(a) Any department of state government may accept and use federal financial assistance from any agency or instrumentality of the federal government for purposes of carrying on programs in which such department may be authorized to engage; provided, that such acceptance shall be with the express approval of the governor; and such department, acting through its commissioner, is authorized to enter into any and all requisite agreements with such federal agency or instrumentality for the purpose of acceptance and use of such financial assistance; provided, further, that no agreement or contract shall be made by such department involving the expenditure of funds beyond those available to such department by appropriation, gift, or otherwise.
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Terms Used In Tennessee Code 4-4-113

  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Contract: A legal written agreement that becomes binding when signed.
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) Any department of state government receiving federal financial assistance shall notify the comptroller of the treasury and the commissioner of finance and administration within five (5) business days from the date of receipt by the department’s commissioner or chief financial officer, or equivalent, of official notice in any form or type from the federal awarding agency, or designated cognizant agency, notifying the department of a determination of noncompliance with, or any deficiencies related to compliance with, federal statutes, regulations, or the terms and conditions of a federal award that could result in the following:

(1) Repayment of federal financial assistance;
(2) Reduction in future federal financial assistance by administrative offset against other requests for reimbursements or subsequent awards;
(3) Withholding of advance payments otherwise due to the department;
(4) Temporary withholding of federal financial assistance pending corrective action by the department;
(5) Whole or partial suspension or termination of the federal award; or
(6) Federal awarding agency taking any other remedies legally available to it, including not seeking recovery of a disallowance or improper payment.
(c) All official notices resulting in items described in subdivisions (b)(1)-(6) received by staff of any department of state government pursuant to subsection (b) shall be transmitted to the department’s commissioner or chief financial officer, or equivalent, within five (5) business days of receipt.
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