The purpose of this rulemaking is to eliminate the requirement that state funds be deposited in bank accounts separate from local funds. Improved accounting software utilized by local governments has proven to provide the necessary internal controls....

 

DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES

Division of Agricultural Environmental Services

RULE NO.:RULE TITLE:

5E-13.031District or County Use of Funds

PURPOSE AND EFFECT: The purpose of this rulemaking is to eliminate the requirement that state funds be deposited in bank accounts separate from local funds. Improved accounting software utilized by local governments has proven to provide the necessary internal controls. The effect will allow for the use of modern accounting software applications to provide reasonable assurance of compliance with the provisions of laws and rules pertaining to state financial assistance.

SUMMARY: Accounting practices will be updated to provide continuity of internal accounting controls over state aid to local mosquito control.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION: The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the Agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: The Department’s economic analysis of the adverse impact or potential regulatory costs of the proposed rule did not meet or exceed any of the criteria established in Section 120.541(2)(a), Florida Statutes. The proposed rule changes are intended to eliminate the outdated accounting requirements and will provide continuity between the state practices and local county governmental practices. No additional costs are anticipated to be associated with these changes. Instead, a reduction in cost in internal accounting practices mandated under the current provisions is expected.

As part of this analysis, the Department relied upon the average cost for banking. There are approximately 45 programs that receive state aid. Eliminating the requirement that each program setup an additional checking account to deposit the state funds in from the local funds requiring an additional accounting and monitoring system and processing fees would provide a cost savings of approximately $3,780 to each of these aid to local mosquito control programs. Additionally, no interested party submitted additional information regarding the economic impact.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 388.361 FS.

LAW IMPLEMENTED: 388.231, 388.281 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE SCHEDULED AND ANNOUNCED IN THE FAR.

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Kelly Friend, Assistant Director, Division of Agricultural Environmental Services, 3125 Conner Boulevard, Ste E, Tallahassee, FL 32399-1650, [phone], [e-mail]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

 

5E-13.031 District or County Use of Funds.

(1) through (3) No Change.

(4) Upon prior approval from the Department, proceeds from sale or rental of property purchased with local funds can be deposited and credited to Local funds.

(5)(4) Insecticide spray material shall not be sold by districts or counties without approval from the Department.

(6)(5) State funds received shall be accounted for separately deposited in a separate depository account from local funds received. Disbursements shall be made on prenumbered checks or warrants drawn on proper depository accounts.

(7)(6) Local and state funds shall be deposited in banks designated as depositories of public funds in accordance with provisions of Section 658.60, F.S.

Rulemaking Authority 388.361, F.S. Law Implemented 388.231, 388.281, F.S. History–New 1-1-77, Formerly 10D-54.31, 10D-54.031, Amended 3-14-94, 6-10-04, 5-21-14,                                          .

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Anderson H. Rackley

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Commissioner of Agriculture Adam H. Putnam

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: November 13, 2015

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: November 18, 2015