Report 2019-046 Recommendation 6 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 #6 To: University of California

To provide the public with relevant information and ensure the level of accountability that state law intends, each state entity that receives Proposition 56 funds should publish the following information on its website by April 2021 for fiscal years 2017-18 through 2019-20, and within six months of the end of each fiscal year, beginning with fiscal year 2020-21:

The amount of Proposition 56 funds received by each program it administers.
The amount of Proposition 56 funds spent by each program it administers.
The amount of Proposition 56 funds obligated for future expenditures by each program it administers.
Any corrections to the information it reported in previous fiscal years.

1-Year Agency Response

Two programs operated by the University of California receive tobacco tax funds under Proposition 56: the Tobacco-Related Disease Research Program (TRDRP), based within the UC Office of the President; and CalMedForce, a statewide Graduate Medical Education (GME) grant program, managed by the UC Office of the President (UC Health Division) under contract. Both programs accepted and have fully implemented this recommendation.

The required reporting information for FY 2017-18 through FY 2019-20 is posted on the public website: https://reportingtransparency.universityofcalifornia.edu/. The required reporting information for FY 20-21 was posted on the same website on December 20, 2021, thereby fully implementing the CSA recommendation.

The financial reporting will be updated by December 31 of each subsequent year by each program. The Stakeholder Reporting Policies for both programs have been submitted to the State Auditor for review.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

The University of California posted the relevant information on its website for each indicated fiscal year. We did not verify when it published this information; however, the University of California should ensure that it publishes this information within six months of the end of each fiscal year.

6-Month Agency Response

Two programs operated by the University of California receive tobacco tax funds under Proposition 56: the Tobacco-Related Disease Research Program (TRDRP), based within the UC Office of the President; and CalMedForce, a statewide Graduate Medical Education (GME) grant program, managed by the UC Office of the President (UC Health Division) under contract. Both programs accept and plan to fully implement this recommendation.

The required reporting information for FY 2017-18 through FY 2019-20 is posted on the public website: https://reportingtransparency.universityofcalifornia.edu/. The required reporting information for FY 20-21 will be posted on the same website by December 31, 2021, thereby fully implementing the CSA recommendation.

The financial reporting will be updated annually thereafter by each program. The Stakeholder Reporting Policies for both programs have been submitted to the State Auditor for review.

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

We will evaluate whether the University of California has posted its fiscal year 2020-21 information within six months of the end of the fiscal year in our assessment of its one-year response, due in January 2022.

60-Day Agency Response

Two programs operated by the University of California receive tobacco tax funds under Proposition 56: the Tobacco-Related Disease Research Program (TRDRP), based within the UC Office of the President; and CalMedForce, a statewide Graduate Medical Education (GME) grant program, managed by the UC Office of the President (UC Health Division) under contract. Both programs accept and plan to fully implement this recommendation.

The required reporting information for FY 2017-18 through FY 2019-20 is posted on the public website: https://reportingtransparency.universityofcalifornia.edu/. The required reporting information for FY 20-21 will be posted on the same website by December 31, 2021, thereby fully implementing the CSA recommendation.

The financial reporting will be updated annually thereafter by each program. The Stakeholder Reporting Policies for both programs have been submitted to the State Auditor for review.

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

Prior to April 2021, the University of California published the amounts of Proposition 56 funds received, spent, and obligated through fiscal year 2019-20. We will review the information for fiscal year 2020-21 after the University of California publishes the information.

All Recommendations in 2019-046

Agency responses received are posted verbatim.