A question came up at one of the regional meetings about alternative ways of handling the funds collected by the so-called “fee offices”. The following material is adapted from the CTAS County Government Handbook and explains these options.
The sheriff, trustee, county clerk, register of deeds and court clerks receive fees from the public for services they perform; for this reason these officials are sometimes referred to as "fee officials." There are two methods of accounting for the fees received by these officers.
The first and oldest is the "fee system." Under this system each official remits to the trustee quarterly all of the fees and charges collected by the official in excess of expenses for the following items: salaries of the official's deputies and assistants, necessary expenses of the office, and the official's salary as established by statute. The official is also authorized to maintain a reserve in an amount equal to three times the monthly salaries of the official, deputies, and assistants. If the fees are insufficient to pay the regular expenses of the office, including the statutory salary of the official and the salaries of deputies and assistants, the deficit is to be paid out of county general funds. Excess fees are placed in the county general fund as a source of county revenue.
The county commission is authorized to adopt an alternative system for fee officials, often called the "budget" or "salary" system, although the sheriff is always under this alternative system. This budget system can be adopted for some or all of the officials. Under this method, the official pays over to the trustee all of the fees, commissions, and charges collected by the office on a monthly basis. The county commission must, in return, budget for expenses, authorizing the trustee to pay the official's salary, salaries of deputies and assistants, and authorized expenses of the office. These salaries and other proper costs of the office are included in the budget and must be paid even if the fees are insufficient to cover them.
Wednesday, September 29, 2010
Rural Library Grants
Dozens of rural libraries across Tennessee will share in nearly $1.5 million in combined federal and state grants to provide computers, education courses and job skill training. The grants are targeted to help Tennesseans improve computer-related skills so they will be more competitive as they seek jobs.
The project is the culmination of more than a year’s effort by the Department of State and the Department of Economic and Community Development (ECD). The joint effort was successfully leveraged to secure additional funding from the U.S. Department of Agriculture Rural Development. Of the nearly $1.5 million, ECD will provide $1,030,000 and the Department of State will provide up to $70,000. The remaining $356,577 will come from USDA Rural Development. The funds will be used to provide computers, peripheral equipment, high-speed Internet routers and instructors to conduct training classes.
In addition to administering the $70,000 grant, the Tennessee State Library and Archives, which is a division of the Tennessee Department of State, will administer the other grant funds. TSLA is currently assisting the local libraries in finalizing the consent agreements required before the money is disbursed.
For more info, see the full press release from the Department of State here.
The project is the culmination of more than a year’s effort by the Department of State and the Department of Economic and Community Development (ECD). The joint effort was successfully leveraged to secure additional funding from the U.S. Department of Agriculture Rural Development. Of the nearly $1.5 million, ECD will provide $1,030,000 and the Department of State will provide up to $70,000. The remaining $356,577 will come from USDA Rural Development. The funds will be used to provide computers, peripheral equipment, high-speed Internet routers and instructors to conduct training classes.
In addition to administering the $70,000 grant, the Tennessee State Library and Archives, which is a division of the Tennessee Department of State, will administer the other grant funds. TSLA is currently assisting the local libraries in finalizing the consent agreements required before the money is disbursed.
For more info, see the full press release from the Department of State here.
Race to the Top Resources
The State Department of Education has put together an Internet site with detailed information about the Race to the Top Program in Tennessee. I particularly recommend that county commissioners use the link on the site to download the approved Scope of Work that was proposed by your school system. These documents provide a detailed plan as to how your school system intends to use their portion of the federal grant to improve schools in your communities over the next four years.
You can find these resources by going to this website Race to the Top and then selecting your LEA (local education agency) from the drop down menu. There is a signature page within these scopes of work. If your school system is planning to use these funds in a manner that will create on-going obligations after the federal grant has expired, the chair of the funding body (county commission or city council) should have been required to sign off on the scope of work as well.
You can find these resources by going to this website Race to the Top and then selecting your LEA (local education agency) from the drop down menu. There is a signature page within these scopes of work. If your school system is planning to use these funds in a manner that will create on-going obligations after the federal grant has expired, the chair of the funding body (county commission or city council) should have been required to sign off on the scope of work as well.
