2023-046 Proposition 56 Tobacco Tax
The California Department of Public Health Should Improve Its Monitoring of One of Its Tobacco-Related Programs
Published: November 13, 2024
Audit Recommendations Disclosure
When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor’s assessment of auditee’s response based on our review of the supporting documentation.
Recommendations to Dept. of Public Health
Recommendation 1
To ensure that its staff monitor whether contractors use Proposition 56 funding in accordance with state law, Public Health should establish formal policies and procedures for the OHP for this purpose by June 2025. These policies and procedures should provide guidance for OHP staff in performing the following actions:
- Reviewing evidence of work performed by its contractors to determine whether that work meets the terms of its agreements before approving payment for these services.
- Obtaining and approving progress reports throughout the duration of its agreements, including providing written justification to support assessments of contractors’ progress, and taking steps to remediate any problems with contractor performance, such as withholding payment from contractors that do not submit timely and accurate agreement deliverables.
- Retaining documentation to demonstrate compliance with policies for each of its agreements, including documentation of contractor progress, staff reviews and approvals of contractor progress, and manager reviews of this information
Status:
Not fully implemented
Date of implementation:
6/30/25
Evaluator assessment status:
Pending
60-Day Agency Response
OHP is developing internal contract management desk manuals with formal policies and procedures to ensure Proposition 56 funding complies with State law and addresses CSA’s recommendations. OHP is adapting policies and procedures from the California Tobacco Control program for the review of contractors’ work, approval of deliverables, addressing contractor performance issues including a remediation process, and improving documentation retention. This manual is expected to be finalized by June 30, 2025. OHP will also incorporate a new Microsoft SharePoint system to improve grant tracking and deliverable management.
Recommendation 2
To ensure that it reports accurate amounts of Proposition 56 revenue that it receives each year, Public Health should report on its website the amount of Proposition 56 tax revenue that it actually received, beginning with the amount reported for fiscal year 2023-24.
Recommendations to University of California
Recommendation 3
To ensure that it reports accurate amounts of Proposition 56 revenue that it receives each year, UC should each report on its website the amount of Proposition 56 tax revenue that it actually received, beginning with the amount reported for fiscal year 2023-24.
