TN Code § 5-21-103 (2021)
2021 Tennessee Code|Title 5 - Counties|Chapter 21 - County Financial Management System of 1981|§ 5-21-103. Finance Department — General Provisions — County Hospitals and Nursing Homes — Exclusion From Coverage of Chapter

   There is hereby created a finance department to administer the finances of the county for all funds of the various departments, agencies and boards that are handled by the county trustee.   The accounting, bank accounts, personnel and salary policies, and other policies of the funds and offices of the clerks of courts, county clerk, register of deeds, sheriff and trustee, that were not subject to the budgeting authority of the county legislative body prior to application of this part, are not subject to this part. This part shall not be construed as authority over the fee and commission accounts of other accounts that are not handled by the trustee for offices other than the trustee nor for the trustee's fee and commission account. This part shall not be construed as authority over personnel policies or procedures or salaries of the various county offices or departments, except with respect to requiring necessary recordkeeping and reporting needed for performing the payroll functions as prescribed by the finance committee.     The finance department shall be responsible for purchasing, accounting, budgeting, payroll, cash management and other such financial matters of the county as provided in this chapter.   All employees performing the functions of purchasing, payroll, accounting and budgeting in the various operating departments shall be transferred to the supervision of the director of finance, and such salaries, benefits and expenses relating to such personnel shall be budgeted under the finance department, notwithstanding any other law to the contrary. No employee may be transferred, however, from the office of the trustee, county clerk, assessor of property, clerks of courts, register of deeds or sheriff.    The department shall establish a system of fiscal management, control, accounting, budgeting, purchasing and cash management as herein provided.   The system shall conform to generally accepted accounting principles and shall be in substantial agreement with the comptroller of the treasury uniform audit manual, the rules established by the commissioner of education, and state law.      Notwithstanding this chapter to the contrary, the county legislative body may exclude, by two thirds (2/3) majority vote, the county hospitals or nursing homes, or both, from this chapter. In the event county hospitals or nursing homes, or both, are excluded, the county legislative body may establish, after allowing the financial management committee to submit recommendations, financial procedures and reporting requirements to include, but not to be limited to, the following:  Monthly financial reports;   Approval of the required annual audit contract with a licensed Tennessee certified public accountant and the reports presented in such audit;   Inspection of records, bank statements and other financial records; and   Approval of the annual budget by the county legislative body prior to the beginning of the fiscal year.     If a hospital or nursing home, or both, is excluded from this chapter, the county legislative body may by two-thirds (2/3) majority vote include such hospitals or nursing homes, or both, under this chapter. Upon voting to include such hospital or nursing home, or both, implementation of this chapter shall begin no later than the beginning of the next fiscal year.