Rules & Regulations of the State of Tennessee
Title 0250 - Children's Services
Subtitle 0250-04 - Standards for Regulated Institutions
Chapter 0250-04-05 - Standards for Residential Child Caring Agencies
Section 0250-04-05-.03 - ORGANIZATION AND ADMINISTRATION
Universal Citation: TN Comp Rules and Regs 0250-04-05-.03
Current through September 24, 2024
(1) Incorporation: Residential Child-Caring agencies may be operated by a society, agency, or corporation. If the residential child-caring agency is to be operated as a corporation, the licensing law provides that no residential child-caring agency, "shall receive a certificate of incorporation from the Secretary of State unless there shall first be filed with the Secretary of State by the Department a commendatory certificate approving the charter. All amendments to previously granted charters shall take the same course and meet the same requirements as are herein provided for a new and original charter."
(2) Constitution and By-Laws. The constitution and by-laws 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 meetings and
annual meetings
10. Frequency of
meetings, quorum requirements, rules of order
11. Fiscal year dates
12. Responsibilities of the administrator as
specified in rule 0250-4-5-.05(2) (a), and his/her relationship to the
Board.
(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 non-incorporated 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 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) It must assure that adequate funds are
available for financing the agency's operations, including adequate staff,
proper working conditions, salaries, and facilities.
(d) It must govern the agency by policies and
plans that it develops and approves and that are formulated with the executive
and 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 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) 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
which shall be available to the licensing department,
(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 must have an Advisory Board.
(b) There shall be a plan for rotation of the
Advisory Board. Members shall serve no more than nine 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 Board
5. Size
6. Method of selection, tenure, and rotation
of members
7. Method of election of
officers
8. Organization of the
Board and its committees, enumerating their respective
responsibilities
9.
Responsibilities of the administrator and their relationship to the
Board
10. Method of calling
meetings and annual meetings
11.
Frequency of meetings, quorum requirements, and rules of order
12. Fiscal year dates
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.
3.
Periodically review aspects of the operation of the facility.
4. Meet as often as necessary but not less
than quarterly.
5. Maintain records
of attendance and minutes of meetings. These records and minutes shall be
available to the Department.
(e) In public agencies, in the event of
serious disagreement between the agency and Advisory Board; the Advisory Board
shall report to the head of the governing unit statutorily responsible for the
agency, clearly outlining the nature of the disagreement and its
recommendations.
(6) Financing.
(a) Solicitation of Funds. Agencies
which engage in the solicitation of funds for charitable purposes must comply
with the Solicitation of Charitable Funds Act, T.C.A. § 48-3-301, et
seq.
(b) Funds
1. 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 Control
1. 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 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 patient(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.
Authority: T.C.A. §§ 4-5-226(b)(2);14-10-102; 37-5-101; 37-5-105; 37-5-106 and 37-5-112(a).
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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