Dealing with Substance Abuse in Jails
The link below connects you to a lengthy report on jails, prisons, substance abuse and the challenges facing correctional facilities. Somewhere there is a balance to be found between the cost of treating addictions of those incarcerated in order to reduce recidivism and ultimately lower costs of incarceration. The study is from the National Center on Addiction and Substance Abuse at Columbia University.
Behind Bars II Substance Abuse and America's Prison Population.
A recent TN Department of Corrections report found that there were higher rates of recidivism for individuals held in local correctional facilities. One theory is that local jails do not have the resources to provide rehabilition and treatment programs and this may relate to the prisoners being more likely to commit additional crimes upon release. For a discussion of the TDOC report, go here.
Behind Bars II Substance Abuse and America's Prison Population.
A recent TN Department of Corrections report found that there were higher rates of recidivism for individuals held in local correctional facilities. One theory is that local jails do not have the resources to provide rehabilition and treatment programs and this may relate to the prisoners being more likely to commit additional crimes upon release. For a discussion of the TDOC report, go here.
Wednesday, September 22, 2010
Recommendations on Audit Committees
The following is from a memorandum that went out to County Mayors and Finance Directors last week from the Division of County Audit.
The Local Government Modernization Act of 2005, Section 9-3-405, Tennessee Code Annotated (TCA), encourages local governments to consider establishing an audit committee and provides that the Comptroller may require an audit committee be established under certain conditions. The two conditions are when a local government is in noncompliance with the accounting and financial reporting standards required by the Governmental Accounting Standards Board or have recurring findings from the annual audit for three or more consecutive years as determined by the Comptroller to be a material weakness in internal control or material noncompliance with Government Auditing Standards.
We believe well structured audit committees can improve the financial management and overall governance of governmental entities in Tennessee. Our office (County Audit) has encouraged the establishment of an audit committee in local governments for many years. However, very few local governments have an effective audit committee. We believe in today’s environment of fewer resources and increased demand for transparency and accountability, it is time to focus on the audit committee
as an effective tool to improve the operations of local governments.
Beginning with the audits for the fiscal year ended June 30, 2010, when it has been determined that either of the conditions described in Section 9-3-405(a), TCA exists, there will be findings that address the county’s noncompliance with accounting and financial reporting standards and/or the existence of recurring audit findings. Both findings will include a recommendation encouraging the establishment of an audit committee under provisions of Section 9-3-405(a), TCA. If either of these conditions continue to occur, the county may be required to establish an audit committee. This committee will be responsible for addressing financial and other reporting practices, internal control, compliance with laws and regulations, and ethics. The audit committee should provide management with guidance to correct all reported material weaknesses in internal control and material noncompliance.
We (County Audit) will provide counties with guidelines regarding the establishment of effective audit committees. Please contact the Division of County Audit if you have any questions.
The Local Government Modernization Act of 2005, Section 9-3-405, Tennessee Code Annotated (TCA), encourages local governments to consider establishing an audit committee and provides that the Comptroller may require an audit committee be established under certain conditions. The two conditions are when a local government is in noncompliance with the accounting and financial reporting standards required by the Governmental Accounting Standards Board or have recurring findings from the annual audit for three or more consecutive years as determined by the Comptroller to be a material weakness in internal control or material noncompliance with Government Auditing Standards.
We believe well structured audit committees can improve the financial management and overall governance of governmental entities in Tennessee. Our office (County Audit) has encouraged the establishment of an audit committee in local governments for many years. However, very few local governments have an effective audit committee. We believe in today’s environment of fewer resources and increased demand for transparency and accountability, it is time to focus on the audit committee
as an effective tool to improve the operations of local governments.
Beginning with the audits for the fiscal year ended June 30, 2010, when it has been determined that either of the conditions described in Section 9-3-405(a), TCA exists, there will be findings that address the county’s noncompliance with accounting and financial reporting standards and/or the existence of recurring audit findings. Both findings will include a recommendation encouraging the establishment of an audit committee under provisions of Section 9-3-405(a), TCA. If either of these conditions continue to occur, the county may be required to establish an audit committee. This committee will be responsible for addressing financial and other reporting practices, internal control, compliance with laws and regulations, and ethics. The audit committee should provide management with guidance to correct all reported material weaknesses in internal control and material noncompliance.
We (County Audit) will provide counties with guidelines regarding the establishment of effective audit committees. Please contact the Division of County Audit if you have any questions.
