Bradley CountyRoad Department

Internal Controls Assessment

May 2016

Bradley Countyroad Department

Mission

With a dedicated emphasis on Public Safety, Commerce, and Environmental Conservation,

the Bradley County Road Department is committed to

meet the Transportation needs of Today while Planning for the

needs of Tomorrow.

Assessment

AssessmentPurpose: To document an understanding and assess the internal controls of the Bradley County road Department as it pertains to the following: I. Whether the obligations and costs of the operation

are in compliance with applicable law II. Whether county funds, property and other assets

that are designated/assigned to the road department are safeguarded against waste, loss, unauthorized use, or misappropriation

III. Whether revenues and expenditures in the county road fund are properly recorded and accounted for to permit the preparation of accurate and reliable financial and statistical reports and to maintain accountability over the assets

Overview: An in-depth analysis of the internal control environment for the operations of the Bradley County Road Department was performed over a two and a half day period by multiple county road and finance department employees, as well as Sandra Knight Collins, County Road Superintendent, and Gary Hayes, the CTAS Field Consultant.

Assessment, cont’dRoad Department

I. Obligations and costs of the operation are in compliance with applicable law

Ensure that contracts are in place for goods and services that are required by law, review purchasing procedures for non-payroll costs to ensure compliance with law, review payroll procedures to ensure that payroll is for legitimate and authorized employee costs only, review emergency purchase procedures for compliance with law, ensure any store cards and credit cards used by the department are in compliance with purchasing policy and law and are safeguarded. Review the above procedures for efficiency. Human Resources: The road department has a organizational chart and written job descriptions for all department employees. The department has an updated employee handbook and the county’s ethics policy. Physical Security: The following individuals have keys to the main office, the maintenance garage, sign shop and the gates: Sandra and Gloria. The following individuals have keys to the maintenance garage and shop: Bobby, Lisa and the following individuals have keys to the main gate at the maintenance garage: John and Joey. The main office has a security system while the maintenance garage and shop has both a security system and a surveillance system.

Assessment, cont’dPurchasing: The road Department complies with the 1983 Purchasing Law and the County Uniform road Law (CUHL) Purchase Orders: Sandra Knight Collins (Road Superintendent), Chris Ballard (Shop Forman), Doug Hughes (Sign Shop Supervisor), Lisa Bowling (Supervisor of Operations), Gloria Hayes (Administrative Assistant), Bobby Combs (Assistant Superintendent) and Doris Ann Near (HR/Payroll Administrator) will originate a purchase order request with Kim (bookkeeper) to ensure there is funding available in the line item for the purchase and that the vendor is on the approved vendor list. Kim issues the purchase order which authorizes the purchase to be made. Sandra, Chris, Doug, Lisa, Gloria, Bobby or Kim will then place the order with the vendor and when the goods arrive (if the road employee does not pick up purchase at a local store) the same people verify that the goods received are the goods itemized on the invoice. Store Cards: The Staples card is kept locked up when not in use in the office safe. Kim, Doris Ann, Gloria and Lisa will go to Staple’s for needed purchase after a purchase order is originated for the purchase and approved by Sandra. Blanket purchase orders are not utilized for the Staple’s card so every individual purchase with the card is approved by the Road Superintendent prior to purchase. Kim and Gloria will review the monthly invoices from these store card purchases together at the end of the month and then approve the invoices with the purchase requisition and copy of the approved purchase order for payment. Credit Card: The Bradley Road Department does not have a credit card.

Assessment, cont’dContracts: Per Bradley County purchasing policy, the county Road Superintendent signs all contracts dealing with the Road Department. Once competitive bids are opened by the county Road Superintendent, Assistant Superintendent and Administrative Assistant, the group reviews and awards the bids based on best and lowest price. All contracts that are over one year in length are sent to the county attorney for review and approval by the county commission. Gloria coordinates with Kim to ensure contract compliance per county purchasing policy. Emergency Purchases: The Road Superintendent (Sandra) will coordinate with Gloria and Kim in the case of emergency purchases that arise from unforeseen events that will require normal bidding procedures to be circumvented because of the nature of the emergency at hand. The county purchasing policy addresses emergency purchases and the road department complies with these policies. Payroll: Payroll is authorized each fiscal year through the annual county budget appropriation for the road fund that is prepared by Gloria and Sandra and then sent to the county commission for approval in compliance with the County Uniform road Law. Gloria prepares a monthly year-to-date expenditure vs. budget report for the Road Superintendent. Gloria and Kim will bring any anticipated, foreseeable budget overages to the attention of Sandra in order that a budget amendment can be prepared timely. All payments to employees are paid through payroll accounts (not vendor accounts) in order to comply with IRS tax code for payroll taxes and state unemployment compensation and worker comp laws.

