Report 2019-046 Recommendation 4 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 #4 To: Public Health, Department of

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

CDPH's California Tobacco Control Program (CTCP), Office of Oral Health (OOH), and Stop Tobacco Access to Kids Enforcement Act (STAKE) program have posted Proposition 56 funds for fiscal years 2018-19 through 2020-21 which consisted of funds received, expended, and amount obligated for future expenditures by each program to the CDPH webpage. In response to CSA's assessment, CDPH has combined the individual program reports into one file which is available on the CDPH website at: https://www.cdph.ca.gov/Programs/CCDPHP/Pages/Proposition-56-Fiscal-Reporting.aspx

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

Public Health published the relevant information online in a consistent manner for each of the Proposition 56-funded programs it administers. Although we now consider the recommendation to be implemented, in the past it did not publish complete information in a consistent manner. Public Health should continue to publish the relevant information for each program it administers, and should ensure it does so within six months of the end of each fiscal year.

6-Month Agency Response

CDPH's California Tobacco Control Program (CTCP), Office of Oral Health (OOH), and Stop Tobacco Access to Kids Enforcement Act (STAKE) program have posted Proposition 56 funds for fiscal years 2017-18 through 2019-20 which consisted of funds received, expended, and amount obligated for future expenditures by each program to the CDPH webpage. Links to the data as are listed below:

CTCP: https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CTCB/Pages/ProgramBudget.aspx

OOH: https://www.cdph.ca.gov/Programs/CCDPHP/DCDIC/CDCB/Pages/OralHealthProgram/Prop-56-Budget.aspx

STAKE: https://www.cdph.ca.gov/Programs/CEH/DFDCS/Pages/FDBPrograms/STAKEProgram.aspx (see under Reports)

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

Public Health has posted the amounts of Proposition 56 funds received and expended for all three programs it administers for fiscal years 2017-18, 2018-19, and 2019-20; however, it did not clearly indicate how much it obligated for future spending each year from its STAKE program. Additionally, the information is presented differently for each program--limiting the ability of the public to easily understand and compare information--and in three separate locations, which does not make the total amounts Public Health received, expended, and obligated readily available to the public. Finally, full implementation of this recommendation will require Public health to post its fiscal year 2020-2021 information within six months of the close of the fiscal year.

60-Day Agency Response

The California Tobacco Control Program (CTCP) and the Office of Oral Health (OOH) are reviewing financial data from fiscal years 2018-19 and 2019-20 to comply with this recommendation. Additionally, the Stop Tobacco Access to Kids Enforcement Act (STAKE) program within Public Health's Food and Drug Branch (FDB) will create procedures to include the expenditure posting requirements and local assistance awards for fiscal year 2018-19 and 2019-20 to comply with this recommendation.

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

Public Health has not published any information in addition to what we reviewed during the audit.

All Recommendations in 2019-046

Agency responses received are posted verbatim.