Arkansas Department of Finance and Administration (ADFA)

The Arkansas Department of Finance and Administration (ADFA) oversees the collection of state taxes, the purchasing of equipment for state agencies, programs for state employees, and a variety of other fiscal and administrative duties, such as regulating alcoholic beverages and registering vehicles. The director of the ADFA is the chief fiscal officer of the State of Arkansas.

ADFA was created by Act 38 of 1971, which significantly reorganized state government, to encompass the responsibilities of four different state agencies: the Department of Revenue, the Department of Alcoholic Beverage Control, the Arkansas Racing Commission, and the State Administration Department. The Department of Revenue had been created as the Office of the Commissioner of Insurance and Revenues by Act 88 of 1925, and it oversaw the collection of certain taxes as well as the enforcement of insurance laws. The Department of Alcoholic Beverage Control had been created by Act 159 of 1951 to process applications for the manufacture, distribution, sale, and transportation of alcoholic beverages in the state. The Arkansas Racing Commission, created by Act 46 of 1957, was responsible for regulating horse racing, which had been only recently legalized by constitutional amendment for the racetrack at Hot Springs (Garland County). Finally, the State Administration Department had been established by Act 468 of 1967 to assume the functions of the Comptroller’s Office, the State Purchasing Department, and the State Personnel Division; it was responsible for the purchase of equipment for state agencies as well as creating a comprehensive personnel classification system covering state employees. Act 876 of 1973 established “uniformity in operating and capital budget preparation, presentation and execution” among state agencies and made ADFA share the responsibility for putting together budget information forms containing comparative fiscal data from the previous and current year, as well as the next two-year period, to aid state agencies in planning.

ADFA is composed of a variety of offices and divisions, such as the Office of Driver Services, which administers the state’s driver’s license program; the Office of Child Support Enforcement, which is responsible for the collection and disbursement of child-support payments; and the Office of Intergovernment Services, which oversees various grant programs as well as a number of crime victim assistance services. It also comprises offices related to the collection of state taxes and the procurement of commodities and services for state agencies. In addition, ADFA is also tasked with the annual inspection of city and county jails to ensure that they meet state-mandated minimum standards. ADFA’s website offers a number of online services for the public, including services for businesses seeking state contracts, income tax forms, and vehicle registration.

For additional information:
Arkansas Department of Finance and Administration. https://www.dfa.arkansas.gov/ (accessed December 1, 2023).

“Reorganization is Approved by Legislature.” Arkansas Gazette, February 3, 1971, pp. 1, 2A.

Staff of the CALS Encyclopedia of Arkansas