Tennessee Department of Finance and Administration

The Tennessee Department of Finance and Administration (F&A) serves as the central administrative and financial arm of the state government. Its primary mission is to ensure responsible stewardship of taxpayer dollars and efficient delivery of government services. F&A plays a vital role in planning, budgeting, accounting, procurement, and overall financial oversight for the state.

Key Responsibilities

• Budget Development and Execution: F&A is responsible for developing the Governor’s proposed budget, which outlines the state’s spending priorities for the upcoming fiscal year. This involves working with all state agencies to understand their needs and resource requests. After the budget is approved by the General Assembly, F&A oversees its execution, monitoring spending and ensuring compliance.
• Accounting and Financial Reporting: The department maintains the state’s accounting system, ensuring accurate recording and reporting of financial transactions. F&A prepares the Comprehensive Annual Financial Report (CAFR), which provides a detailed overview of the state’s financial position. This reporting is crucial for transparency and accountability to the public.
• Procurement: F&A manages the state’s procurement process, ensuring that goods and services are purchased in a fair, competitive, and cost-effective manner. This involves developing procurement policies, managing vendor relationships, and overseeing the bidding process for state contracts. They strive to obtain the best value for taxpayer money while adhering to ethical standards.
• Debt Management: The department oversees the state’s debt portfolio, managing bond issuances and ensuring responsible borrowing practices. This involves analyzing market conditions, determining the optimal financing strategies, and ensuring timely repayment of debt obligations. Prudent debt management is essential for maintaining the state’s credit rating and financial stability.
• Information Systems Management: F&A plays a crucial role in managing the state’s information technology infrastructure. This includes overseeing the development and implementation of IT policies, managing cybersecurity risks, and ensuring that state agencies have the technology resources they need to operate effectively. They aim to promote innovation and efficiency through technology.
• Internal Audit: The department conducts internal audits of state agencies to ensure compliance with policies and procedures, identify areas for improvement, and prevent fraud and waste. These audits provide independent assurance to management and help to improve the effectiveness of government operations.

Divisions and Offices

The Department of Finance and Administration is organized into various divisions and offices, each with specific responsibilities. These may include:

• Budget Division
• Fiscal Resources Division
• Office of State Procurement
• Office of Information Resources
• Internal Audit Division
• TennCare (Medicaid)

Impact on Tennessee Citizens

The Tennessee Department of Finance and Administration plays a critical role in ensuring that state government operates efficiently and effectively. Its work directly impacts the services that citizens receive, from education and healthcare to infrastructure and public safety. By managing the state’s finances responsibly, F&A helps to maintain a stable economy and create opportunities for all Tennesseans. Transparency and accountability in government spending are key priorities for the department.