Assessment, cont’dII. Whether county funds, property and other assets that are designated/assigned to the road department are safeguarded against waste, loss, unauthorized use or misappropriation Overview: The audited financial report detailed expenditure statements were reviewed to identify expenditures of material amounts and then internal controls over these items were scrutinized. In the road department, material expenditure amounts were: payroll, liquid asphalt, crushed stone, diesel fuel, road equipment, equipment and machine parts, and road construction. Assets of the road department that were identified through interview of staff and capital asset records and that are at risk for waste, loss, unauthorized use or misappropriation are cash receipts on hand, bulk fuel pumps at road garage, vehicles, new metal tile inventory, scrap/recycle metal disposal, and surplus of road equipment. The department does not receive donations. Internal controls over these material assets/costs were scrutinized in-depth. Receipt/Disburse/Deposit/Reconcile/Segregation of Duties over Cash: The following procedure will be in place to help satisfy and ensure compliance with internal controls over receipting at the road department. The road department does not maintain a bank account as all accounting for the department, except receipting, is handled by the county Trustee. The road department disburses all checks (payroll/vendor). The road department may receive checks or cash from scrap metal sales from the local scrap yard, (cont’d)

Assessment, cont’d(cont’d) surplus property sales, and drug testing for new hires. This is receipted to the Trustee and reconciled each month by Gloria and Kim. 1. Kim Rippetoe (Accounts Payable) will receipt checks,

put deposit account number on checks and make a copy for the cash receipts folder.

2. Gloria will carry the receipted checks within three business days over to the Trustee’s office and deposit these funds with the Trustee. The Trustee will issue a Trustee receipt that Gloria will take back to the road department office and keep on file. The Trustee receipts are capable of being reconciled back to the individual road department receipts that make up the total deposit that was made at the road department. Gloria and Kim keep a notebook at the road department and enter into it an up-to-date cash with trustee balance of the road fund by coordinating with the Trustee and as an additional “check” to ensure that the cash with Trustee balance is correct on the financial records of the county road department.

Note: In the event of absence (extended sickness, vacation, etc.) Kim would receipt the checks and make the deposit with the Trustee.

Assessment, cont’dBulk Fuel Pumps: The road department maintains bulk fuel pumps at the road garage for diesel and gas needs. Fuel is competitively bid by the road department and is delivered to the bulk tanks by the vendor. Gasoline is purchased by the road department and used for official road business. Tickets are completed by county employees getting the fuel when vehicles are filled at the county pumps, which are located at the road department shop. These tickets are summarized by Chris (Shop Foreman) and report is sent to Kim. When the bulk fuel tanks get low, Doris Ann will place an order with the fuel vendor (who has an open PO) for additional fuel. The fuel pumps are powered off the road office building’s electric and are turned off from inside the shop each night and the shop is locked and security alarm set (Road Superintendent, Supervisor of Operations, Shop Foreman and Assistant Superintendent have keys). The main gate to the road department is padlocked at closing time.

Assessment, cont’dPayroll: To protect against fraud (ghost employees, unauthorized bonus payments, etc.) all road department employees have a personnel file maintained in the road department office by Doris Ann. All employees utilize a punch time clock in the county road garage when they report for duty in the morning and when they end their shift. The Road Superintendent and/or Assistant Superintendent and the Supervisor of Operations is present in the road garage every workday at the beginning of the work shift to hand out daily assignments and to ensure all employees are at work. At the end of the pay period, Doris Ann (Payroll Administrator) collects the time cards and compiles the payroll hours for each employee for the pay period, notes any vacation and sick time taken and then submits this summary report for payroll processing. Doris Ann keeps a detailed balance per employee of accumulated sick, vacation and personal leave on file. Some employees are on direct deposit, while others receive paper checks from Doris Ann after Gloria reviews the checks (and stubs for direct deposit). The personnel policy for the road department caps the vacation accrual per employee at 30 days, sick time is not capped. When/if an employee exceeds the maximum vacation time cap (which is rare) then the overage is rolled to time under the Tennessee Consolidated Retirement System as these overages are not paid out. An annual leave accrual summary is calculated by Doris Ann at the end of the fiscal year. Gloria, Kim and Sandra review the monthly budget to actual expenditure reports to ensure the actual expenditures are in line with the approved budget.

