Business Impact Estimate - Internal AuditM IAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
TO:
FROM:
MEETING DATE:
Mayor Dan Gelber and Members of the ity Commission
Alina T. Hudak, City Manager
October 25, 2023
SUBJECT: BUSINESS IMPACT ESTIMATE FOR PROPOSED ORDINANCE ENTITLED:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI
BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI
BEACH, ENTITLED "ADMINISTRA TION" BY AMENDING ARTICLE IV, ENTITLED
"OFFICERS AND EMPLOYEES," BY AMENDING DIVISION 4, ENTITLED "INDEPENDENT
CITY AUDITOR," TO CREATE SECTION 2-254 TH ER EOF, ENTITLED "CITY'S INTERNAL
AUDIT" TO ESTABLISH A CITY INTERNAL AUDITOR; AMENDING ARTICLE IV,
ENTITLED "OFFICERS AND EMPLOYEES," BY AMENDING DIVISION 5, ENTITLED
"OFFICE OF INSPECTOR GENERAL," BY AMENDING SECTION 2-256 TH ER EOF,
ENTITLED "OFFICE OF INSPECTOR GENERA L," TO REFLECT THE REASSIGNMENT
OF THE INTERNAL AUDIT FUNCTION UNDER THE AUSPICES OF THE CITY
ADMINISTRA TION; AND, PROVIDING FOR REPEALER, SEVERA BILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
This Business Impact Estimate is provided in accordance with Section 166.041 (4), Florida
Statutes.
1. The summary of the proposed Ordinance and its purpose is more fully set forth in the
Commission Memorandum accompanying the Ordinance, as well as in the recitals to the
Ordinance itself, which are attached hereto.
2. The City of Miami Beach estimates that the proposed Ordinance will have no direct
economic impact on private, for-profit businesses in the City of Miami Beach, that the
proposed Ordinance will have no direct compliance costs that businesses may
reasonably incur; that the proposed Ordinance will not impose any new charge or fee for
which businesses will be financially responsible, and that the proposed Ordinance will not
impact the City of Miami Beach's regulatory costs and will not generate any revenue from
new charges or fees.
3. Good faith estimate of the number of businesses likely to be impacted by the proposed
Ordinance:
The City of Miami Beach estimates that no businesses are likely to be impacted by the
proposed Ordinance.
MIAM I BEACH
C ity o f M ia m i Be a c h , 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO:
FROM:
Mayor Dan Gelber and Members of the City Commission
Alina T. Hudak, City Manager
Ratel A. Paz. ciy Aome f\9 FIRST READING
DATE: September 13, 2023
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE
CITY OF MIAMI BEACH, ENTITLED "ADMINISTRA TION" BY AMENDING
ARTICLE IV, ENTITLED "OFFICERS AND EMPLOYEES," BY AMENDING
DIVISION 4, ENTITLED "INDEPENDENT CITY AUDITOR," TO CREATE
SEC TION 2-254 TH ERE OF, ENTITLED "CITY'S INTERNAL AUDIT" TO
ESTABLISH A CITY INTERNAL AUDITOR; AMENDING ARTICLE IV,
ENTITLED "OFFICERS AND EMPLOYEES," BY AMENDING DIVISION 5,
ENTITLED "OFFICE OF INSPECTOR GENERA L," BY AMENDING SECTION 2-
256 THEREOF, ENTITLED "OFFICE OF INSPECTOR GENERAL," TO
REFLECT THE REASSIGNMENT OF THE INTERNAL AUDIT FUNCTION
UNDER THE AUSPICES OF THE CITY ADMINISTRA TION; AND, PROVIDING
FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE
DATE.
The proposed Ordinance has been prepared at the request of Commissioner David Richardson
and is submitted for consideration on First Reading at the September 13, 2023 City Commission
meeting.
The City of Miami Beach is one of the few municipalities in the State of Florida that has
demonstrated its commitment to transparency and accountability in government by creating, and
empowering, its own Office of Inspector General (OIG). The OIG, which was approved by the
voters as part of the November 2018 general election, exists to identify efficiencies and detect,
investigate and prevent fraud, waste, mismanagement, misconduct, and abuse of power in City
government.
Currently, under the City Code, one of the functions of the Office of the Inspector General ("OIG")
is to serve as the City's internal auditor. The internal audit function, which largely relates to the
performance of routine resort tax audits, parking audits, franchise waste audits, and audits of
certain city vendors, concessionaires or lessees, is an administrative function that is entirely
separate from the traditional powers and duties of an inspector general with respect to detecting
and investigating fraud, waste and abuse.
