Alabama. Dept. of Finance.

Authority: Acts 1939, No. 112, p. 144; Code 1975, 41:4:1-263.

The Department of Finance is a statutory office in the Executive Branch. The Director is appointed by the Governor and holds office at his pleasure. The Department has a seal which is affixed to official acts.

The Department was created in 1939 for the purpose of supervising the finances of the state and, to an extent, local governments and public bodies, and to furnish facilities, supplies, equipment, and, to a certain extent, personnel, for the operation of the state.

Certain powers, duties, and functions of other state agencies were transferred to the Department, including:

(1) the drawing of warrants; the settlement of accounts, both receipts and disbursements; certain financial duties relating to state depositories; and the approval of forms for a uniform county accounting system; from the State Auditor;

(2) the investment of sinking funds, from the State Treasurer;

(3) the Sinking Fund for Retiring Old Bonded Debt, bonds, securities, and other personal property, from the Sinking Fund Commission, which was abolished;

(4) printing and binding; the purchase of supplies, equipment, and property; the distribution of property, printed matter, and school textbooks; the inventorying of state property; the insurance of state property and operation of the Insurance Fund; and accounting and auditing functions, from the State Board of Administration;

(5) the purchase of stationary, paper, and fuel, and the repair and furnishing of legislative rooms, from the Secretary of State;

(6) the care of the Capitol, grounds, and other property and the assignment of rooms, from the Governor and his Secretary;

(7) the approval of projects and issuance of bonds or securities, from the Public Works Board, which was abolished; and

(8) duties of the State Comptroller, its Division of Departmental and County Audits, and the Department of Examiners of Accounts, except for those duties relating to Confederate pensions. All papers, records, furniture, and other property of the predecessor agencies were assigned to the Department.

The State Board of Control and Economy, an administrative department created in 1919, had duties with the Convict Department and the business affairs of state charitable and eleemosynary institutions. It also purchased supplies and printing for state departments and institutions. Its duties were eventually transferred to the State Board of Administration in 1923. (Acts 1919, No. 47, pp.43-49; Acts 1923, No. 475, p. 629)

The State Budget Commission, also created in 1919, prepared budget documents for consideration of the Legislature. It was abolished in 1932 and superceded by the Office of State Comptroller. (Acts 1919, No. 31, pp. 33-37; Acts 1932, No. 87, pp. 35-48)

In 1947 the duties of the Finance Department's Division of Examiners of Public Accounts, which had merged with the Division of Local Finance in 1943, were transferred to the Department of Examiners of Public Accounts. (Acts 1947, No. 351, p. 231)

The Department was delegated the following duties in 1939:

(1) to manage the fiscal affairs of the state, excepting those duties required of the Auditor, Treasurer, or Department of Revenue, and to keep all records; (2) to supervise the insurance of state property and to operate the state insurance fund; (3) to make an annual financial report of the state, to be bound with reports of the Auditor and Treasurer; and (4) to conduct studies and secure information as may be required by the Governor or Legislature. The Department also has financial responsibilities in relation to educational and eleemosynary institutions.

State commissions and authorities, with the exception of municipalities, must obtain the Department's consent before they may issue securities.

Rental charges for state buildings other than the Capitol are deposited into the Department's revolving Capitol Maintenance and Repair Fund. (Acts 1979, No. 79-456, p. 745)

The Director is the state's chief financial officer and advisor of the Governor and Legislature in financial matters. He supervises the Department, appoints officers with the approval of the Governor unless otherwise indicated, creates internal divisions, makes rules and regulations, sells state lands not under the authority of other agencies, records deposits and withdrawals of sinking funds, sells surplus property after it is first offered for loan and screened by voluntary ambulance or rescue squads (from 1980-1984, the Forestry Commission had first screening), and assigns quarters for certain officers or departments within the city of Montgomery (Code 1852, Section 50). The Director has access to any record of a state or local government agency, and he may examine witnesses in hearings.

According to the Government Manual, 1982, the Director is President of the Alabama Education Authority, Alabama Highway Authority, Alabama Bridge Finance Corporation, Alabama Public Schools Corporation, and the Alabama Higher Education Loan Corporation; Vice President of the Alabama State Hospitals and Partlow School Bond Commission; Chairman of the State Board of Adjustment; and Vice Chairman of the State Building Commission. He serves as Secretary of the Alabama Trade School and Junior College Authority, Alabama Public School and College Authority, Alabama Highway Finance Corporation, Alabama Corrections Institution Finance Authority, State Industrial Development Authority, Alabama Agriculture Center Corporation, Alabama Institute for Deaf and Blind Bond Commission, Alabama Turnpike Authority, Alabama Mental Health Authority, State Parks Development Authority, Tennessee-Tombigbee Waterways Authority, Alabama Pollution Control Finance Authority, Tombigbee Valley Development Authority, the Alabama Port Authority, and the Coosa Valley Development Authority; and Treasurer of the Alabama Building Finance Authority, Alabama Building Authority, and the Alabama Building Corporation. He is a member of the Teachers Retirement System, Employees Retirement System, Alabama Space Science Exhibit Commission, State Toll Bridge Authority, State Employees Insurance Board, Alabama Housing Finance Authority, and Alabama Capital Outlay Oversight Commissions for the Board of Corrections and for Mental Health.

Administrative divisions of the Dept. of Finance (Ala. Government Manual, 1986):

Legal Division.

Personnel Division.

Program divisions of the Dept. of Finance (Ala. Government Manual, 1986):

Division of the Budget (ALAV90-A10).

Office of State Comptroller (ALAV90-A12). Also known as Division of Control and Accounts.

Division of Purchases and Stores (ALAV90-A8).

Service Division (ALAV90-A11).

Data Systems Management Division (ALAV90-A9).

State Insurance Fund (ALAV89-A251).

Printing and Publications Division (ALAV90-A7).

Division of Air Transportation (ALAV90-A5).

Space Management Division (ALAV90-A6).