Assessment, cont’dInventory of Crushed Rock, Metal Pipe, Hot Mix and Road Signs: Crushed rock is kept on the back lot behind the maintenance shop and is secured behind a locked gate after hours. When rock is taken off the inventory pile, the drivers note it on the daily work order for a job which Kim uses to reconcile the tonnage to the last large delivery runs. The rock is tracked to each job site (road, bridge, or right-of-way easements) by GASB & CTAS software system. Metal culvert is kept on the back lot behind the maintenance shop and is secured behind a locked gate after hours. When culvert is taken off to a job site, the drivers note it on the daily work order for a job which Kim uses to reconcile the culvert taken to the inventory on hand. The culvert is tracked to each job site (road) by GASB & CTAS software system. A small load of cold mix (20 tons) is produced bi-annually or as needed and kept on hand for filling potholes. The pile is secured after hours. Since this is a small amount of material and the cold mix is used to fill holes of various sizes, the material is not tracked to individual job sites. Bobby and Lisa keep an eye on the quantity on hand and based on his/her numerous years of experience, would know if there was abnormal shrinkage of the cold mix. Road Signs: The department makes all of the road signs. Doug, the sign technician, is responsible for the management of the inventory and sign production. All materials are kept in the sign shop.

Assessment, cont’dInventory of Vehicles and Large Equipment: Gloria maintains an inventory of assigned vehicles on the GASB asset software system. The inventory software records vehicle make, model, year, description, year purchased, purchase price, and VIN. Gloria coordinates with the county finance department to be sure that any vehicle or equipment that meets depreciation thresholds is on the county finance depreciation software. All vehicles and large equipment are marked as county road property and numbered.

Kim will enter in any new purchases of vehicles and equipment into the GASB asset software and delete any surplus sales of equipment after these assets are no longer in use and declared surplus and sold. Sandra and her assistant road superintendent communicate to the road department employees that no work is to be performed and no materials are to be used except for county road purposes.

Inventory of Small Equipment and Tools: An inventory of small equipment, furniture and tools assigned to the county road department is maintained and updated annually by Gloria and Lisa. Any missing items when the inventory is complete are reported to Sandra. All tools that are not assigned to vehicles are kept in the road department tool trailer and signed out and in on a daily basis.

Assessment, cont’dLiquid Asphalt: Each road that is to be resurfaced, after the road is confirmed to be a county-owned road, is measured for distance and the needed quantity of liquid asphalt is determined. Liquid asphalt is then ordered by Kim and a county tanker is sent to the vendor to spot load the liquid asphalt into the county-owned distributor. The amount used on each road project is recorded and tracked by Lisa and Kim in the GASB software system as well as reconciled back to the bulk load invoice. If there is a small amount of leftover liquid asphalt, then the road department will maintain this material in the 1500 gallon distributor truck to be used for small patch jobs (road cuts, shoulder work, etc.) around the county. Hot Mix Asphalt: Hot mix is competitively bid out in compliance with the road department purchasing policy. County trucks pick up and haul asphalt mix to the job site for use by county paving crews. Kim will verify that the billing from the paving contractor agrees with the bid price and that the tons of material charged for is what was received from the asphalt plant prior to approval of payment. A road department employee is assigned to be physically present at each contracted paving site during construction to verify loads delivered and to sign trip tickets and take a copy of the tickets to Kim.