Historically, the Office of Internal Audit resided within the Office of Management and Budget, and
the Internal Auditor reported directly to the City Manager.
Com m ission M em oran d um - R ealig nme nt of Adm inistra tive Intern al Audit Function
S e p tem b e r 1 3 , 2 0 2 3
P a g e 2
T h e p ro p o s e d o r d in a n c e s e e k s to re a lign the intern al audit function to reside w ith the C ity
A d m in is tr a tio n , w h ile e x p r e s s ly p ro v id in g th a t th e b u d g e t fo r th e O ff ic e o f In s p e c to r G e n e r a l s h a ll
c o n tin u e to in c lu d e fu n d in g fo r a u d ito rs to re m a in s ta ff e d w ith in th e O ff ic e o f In s p e c to r G e n e ra l,
to th e r e b y p r o v id e th e In s p e c to r G e n e r a l w ith th e a b ility to p e rf o r m a n y a u d it th e In s p e c to r G e n e r a l
d e te r m in e s m a y b e n e c e s s a ry in th e p e rf o r m a n c e o f th e OI G's p o w er s a n d d u tie s u n d e r th e C ity
C h a rt e r o r C ity C o d e .
T h e fo r e g o in g w a s d is c u s s e d a t th e J ul y 2 8 , 2 0 2 3 F in a n c e a n d E c o n o m ic R e s il ie n c y C o m m itt e e
m e e tin g , w ith th e e x p r e s s , u n a n im o u s d ir e c tio n th a t th e re a lig n m e n t s h a ll o c c u r a n d th e p ro p o s e d
re a li g n m e n t o f a d m in is tra tiv e in te rn a l a u d it fu n c tio n s s h a ll in n o w a y d im in is h th e a u d it re s o u r c e s
a v a ila b le to th e In s p e c to r G e n e r a l to p e rf o r m th e d u tie s o f th e O IG .
A s p a rt o f th e d is c u s s io n o f th is o r d in a n c e a t th e S ep t e mb er 1 3, 2 0 2 3 C ity C o m m is s io n m e e tin g ,
th e s p o n s o r re q u e s ts th a t th e C ity C o m m is s io n d is c u s s a n d id e n tify th e a p p ro p r ia te n u m b e r o f
a u d it p e r s o n n e l n e c e s s a r y to p e rf o r m a u d its c o n d u c te d b y th e OI G , a s w e ll a s th e n u m b e r o f
p e r s o n n e l w h ic h w il l b e re q u ir e d fo r th e s e p a r a te C ity in te rn a l a u d it fu n c tio n .
RA P /F A/a g
O R D IN A N C E N O . _
A N O R D IN A N C E O F T H E M A Y O R A N D CIT Y C O M M IS S IO N O F THE CIT Y O F
M IA M I B E A C H , FL O R ID A , A M E N D IN G C H A P TE R 2 O F THE C O D E O F TH E CITY
O F M IA M I B E A C H , E N T IT LE D "A D M IN IS T RA T IO N" B Y A M E N D IN G A RTIC L E IV,
EN T IT L E D "O F F IC E R S A N D E M P L O Y E E S ," BY A M E N D IN G DI VI SION 4,
EN T IT L E D "IN D E P E N D E N T C ITY A U D IT O R ," TO CR E A T E S E C TIO N 2-254
T H E R E O F , E N T IT LE D "C ITY 'S IN T E R N A L A UD IT " TO E S T A B LI S H A CITY
IN T E R N A L A U D IT O R ; A M E N D IN G A R TIC L E IV , E N T ITLE D "O FFIC ER S A ND
EM P L O Y E E S ," B Y A M E N D IN G D IV IS IO N 5, E NT IT LE D "O FFIC E O F IN SPEC TO R
G E N E RA L ," B Y A M E N D IN G S E C TI O N 2-256 TH E RE O F, E N TITLE D "O FFIC E O F
IN S P E C T O R G E N E R A L," T O R E F L E C T TH E R E A S S IG N M E NT O F T HE INTER NA L
A U D IT FU N C T IO N U N D E R T H E A U S P IC E S O F THE CITY A D M IN ISTRA T IO N;
A N D , P R O V ID IN G FO R R E P EA LE R , S E V E RA B ILI T Y , CO D IF ICA T IO N , A ND A N
E F F E C T IV E D A T E .
