Report 2019-046 Recommendation 11 Responses

Report 2019-046: Proposition 56 Tobacco Tax: State Agencies' Weak Administration Reduced Revenue by Millions of Dollars and Led to the Improper Use and Inadequate Disclosure of Funds (Release Date: January 2021)

Recommendation #11 To: Health Care Services, Department of

To ensure that the State benefits from its use of Proposition 56 funds, Health Care Services should, by June 2021, implement a policy to establish formal processes for granting all funds, regardless of whether a program receives a one-time allocation or is ongoing. The policy should require sufficient criteria to ensure that the funds awarded provide the benefit intended by the program.

6-Month Agency Response

Department of Health Care Services has developed and approved the policy for distribution and implementation. Distribution is projected to be finalized by July 23, 2021.

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

Upon review of the policy DHCS provided following its 6-month response, DHCS appears to have fully implemented this recommendation to implement a policy that requires criteria that ensures it achieves its intended benefit.

60-Day Agency Response

DHCS is currently in progress on the development of the policy. Anticipated time of completion is estimated for June 2021.

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

All Recommendations in 2019-046

Agency responses received are posted verbatim.