, when practicable, be made and completed within not more than 12 months following the end of the fiscal year of the agency being audited, if an annual audit, or at a lesser time as directed by the Council Auditor. When the Council Auditor's Office is authorized by law to make an audit and the current workload of the Office is so great that it is not practicable within the required time to perform the audit, then, in the discretion of the Council Auditor, he may temporarily postpone the audits unless otherwise directed by the Committee on Finance.

(Ord. 83-591-400, § 1)

Sec. 102.108. - Audits by auditors employed by Council Auditor; responsibility for audit reports.

The Council Auditor may, when in his judgment it is necessary, designate and direct any auditor employed by him to audit any accounts or records within the power of the Council Auditor's Office to audit. The auditor shall report his findings for review by the Council Auditor, who shall be responsible for the preparation of the audit report.

(Ord. 83-591-400, § 1)

Sec. 102.109. - Disposition of audit report.

A copy of the audit report shall be submitted to the Committee on Finance, to each member of the Council who requests it, to the Mayor and to the officer or person in charge of the agency audited. One copy shall be filed as a permanent public record in the Council Auditor's Office and one copy shall be delivered to the Council Secretary for deposit in the Council Library. Copies of these reports may also be furnished to such other persons as, in the opinion of the Council Auditor, may be directly interested in the audit or who may have some duty to perform in connection therewith.

(Ord. 83-591-400, § 1)

Sec. 102.110. - Justification of errors, etc., to Council committees.

If the Council Auditor discovers any errors, unusual practices or other discrepancies in connection with the audit of an agency of the Consolidated Government, including the independent agencies, he shall, as soon as practicable, notify in writing the Council President, who shall, in turn, promptly thereafter forward a copy thereof to the chairmen of the respective committees of the Council which are substantially concerned with the functions of the agency involved. Thereafter, and in no event later than 20 days after the committee chairmen are informed, the officer or person in charge of the agency involved shall explain in writing to the chairmen of the respective committees the reasons or justifications for the errors, unusual practices or other discrepancies and the corrective measures, if any, taken by the agency to preclude a recurrence of the errors, practices or discrepancies.

(Ord. 83-591-400, § 1)

Sec. 102.111. - Agencies to maintain adequate records; penalty.

All officers and persons whose respective agencies (including nongovernmental agencies as defined in Section 102.106) the Council Auditor's Office is authorized to audit shall enter into their public records sufficient information for a proper audit and shall make it available to the Council Auditor or an auditor designated by him on demand. An officer or person, being an officer or employee of the Consolidated Government or its independent agencies, who wilfully fails or refuses to furnish or produce a book, record, paper, document, data or sufficient information necessary to a proper audit which the Council Auditor's Office is authorized or required to perform shall be subject to removal from office.

(Ord. 83-591-400, § 1)

Sec. 102.112. - Performance audit of Duval County School Board; performance by Auditor General.

The Council Auditor shall conduct a performance audit of the Duval County School Board and its budget at least once annually, unless this function is performed by the State Auditor General under the authority of State law.

(Ord. 83-591-400, § 1)

Sec. 102.113. - Independent auditor to report detection or suspicion of fraud, abuse or theft.

Any evidence of fraud, defalcation, misappropriation, misfeasance, malfeasance, embezzlement or other illegal acts detected by the independent auditor shall be immediately reported to the Council Auditor.

(Ord. 83-591-400, § 1)

Sec. 102.114. - Submission of audit reports and management letters to Council Auditor.

Within ten working days after the receipt by a department head or director of an independent agency of an audit report, draft audit report or management letter concerning the department or independent agency, a complete copy of the audit report, draft audit report or management letter shall be submitted to the Council Auditor.

(Ord. 83-591-400, § 1)

Sec. 102.115. - Audit contract form to be approved by Council Auditor.

The Council Auditor shall approve the audit contract form to be used by the City and the independent agencies. Departures from the approved form shall have the prior approval of the Council Auditor.

(Ord. 83-591-400, § 1)

Sec. 102.116. - Selection of auditor for annual independent audit.

The selection of the auditor to perform the annual independent audit required by Section 5.11 of the Charter shall comply with F.S. § 218.391, as may from time to time be amended and shall proceed as follows:

(a)

The process shall begin with a solicitation by a request for proposal by the City Council's "audit" committee to all interested and qualified firms stating the scope of services to be performed for the City and including factors established for the evaluation of audit services to be provided by a certified public accounting firm, duly licensed under F.S. Ch. 473 and qualified to conduct audits in accordance with government auditing standards as adopted by the Florida Board of Accountancy.

(b)

Upon receipt of the various proposals from interested qualified firms, the Council Auditor, with the assistance of other public officers or employees (the Committee) shall review all such properly submitted proposals including oral interviews, and select and rank three firms to be considered by the Council's "audit" committee for approval.

(c)

Upon approval of the ranked list by the Council's "audit" committee, the Council Auditor, on behalf of the City shall enter into formal fee and contract term negotiations for the audit services with the firm whose name appears first in the recommended list, keeping at all times within the guidelines and regulations established by law for any such contract negotiation.

(d)

If contract terms cannot be agreed upon between the Auditor and the first listed firm, the next listed firm shall be negotiated with, and so forth, until the recommended list has been exhausted.

(e)

All contracts shall be for a period of three years with two one-year renewal options and the fee shall be reconsidered at the end of the initial three-year term. Each year of the respective contract engagement shall require satisfactory performance by the independent auditor. The contract shall be approved by Council.

(f)

The annual audit shall include all agencies of the City, except for the independent agencies as defined in Section 18.07(d) of the Charter and except for agencies which are otherwise exempted by the Council; provided, however, that one or more of such excepted agencies may elect voluntarily to participate in the above annual audit process subject to the approval of the Council Auditor. Any such agency making an award to the successful audit firm may elect to be a party to the contract between the City and the successful audit firm or such agency may make such award and elect to enter into its own separate contract with the successful audit firm.

(Ord. 85-1155-700, § 1; Ord. 95-301-152, § 1; Ord. 95-548-290, § 1; Ord. 2003-591-E, § 1; Ord. 2005-466-E, § 1)

Sec. 102.117. - Reserved.

Editor's note— Ord. 2023-208-E, § 3, amended the Code by repealing former § 102.117, which pertained to a departmental residency audit, and derived from Ord. 2006-759-E, § 3.

Sec. 102.118. - Audits of Consolidated Government Constitutional Officers' agencies; discussion with Constitutional Officers; written reply by Constitutional Officers.

The offices of the Clerk of Court, Property Appraiser, Sheriff, Supervisor of Elections, and the Tax Collector shall be audited by the Council Auditor's Office no less than once every five years. When an audit is performed under this Section, the auditor shall discuss with the Constitutional Officer so audited, or his designee, all of the auditor's comments which may be included in the audit report. The Constitutional Officer's written response concerning the auditor's comments, including corrective action to be taken, shall be filed with the Council Auditor's Office within 20 days of the delivery of the draft audit report.

(Ord. 2007-460-E, § 1)

TITLE V - ADMINISTRATION AND PERSONNEL Chapter 104 - BONDS