W H E R E A S , currently, under the City Code, one of the functions of the Office of the Inspector
General ("OIG") is to serve as the City's internal auditor; and
W H E R E A S , the internal audit function is a function that is separate from the traditional powers
and duties of an inspector general; and
W H E R E A S , historically, the Office of Internal Audit resided within the Office of Management
and Budget, and the Internal Auditor reported directly to the City Manager; and
W H E R E A S , when the Office of the Inspector General was created by the City's voters, the
voters did not consider, nor had the City contemplated at that time, that the City's administrative
internal audit functions would be subsumed by the Inspector General; and
W H E R E A S , the Mayor and City Commission desire to make the following amendments to
provide for realignment of internal audit functions from the City's OIG to the City Administration, while
still budgeting and providing for auditor positions to reside within the Office of Inspector General, to
allow the Inspector General to conduct any audits the Inspector General determines should be
conducted in furtherance of the Inspector General's powers and duties under the City Charter and City
Code.
N O W , T H E R E F O R E , B E IT O R D A IN E D B Y T H E M A Y O R A ND CITY CO M M IS SIO N O F TH E CITY
O F M IA M I B E A C H , FL O R ID A , A S FO L LO W S :
S E C TI O N 1. That Section 2-254 of Article IV, of Division 4 of Chapter 2 of the Code of the City of
Miami Beach is hereby created as follows:
C H A P T E R 2
A D M IN IS T RA T IO N
* * *
A R T IC L E IV . O F F IC E R S A ND EM P LO Y E E S
* i k
D IV IS IO N 4. IN D E P E N D E NT CIT Y A UD IT O R
* k k
Sec. 2-251. Duties.
The duties of the independent city auditor are to:
(1) Render a professional opinion on the fair presentation of the city's general purpose financial
statements (GPFS) and prepare an audit in accordance with generally accepted accounting
principals (GAAP) for the applicable fiscal year. The audit shall:
a. Be conducted in accordance with generally accepted accounting standards (GAAS)
and generally accepted government auditing standards (GAGAS) applicable to
financial statement and compliance audits.
b. Be performed in accordance with F.S. § 11.45 and shall comply with the state audit or
general rule 10.550.
c. Include:
1. An auditor's report on the fair presentation of the general purpose financial
statements included in the comprehensive annual financial report.
2. The necessary separately issued federal and state single audit reports in
accordance with 0MB circular A-128 and the rules of the auditor general of the
state.
3. A management letter for the mayor and city commissioners and the city's audit
committee in compliance with the rules of the Auditor General.
4. A report on irregularities and illegal acts, if warranted.
(2) Fulfill all requirements as set forth by the Government Finance Officers Association (GFOA)
in the Certificate of Achievement for Excellence in Financial Reporting Program in preparing
the comprehensive annual financial report (CAFR).
(3) Assist the city in planning and preparation for and implementation of new Government
Auditing Standard Board (GASS) pronouncements.
(4) Use the audit process to evaluate strengths and weaknesses in internal auditing controls
and assess areas to improve the efficiency and effectiveness of accounting and related
processes. These matters shall be communicated at least annually through management
letters to the city manager.
(5) Maintain a year-round dialogue with city commissioners and management of the city and
related organizations.
(6) Be available for related work not covered under the letter of intent, such as verification of
data used in official statements, verification of bond escrow assistance with special projects
and consent to use the auditor's report in official statements. A fee schedule for such related
work shall be provided.
Sec. 2-252. Method of selection.
(a) The independent city auditor shall be selected pursuant to a request for qualifications procedure.
The proposals shall be publicly opened in the procurement division office at the time and date
specified. Late proposals shall not be accepted or considered and shall be returned to the bidder
unopened. The city reserves the right to accept any proposal deemed to be in the interest of the
city or to waive any informality in any proposal. The city may reject any or all proposals and
readvertise.
(b) The city's audit committee shall appoint a subcommittee to review and recommend a list of
auditors to the city commission which shall appoint the independent city auditor by resolution.
Page 2 of 9
The city commission shall have the authority to remove the independent city auditor with or
w itho ut ca use .
S e c . 2-2 5 3 . C om p e n s a tion .
(a ) T he in d e pe nde nt city au d ito r sha ll b e p a id eithe r on an h o u rly rate or b a se d on the se rv ice to b e
re nd e red . T he se rv ices to au d it the records o f the ge ne ral em p loye es' p e n sio n system ,
u n cl a ssifie d em p loyee s' and e le cted offi cia ls' retire m e nt syste m , the p a rkin g system fun d and the
city re d eve lo p m e nt ag e ncy sha ll be se pa rately p riced .
