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Department proposes assigning small regulatory programs to board staff to reduce deficit; board seeks safeguards
Summary
Department of Commerce & Insurance told the board it plans to assign several small regulatory programs to the board’s executive director and staff to realize about $60,000 in annual savings; board members asked for monitoring of scope creep and assurances staff capacity will remain.
A Department of Commerce & Insurance representative told the Tennessee State Board of Accountancy the department plans to assign three small regulatory programs to the board's executive director and staff to reduce an operating deficit, a proposal that board members supported with reservations about monitoring and workload.
Assistant Commissioner Reid Witcher told the board the board had been operating in the red for three consecutive years and that the department plans to begin assigning work for some small regulatory programs to Executive Director Jen Binkley and staff beginning in August. Witcher said the department expects the reallocation to save the board roughly $60,000 annually; the proposed shift would assign up to 25% of the executive director’s time, up to 10% of Karen’s time and up to 25% of another staff member (Laura) to administer the additional programs.
Witcher said the three programs have about 700 combined licensees and generated modest contact volume (122 calls/emails and 40 new applications last year). One of the programs has a five‑member board that meets quarterly; Witcher said board administration for that program historically takes less than an hour per meeting. He emphasized the staff assigned to these programs report to a different legal team and that the department supports the executive director’s continued participation in NASBA/AICPA committees as beneficial to Tennessee.
Board members supported the concept but asked the department to provide tools to monitor ‘‘scope creep’’ and verify the executive director will retain sufficient time to perform board duties, including national committee participation. Several board members noted the board retains authority over its budget and to hire an executive director if the arrangement needs reversal. Witcher said the department would make adjustments if workload or performance suffered.
Ending
The board did not take a formal vote at the meeting. Staff and the department will continue planning the transition and report back; the board asked for periodic updates and assurances that licensing turnaround times and statutory responsibilities will not be compromised.
