Accounting For Funds

(1) All funds will be made available to be expended by the State for authorized, cash basis expenditures during the month in which funds are received. Any money not used for current and reasonably foreseeable needs will be conserved in accordance with these rules. If the State seeks to use the trust funds for reimbursement for previously paid bills, it will seek approval from the appropriate funding source. (2) The authorized funds must be recorded in the State accounting system during the months in which they are credited to a child’s account within the Collective Fund. (3) All qualifying current authorized expenditures will be paid on a first in, first out method. (4) All funds must be maintained in an account supervised by the Tennessee Office of the Treasurer. (5) Accountings shall not list separate Funding Sources. There will be no such accounting unless doing so is required by federal or state regulations. If federal or state regulations require an accounting based on Funding Sources, the benefits, including interest, will be coded by type of Funding Source and authorized disbursements will be coded to correspond to the type of Funding Source. (6) Funds received will be used in the order established by the Commissioner of Department of Children’s Services in compliance with state and federal regulations. (7) Interest on all funds will be credited monthly. (8) Any change in the basis of accounting will be recommended by the Commissioner of Department of Children’s Services to the Commissioner of Finance and Administration for approval. (9) Exceptions to the above mentioned procedures will be granted only after written direction by an appropriate official designated by the Commissioner of the Department of Children’s Services. (10) DCS will work with the funding source to identify all unidentified funds. Funds that remain unidentified for a period of two (2) years will be returned to the funding source. Funds for which funding source cannot be identified will be transferred to unclaimed property of the Tennessee Office of the Treasurer. (11) Reimbursement received from private insurance or other source of funds for costs paid from the Collective Fund will be used to reimburse the child’s account in the Collective Fund. ADMINISTRATION OF COLLECTIVE FUND ACCOUNTS CHAPTER 0250-7-10