(b ) If p a y m e nt is to be b ase d on an h o u rly rate , the pro p o sed fe e sched u le fo r such se rv ice s sha ll
se t fo rt h th e title and cl a ssifi catio n o f each p erso n anticipa ted to re nde r se rv ice s, the m a xim u m
h o u rs to be w orked b y ea ch p e rso n and the ho urly rate o f ea ch p e rso n .
S e c . 2-2 5 4 . C ity 's In te rn a l A u d ito r.
(a ) Internal audit. T he city m a n a ge r sha ll de sig nate an inte rn a l aud itor, re po rt in g directly to the
city m a n a g e r, w ho sha ll se rv e as the ci ty's intern a l aud ito r, an d , in such ca pa ci ty. sh al l, a t a
m in im u m , p e rf orm the fo llo w in g functio ns:
(1) A ud its req u ired b y the C ity C o d e , sta te law . or a city co ntract to b e p e rform e d b y th e intern a l
auditor;
(2 ) P a rking -related aud its;
(3 ) R e so rt tax aud its;
( 4 ) A ud its o f fr an chise w a ste fee s: an d
(5 ) A ny o th e r aud it req u e sted b y the city co m m issio n or city m a n a ge r
(b ) If. as pa rt of any ro utin e au d it, the intern a l aud ito r id e ntifi e s a m att e r tha t, in the intern a l
au d ito r's profe ssio na l jud gm e nt, sho u ld b e revie w ed b y the offi ce of the inspe cto r ge ne ra l p u rsua nt to
S e ct io n 2-2 5 6 of the city code , th e inte rn a l au d itor sha ll refer suc h m a tt e r to the in specto r ge n e ral fo r
ap p ro p ria te actio n .
i * *
S E C TI O N 2. Th at S e ct ion 2 -25 6 of A rt icle IV , o f D ivisio n 5 of C h a p te r 2 o f the C od e of the C ity of
M ia m i B e a c h is he re by am e nd e d as fo llo w s:
D IV IS IO N 5. O F F IC E O F IN S P E C T O R G E N E RA L
S e c . 2-2 5 6. O ffi c e of in s p ec to r ge n e ral.
(a ) Created and established. T he C ity of M ia m i B e ach O ff ice of In sp e ctor G e n e ra l is h e reb y created
as an ind e pen de nt b o dy to pe rf orm investigatio ns, aud its, revie w s, an d ove rsig ht of m u nicipa l
m att e rs in clud ing city co ntracts, prog ram s, p ro je cts, an d expe n ditures, in orde r to id e ntify
eff ic ie nci e s, and to de tect an d preve nt fr au d , w aste , m ism a n a g e m e nt, m isco n d uct, an d ab use of
p o w e r. Fo r p u rposes o f this se ctio n , the o ffi ce o f inspe ctor ge n e ra l sha ll b e referre d to as the
offi ce . T he inspe ctor ge ne ra l sha ll he a d the offi ce . T he orga n izatio n and ad m in istratio n o f the
offi ce sha ll be suffi cie ntly in d e p e n de nt to assure that n o in te rfere nce or influ e n ce e xte rn a l to the
offi ce adve rse ly a ff ects the in d e p e nd e nce a n d obje ctivity of the in sp ecto r ge ne ra l.
(b ) Minimum qualifications, appointment, and term of office.
(1 ) Minimum qualifications. T he inspe cto r g e ne ral sha ll b e a pe rso n w ho :
a . H a s a t le a st te n ye a rs o f cum u lative e xpe rie nce in an y one , or in any co m b in a tion , o f
the fo llow in g p rofessio n s or fie lds:
(i) O pe ratio n a l an d /o r aud it e xpe rie nce in the pu b lic or p rivate se ctor;
P age 3 of 9
(ii) Federal, state, or local govern m ent attorn ey;
(iii) Progressive superv isory experience in an investigative public agency sim ilar to
an inspector general's offi ce;
(iv) Federal, state, or local law enfo rcem ent offi cer; and/or
(v) Federal or state court judge;
b. H as, at a m inim um , a fo ur-year degree fr om an accredited institution of higher learn ing;
c. H as dem onstrated the ability to w ork w ith local, state, and federal law enfo rcem e nt
agencies and the judici ary ;
d. H as m anaged and com pleted com plex investigations involving allegations of fraud ,
w aste, m ism anagem ent, m isconduct, and abuse of pow er;
e. Has not been em ployed by the ci ty (in any capacity other than as the ci ty's inspector
general, or as a m em ber of the off ice m anagem ent personnel} during the tw o-year
period im m ediately prior to appointm ent;
f. Has significant operational and/or audit experience, at least five years of w hich is in
the public sector;
g. Has not been fo und guilty of or entered a plea of nolo contendere to any felony, or any
m isdem eanor involving a breach of public trust; and
h. H as not been subject to any finding of a violation, or any other enfo rcem ent action, by
the M iam i-D ade C ounty C om m ission on Ethics and P ublic T rust, or the Flo rida
C om m ission on Ethics.
