Financing

(1) 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. §§48-3-501 et seq. (2) Funds (a) Income must be adequate and stable to ensure efficient and effective operation of the program to which the agency commits itself. (b) A statement must be submitted annually showing financial resources which will provide an adequate standard of service. (3) Audit and Control (a) 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. (4) 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. (5) If the agency does not maintain liability insurance covering the premises and the operations, the parent(s) or other legal custodian of all children in care must be advised of the 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.