Cities and counties receiving funds from the opioid settlements (known as Participating Subdivisions) and Mallinckrodt bankruptcy (known as Local Governments) must prepare written reports at least annually regarding the use of those funds.1Annual reporting is not required for funds received from the McKinsey settlement and Endo bankruptcy.
Expenditure reports are due on September 30 of each year until all funds from the respective settlements and bankruptcies are expended. The reporting period for expenditure reports is based on the state fiscal year, which is July 1 through June 30.
DHCS created an online form to collect reports from
cities and counties regarding the use of funds received from the
California Opioid Settlements and Bankruptcies.
The form link will be sent to the primary contacts for each city and county. To update the contact list or request the link, please email OSF@dhcs.ca.gov.
Below are resources to assist cities and counties in completing the DHCS Opioid Settlements Expenditure Reporting Form:
Expenditure Report Monitoring
After cities and counties submit their annual reports, DHCS reviews the report for completion.
If the submitted report requires no corrections, DHCS will
email the city or county confirming that the report is complete and accepted.
If the submitted report requires clarification or
corrections, DHCS will contact the city or county to request more detail,
corrections, and amendments to the report.
Cities and counties instructed to amend their reports will receive an email from DHCS and technical assistance to ensure proper documentation of their expenditures.
Common corrections include information inputted into the
wrong section of the form, mathematical errors, incorrect contact information
(use of personal instead of professional details), and selecting an Exhibit E
strategy area that does not best align with pursued activities.
DHCS works collaboratively with each city/county throughout
the report amending process.
If DHCS determines that a city or county’s use of CA
Abatement Accounts Funds is inconsistent with eligible uses, or the city/county
is unresponsive during the monitoring period, then the DHCS Opioid Settlements Oversight
Section will escalate the issue to the DHCS Office of Legal Services (OLS) and
the California Office of the Attorney General (OAG).
Failure by cities or counties to provide clarifying
information or correct inconsistencies in expenditure reporting may result in a
meet and confer, an audit, or legal action.
Failure by cities or counties to spend funds on allowable
expenditures as outlined in the National Opioid Settlement Agreements,
California State-Subdivision Agreements, and California Mallinckrodt Abatement
Agreement may result in a meet and confer, an audit, or legal action.
1 Opioid settlements, in this instance, refer to final agreements between California and opioid distributors and manufacturers: McKesson, Cardinal Health, and AmerisourceBergen (collectively, the Distributors) and Janssen Pharmaceuticals, Inc., as well as any future settlement agreements that follow the structure of these agreements.