(2) Appointment. The inspector general shall be appointed by the ad hoc inspector general
selection committee (hereinafter referred to as the selection committee). Before any
appointment by the selection committee shall become effective, the appointment must be
approved, at the next regularly scheduled city commission meeting after the appointment,
by a majority vote of the city commission. In the event that the appointment is not approved
by the city commission, the appointment shall become null and void, and the selection
committee shall promptly make a new appointment, which shall likewise be submitted for
approval by the city commission.
The selection committee shall be composed of seven members selected as follows:
a. The state attorney in and for the Eleventh Judicial Circuit of Florida;
b. The Miami-Dade County Inspector General;
c. The Executive Director of the Miami-Dade Commission on Ethics and Public Trust;
d. The city attorney;
e. A member of the city's audit committee, who shall be selected by majority vote of the
audit committee; and
f. Two members with at least five years of experience in a senior management position
in the fields of accounting general business, or law, each of whom shall be selected by
majority vote of the city commission.
The members of the selection committee shall elect a chairperson who shall serve as
chairperson until the selection committee's appointment of the inspector general is approved
by the city commission. The selection committee shall select the inspector general from a
list of qualified candidates submitted by the city manager's designee, who shall be the city's
human resources director.
Page 4 of 9
(3) Term. The inspector general shall be appointed for a term of four years. In case of a vacancy
in the position of inspector general, the city commission shall promptly appoint a qualified
member of the office management personnel as interim inspector general, until such time
as a successor inspector general can be appointed, in the manner described in subsection
(b)(2) above. Any successor appointment made by the selection committee as provided in
subsection (b )(2) shall be for a full four-year term.
At least 30 days prior to the expiration of each term, the city commission may, by majority
vote, re-appoint the inspector general to another term. In the event that the city commission
fails to re-appoint the inspector general prior to the expiration of a term, the city commission
shall reconvene the selection committee to appoint an inspector general, in the manner
described in subsection (b)(2). Nothing herein shall be construed to prevent the incumbent
inspector general from submitting his or her name to the selection committee as a candidate
to be considered for appointment.
(4) Staffing of selection committee. The city manager's designee, who shall be the human
resources director, shall provide staffing to the selection committee; shall advertise, as
necessary, the acceptance of resumes for the position of inspector general; and shall
provide the selection committee with a list of qualified candidates. The human resources
director shall also be responsible for ensuring that background screening investigations are
conducted on any candidate selected for interview by the selection committee. The results
of the background screening investigations shall be provided to the selection committee
prior to the interview of candidates.
(c) Contract. The city attorney shall negotiate a contract of employment with the inspector general,
except that before any contract shall become effective, the contract must be approved by majority
vote of the city commission.
(d) Functions, authority, and powers.
(1) The office shall have the authority to conduct any reviews, audits, or investigations relating
to any past, present, and proposed city contracts, programs, projects, and expenditures.
(2) The office shall be authorized to conduct any reviews, audits, inspections, or investigations
relating to city departments, agencies, boards, and committees.
(3) The office shall have the power to require reports from the city manager, city departments,
city agencies, boards, and committees, and city officers and employees, regarding any
matter within the jurisdiction of the inspector general.
(4) The inspector general shall, subject to the provisions in subsections (d)(4)a. and (d)(4)b.
below, have the power to subpoena witnesses, administer oaths, and require the production
of records regarding any matter within the jurisdiction of the office. In the case of a refusal
to obey a subpoena issued to any person, the inspector general may make application to
any circuit court of this state which shall have jurisdiction to order the witness to appear
before the inspector general and to produce evidence, if so ordered, or to give testimony
related to the matter in question.
a. Prior to issuing a subpoena, the inspector general shall notify the state attorney and
the U.S. Attorney for the Southern District of Florida. The inspector general shall not
interfere with any ongoing criminal investigation of the state attorney and/or the U.S.