Great Meeting in Jonesborough
Another excellent meeting in Jonesborough last night. Close to 100 in attendance. Representatives Dale Ford, David Hawk and Matthew Hill all joined us as well as representatives of Congressman Phil Roe. Good dinner and discussion. On to Knoxville this evening and Baxter tomorrow night.
Thursday, September 16, 2010
Regional meetings continue
Had another great meeting Tuesday night at Cleveland, Tennessee. Taking a little bit of a break to attend the Governor's Economic Development Conference in Nashville today and tomorrow. Next week I travel through Jonesborough, Knoxville and Putnam County for 3 more regional meetings. At lunch today at the conference, the keynote speaker was Michael Cohen, President of Achieve. Achieve is a national organization focused on raising the standards for k-12 education. He talked about Tennessee's efforts to raise standards and improve public education in the state. Much of what he had to say mirrored some of the discussion at our regional meetings.
Hope to see you soon at one of our meetings.
Hope to see you soon at one of our meetings.
Friday, September 10, 2010
Regional Meetings Off to a Great Start
We had excellent turnouts at our first two regional meetings this week in Jackson and Henry Horton State Park. Thanks to all the officials for turning out. We're averaging over 100 people per meeting so far. It's been great to see many of our returning officials as well as getting a chance to meet more of the new county commissioners and mayors. We've also been privileged to have the chairs of the Senate Education Commitee, the State and Local Government Committee and the Transportation Committees in attendance. We meet next in South East Tennessee at the Mountain View Holiday Inn in Cleveland, Tennessee, on Tuesday night the 14th. That's our only meeting next week as we'll take a brief break for the Governor's Economic Development Conference in Nashville the end of the week. Then it's off to East Tennessee the following week for Jonesborough on the 21st, Knoxville on the 22nd and Baxter (Putnam County) on the 23rd.
Monday, September 6, 2010
Federal Education Jobs Program Funds
A new federal jobs program that impacts county governments was passed by Congress this summer and signed into law on August 10, 2010. It is not a part of ARRA (the American Recovery and Reinvestment Act), but will have similar reporting guidelines and similar purposes. Nationwide, the program authorized $10 billion in financial assistance to states to save or create jobs, specifically targeted to help protect jobs in K-12 education.
Tennessee’s allocation was $195.8 million. The state qualifies for the money under all known federal guidelines and the Bredesen administration has applied for the funds. Once received, the funds must be available to LEAs (Local Education Agencies) for the 2010-2011 school year. The funds must only be used for obligations made on or after August 10, 2010. LEAs may use the funds through September 30, 2012 (which is the end of the 2011-2012 federal fiscal year). However, for ease of administration and reporting, the Tennessee Department of Education is recommending that LEAs expend the funds by June 30, 2012 - the end of the state’s next fiscal year. Although eligible to retain a percentage of the funds for offsetting administrative costs, the state Department of Education is not retaining any of the funding and is letting it all flow through to the LEAs.
The state had the option to distribute the funds under either Title I or the state’s primary education funding formula (the Basic Education Program or BEP). Tennessee has determined that the funds will be distributed under the BEP. The US Department of Education guidelines indicate that a Governor may not direct how an LEA uses its education jobs fund. However, the Federal guidelines do require the funds to be spent in certain areas.
Education Jobs Program funds must be used only for school-level employee compensation and benefits and other expenses, such as support services, necessary to (1) retain existing employees, (2) recall or rehire former employees, and (3) hire new employees. Examples of permissible compensation and benefits include: salaries, performance bonuses, health insurance, retirement benefits, incentives for early retirement, pension fund contributions, tuition reimbursement, student loan repayment assistance, transportation subsidies, and reimbursement for childcare expenses. Besides teachers, examples of other school level employees who may receive these funds would include principals, assistant principals, academic coaches, in-service teacher trainers, classroom aides, counselors, librarians, social workers, interpreters, physical, speech and occupational therapists, security officers, maintenance workers, nurses, bus drivers, and cafeteria workers. The money can be used to restore reductions in salaries and benefits, implement increases or bonuses, or compensate teachers for previously scheduled furlough days. The important distinction is whether the employee is a “school level” employee or an “LEA-level” or “central office” employee. The federal guidelines do not allow the funds to be used for central office administrative personnel such as staff for the superintendent’s office or the board of education. The funds also cannot be used to pay for contracted services. The federal guidelines describe the funds as being for K-12 education. At this time it is unknown whether it is permissible to use the funds for Pre-K expenses.