Assessment, cont’dRoad Construction: This expenditure line item is to track and separate all state-aid road construction in the financial records as requested by TDOT and the state comptroller’s office. Road paving, striping, engineering, road signs and traffic control costs that are associated with state-aid roads are posted to this line item. The same internal controls for tracking the individual costs and assets (hot-mix, crushed stone and signs) are utilized for state-aid roads as well as TDOT required forms. TDOT reviews all state-aid expenditures to verify that funds were utilized in accordance with grant requirements. Sandra works closely with TDOT to ensure that grant requirements are met. All state-aid paving is capitalized and tracked on the GASB software system. Bridge Construction: State-aid bridge construction/replacement is bid out to a third party contractor and engineer in compliance with grant requirements. Sandra coordinates with the contractor and engineer to ensure that the bridge is placed as specified and that work is done prior to contractor draws as determined by the project contract. Kim enters the cost of the bridge construction/replacement into the GASB software when the final cost is determined. Selling of Assets: The road department follows the guidelines set forth in the county’s capital asset policy for the disposal or selling of road department assets.

Assessment, cont’dInterlocal Agreements/Contracts for other Governmental Entities: When requested to perform work for another governmental entity inside the county, the Road Superintendent receives a formal request and takes the formal request to the county commission for approval. The request includes all work to be performed by the road department. Kim tracks the daily expenditures and when the project is completed an invoice is prepared and sent to the entity. Upon receipt of payment, the check is recorded into the cash receipts file and then deposited with the Trustee within 3-days as required by state law. For requests from another governmental entity outside the county, the road department requires an interlocal agreement and follows the same process for governmental entities inside the county. Private Property Easements: If there is need for the road department to utilize private property during the construction, maintenance or repair on a county road (ROW), the department will secure an easement from the property owner for the work to be done.

Assessment, cont’dIII. Whether revenues and expenditures in the county road fund are properly recorded and accounted for to permit the preparation of accurate and reliable financial and statistical reports and to maintain accountability over the assets

Gloria is responsible for coordinating with the county trustee’s office to ensure that all receipted funds are coded to the correct revenue line item when she carries over the deposit. Gloria coordinates with Kim to ensure purchase orders for non-payroll items are coded to the correct object code and expenditure budget. Gloria ensures that capital asset records for external reporting purposes are up to date and in compliance with county capital asset policies. Gloria and Sandra review the expenditure and revenue budget-to-actual report monthly for the road fund to determine: 1. The original, approved road fund budget was posted

correctly. 2. Revenues were coded correctly and are tracking in line

with the budgeted revenues. 3. Expenditures are in line with the budget and if an

overage is anticipated, that a budget amendment will be requested.

Assessment, cont’dThe county will post year-end property taxes receivables, any grant receivables, accounts payables and any encumbrances to the road fund when they close the books. Gloria, Kim and Sandra will review these year-end closing entries. Gloria will review capital asset listings for external financial reporting and depreciation schedules to ensure accurate reporting and accountability of capital assets assigned to the county road department. Corrective action of any identified internal control deficiencies from independent audit: Sandra would review any audit findings that noted internal control deficiencies in the road department operations and would seek to correct these weaknesses. As noted in Bradley County’s prior year audit, the road department has no audit findings.

Segregation of Duties

Segregation of Duties

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Segregation of Duties, cont’d

Credit Card Policy

Credit Card PolicyIt is the policy of the Bradley County Road Department to regulate the use of county issued credit/store cards to promote and encourage efficient conduct of business.

Bradley County Road Department does not have a credit card. The department does have a Staples card which is for Bradley County Road Department business only.

The below procedures are to be followed in the use of the department’s Staples card:

1. Authorized users: The Road Superintendent, Assistant Superintendent, Administrative Assistant, Bookkeeper, HR/Payroll Administrator, Supervisor of Operations, Inspector, Sign Technician and Garage Supervisor.

2. The card is kept in a secure locked location and only available for use by the authorized users.

3. The authorized users are prohibited from making personal purchases on the Staples card. Any individual who violates this policy must pay for the personal items and will be prohibited from using the Staples card in the future.

4. The bookkeeper will review the monthly statement, verify the purchases and attach all copies of detailed receipts (signed by the person using the card). Additional reviews are performed by the Administrative Assistant and the Road Superintendent.

5. In the event a receipt is lost, the bookkeeper will contact Staples and request an additional copy. The authorized user who lost the receipt will be required to sign the new receipt.

