SENATE BILL 2973
By Stevens HOUSE BILL 2985
By Martin B
AN ACT to create a financial management system in Carroll County.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. CCFMS – This Act shall be known and may be cited as the "Carroll County Financial Management System of 2024" (CCFMS).
SECTION 2. Purpose – It is the purpose of this Act to provide Carroll County with a modern and efficient system for the management of County finances, including, but not limited to, accounting, budgeting, purchasing, investment oversight, debt management, grant coordination, payroll, and cash management oversight.
SECTION 3. Definitions – As used in this Act, unless the context otherwise requires:
(a) "Agency" means any entity of the County government, including, but not limited to, boards, commissions, departments and offices headed by employees or
officers of the County whose funds are maintained by the County Trustee;
(b) "Capital asset" means land, improvements to land, easements, buildings,
building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period;
(c) "CCFMS" and "Act" mean the Carroll County Financial Management System of 2024;
(d) "CCFWMC" means the Carroll County Finance, Ways, and Means Committee;
(e) "Chief administrative officer" has the same meaning as defined in Tennessee Code Annotated, § 54-7-103;
(f) "County Mayor" means the County Executive or County Mayor;
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 (g) "Local education agency," "LEA," "school system," "public school system,"
"local school system," "school district," or "local school district" means the Carroll County Board of Education created or authorized by the general assembly of the State of
Tennessee;
(h) "Purchase" means the purchase, lease, lease-purchase, or contract for procurement of real and personal property or services or any combination thereof; and
(i) "Special Committee" means a committee established for the following reasons: budget, administrative, executive, investment, debt management, or purchasing.
SECTION 4. Creation of Finance Department –
(a) There is created a Finance Department to administer the finances for all funds of the County maintained by the County Trustee, with the exception of the funds administered by the LEA.
(b) The Finance Department shall be responsible for accounting; budgeting; debt management; grant coordination; payroll; and cash management oversight for all agencies of the County as provided in this Act. The Finance Director, with the approval of the County Mayor, shall develop a system in conformity with generally accepted governmental accounting principles and practices prescribed by the Comptroller of the Treasury.
(c) The Finance Department shall, for all purposes, function under the direct supervision of and report to the County Mayor.
(d) The County Legislative Body shall provide adequate office space and shall appropriate adequate funds for equipment and supplies necessary for the efficient operation of the Finance Department.
(e) All employees performing the functions of accounting, budgeting, debt management, grant coordination, payroll, and cash management oversight for the various agencies of the County, except employees of the LEA, shall be transferred to the
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Finance Department and shall function under the supervision of the Finance Director,
except for the following: any employees the Finance Director does not require and the head of the agency agrees to retain, and employees of any County officer enumerated in
Tennessee Code Annotated, § 8-22-101 needed to perform the duties of such County officer. Notwithstanding any other law to the contrary, all positions transferred that are enumerated in Tennessee Code Annotated, § 8-22-101 needed to perform the duties of
such office as determined by the Finance Department and the salaries, benefits, travel and training, and other expenses relating to such personnel shall be budgeted under the Finance Department. Officers enumerated in Tennessee Code Annotated, § 8-22-101
may continue to have employees to perform duties regarding receipt and disbursement of funds, and accounting for same, which are directly related to the duties of their respective offices; provided, that all other accounting, budgeting, debt management,
grant coordination, payroll, and cash management oversight functions shall be
performed by the Finance Department except as otherwise specified in this Act.
(f) All fees and commissions allowed, collected or in any manner received by
any County officer enumerated in Tennessee Code Annotated, § 8-22-101 as a fee or
commission of the office shall be transferred to the County Trustee monthly and deposited in the County general fund. The County Legislative Body shall make the necessary appropriations from the County general fund and pay to any officer enumerated in Tennessee Code Annotated, § 8-22-101 the salary as fixed by
Tennessee Code Annotated, § 8-24-102 and the authorized expenses fixed by law for the operation of the office, including the salaries and related expenses of all deputies and assistants as authorized by Tennessee Code Annotated, Title 8, Chapter 20,
irrespective of the fees earned or collected by the officers. The number and salary of
deputies and assistants of the officers listed in Tennessee Code Annotated, § 8-22-101
shall continue to be set pursuant to Tennessee Code Annotated, Title 8, Chapter 20.
SECTION 5. Finance, Ways, and Means Committee –
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 (a) The CCFWMC is created.
(b) The CCFWMC serves the purpose and the role of the County's existing Budget Committee and the roles established through the CCFMS.
(c) The CCFWMC shall consist of five (5) members of the Commission,
recommended by the County Mayor, and approved by the County Legislative Body.
