Tennessee County Highway Officials Orientation
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1 Tennessee Conty Highway Officials Orientation COOP 2018 Conty Government Strctre Voters Electorate Elected/Appointed Officials Mayor CLB Fee Offices Highway CAO Property Assessor Entering Office Oaths of Office Article 1, Section 1 T.C.A , Official Bond/Insrance Minimm $100,000 T.C.A
2 Interim Sccessor CLB has p to 120 days to fill a vacancy Assistant sperintendent, chief foreman, administrative assistant, etc. Highway Sperintendent is responsible for making the designation in writing/on form to CLB. Interim Sccessor Elected highway board? yes no File form with highway board chair and conty clerk File form with the CLB chair and conty clerk Personnel Hire, oversee, and terminate employees. Approve personnel policies and work times. Have any personnel policies (and changes) reviewed by the conty attorney before initiating. Comply with FLSA, state and federal anti-discrimination laws and other applicable laws. 2
3 Personnel CAO is athorized to determine: Total nmber of employees Personnel policies Hors of work Job classifications Policies & wages within classifications CLB may not set bdget line items in sch detail as to limit ability of CAO to set pay for highway personnel; however, pay mst be within bdget. Eqipment Mst perform complete inventory within 60 days of taking office and file report with CLB. Mst file an amended inventory every sbseqent year by September 1 st. Mst plainly mark all conty highway eqipment. Conty mayor is obligated to examine inventories for compliance and may withhold fnds ntil compliance is achieved. Eqipment CAO Acqire most pdated inventory Physically review eqipment and vehicles Compare VINs Be sre it is identified as highway property Locate and secre spplies and materials Ascertain the internal controls over the inventory 3
4 Annal Work Program In CUHL conties, CAO prepares and sbmits an annal work program to CLB and TDOT. Under the CUHL, the CAO has control over the road system (constrction and maintenance). If nder a private act, check yor private act for annal work plan reqirements Control over the Road System CAO location relocation constrction reconstrction repair and maintenance Interaction with Highway Board Review private act to determine the board s dties/ responsibilities Private act may be in conflict with the CUHL and need to be pdated Conslt yor conty attorney or contact CTAS if yo have any qestions 4
5 Removing Road Obstrctions CUHL athorizes the CAO to remove or case to be removed any gate, fence or other obstrction from the conty roads, bridges and rights-of-way. Conty Road List CLB is charged with classifying pblic roads. The CAO is reqired to sbmit a detailed listing of all conty roads to the CLB CAO shold present the conty road list to the CLB with additions or deletions on an on-going basis. It is very important to keep this list p-todate! Road List Shold Inclde: 1. Type of road (conty or state-aid) 2. State-aid road description (only for conties in the state-aid road system) 3. Local name of road 4. Beginning and end of road (reference to geographical featres) 5. Miles (length to nearest 1/10 of a mile) 6. Class (classify according to width as set ot by T.C.A & ) 7. Right-of-way width (in feet) 8. Roadbed width (in feet) 5
6 Closing Roads Procedres may vary from conty to conty. We recommend conslting with the conty attorney to review local procedres before closing any conty roads. CLB mst approve additions/deletions to road list Alternative Procedre for Closing a Conty Road Sbmit application to CAO Pblic notice to interested parties CAO makes recommendation to regional planning commission Planning commission gives appropriate notice Planning commission recommends to CLB CLB votes to close road Weight Limits Procedre to Lower: CLB can lower weight limits on conty roads 2/3 majority vote Mst se same criteria as TDOT where, throgh weakness of strctre in either the srface of or the bridges over the lateral highways or secondary roads, the maximm loads provided by law, in the opinion of the commissioner [CLB], injre or damage the roads or bridges. 6
7 Undergrond Utility Damage Prevention Act Mst notify one-call service at least 3 days prior to excavation. Exceptions: Rotine maintenance Emergencies Violations separate from civil liability for damage to tilities Penalties: mandatory training (at yor cost) and fines. ROW Reglation Conties are athorized to reglate their rights-of-way CLB can enact reglations and reqire permits If dly enacted by the CLB, can assess civil penalties for violations CTAS website > Reference Materials > Sample Resoltions Road Damage Criminal offense to damage Class A misdemeanor and jail or fine p to $2,500 Civil action for damage Reward ($250) for information that leads to conviction 7
8 Private Work & Use of Eqipment PROHIBITED: Law generally prohibits se of conty highway department eqipment or materials for any other prpose Work on private roads or for private prposes is forbidden Rock, crshed stone, or other road material cannot be sold or given away Employees sing eqipment or material for personal se are to be discharged immediately Exceptions Board of edcation or postal athorities Interlocal agreements Transfer from other conty department Joint prchasing agreements NEVER FORGET Remember No work on private property Terminate any employee who violates the law Reimbrsement for work for other governmental agencies in writing and approved by CLB 8