Attorney for the Southern District of Florida, where the state attorney and/or the U.S.
Attorney has explicitly notified the inspector general, in writing, that the inspector
general's investigation is interfering with an ongoing criminal investigation.
b. The subpoena power set forth in this subsection (d)(4) shall not extend to subpoenas
to law enforcement officers in connection with investigations of complaints against
them.
Page 5 of 9
(5 ) Th e in s p e c to r g e n e ra l s h a ll h a v e th e p o w e r to re p o rt a n d /o r re c o m m e n d to th e ci ty
c o m m is s io n a n d /o r c ity m a n a g e r w h e th e r a p a rt ic u la r p ro je c t o r p ro g ra m is , o r w a s ,
n e c e s s a ry a n d , if d e e m e d n e c e s s a ry , w h e th e r th e m e th o d u s e d fo r im p le m e n tin g th e p ro je c t
o r p ro g r a m is , o r w a s , e ff ic ie n t b o th fi n a n c ia ll y a n d o p e ra tio n a lly . A n y re v ie w o f a p ro p o s e d
p ro je c t o r p ro g r a m s h a ll b e p e rfo rm e d in s u c h a m a n n e r a s to a s s is t th e c ity c o m m is s io n
a n d c ity m a n a g e r in d e te rm in in g w h e th e r th e p ro je c t o r p ro g ra m is th e m o s t fe a s ib le o r
e ffi c ie n t s o lu tio n to a p a rt ic u la r n e e d o r p ro b le m . M o n ito rin g o f a n e x is tin g p ro je c t o r p ro g ra m
m a y in cl u d e re p o rt in g w h e th e r th e p ro je c t is o n tim e , w ith in b u d g e t, a n d in c o n fo rm ity w ith
p la n s , s p e ci fi c a tio n s , a n d a p p li c a b le la w .
(6 ) T h e o ff ic e s h a ll h a v e th e p o w e r to a n a ly z e th e n e e d fo r , a n d th e re a s o n a b le n e s s o f,
p ro p o s e d c h a n g e o r d e rs .
(7 ) T h e in s p e c to r g e n e ra l m a y , o n a ra n d o m b a s is , p e rf o rm a u d its , in s p e c tio n s , a n d re v ie w s o f
a ll c u r re n t c ity c o n tra c ts .
(8 ) T h e in s p e c to r g e n e r a l is e m p o w e re d to c o n d u c t in v e s tig a tio n s th a t m a y re s u lt in re fe rr a ls to
la w e n fo r c e m e n t a g e n c ie s a n d /o r c rim in a l in v e s tig a tio n s ; p ro v id e d , h o w e v e r, a s fo ll o w s :
a . In th e e v e n t th a t th e in s p e c to r g e n e ra l d e te c ts c o rru p tio n o r fr a u d , th e in s p e c to r g e n e ra l
s h a ll p ro m p tly n o tify a ll a p p ro p ria te la w e n fo rc e m e n t a g e n c ie s . S u b s e q u e n t to n o tify in g
th e a p p ro p r ia te la w e n fo rc e m e n t a g e n c y o r a g e n c ie s , th e in s p e c to r g e n e ra l m a y a s s is t
e a c h la w e n fo rc e m e n t a g e n c y in c o n cl u d in g th e in v e s tig a tio n .
b . In th e e v e n t th a t th e in s p e c to r g e n e ra l d e te c ts a v io la tio n o f a n y o f th e o rd in a n c e s
w ith in th e ju r is d ic tio n o f th e M ia m i-D a d e C o u n ty C o m m is s io n o n E th ic s a n d P u b li c
T r u s t (h e re in a ft e r re fe rre d to a s th e e thi c s c o m mi s si on ), th e in s p e c to r g e n e ra l w ill
p ro m p tly re fe r th e m a tt e r to th e e th ic s c o m m is s io n .
