Rules & Regulations of the State of Tennessee
Title 0250 - Children's Services
Subtitle 0250-04 - Standards for Regulated Institutions
Chapter 0250-04-02 - Standards for Group Care Homes and Family Boarding Homes
Section 0250-04-02-.03 - ORGANIZATION AND ADMINISTRATION

Universal Citation: TN Comp Rules and Regs 0250-04-02-.03

Current through September 24, 2024

(1) LEGAL RESPONSIBILITY:

(a) The organization of every agency must be such that legal and administrative responsibility is clearly defined.

(b) In a non-profit incorporated agency, the administrative responsibility must be placed with the Board of Directors.

(2) CONSTITUTION AND BY-LAWS OF NON-PROFIT CORPORATIONS: The constitution and bylaws should be written in a manner which would encourage and facilitate progress and change to keep the function and philosophy of the organization in line with the best current theory and practice in child care.

(a) The incorporated agency must develop written by-laws which define policies and procedures pertaining to its organization and structure.

(b) The by-laws of the incorporated agency must include the following subjects:
1. Name;

2. Purpose, with a description of scope of operation;

3. Membership;

4. Powers and duties of Board of Directors;

5. Size of Board of Directors;

6. Method of selection, tenure, and rotation of Board members;

7. Method of election of officers of the Board;

8. Organization of Board and its committees, enumerating their respective responsibilities;

9. Method of calling Board meeting and annual meetings;

10. Frequency of meetings, quorum requirements, rules of order;

11. Fiscal year;

12. Responsibilities of the administrator as specified in Rule 0250-4-2-.05(2)(a), and his/her relationship to the Board; and

13. Method of amending the by-laws.

(3) COMPOSITION OF THE BOARDS OF NON-PROFIT CORPORATIONS:

(a) Every agency operating as a non-profit corporation must have a Board of Directors which operates as the governing body of the agency. The board should be broadly representative of the community. Employees may not serve as voting members of the board.

(b) Officers must be elected annually.

(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 GOVERNING BODY OF A NON-PROFIT INCORPORATED AGENCY:

(a) The board must set up the corporate or legal existence of the agency and give it continuity.

(b) The Board must select and appoint the executive director, and delegate responsibility to the executive for administering the agency. It must perform a written evaluation of the executive director on an annual basis. This evaluation must be included in the executive director's personnel file.

(c) The Board must assure that adequate funds arc available for financing the agency's operations, including adequate staff, proper working conditions, salaries, and facilities.

(d) The Board must govern the agency by policies and plans that it develops and approves, and that are formulated with the executive and staff.

(e) The Board must account for the service of the agency and the expenditure of funds. To be accountable, it must make provisions for proper bookkeeping including an 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 fields of service.

(f) The Board must not be involved in individual cases unless the Board member is a staff person whose job description authorizes such involvement.

(g) The Board must keep minutes of each meeting which shall be available to the Department's licensing division.

(h) The Board must be organized and must function according to its constitution, by-laws, and charter.

(i) There shall be a plan for rotation of the governing board. Members shall serve no more than nine consecutive years.
(i) There shall be a plan for orientation of board members to the philosophy and operation of the agency.

(5) COMPOSITION AND GENERAL RESPONSIBILITIES OF THE GOVERNING BODY OF A FOR PROFIT INCORPORATED AGENCY:

(a) Every agency operating as a for-profit corporation must have a Board of Directors which operates as the governing body of the agency. The board must set up the corporate or legal existence of the agency and give it continuity.

(b) The Board must select and appoint the executive director or delegate responsibility to the executive for administering the agency.

(c) The Board must assure that adequate funds are available for financing the agency's operations, including adequate staff, proper working conditions, salaries, and facilities.

(d) The Board must govern the agency by policies and plans that it develops and approves, and that are formulated with the executive staff.

(e) The Board must account for the services of the agency and stay informed regarding the agency's field of service.

(f) The Board must be organized and must function according to its constitution, by-laws, and charter.

(g) The Board must keep minutes of each meeting.

(h) There shall be a plan for orientation of Board members and Advisory Board members to the philosophy and operation of the agency.

(6) GENERAL RESPONSIBILITIES OF THE ADVISORY BOARD:

(a) Every public agency, for-profit organization, and non-incorporated agency must have an Advisory Board.

(b) There shall be a plan for rotation of the Advisory Board. Members shall serve no more than nine (9) consecutive years.

(c) The Advisory Board of a facility shall keep written records clearly setting forth:
1. Name of agency;

2. Purpose of agency;

3. Membership;

4. Powers and duties of the advisory board;

5. Size;

6. Method of selection, tenure, and rotation of members;

7. Method of election of officers;

8. Organization of the Advisory Board and its committees, enumerating their respective responsibilities;

9. Responsibilities of the administrator and his/her relationship to the Advisory Board;

10. Method of calling meetings and annual meetings;.

11. Frequency of meetings, quorum requirement, and rules of order;

12. Fiscal year dates; and

13. Method of amending the by-laws.

(d) 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 and request continued orientation to the functions of the agency;

3. Periodically review aspects of the operation of the facility;

4. Meet as often as necessary, but not less than quarterly; and

5. Maintain records of attendance and minutes of meetings. These records and minutes shall be available to the Department.

(e) In public agencies and for-profit organizations. in the event of serious disagreement between the agency and Advisory Board, the Advisory Board shall report to the head of the governing unit legally responsible for the agency; clearly outlining the nature of the disagreement and its recommendations.

(7) FINANCING:

(a) Solicitation of Funds: Agencies which engage in the solicitation of funds for charitable purposes mus comply with the Solicitation of Charitable Funds Act, T.C.A. §§ 48-3-501 et seq.

(b) Funds:
1. Income must be adequate and stable to ensure 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 Control:
1. Accounts of non-profit and public agencies must be audited annually by a certified public ac-countant 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. Qualification to the opinion must 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 the 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.

Authority: T.C.A. §§ 4-5-226(b)(2);37-5-101; 37-5-105; 37-5-106; 37-5-112(a); 71-1-105(12) and 71-3-501 et seq.

Disclaimer: These regulations may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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