9 Interactions with Other Conty Officials Depending on the acconting/bdgeting law yor conty is nder, coordinate with the conty mayor/finance director as applicable. Prepare and sbmit an annal bdget and any bdget amendments to the CLB timely. Remember to verify that the five-year average is met for local effort. Notify mayor/finance director if it appears it will not be met. Work with mayor/finance director to maintain capital asset, infrastrctre & accred leave (if any) reporting for GASB 34 & 51 reqirements. Sbmit changes to conty road list to CLB in a timely manner. Financial Isses Affecting Conty Highway Officials COOP 2018 Private Act 1981/1957 Acts General Law Charter/Metro Legal Athority 9
10 Feb 1st Apr 1st Bdget Timeline Mar 1st Jl 1st Taking Office - Bdget Recommendations 1 Review adopted bdget. 2 Check 5-year average. 3 Perform a cash flow analysis. Bdget Amendments Docment reqest Present reqest CLB vote 10
11 8/14/18 Prchasing Athority Private Act Conty Uniform Highway Law 1981/1957 Acts Charter/Metro Prchasing Process Prchase Order Material Receiving Report Reqisition Methods of Prchasing Competitive Sealed Bids/Proposals ITB/IFB/RFP Reqest for Qalification (RFQ) professional services Informal qotes 11
12 Formal Bid Thresholds Under the CUHL (T.C.A ), no conty road department is reqired to pblicly advertise and competitively bid prchases of $10,000 or less even if sch bids are reqired by pblic or private act. T.C.A athorizes any conty, mnicipality, tility district, or other local government entity with centralized prchasing athority and a fll-time prchasing agent to increase, by resoltion or ordinance, the formal bid threshold to an amont not to exceed $25,000, notwithstanding any charter provision, private act, or other law to the contrary. Reqires at least 3 written qotations when possible for prchases between the bid threshold and 40% of the bid threshold. Effective May 18, Prchasing Secondhand Eqipment (private) Can prchase sed or secondhand eqipment withot pblic advertisement and competitive bidding Mst docment general range of vale throgh nationally-recognized pblication or an appraisal Price cannot be more than 5% higher than highest vale in range (T.C.A ) Governmental Eqipment Can prchase sed or secondhand eqipment withot pblic advertisement and competitive bidding (T.C.A ) Can also transfer srpls property to gov t entities withot pblic advertisement and competitive bidding (T.C.A ) Cooperative Prchasing Joint-Bid Cooperatives Two or more pblic agencies combine reqirements in single reqest for bids Each agency ses its own prchase order or contract Designate lead agency Piggyback Cooperatives Initial prchaser allows other agencies to prchase from vendor nder same terms and conditions Example: local governments prchasing from TDGS contracts 12
13 8/14/18 T.C.A (formerly ). Legal Athority for Cooperative Prchasing Athorizes conties, withot pblic advertisement and competitive bidding, to prchase nder the provisions of contracts or price agreements entered into by the Tennessee Department of General Services (TDGS) Central Procrement Office (CPO). This procedre is commonly known as bying nder state contract. Federal law and reglations. Conty governments may prchase goods, except motor vehicles, nder federal General Services Administration (GSA) contracts, bt only to the extent permitted by federal law or reglations. Op. Tenn. Att y Gen (Jly 22, 2004). Legal Athority for Cooperative Prchasing T.C.A (formerly ). Athorizes in-state "piggyback" contracts whereby local governments may make prchases nder the same terms as a legal bid initiated by another local government. New motor vehicles (except special prpose vehicles sch as school bses and amblances) and prchases related to transportation infrastrctre projects are exclded. This statte also athorizes conties and other governmental entities to make prchases on behalf of each other as long as the stattory reqirements are met. Legal Athority for Cooperative Prchasing T.C.A (formerly ). Athorizes both in-state and ot-of-state cooperative prchasing agreements. In-State: Local governments may participate in in-state cooperative prchasing agreements for procrement of spplies, services, or constrction. Ot-of-State: Local governments may participate in a cooperative prchasing agreement with governmental entities otside Tennessee for the prchase of goods, spplies, services and eqipment. Excldes certain motor vehicles, architectral and engineering services, and constrction services or materials. The master agreement mst be approved by the local legislative body and the items mst be prchased by a governmental entity in accordance with its prchasing procedres and made available for se by other governmental entities. With Federal Agencies: Pblic Chapter 935 amended T.C.A (2016) to athorize cooperative prchasing agreements with federal agencies. Excldes new or sed motor vehicles (except special prpose vehicles); constrction, engineering, and architectral services; constrction materials, machinery and eqipment; and fel and oil prchases. 13
