Florida Special District Handbook Online

Section 2 - 2: General Financial Requirements

This section discusses general financial issues that are important under the Local Government Financial Reporting System.

Uniform Fiscal Year

Most special districts must use a fiscal year that begins on October 1 and ends on September 30. This corresponds to the same fiscal year that all counties and municipalities must use. Housing authorities must use one of four fiscal years assigned by the United States Department of Housing and Urban Development. The State of Florida's fiscal year begins July 1 and ends June 30.

The Uniform Chart of Accounts

The Uniform Chart of Accounts enables the Department of Financial Services to provide uniform data that may be used to analyze accurately and compare special district transactions with the transactions of all other governmental entities in the state or for a number of others uses The Uniform Chart of Accounts sets forth the following:

  • Uniform accounting procedures
  • Generally accepted accounting principles, classification of funds, and accrual accounting
  • Standardized account classifications, such as revenues, expenditures, assets, liabilities, and fund equity levels. It puts every financial transaction into a numbered account. The complexity of the account number depends upon its function and detail. For example, contributions to the general fund are in account #101. A twelve-digit account number, such as 104-2132-521.40, identifies a travel expenditure for a law enforcement activity with a public safety function in the patrol division of a police department.

See Local Government Chart of Accounts and Uniform Accounting System Manuals for more information.

Travel Expenses and Reimbursements

Special district travel reimbursements for expenses incurred while on official business must comply with the state travel provisions set forth in Section 112.061, Florida Statutes - Per diem and travel expenses of public officers, employees, and authorized persons. However, a special district's governing body, by the enactment of a resolution, may set per diem rates that exceed the state's maximum travel reimbursement rates, which are made based on whether the travel is Class A, B or C:

  • Class A is continuous travel of 24 hours or more away from official headquarters. The travel day is a calendar day (midnight to midnight).
  • Class B is continuous travel of less than 24 hours with an overnight absence from official headquarters. The travel day begins at the same time as the travel period.
  • Class C is travel for short or day trips when the traveler is not away from official headquarters overnight.

For Class A and Class B travel, the traveler shall be reimbursed one-fourth of the authorized rate of per diem for each quarter, or fraction thereof, of the travel day included within the travel period. The travel reimbursements for overnight travel for Class A or B must be either:

  • $80.00 per day; or,
  • Actual expenses for lodging at a single-occupancy rate plus meals at $6.00 for breakfast, $11.00 for lunch, and $19.00 for dinner. If a convention or conference registration fee included a meal, no reimbursement is allowed for that meal. When requesting reimbursement for actual lodging expenses, travelers must submit a paid, itemized hotel or motel receipt billed single occupancy.

For Class C travel, reimbursements are not made on a per diem basis. However, meal allowances must be based on the following schedule:

  • Breakfast ($6.00), when travel begins before 6 a.m. and extends beyond 8 a.m.
  • Lunch ($11.00), when travel begins before 12 noon and extends beyond 2 p.m.
  • Dinner ($19.00), when travel begins before 6 p.m. and extends beyond 8 p.m., or when travel occurs during nighttime hours due to special assignment

No allowance shall be made for meals when travel is confined to the city or town of the official headquarters or immediate vicinity, except assignments of official business outside the traveler's regular place of employment if travel expenses are approved.

The special district must designate the most economical method of travel for each trip, keeping in mind the nature of the business, the most efficient and economical means of travel (considering time, impact of productivity, cost of transportation, and per diem), the number of persons making the trip, and the amount of equipment or material to be transported. When privately owned vehicles are used, the traveler shall be entitled to a mileage allowance at a fixed rate of 44.5 cents per mile, computed using the current map of the Department of Transportation. Vicinity mileage is allowable but must be shown as a separate item on the expense voucher. Other allowable expenses include taxi fare, bridge and road tolls, parking fees, and communication expenses.

General Budget Requirements For All Special Districts

  • All special districts must adopt a budget by resolution each fiscal year
  • The total amount available from taxation and other sources, including amounts carried over from prior fiscal years, must equal the total of appropriations for expenditures and reserves
  • The adopted budget must regulate expenditures of the special district
  • It is unlawful to expend or contract for expenditures in any fiscal year except in pursuance of budgeted appropriations
  • A local governing authority may review the budget or tax levy of any special district located solely within its boundaries
  • The governing body of each special district at any time within a fiscal year or within up to 60 days following the end of the fiscal year may amend a budget for that year by resolution

Specific Budget Requirements for Dependent Special Districts

The proposed budget must be . . .

