The Finance Division is responsible for managing the agency's cash and investments. This was quite a challenge during the past year in such a low-interest rate environment. This division is also responsible for ensuring that bond principal and interest payments are paid to bondholders on time. During 2001, THDA paid out over $330 million in debt service payments and bond calls. The bond funds are held by an independent trustee and this division works very closely with the trustee to ensure that all cash transactions are done in the most efficient and economic manner possible. In addition, THDA has an outside financial advisor that helps the agency structure bond deals and perform cash flow analysis of the bond indentures. The Finance Division works with the financial advisor to ensure that agency policies regarding investments and cash management are adhered to.

A major improvement in THDA's financial management occurred during 2001. A software package was purchased and implemented, allowing the agency to fully automate the investment management function. THDA can now use data in the system to make timely decisions on how to invest available funds, plan for debt service payments, evaluate investment performance, and respond quickly to legislative and other inquiries. During the coming year, we plan to purchase a debt management software package that will automate the bonds payable function.