(9 ) A s a p p lic a b le to th e c ity 's p ro c u re m e n t o f g o o d s a n d s e rv ic e s , th e in s p e c to r g e n e ra l s h a ll
h a v e th e p o w e r to a u d it , in v e s tig a te , m o n ito r, in s p e c t, a n d re v ie w th e o p e ra tio n s , a c tiv itie s ,
p e rf o r m a n c e , a n d p ro c u re m e n t p ro c e s s (in c lu d in g , b u t n o t lim ite d to , e s ta b lis h m e n t o f b id
s p e c ifi c a tio n s , b id s u b m itt a ls , p a s t c o n tra c t p e rf o r m a n c e , a n d o th e r a c tiv itie s ) o f a b id d e r,
c o n tra c to r , s u b c o n tra c to r , c o n s u lta n t , or s ub c o n s ul tan t, o r a n y s u c h e n tity 's o ff ic e rs , a g e n ts ,
e m p lo y e e s , o r lo b b y is ts , a s w e ll a s a n y s u c h re la te d a c tiv itie s o f c ity s ta ff , in o rd e r to e n s u re
c o m p lia n c e w ith b id a n d c o n tra c t s p e ci fi c a tio n s a n d to d e te c t a n d p re v e n t fr a u d , w a s te ,
m is m a n a g e m e n t , m is c o n d u c t, a n d a b u s e o f p o w e r .
(1 0 ) T h e in s p e c to r g e n e ra l s h a ll b e n o tifi e d , in w ritin g , p rio r to a n y m e e tin g o f a s e le c tio n
c o m m itt e e w h e r e a n y m a tt e r re la tin g to th e p ro c u re m e n t o f g o o d s o r s e rv ic e s b y th e c ity is
to b e d is c u s s e d . T h e n o tic e re q u ire d b y th is s u b s e c tio n (d )(1 0 ) s h a ll b e g iv e n to th e
in s p e c to r g e n e ra l a s s o o n a s p o s s ib le a ft e r a m e e tin g h a s b e e n s c h e d u le d , b u t in n o e v e n t
la te r th a n 2 4 h o u rs p rio r to th e s c h e d u le d m e e tin g . T h e in s p e c to r g e n e ra l m a y , a t th e
in s p e c to r g e n e ra l's d is c re tio n , a tt e n d a ll c ity m e e tin g s re la tin g to th e p ro c u re m e n t o f g o o d s
o r s e rv ic e s a s p ro v id e d h e re in , a n d , in a d d itio n to th e e x e rc is e o f a ll p o w e rs c o n fe rre d b y
th is s e c tio n , m a y p o s e q u e s tio n s a n d ra is e c o n c e rn s c o n s is te n t w ith th e fu n c tio n s , a u th o rity ,
a n d p o w e rs o f th e in s p e c to r g e n e ra l.
(1 1 ) T h e in s p e c to r g e n e ra l m a y re v ie w , a u d it, o r in v e s tig a te a n y e x p e n d itu re o f c ity fu n d s in
e x c e s s o f $5 0,0 0 0.0 0 .
(1 2 ) T h e in s p e c to r g e n e r a l m a y in v e s tig a te a n y m a tt e r in v o lv in g a n a ll e g a tio n o f m is c o n d u c t b y
a n e m p lo y e e o r p u b lic o ffi c e r, s u b je c t to th e re fe rra l p ro v is io n s in s u b s e c ti on (d )(8 ) h er e o f.
(1 3 ) T he insp ecto r g e neral shall have the pow er to review and investigate any com plaint filed by
a member of the city commission, the city manager, or any member of the public, regarding
a city contract, program, project, expenditure, or city employee or public officer.
Page 6 of 9
(14) With the exception of the internal audit functions enumerated in subsection (e), and the
general obligation bond program functions enumerated in subsection (f), both of which must
be performed, The inspector general may exercise any of the powers set forth in this section
upon the inspector general's own initiative. However, the inspector general shall utilize best
efforts to perform its investigations, audits, reviews, and oversight in accordance with the
following order of precedence:
a. Referrals from the city commission,
b. Requests by the city manager,
c. Complaints submitted by members of the public, and
d. Matters initiated by the inspector general. and
e. Referrals from the city internal auditor
(15) The inspector general shall have the authority, subject to budgetary allocation by the city
commission, to retain and coordinate the services of other professionals (except for legal
services, which shall be provided and or retained by the office of the city attorney) as
required when, in the inspector general's discretion, the inspector general concludes that
such services are needed to perform the duties and functions enumerated in subsection (d)
herein. Any such retention and/or procurement of services shall be coordinated through the
city's procurement department.