These funds will have to be tracked, reported and accounted for separately. These are considered federal funds, but their use does not trigger federal non-supplanting guidelines. Additionally, as federal funds, these do not impact the required local match, or state-level non-supplanting or maintenance of effort requirements for LEAs. The funds are expected to be available for draw down in 2-3 weeks. The funds could be spent entirely in this budget year or an LEA could wait to spend the funds in next budget year or use them both years. They simply cannot be spent for obligations arising before August 10, 2010, and must be spent before September 30, 2012.
Tennessee’s allocation was $195.8 million. The state qualifies for the money under all known federal guidelines and the Bredesen administration has applied for the funds. Once received, the funds must be available to LEAs (Local Education Agencies) for the 2010-2011 school year. The funds must only be used for obligations made on or after August 10, 2010. LEAs may use the funds through September 30, 2012 (which is the end of the 2011-2012 federal fiscal year). However, for ease of administration and reporting, the Tennessee Department of Education is recommending that LEAs expend the funds by June 30, 2012 - the end of the state’s next fiscal year. Although eligible to retain a percentage of the funds for offsetting administrative costs, the state Department of Education is not retaining any of the funding and is letting it all flow through to the LEAs.
The state had the option to distribute the funds under either Title I or the state’s primary education funding formula (the Basic Education Program or BEP). Tennessee has determined that the funds will be distributed under the BEP. The US Department of Education guidelines indicate that a Governor may not direct how an LEA uses its education jobs fund. However, the Federal guidelines do require the funds to be spent in certain areas.
Education Jobs Program funds must be used only for school-level employee compensation and benefits and other expenses, such as support services, necessary to (1) retain existing employees, (2) recall or rehire former employees, and (3) hire new employees. Examples of permissible compensation and benefits include: salaries, performance bonuses, health insurance, retirement benefits, incentives for early retirement, pension fund contributions, tuition reimbursement, student loan repayment assistance, transportation subsidies, and reimbursement for childcare expenses. Besides teachers, examples of other school level employees who may receive these funds would include principals, assistant principals, academic coaches, in-service teacher trainers, classroom aides, counselors, librarians, social workers, interpreters, physical, speech and occupational therapists, security officers, maintenance workers, nurses, bus drivers, and cafeteria workers. The money can be used to restore reductions in salaries and benefits, implement increases or bonuses, or compensate teachers for previously scheduled furlough days. The important distinction is whether the employee is a “school level” employee or an “LEA-level” or “central office” employee. The federal guidelines do not allow the funds to be used for central office administrative personnel such as staff for the superintendent’s office or the board of education. The funds also cannot be used to pay for contracted services. The federal guidelines describe the funds as being for K-12 education. At this time it is unknown whether it is permissible to use the funds for Pre-K expenses.
These funds will have to be tracked, reported and accounted for separately. These are considered federal funds, but their use does not trigger federal non-supplanting guidelines. Additionally, as federal funds, these do not impact the required local match, or state-level non-supplanting or maintenance of effort requirements for LEAs. The funds are expected to be available for draw down in 2-3 weeks. The funds could be spent entirely in this budget year or an LEA could wait to spend the funds in next budget year or use them both years. They simply cannot be spent for obligations arising before August 10, 2010, and must be spent before September 30, 2012.
Friday, September 3, 2010
Economic Development Tool Kit
Need to know what incentives Tennessee offers new or expanding businesses, or what programs are available to assist Tennessee communities? Look no further than the newly updated Tennessee Tool Kit, which is now available online by clicking here.
The Tool Kit is a comprehensive guide to incentives and programs offered by the state of Tennessee through the Department of Economic and Community Development.
The Tool Kit is a comprehensive guide to incentives and programs offered by the state of Tennessee through the Department of Economic and Community Development.
Thursday, September 2, 2010
Power Point Presentations from COOP
The general session power points as well as the presentations on education and the functions of the beer board from the county commissioners break out session at COOP are now available through the CTAS website here. If interested, you can also see the presentations from other sessions for the various county offices.
UPDATE: Additional presentations and materials now available. You'll need to scroll down that page to get to the county commissioner section.
UPDATE: Additional presentations and materials now available. You'll need to scroll down that page to get to the county commissioner section.
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