Tennessee Annual Comprehensive Financial Report: Transparency, Accountability

NASHVILLE, Tenn. – Is Tennessee’s financial position better because of the activities of the past fiscal year? The answer can be found in the state’s newly-published Annual Comprehensive Financial Report (ACFR), prepared by the Division of Accounts in the Department of Finance and Administration. The report, for the year ending June 30, 2022, is a thorough and detailed presentation of the state's financial condition, providing financial transparency and accountability.

“With the state’s total debt decreasing, our savings increasing and ending the year with a balanced budget, Tennessee is clearly in a more positive financial position compared to the year before,” Commissioner Jim Bryson said. “The annual report and its detailed financial reports reflect the  comprehensive framework of internal control established by the state – and meticulously reviewed by division professionals – assuring accuracy of the data and completeness and fairness of the report.”

The state’s total general obligation bonds and commercial paper debt decreased by $194.1 million during the fiscal year to a total of $1.8 billion. The report’s statements of both net position and activities include all assets, liabilities and deferred outflows/inflows, considering all the year’s revenues and expenses. At the close of fiscal year '22, the state reported positive balances in all three categories of net position:

• Net investment capital assets - land, infrastructure, structures and improvements, machinery and equipment, construction in progress, right to use leases and software in development
• Restricted -  resources subject to either external restrictions or legislative restrictions on how they may be used
• Unrestricted - used to meet the state’s ongoing obligations to citizens (education, transportation, job creation, social services, etc.) and creditors

The report is prepared in accordance with Generally Accepted Accounting Principles (GAAP) applicable to governments as prescribed by the Governmental Accounting Standards Board (GASB).

The state’s 2021 ACFR received the Government Finance Officers Certificate of Achievement for Excellence in Financial Reporting for the 42nd year, which is the most any state has been awarded. The award is the highest form of recognition in governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management. Auditors from the Comptroller of the Treasury examined the financial statements and issued an unmodified opinion on the state’s basic financial statements. The independent auditor’s report is located at the front of the report.
 
ACFR reports dating back to 1997 are available electronically on the state’s website at https://www.tn.gov/finance/rd-doa/fa-accfin-ar.html.