(d) In the approval of Committees by the County Legislative Body, the CCFWMC
will have a Chairperson, and shall also have a Vice Chairperson who shall serve as chair of the CCFWMC during the absence of the Chairperson.
(e) The CCFWMC shall meet monthly, and from time to time at the call of the Chairperson or majority of the members, as necessary and prudent for the discharge of
its duties.
(f) The Finance Director shall serve as or appoint a Secretary to the CCFWMC
who shall be responsible for keeping records of the actions of the CCFWMC. The Finance Director or Finance Director's designated representative may speak at meetings of the CCFWMC as the CCFWMC may deem proper; provided, that the Finance Director shall not vote on any matter before the CCFWMC.
(g) The CCFWMC shall establish and approve policies, procedures, and regulations in addition to the specific provisions of this Act, for implementing a sound and efficient financial system for administering the funds of the County.
(h) The CCFWMC may promulgate personnel policies for the Finance Department not in conflict with Tennessee Code Annotated, Title 5, Chapter 23, after receiving the recommendations of the Finance Director.
(i) The CCFWMC shall prohibit nepotism within its operations. Nepotism shall not be allowed involving any member of the CCFWMC, County Legislative Body, and Board of Education member, or the Finance Director. This policy shall address spouses,
children, parents, and siblings (including stepchildren, stepsiblings, and parents-in-law).
SECTION 6. Committees –
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 (a) The Mayor shall, with approval of the County Legislative Body, establish an
Audit Committee in accordance with Tennessee Code Annotated, § 9-3-405(b), unless a County Legislative Body has previously established an Audit Committee pursuant to
Tennessee Code Annotated, § 9-3-405(a). All meetings of the Audit Committee shall be
governed by Tennessee Code Annotated, § 9-3-405(c)-(i).
(b) The County Legislative Body may by resolution create and constitute one (1)
or more separate Special Committees as provided in subsections (e)-(h) of this section.
(c) If a Special Committee is not created, the CCFWMC shall assume the duties of the Special Committee; the CCFWMC shall serve as the Budget Committee and assume the duties of debt management and investment, and will also consult with or
advise the County Trustee on all investment decisions. The CCFWMC may, as the need arises, assign subcommittees to report back to the committee on the various needs.
(d) Other committees have historically acted as a hearing body to review and make recommendations to the Budget Committee over the assigned department's budget request. As established in this Act, the CCFWMC will serve to review these recommendations. Other committees shall be composed of Commission members, and where permitted on certain Board and Committees, non-Commission members.
(e) Appointed or elected members of any Special Committee created pursuant to
this Act shall be appointed or elected annually to serve for a term of one (1) year and shall be appointed so as to be confirmed by simple majority vote of the County Legislative Body.
(f) The County Mayor or the Mayor's designee shall serve as Chairperson of
each Special Committee created pursuant to this Act until the Special Committee shall annually elect a Chairperson at its first meeting. Each Special Committee shall annually elect a Vice Chairperson to serve in the absence of the Chairperson.
(g) The County Mayor or the Mayor's designee shall appoint a Secretary to each Special Committee established pursuant to this Act and the appointee shall be
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responsible for keeping records of the actions of the Special Committee. The Secretary may speak at meetings of the Special Committee as the Special Committee may deem proper; provided, that the Secretary shall not vote on any matter before the Special Committee.
(h) The County Legislative Body shall by resolution set the compensation, if any,
for the members of the various committees required or authorized by this Act.
SECTION 7. Finance Director Position –
(a) If or when the Finance Director's position is to be filled, the County Mayor shall appoint the Finance Director with the approval of the County Legislative Body.
(b) The County Mayor may dismiss the Finance Director upon the recommendation of the CCFWMC and the approval of the County Legislative Body. The County Mayor shall be responsible for ensuring the Finance Director complies with the various provisions of this Act.
(c) The Finance Director shall, for all purposes, be an employee of the County,
function as a department head, and shall be under the direct supervision of and report administratively to the County Mayor.
(d) The Finance Director shall have as a minimum two (2) of the following three
(3) qualifications: (1) a bachelor's degree from an accredited college or university with at
least twelve (12) semester hours of accounting or finance, or both; (2) at least five (5)
years of experience in a governmental accounting or finance position; and/or (3) the Certified County Finance Officer (CCFO) designation through the University of
Tennessee County Technical Advisory Service (CTAS). During the selection process,
the County Mayor shall consider not only the candidate's education and experience, but also professional certifications from nationally recognized professional organizations in
the field of accounting and finance, and other criteria as established by the County Legislative Body. The Finance Director shall annually obtain the annual hours required to retain the Certified County Finance Officer certification/designation.