Purchasing Policy

Purchasing Policy• Purchase orders must be issued for all

purchases • The following individuals are allowed to

make purchases: – Road Superintendent – Assistant Road Superintendent – Administrative Assistant – Garage Supervisor – Supervisor of Operations – Bookkeeper – Human Resources/Payroll Administrator – Sign Shop Technician

• Purchases that will exceed $10,000 will be discussed by Road Superintendent, Assistant Superintendent, Administrative Assistant and Bookkeeper

• All items exceeding (or expected to exceed) $10,000 will be bid or purchased on state contract

• Bid items will be advertised a minimum of two times (one week apart) in local newspaper and/ or nearby newspapers

Purchasing Policy, cont’d• A minimum of two quotes may be taken on used items

that are not available for purchase within an economical area or may be purchased through auction after checking prices.

• Individuals listed above will request from the bookkeeper a purchase order number by telling her/him what is being purchased, where the purchase is being made and approximate cost of purchase.

• Bookkeeper will issue purchase order number. In some cases, blanket purchase orders may be issued for one month, which will cover purchases made through that vendor for one month only. However, whoever is making a purchase from that vendor must still make their request.

• A signed ticket must be given to the bookkeeper for any purchases made. The ticket will be matched with invoices by the bookkeeper to make sure purchases are being charged correctly.

• Invoices are entered into the computer system and placed with the correct purchase order. These purchases are balanced and paid at end of month.

• Tickets, invoices, purchase orders and checks are reviewed by the Administrative Assistant and the Road Superintendent after checks are issued.

Purchasing Policy, cont’d• Items exceeding $1,000 will be tagged with an asset

number and kept on inventory list. Equipment, Vehicles, etc. that exceed $10,000; Land improvements exceeding $25,000 are GASB reportable as well as roads, bridges, buildings & building improvements that exceed $50,000. These are kept on a separate (depreciable) list.

• The Road Superintendent is the only one authorized to sign contracts for the Road Department

• Emergency purchases can be made under the following circumstances:

• Inclement weather when more equipment is needed than is available

• If a piece of equipment that is used during daily operations breaks and it will cost more to repair or will take weeks or possibly months for parts to make the repairs, (this will be especially true if we have a limited number of these pieces of equipment and have several important projects that cannot be put on hold)

• Emergency purchases will be discussed by the Road Superintendent, Assistant Superintendent, Administrative Assistant, Garage Supervisor and Bookkeeper. Road Superintendent makes final decision for purchase to be made.

Travel Regulations

Travel RegulationsThe goal of these regulations is to cover the costs associated with approved travel by the employees of the Bradley County road Department. Employees on authorized travel will be reimbursed for expenses as outlined in the following regulations. TRAVEL AUTHORIZATION • Travel may not be undertaken unless it is authorized in

advance by the employee’s supervisor or road superintendent and the employee must be considered to be in travel status.

TRAVEL REIMBURSEMENT • Travel claims or receipts must be approved by the

employee’s supervisor or by the road superintendent.

• All signatures on travel claims or receipts must be original.

• Employees must submit travel claims or receipts for reimbursement for travel expenses no later than 7 days after completion of travel.

TRAVEL – COUNTY VEHICLE • County-owned vehicles should be used only for official

business

Travel Regulations, cont’dEmergency out-of-pocket expenses such as gasoline, other services or repairs will be reimbursed only if the reimbursement claim is accompanied by the proper receipt that identifies the vehicle and itemizes the services performed. TRAVEL – PERSONAL VEHICLE • Reimbursement for mileage will be at the State

of Tennessee rate of .47 cents and only for the mileage that was official county business.

LODGING • Employees attending a convention or seminar

and who stay at the conference/seminar hotel will be reimbursed for actual lodging costs plus tax upon submittal of proper claim or receipt.

• If an employee is attending a convention or seminar and the conference hotel/seminar facility is full, then the employee will be reimbursed for actual lodging costs plus tax upon submittal of proper claim or receipt and verification from the sponsoring organization that the convention/seminar hotel was full. In the event that the overflow hotels are full which results in the employee staying at another facility costing more, the employee will be reimbursed provided the employee provides verification that overflow facilities were full.