14 T.C.A (formerly ). Athorizes the state's central procrement office to enter into cooperative prchasing agreements with local governments Each contract mst be established throgh fll/open competition and prsant to policies approved by the state procrement commission. T.C.A et seq. Interlocal Cooperation Act permits any local government to enter into joint agreements to exercise any legitimate governmental fnction (inclding prchasing) with any other local government, in Tennessee or in any other state. Participating local governments in another state mst have the same blanket athority nder that state s own laws. Legal Athority for Cooperative Prchasing Emergency Prchases Prchases nder tre emergency sitations generally may be made withot following the conty s normal prchasing procedres. What is a tre emergency? Emergencies exist when there is a threat to health, welfare, or safety of people and/or property. Emergency Prchases The Tennessee Code Annotated (T.C.A.) provides for emergency prchases in the following stattes: Conty Prchasing Law of 1983 Conty Prchasing Law of 1957 Conty Financial Management System of 1981 Conty Uniform Highway Law(CUHL) Exempts emergency prchases from pblic advertisement & competitive bidding reqirements. Special provision for emergency prchasing is fond in T.C.A (3). Provides for emergency prchasing in T.C.A Reqires that procedres be established for emergency prchases in T.C.A (b)(7). Exemption from pblic advertisement and competitive bidding reqirements in actal emergency prchases arising from nforeseen cases in T.C.A (c)(1)(C). 14
15 Sole Sorce Prchases What is a sole sorce prchase? a contract for the prchase of goods and services entered into after soliciting and negotiating with only one sorce, sally becase of the technology or niqeness reqired. Shold reqire written jstification and docmentation. The Conty Prchasing Law of 1983 contains a provision exempting sole sorce prchases from competitive bidding in conties that are governed by T.C.A Procrement Cards Majority sed today are credit cards. Offer conty departments a procrement process for prchase and payment of low-dollar, non-inventory, non-capital items. Cards may redce the cost of doing bsiness while preserving controls and maximizing the adit trail and data captred at the point of sale. Cards have historically been sed for small prchases that do not reqire competitive bidding. There crrently is no state law concerning the sbject of procrement cards. Any conty desiring to se procrement cards shold conslt with its conty attorney to determine the appropriate method for athorizing the se of procrement cards and adopting policies and procedres. Disposition of Srpls Property Road sperintendents often transfer/trade srpls eqipment with other conties, with the approval of both governing bodies, prsant to T.C.A (formerly T.C.A ). If property is not transferred prsant to T.C.A , then it wold be disposed of prsant to applicable prchasing law. Conty Prchasing Law of 1957 conty prchasing agent sells by pblic action or sealed bid Conty Financial Management System of 1981 conty prchasing agent condcts pblic sale 15
16 8/14/18 Prchasing at Pblic Actions Under T.C.A (formerly ), conties are athorized to prchase new or secondhand articles, inclding materials, spplies, commodities, and eqipment, at pblicly advertised actions withot pblic advertisement and competitive bidding. CLB mst establish written procedres (CTAS has sample). If yo prchase from pblic action, prchasing official mst report the following to the CLB: Description of materials, spplies, commodities, or eqipment prchased Action where items were prchased Prchase price of items Vendor of items Prchasing Fel T.C.A athorizes fel stabilization contracts for a maximm term of 24 months. Mst have local governing body approval. Can enter into joint contracts. Professional Prchasing Organizations National Institte of Governmental Prchasing (NIGP) Tennessee Association of Pblic Prchasing (TAPP) East TN Prchasing Association (ETPA) Middle TN Prchasing Association (MTPA) 16
17 50 What are Internal Controls? A process that provides reasonable assrance the objectives of an entity will be achieved. T.C.A (a) Comply Obligations and costs are in compliance with applicable law Safegard Fnds, property, and other assets are safegarded against waste, loss, nathorized se, or misappropriation; Record Revenes and expenditres are properly recorded and acconted for to permit the preparation of accrate and reliable financial and statistical reports and to maintain accontability over the assets. Law went into effect Jne 30, 2016! 51 Why Do Conty Governments Need Internal Controls? Redce frad & waste Ensre legal, reglatory, & policy compliance Protect conty assets Promote transparency & accontability 52 17
18 8/14/18 Who is Responsible for Establishing Internal Controls? Conty Management (elected/appointed officials) are responsible for: design, implementation and maintenance of adeqate internal controls over their office/department. 54 Frad Detection External aditors (performing rotine annal adits) detect less than 5% of identified occpational frad. More frad is identified by accident or throgh anonymos tips than by the external annal financial and compliance aditors. Poor Internal Controls = Opportnity for FRAUD 18
19 Dties were not segregated adeqately Smmary of Adit Findings Inventory of crshed stone/fel not adeqately tracked Assets not marked clearly as Highway Dept eqipment/not tracked Deficiencies in acconting records, reconciliations, timely deposits, and adit log reviews Control Environment Risk Assessment Control Activities Information & Commnication Components & Principles of Internal Controls Monitoring Activities Risk Assessment Impact Negligible Minor Major Extensive Certain High High Extreme Extreme Probability Likely Moderate High High Extreme Possible Low Moderate High Extreme Unlikely Low Low Moderate Extreme Rare Low Low Moderate High 19
20 Wrap Up Congratlations! Welcome to conty government! 20
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