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 (e) The compensation of the Finance Director shall be determined by the CCFWMC within the limitations of the budget; in addition to the salary, the County shall appropriate sufficient funds to pay for applicable professional organization dues,
professional certifications, the costs required to retain the Certified County Finance Officer certification/designation, and the costs of obtaining CPE credit to maintain any professional certifications.
SECTION 8. Finance Director's Duties –
(a) The Finance Director shall be the head of the Finance Department and oversee its operations. The Finance Director has the authority, subject to approval of
the County Mayor, to hire, promote, demote, discipline, and dismiss employees of the Finance Department consistent with the personnel policies applicable to the Finance Department. The Finance Director shall determine, subject to the approval of the County Mayor, compensation of employees of the Finance Department within the budget.
(b) The Finance Director shall be responsible for implementation of the policies of the CCFWMC and the decisions of any Special Committee established pursuant to
this Act.
(c) The Finance Director shall implement and maintain an accounting,
budgeting, and debt management, grant coordination, payroll, and cash management system for the County and may assist other County officers and department heads as
requested to achieve an efficient financial management system for the County. The Finance Director shall establish and maintain records of capital assets of the County in
accordance with generally accepted governmental accounting principles. The Finance Director shall annually develop long-range plans for addressing any long-term liabilities and present these plans to the CCFWMC for its consideration.
(d) The Finance Director shall serve as the Purchasing Agent of Carroll County Government.
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SECTION 9. Official Bond –
(a) The Finance Director shall execute a surety bond or acquire appropriate insurance coverage for the faithful performance of the Finance Director's duties in
accordance with the general law on County Officials' bonds. The bond or insurance shall be prepared in accordance with the provisions of Tennessee Code Annotated, Title
8, Chapter 19, approved by the County Legislative Body, filed with the County clerk for safekeeping, and recorded in the office of the register of deeds.
(b) The cost of the bond or insurance shall be paid from funds appropriated to
the Finance Department for this purpose unless otherwise funded.
(c) The amount of the bond or insurance may be increased by the CCFWMC
subject to additional appropriations for the cost of such additional bond amount.
SECTION 10. Developing of the annual budget –
(a) The Finance Director, in coordination with the County Mayor and the CCFWMC, shall establish a calendar for the development and approval of the fiscal year's budget. The calendar shall be approved by the CCFWMC and reported to the County Legislative Body at an appropriate monthly meeting.
(b) If the County Legislative Body fails to adopt a budget, property tax resolution,
and appropriation resolution by June 30th of any year, then by operation of law, the operating budget for the ensuing fiscal year, other than the portion for the County department of education, shall be the consolidated budget with proposed amendments submitted by the CCFWMC. The property tax levy resolution must be enough to fund the consolidated budgets enacted by resolution and by operation of law.
(c) If the County Legislative Body and the County School Board fail to agree upon a budget for the County General Purpose School Fund and/or Transportation Fund by June 30th of any year, then, by operation of law, the budget for the County General Purpose School Fund and/or Transportation Fund shall be equal to the minimum budget required to comply with the local match and maintenance of effort provisions of the
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Tennessee investment in student achievement (TISA) funding model or any subsequent statutory provisions establishing local funding to be generated. However, if for three (3)
consecutive years, the County Legislative Body and School Board fail to agree upon a budget and the County General Purpose School Fund and/or Transportation Fund receives the minimum required funding for that fiscal year by operation of law, then, the budget in the third year shall include a mandatory increase that is equivalent to three percent (3%) of the required funding from local sources for schools; provided however,
this increase shall not be required if during any of those three (3) years the School Board failed to submit its budget proposals in accordance with the budget calendar provided for in this Act. Local revenues projected for the schools shall be projected consistently with the other County funds by the Finance Director.
(d) The proposed budget shall not decrease personnel for the Sheriff's Office without the agreement of the Sheriff pursuant to Tennessee Code Annotated, § 8-20-
120.
(e) The budget for the County Election Commission shall conform to the requirements of Tennessee Code Annotated, §§ 2-12-109 and 2-12-209.
(f) The CCFWMC proposals shall conform to the requirements of Tennessee Code Annotated, Title 8, Chapter 20.
(g) At the time of the submission of the proposed operating budget by the CCFWMC to the County Legislative Body, the Finance Director shall report to the County Legislative Body as to whether any portion of the proposed operating budget would likely cause either a reduction of State funds or the County receiving an amount less than what the County could otherwise be eligible to receive.
(h) Any Commissioner may propose amendments to any appropriation, except to an LEA, in the budget, and they be voted upon by the County Legislative Body and, if approved, become part of the budget if the amendment does not create a conflict with governing statutes.
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 (i) The CCFWMC shall present to the County Legislative Body a proposed budget appropriation resolution and proposed tax levy re