Travel Regulations, cont’d

MEALS • Meals are defined as breakfast, lunch

and dinner. These meals will only be reimbursable during official travel status.

• No meals will be reimbursed during the course of a normal workday.

• Breakfast reimbursement will only be made when overnight travel is required.

• Employees who are in travel status will be reimbursed up to and not exceeding $70 per day. The employee shall turn in all meal receipts to the bookkeeper for reimbursement.

ROW Easement Policy

ROW Easement Policy

FOR EASEMENTS ALONG COUNTY ROW

It is the policy of the Bradley County Road Department to request (in writing) from the current property owner authority to enter their property to allow work that needs to be completed to correct safety issues or other construction issues or repairs that cannot be completed on county ROW only. This will be for County Maintained Roads ONLY. These agreements will state that property will be restored to current/or better condition than when it was entered upon by our equipment. Agreements will be signed by the property owner, as well as the Road Superintendent, dated and notarized.

Capital Asset Policy

Capital Asset Policy, cont’d

Capital Asset Policy, cont’d

Capital Asset Policy, cont’d

Capital Asset Policy, cont’d

Capital Asset Policy, cont’d

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Capital Asset Policy, cont’d

Ethics Policy

Ethics PolicySection 1. Definitions. 1) "County" means BRADLEY County, which includes all

boards, committees, commissions, authorities, corporations or other instrumentalities appointed or created by the county or an official of the county, and specifically including the county school board, the county election commission, the county health department, and utility districts in the county.

2) "Officials and employees" means and includes any official, whether elected or appointed, officer, employee or servant, or any member of any board, agency, commission, authority or corporation (whether compensated or not), or any officer, employee or servant thereof, of the county.

3) "Personal interest" means, for the purpose of disclosure of personal interests in accordance with this Code of Ethics, a financial interest of the official or employee, or a financial interest of the official's or employee's spouse or child living in the same household, in the matter to be voted upon, regulated, supervised, or otherwise acted upon in an official capacity.

Ethics Policy, cont’dSection 2. Disclosure of personal interest in voting matters. An official or employee with the responsibility to vote on a measure shall disclose during the meeting at which the vote takes place, before the vote and to be included in the minutes, any personal interest that affects or that would lead a reasonable person to infer that it affects the official's or employee's vote on the measure. In addition, the official or employee may, to the extent allowed by law, recuse himself or herself from voting on the measure.

Section 3. Disclosure of personal interest in non-voting matters. An official or employee who must exercise discretion relative to any matter other than casting a vote and who has a personal interest in the matter that affects or that would lead a reasonable person to infer that it affects the exercise of the discretion shall disclose, before the exercise of the discretion when possible, the interest on the attached disclosure form and file the disclosure form with the county clerk. In addition, the official or employee may, to the extent allowed by law, recuse himself or herself from the exercise of discretion in the matter.

Ethics Policy, cont’dSection 4. Acceptance of gifts and other things of value. An official or employee, or an official's or employee's spouse or child living in the same household, may not accept, directly or indirectly, any gift, money, gratuity, or other consideration or favor of any kind from anyone other than the county (in an amount that exceeds $25): 1) For the performance of an act, or refraining from

performance of an act, that he would be expected to perform, or refrain from performing, in the regular course of his duties; or

2) That a reasonable person would understand was intended to influence the vote, official action, or judgment of the official or employee in executing county business.

It shall not be considered a violation of this policy for an official or employee to receive entertainment, food, refreshments, meals, health screenings, amenities, foodstuffs, or beverages that are provided in connection with a conference sponsored by an established or recognized statewide association of county government officials or by an umbrella or affiliate organization of such statewide association of county government officials.

Ethics Policy, cont’dSection 5. Ethics Complaints. A County Ethics Committee (the "Ethics Committee") consisting of five members shall be appointed to one-year terms by the County Mayor with confirmation by the county legislative body, to be appointed each year at the same time as internal committees of the county legislative body. At least TWO members of the committee shall be members of the county legislative body; TWO MEMBERS ARE FROM THE PUBLIC AT LARGE; one member shall be a constitutional county officer or, should no constitutional county officer be willing to accept appointment, an additional member of the county legislative body; OR the remaining member may be either a member of a board, committee, commission, authority, corporation, or other instrumentality governed by this policy, or an additional member of the county legislative body. The Ethics Committee shall convene as soon as practicable after their appointment and elect a chair and a secretary. The records of the Ethics Committee shall be maintained by the secretary and shall be filed in the office of the county clerk, where they shall be open to public inspection.

