The Special Revenue Account
The actual Drug Fund is a special revenue account under the control of the city recorder. It is accounted for in much the same way as street aid funds and the solid waste special revenue account. All Drug Fund revenues are deposited in the Drug Fund special revenue account, not the confidential funds account. All expenditures except cash transactions relating to undercover operations are made from the Drug Fund special revenue account.
The police chief and the mayor, or the city manager in cities that have one, are to present a Drug Fund budget to the local governing body annually for approval. Funds cannot be expended beyond amounts approved in the budget. Additionally, funds not already in the account cannot be spent, even if approved in the Drug Fund budget.
All expenditures except qualifying confidential expenditures must follow the city’s purchasing guidelines. If the city has not adopted a purchasing policy, the state purchasing law for local governments must be followed. Purchasing guidelines generally specify minimum monetary limits requiring bids or quotes. The guidelines also may specify purchasing processes, such as written requisitions and purchase orders. T.C.A. § 39-17-420.