Section 0250-04-09-.03 - ORGANIZATION AND ADMINISTRATION(1) INCORPORATION: Child-placing agencies may be operated by a society, agency, or corporation. If the child-placing agency is to be operated as a corporation, the licensing law provides that no child-placing agency.(2) CONSTITUTION AND BY-LAWS. The constitution and bylaws should be written in a manner which would encourage and facilitates progress and change to keep the function and philosophy of the organization in line with the best current thinking and practice in child care. (a) The incorporated agency must develop written bylaws which-define policies and procedures pertaining to its organization and structure.(b) The bylaws of the incorporated agency must include the following subjects: 2. Purpose, with a description of scope of operation4. Powers and duties of board of directors5. Size of board of directors6. Method of selection, tenure, and rotation of board members7. Method of election of officers of the board8. Organization of board and its committees, enumerating their respective responsibilities9. Method of calling board meetings and annual meetings10. Frequency of meetings, quorum requirements, rules of order12. Responsibilities of the administrator as specified in Rule 0250-4-9-.04(5)(a).(3) COMPOSITION OF THE BOARD(a) Every agency operating as a corporation must have a board of directors which operates as the responsible representative of the community and as the governing body of the agency. In a noncorporated agency an Advisory Board must be established.(b) Officers must be elected annually. The only employee who may serve as a voting member of the Board is the Executive Director.(c) There must be a minimum of quarterly meetings. In special circumstances a meeting of the Executive Committee may substitute for a full board meeting.(4) GENERAL RESPONSIBILITIES OF THE INCORPORATED AGENCY(a) The board must set up the corporate or legal existence of the agency and give it continuity.(b) It must select and appoint the executive director, and delegate responsibility to the executive for adminis-tering the agency. It must assume responsibility for a written evaluation of the executive director on an annual basis. This evaluation must be included in the executive director's personnel file.(c) It must see that adequate funds are available for financing the agency's operations, including a adequate staff, proper working conditions, salaries, and facilities.(d) It must govern the agency by policies and plans that it determines and approves and that are formulated with the executive staff.(e) It must account for the service of the agency and the expenditure of funds. To be accountable it must make provision for proper bookkeeping including as annual audit and an annual budget. The board must set the budget, study reports, ask questions, and stay informed regarding the agency's financial activities and field of service(f) It must not be involved in individual cases unless the board member is a staff person whose job description authorizes such involvement.(g) It must keep minutes of each meeting. Upon request of the Department, documentation shall be provided concerning the activities of the board.(h) The annual application for licensure must be submitted to the Department and signed by the chairman of the board and/or the executive director.(i) The governing board must be organized and must function according to its constitution, bylaws, and charter.(j) There shall be a plan for rotation of the governing board. Members shall serve no more than nine consecutive years.(5) GENERAL RESPONSIBILITIES OF THE ADVISORY BOARD(a) Every public agency or for-profit child-placing corporation must have an advisory board.(b) There shall be a plan for rotation of the advisory board.(c) Duties of the advisory board The advisory board of a facility shall:
1. Provide advice to the governing body.2. Keep informed of the operational policies and practices of the facility.3. Meet as often as necessary but not less than quarterly.4. Maintain records of attendance and minutes of meetings. Upon request of the Department, documentation shall be provided concerning the activities of the board.(6) FINANCING(a) Solicitation of Funds Agencies which engage in the solicitation of funds for charitable purposes should become familiar with the "Solicitation of Charitable Funds Act", T.C.A. § 48-3-501et. seq. and abide by its provisions. The effective date of this act was July 1, 1977. For information about the act, contact the Office of the Secretary of State, Charitable Solicitation Division.
(b) Funds1. Income must be adequate and stable to insure the efficient and effective operation of the program to which the agency commits itself.2. A statement must be submitted annually showing financial resources which will provide an adequate standard of service.(c) Audit and Control1. Accounts must be audited annually by a certified public accountant or licensed public accountant consistent with accepted accounting principles. A copy of the audit is to be provided to the Department and must contain an opinion. Qualifications to the opinion should be reviewed by the board and this review must be recorded in the minutes.
2. The administrator and others handling the agency's funds must be bonded. Premiums for the bonds must be paid by the organization unless otherwise provided by law or ordinance.(d) If the agency does not maintain liability insurance covering the premises and the operations, the parent(s) or other legal custodian of all children in care must be advised of this fact, in writing, either at the time of enrollment of the child, at the time an effective policy ceases to be effective, or on the effective date of these rules, whichever comes first. If, on the basis of such notification, the legal custodian desires to remove the child(ren) from the agency, he/she must be allowed to do so, notwithstanding any prior agreement to the contrary. Any prepaid charges must be refunded on a prorated basis.Tenn. Comp. R. & Regs. 0250-04-09-.03
Original rule certified June 10, 1974. Amendment filed August 20, 1974; effective September 19, 1974. Repealed and new chapter filed June 9, 1981; effective July 24, 1981. Repeal and new rule filed November 30, 1988; effective January 14, 1989. Rule assigned a new control number, removed and renumbered from 1240-4-9-.03 filed and effective March 25, 1999.Authority: T.C.A. §§ 4-5-226(b)(2);14-10-104; 14-10-119; 37-5-101; 37-5-105; 37-5-106; 37-5-112(a); 71-1-105, 71-3-501-503 and 48-3-501-518.