Ethics Policy, cont’dQuestions and complaints regarding violations of this Code of Ethics or of any violation of state law governing ethical conduct should be directed to the chair of the Ethics Committee. Complaints shall be in writing and signed by the person making the complaint, and shall set forth in reasonable detail the facts upon which the complaint is based.   The County Ethics Committee shall investigate any credible complaint against an official or employee charging any violation of this Code of Ethics, or may undertake an investigation on its own initiative when it acquires information indicating a possible violation, and make recommendations for action to end or seek retribution for any activity that, in the Committee's judgment, constitutes a violation of this Code of Ethics. If a member of the Committee is the subject of a complaint, such member shall recuse himself or herself from all proceedings involving such complaint.

Ethics Policy, cont’dThe Committee may: 1) refer the matter to the County Attorney for a legal

opinion and/or recommendations for action; 2) in the case of an official, refer the matter to the

county legislative body for possible public censure if the county legislative body finds such action warranted; 

3) in the case of an employee, refer the matter to the official responsible for supervision of the employee for possible disciplinary action if the official finds discipline warranted;

4) in a case involving possible violation of state statutes, refer the matter to the district attorney for possible ouster or criminal prosecution;

The interpretation that a reasonable person in the circumstances would apply shall be used in interpreting and enforcing this Code of Ethics. When a violation of this Code of Ethics also constitutes a violation of a personnel policy or a civil service policy, the violation shall be dealt with as a violation of the personnel or civil service provisions rather than as a violation of this Code of Ethics.

Ethics Policy, cont’d

Section 6. Applicable State Laws. In addition to the ethical principles set out in this Code of Ethics, state laws also provide a framework for the ethical behavior of county officials and employees in the performance of their duties. Officials and employees should familiarize themselves with the state laws applicable to their office or position and the performance of their duties. To the extent that an issue is addressed by state law (law of general application, public law of local application, local option law, or private act), the provisions of that state law, to the extent they are more restrictive, shall control.

Ethics Policy, cont’dFollowing is a brief summary of selected state laws concerning ethics in county government. For the full text of these statutes, see the Tennessee Code Annotated (T.C.A.) sections indicated.   Campaign finance-T.C.A. Title 2, Chapter 10. Part One (campaign financial disclosure) requires candidates for public office to disclose contributions and contributors to their campaigns. Part Three (campaign contribution limits) limits the total amount of campaign contributions a candidate may receive from an individual and sets limits on the amount a candidate may receive in cash.

Conflict of interest-T.C.A. § 12-4-101 is the general conflict of interest statute that applies in all counties. It prohibits anyone who votes for, lets out, or in any manner supervises any work or contract from having a direct financial interest in that contract, purchase or work, and it requires disclosure of indirect financial interests by public acknowledgment.

 

Ethics Policy, cont’dConflict of interest-T.C.A. § 49-6-2003 applies to the department of education in all counties and prohibits direct and indirect conflicts of interest in the sale of supplies for use in public schools.   Conflict of interest-T.C.A. § 5-1-125 applies in all counties and prohibits county officials and employees from purchasing surplus county property except where it is sold by public bid.

Conflict of interest-T.C.A. § 54-7-203 applies in all counties that are governed by the County Uniform road Law. It prohibits officials and employees in the road department and members of the county legislative body from having any personal interest in purchases of supplies, materials, machinery, and equipment for the road department.   Conflict of interest-T.C.A. § 5-14-114 applies in counties that have adopted the County Purchasing Law of 1957. lt prohibits the purchasing agent, members of the purchasing commission, and all county officials from having any financial or other personal beneficial interest in any contract or purchase of goods or services for any department or agency of the county.