  • presented in accordance with generally accepted accounting principles
  • contained within the general budget of the local governing authority (unless the local governing authority consents to a separate budget)
  • clearly stated as the budget of the dependent special district

Financial Emergencies

Florida has what is known as the Local Governmental Entity, Charter School, and District School Board Financial Emergencies Act - Chapter 218, Part V - Local Governmental Entity And District School Board Financial Emergencies.

Available Assistance

This Act can help special districts experiencing financial difficulties as follows:

  • Promote fiscal responsibility
  • Assist the special district in providing essential services without interruption
  • Meet its financial obligations
  • Improve the special district's financial management procedures

Financial Emergency Conditions

A special district is subject to review and oversight by the Governor if any of the following conditions occur:

  • Failure within the same fiscal year in which due to pay short-term loans or failure to make bond debt service or other long-term debt payments when due, as a result of lack of funds
  • Failure to pay uncontested claims from creditors within 90 days after the claim is presented, as a result of a lack of funds
  • Due to lack of funds, fails at the appropriate time to transfer the following:
    • Taxes withheld on the income of employees; or
    • Employer and employee contributions (Federal social security or Any pension, retirement, or benefit plan of an employee)
  • Due to lack of funds, fails for one pay period to pay the following:
    • Wages and salaries owed to employees; or
    • Retirement benefits owed to former employees.
  • An unreserved or total fund balance or retained earnings deficit, or unrestricted or total net assets deficit, as reported on the balance sheet or statement of net assets on the general purpose or fund financial statements, for which sufficient resources of the special district, as reported on the balance sheet or statement of net assets on the general purpose or fund financial statements, are not available to cover the deficit. Resources available to cover reported deficits include net assets that are not otherwise restricted by federal, state, or local laws, bond covenants, contractual agreements, or other legal constraints, Fixed or capital assets, the disposal of which would impair the ability of a special district to carry outs its functions, are not considered resources available to cover reported deficits.

Required Actions to Take if Any Financial Emergency Conditions Occur or Will Occur

If any of those conditions occur, or will occur unless the special district gets help, the special district must:

In addition, if any of those conditions occur, or will occur unless the special district gets help, and any state agency is aware of it, the state agency must also notify the Governor and the Joint Legislative Auditing Committee within 30 days after becoming aware of the occurrence.

After that, the Governor or the Governor's designee must contact the special district to find out what actions the special district has taken to resolve the condition. If the Governor determines that the special district needs state assistance to resolve the condition, then the special district is considered to be in a state of financial emergency.

Resolving Financial Emergencies

To resolve a financial emergency, the Governor has the authority to implement measures to resolve the financial emergency, including:

  • Requiring approval of the special district's budget by the Governor
  • Authorizing a state loan to the special district
  • Prohibiting the special district from issuing bonds, notes, certificates of indebtedness, or any other form of debt until the special district resolves the financial emergency
  • Making inspections and reviews of records, information, reports, and assets of the special district
  • Consulting with the officials and auditors of the special district and appropriate state officials regarding any steps necessary to bring the books of account, accounting systems, financial procedures, and reports into compliance with state requirements
  • Providing technical assistance to the special district
  • Establishing a financial emergency board, appointed by the Governor, to oversee the activities of the special district and submit recommendations and reports to the Governor for appropriate action. The board may do the following:
    • Review the records, reports, and assets of the special district as needed
    • Consult with the officials and auditors of the special district and appropriate state officials regarding any steps necessary to bring the books of account, accounting systems, financial procedures, and reports of the special district into compliance with state requirements
    • Review the operations, management, efficiency, productivity, and financing of functions and operations of the special district
  • Requiring and approving a plan, to be prepared by the special district in consultation with appropriate state officials, prescribing actions that will cause the special district to be no longer in a state of financial emergency. The plan must include at least the following:
    • Provision for payment in full of all obligations designated as priority items that are currently due or will come due
    • Establishment of priority budgeting or zero-based budgeting to eliminate items that are not affordable
    • The prohibition of a level of operations which can be sustained only with nonrecurring revenues

During the financial emergency period, the special district may not seek application of laws under the bankruptcy provisions of the United States Constitution unless the Governor approves so first.

The Governor may terminate all state actions when the Governor determines that no new financial emergency conditions exist and the special district has . . .

  • Established and is operating an effective financial accounting and reporting system
  • Resolved the financial emergency conditions

Procurement - General Requirements and Options