Report 2021-046 Recommendation 18 Responses

Report 2021-046: Proposition 56 Tobacco Tax: The Department of Health Care Services Is Not Adequately Monitoring Provider Payments Funded by Tobacco Taxes (Release Date: November 2022)

Recommendation #18 To: Finance, Department of

To ensure that Education receives its proportional share of Proposition 56 funds, the Department of Finance (Finance) should determine the amount of fiscal year 2017-18 Proposition 56 funds that Education is owed and arrange for the transfer of those funds from CDPH to Education by June 2023.

6-Month Agency Response

Consistent with the California State Auditor's (Auditor) recommendations in Report 2021-046, the Department of Finance has determined the California Department of Education (Education) is owed $17,910,930.19 for its proportional share of Fiscal Year 2017-18 Proposition 56 funds.

Executive Order NO. E 22/23-135 transferring $15,233,233.08 to Education was submitted to the California State Controller on January 20, 2023. To complete the audit recommendation and consistent with the plan Finance provided to the Auditor in Finance's November 4, 2022 response to the audit and 60-day Implementation update, Finance will transfer $1,338,848.56 from Fund 3322 to Fund 3321 on July 1, 2023, and $1,338,848.55 from Fund 3322 to Fund 3321 on July 1, 2024.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

The Department of Finance has determined the amount owed to Education and has transferred a portion of those funds to Education. We will consider the recommendation to be fully implemented after Finance transfers the remaining funds to Education's account.

60-Day Agency Response

Consistent with the California State Auditor's recommendations in Report 2021 046, the Department of Finance has determined the California Department of Education (Education) is owed $17,910,930.19 for it's proportional share of Fiscal Year 2017-18 Proposition 56 funds.

Executive Order NO. E 22/23-135 transferring $15,233,233.08 to Education was submitted to the California State Controller on January 20, 2023. Finance has notified Education the funds are available to be spent. To complete the audit recommendation, Finance will transfer $1,338,848.56 from Fund 3322 to Fund 3321 on July 1, 2023, and $1,338,848.55 from Fund 3322 to Fund 3321 on July 1, 2024.

California State Auditor's Assessment of 60-Day Status: Pending

The Department of Finance has determined the amount owed to Education and states that it has transferred a portion of those funds to Education.

All Recommendations in 2021-046

Agency responses received are posted verbatim.