Ethics Policy, cont’dConflict of interest-T.C.A. § 5-21-121 applies in counties that have adopted the County Financial Management System of1981. It prohibits all county officials and employees from having any financial or other personal beneficial interest in the purchase of any supplies, materials or equipment for the county.   Conflict of interest-T.C.A. §§ 5-5-102 and 12-4-101 govern disclosures and abstentions from voting due to conflicts of interest of members of county legislative bodies.   Conflict of interest disclosure statements-T.C.A. § 8-50-501 and the following sections require candidates and appointees to local public offices to file a disclosure statement with the state ethics commission listing major sources of income, investments, lobbying activities; professional services provided, bankruptcies, certain loans, and other information, and to keep these statements up to date.

Ethics Policy, cont’d  Gifts-T.C.A. § 5-14-114 applies in counties that have adopted the County Purchasing Law of 1957. It prohibits the purchasing agent, members of the purchasing commission, and all county officials from receiving anything of value, directly or indirectly, from anyone who may have or obtain a contract or purchase order with the county.

Gifts-T.C.A. § 5-21-121 applies in counties that have adopted the County Financial Management System of 1981. It prohibits the finance director, purchasing agent, and employees in those departments from accepting anything of value, directly or indirectly, from anyone who furnishes supplies, materials or equipment to the county.   Honoraria-T.C.A. § 2-10-116 prohibits elected officials from accepting an honorarium (including money or anything of value, but not including reimbursement for actual expenses) for an appearance, speech, or article in their official capacity.

 

Ethics Policy, cont’d  Private use of public property-T.C.A. § 54-7-202 applies in counties that are governed by the County Uniform road Law. It prohibits the private use of equipment, rock, and other road materials. Court sales-T.C.A. § 39-16-405 prohibits judges, clerks of court, court officers, and employees of court, from bidding on or purchasing any property sold through the court for which such person discharges official duties.

Rules of the Supreme Court- Rule 10, Cannon 5 (Code of Judicial Conduct) establishes ethical rules for judges and other court personnel when exercising judicial functions.   Fee statutes-T.C.A. §§ 8-21-101, 8-21-102, and 8-21-103 set out circumstances where fees are authorized, prohibit officials from requiring payment of fees in advance of performance of services except where specifically authorized, and set penalties for charging excessive or unauthorized fees.

Ethics Policy, cont’dConsulting fee prohibition for elected county officials-T.C.A. § § 2-10-122 and 2-10-124 prohibit officials from receiving compensation for advising or assisting a person or entity in influencing county legislative or administrative action.   Crimes involving public officials-T.C.A. § 39-16-101 and the following sections prohibit bribery, soliciting unlawful compensation, and buying and selling in regard to offices.

Official misconduct-T.C.A. § 39-16-402 applies to public servants and candidates for office and prohibits unauthorized exercise of official power, acting in an official capacity exceeding the servant's power, refusal to perform a duty imposed by law, violating a law relating to the servant's office or employment, and receiving a benefit not provided by law.

Official misconduct-T.C.A. § 39-16-402 applies to public servants and candidates for office and prohibits unauthorized exercise of official power, acting in an official capacity exceeding the servant's power, refusal to perform a duty imposed by law, violating a law relating to the servant's office or employment, and receiving a benefit not provided by law.

Ethics Policy, cont’dOfficial oppression-T.C.A. § 39-16-403 prohibits abuse of power by a public servant.   Bribery for votes-T.C.A. § § 2-19-121, 2-19-126, and 2-19-127 prohibit bribery of voters in elections. Misuse of official information-T.C.A. § 39-16-404 prohibits a public servant from attaining a benefit or aiding another person in attaining a benefit from information which was obtained in an official capacity and is not available to the public.

Ouster law-T.C.A. § 8-47-101 sets out conduct that is punishable by ouster from office, including misconduct in office and neglect of duty.

 

Ethics Policy, cont’dBRADLEY COUNTY CODE OF ETHICS CONFLICT OF

INTEREST DISCLOSURE STATEMENT   Instructions: This form is for reporting personal interests required to be disclosed under Section 3of the Code of Ethics of this county. Officials and employees are required to disclose personal interests in matters that affect or would lead a reasonable person to infer that it would affect the exercise of discretion of an official or employee.   Date of disclosure: ____________________ Name of official or employee: _________________________ Office and position: _________________________________ Description of personal interest (describe below in detail:

________________________ Signature of official or employee ________________________ Witness Signature ________________________ Printed name of witness