TN Code § 7-86-304 (2021)
2021 Tennessee Code|Title 7 - Consolidated Governments and Local Governmental Functions and Entities|Chapter 86 - Emergency Communications|Part 3 - Statewide Enhanced 911 Service|§ 7-86-304. Uniform Financial Accounting System — Audit — Annual Budgets — Supervision of Financially Distressed Districts

  The comptroller of the treasury is directed to develop a uniform financial accounting system conforming to generally accepted accounting principles for use as required by this section. Effective July 1, 1999, each emergency communications district shall use the uniform accounting system developed by the comptroller of the treasury.   The annual audit of all emergency communications districts shall disclose the failure of any such district to maintain such a financial accounting system as prescribed by the comptroller of the treasury. The comptroller of the treasury shall file with the board a copy of the audited financial statements of each emergency communications district, prepared pursuant to § 7-86-113. The board shall have authority to act upon any adverse findings noted in such audits or financial statements and to order such action as may be necessary to remedy the adverse findings.   The board of directors of each emergency communications district shall file with the board a copy of its annual budget, prepared in accordance with § 7-86-120.    Any emergency communications district that is a financially distressed emergency communications district shall be subject to the supervision and evaluation of the board. A “financially distressed emergency communications district” is a district that, as shown by the annual audits:  Has a negative change in net position for a period of three (3) consecutive years;   Has a deficit in total net position; or   Is in default on any indebtedness.     Notwithstanding subdivision (d)(1), the board may determine that a district is a “financially distressed emergency communications district,” and shall be subject to the supervision and evaluation of the board, if a district:  Is the subject of a lien filed by the internal revenue service;   The board determines that it appears that the district cannot satisfy its financial obligations to the extent that the continued operation of the district is at risk; or   The district has defaulted on any indebtedness due to insufficient funds, such default is not cured within sixty (60) days and, upon determination of the board, it appears that the district cannot satisfy its financial obligations to the extent that the continued operation of the district is at risk.     After reviewing the financial statements and operations of any financially distressed emergency communications district, and after holding a public hearing within such district's service area, the board may prescribe a rate structure, up to the maximum established pursuant to former § 7-86-108(a)(2)(A) [repealed], to be adopted by the district, as may be necessary to cause the district to liquidate in an orderly fashion any deficit total net position, to cure a default on any indebtedness of the district, and to eliminate the negative change in net position, or any of these.     If the board of an emergency communications district fails to adopt the prescribed rate structure, the board may, in addition to any and all other remedial actions available to it, petition the chancery court, in a jurisdiction in which the emergency communications district is operating, to require the adoption of the rate structure prescribed by the board or such other remedial actions that, in the opinion of the court, may be required to cause the district to be operated in accordance with the provisions of state law.