Tenn. Comp. R. & Regs. 0420-02-02-.11 - FINANCIAL STANDARDS

(1) Uniform Accounting System.

(a) Each grantee shall establish and maintain a uniform accounting system as prescribed by the State's Comptroller of the Treasury and the Department. Each grantee shall administer their financial affairs in accordance with generally accepted accounting practices.

(b) Recipients shall account separately for community corrections funds.

(c) Victim restitution funds shall be accounted for separately.

(2) Auditing Requirements.

(a) Each grantee shall cooperate with the State's Comptroller of the Treasury and the Department in any or all audits of all books of accounts and financial records.

(b) An audit of all financial records and books of accounts shall be conducted annually and completed within nine months after the end of the grant year. Each grantee shall be audited by a licensed independent accountant selected by the Board and approved by the Comptroller. One copy of each audit shall be furnished to the board, the Department and Comptroller of the Treasury, and made available to the press.

(c) The Comptroller of the Treasury shall insure that audits are prepared in accordance with the generally accepted governmental auditing standards and determine if the audits meet minimum audit standards prescribed by the Comptroller. No audit may be accepted as meeting the requirements of this section until approved by the Comptroller.

(3) Local Responsibility for Administration of Funds. The applicant shall designate one fiscal agent who is responsible for the administration of all community corrections funds. In multi-jurisdictional programs, one fiscal agent shall serve all counties involved.

(4) Method of Payment.

(a) Community corrections funds shall be granted through a written formal contract on an annual basis in a form prescribed by the Commissioner and approved by the Comptroller.

(b) Each new grantee may receive up to 15% of its yearly grant at the beginning of the grant year and thereafter on a monthly reimbursement basis after the receipt and approval of a request for funds invoice, program monitoring report(s) and a financial monitoring report. The Department may readjust the monthly allocation of funds if a surplus exists within the grantee's budget.

(5) Allocation of Funds. All funds, including interest earned and supervision fees, shall only be used for eligible offenders and services. Any funds not spent by the recipient shall be reported to the Department at the end of the fiscal year. These unspent funds, along with any supplemental funding provided by the Tennessee General Assembly, may be used at the discretion of the Commissioner for eligible offenders and services.

(6) Financial Monitoring System.

(a) Each participant shall participate in the statewide financial monitoring system as set forth by the Commissioner in administrative policies and procedures. Each participant shall prepare and submit all reports required by the Department on a timely basis.

(b) Each fiscal agent shall establish and maintain a financial monitoring procedure which will provide the financial information required by the Department and the Comptroller of the Treasury.

(c) The fiscal agent and/or designee shall be responsible for approving all financial expenditures and for providing required financial reports to the grantee and the Department.

(d) The grantee shall maintain financial records for a minimum of three years.

(7) Withdrawal.

(a) Any participant can withdraw from participation in the program established by the Tennessee Community Corrections Act with written authorization of the county legislative body or board of directors after written notification is given to the Commissioner during the fourth quarter of the grant year. Recipients who request withdrawal shall be terminated on the last day of the grant year.

Notes

Tenn. Comp. R. & Regs. 0420-02-02-.11

Original rule filed December 30, 1986; effective February 13, 1987. Amendment filed March 8,. 1993; effective June 29, 1993.

Authority: T.C.A. Sections 40-36-303, 40-36-304, and 40-36-305.