(e) Jnternal audit. The inspector general shall serve as the city's internal auditor and, in such capacity,
shall, at a minim um, perfor m the followi ng functi ons:
(1) -Audits req uired by the City Code, state law, or a city contra ct to be performed by the intern al
auditor;
(2) Parking related audits;
(3) Resort tax audits;
(4) -Audits of franchi se waste fees; and
(5) Any other audit requested by the city commission or city manager.
(f) (e) General obligation bond program. Consistent with the inspector general's powers under
subsection (d)1), the inspector general shall may review, audit, inspect, and investigate city
contracts, programs, projects, procurements, and expenditures associated with the city's general
obligation bond program.
(g) (f) Physical facilities and staff.
(1) The city manager shall provide the office with appropriately located office space and
sufficient physical facilities, together with necessary office supplies, equipment and
furnishings, to enable the office to perform its functions.
(2) The inspector general shall have, subject to annual budgetary allocation by the city
commission, the power to appoint, employ, and remove such employees, consultants,
and/or independent contractors as deemed necessary for the efficient and effective
administration of the activities of the office. All such employees shall be city employees and,
accordingly, the office's personnel-related matters shall be coordinated through the city's
human resources department. The budget for the Office of Inspector General shall include
funding for at least ( _) auditors, to allow the Inspector General to perform any audits the
Inspector General determines may be necessary in the performance of any of the Inspector
General's powers and duties under the City Charter or City Code.
(h) (g) Procedure for finalization of reports and recommendations which make findings as to the
person or entity being reviewed or inspected. Notwithstanding any other provision of this section,
Page 7 of9
whenever the inspector general concludes a report or recommendation which contains findings
as to the person or entity being reported on, or who is the subject of the recommendation, the
inspector general shall provide the affected person or entity a copy of the report or
recommendation, and such person or entity shall have 30 working days to submit a written
explanation or rebuttal of the findings before the report or recommendation is finalized, and such
timely submitted written explanation or rebuttal shall be attached to the finalized report or
recomme ndation. The requireme nts of this subs ection (h) (g) shall not apply wh en the insp ector
general, in conjunction with the state attorney and/or U.S. Attorney, determines that supplying
the affected person or entity with such report will jeopardize a pending criminal investigation.
EB ill} Budget. The inspector general's budget is subject to annual approval of the city commission,
in conjunction with its annual budget process. Within 60 days of appointment, the inspector
general shall submit a proposed annual budget to the city commission covering the city fiscal
year following the year in which the inspector general is appointed. In each subsequent city fiscal
year, the inspector general shall submit a proposed budget to the city commission in accordance
with the city's regular budget process. Each proposed budget shall include a reasonable estimate
of operating and capital expenditures of the office. The city commission shall provide sufficient
funds, as determined by the city comm ission , for the insp ector gener al to carry out his or her
duties in an efficient manner.
{Bill Reporting requirements. The inspector general shall annually prepare and submit to the city
commission a written report concerning the work and activities of the office including, but not
limited to, detailed results of the office's investigations, audits, and reviews; the financial impact
of the office's activities; and statistical information regarding the disposition of closed
investigations, audits, and other reviews. In addition to the foregoing, the inspector general shall,
at least quarterly, prepare and submit to the city commission a written report concerning the
planning and execution of the general obligation bond program including, but not limited to,
progress reports, financial analyses, and potential risks.
(«9 (0) Removal. The inspector general may be removed from office upon a majority vote of the city
commission.
(B) (K) Abolition of the office. The office is created pursuant to Article IX of the City Charter and,
therefore, the office may only be abolished upon approval by a majority vote of the city's voters
voting in a cityw ide referendum.
i si *
SECTION 3. CODIFICATION
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this ordinance shall become and be made part of the Miami Beach City
Code. The sections of this ordinance may be renumbered or relettered to accomplish such intention,
and the word "ordinance" may be changed to "section ," "article," or other appropriate word.
SECTION 4. REPEALER
All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed.
SECTION 5. SEVERABILITY
If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder
shall not be affected by such invalidity.
Page 8 of 9
S E C T IO N 6 . E F F E C T IV E D A T E .
This Ordinance shall take effect 10 days after passage.
PASSED AND ADOPTED this day of,2022.
ATTEST:
Dan Gelber, Mayor
Rafael E. Granado, City Clerk
(sponsored by Commissioner David Richardson)
Underlined denotes new additions
Strikethrough denotes deletions
APPROVED AS TO
FOR M & LAN GUAGE
& FOR EXECUTION
City Attomey P4 2
-s -23
Date
Page 9 of9