Tobacco Settlement Proceeds Summary & Planned Actions
Posted on June 12th, 2009
The Legislative Joint Auditing Committee will be performing and intensive review of Tobacco Settlement Proceeds funding distribution and programs.
Overview:
The Tobacco Settlement Proceeds Act, as established by Initiated Measure 1 of 2000, was enacted to direct how Arkansas would spend its portion of a settlement between the Attorney General of the Unitied States and five major tobacco-producing companies since the settlement did not specifiy how states were to spend their share of the settlement. The Act created teh Tobacco Settlement Program Fund and required Fund deposits to be spent on the following four programs.
- Prevention and Cessation Program: The goal of the program is to reduce the initiation of tobacco use and the resulting negative health and economic impact.
- Targeted State Needs Program: The goal of the program is to improve the healthcare systems in Arkansas and the access to healthcare delivery systems, thereby resolving critical deficiencies that negatively impacct the health of the citizens of the state.
- Arkansas Biosciences Institute Program: The goal of the program is to develop new tobacco-related medical and agricultural research initiatives to improve the access to new technologies, improve the health of Arkansans, and stabilize the economic security of Arkansas.
- Medicaid Expansion Program: The goal of the program is to expand access to healthcare through targeted Medicaid expansions, thereby improving the health of eligible Arkansans.
The Act also enables the Tobacco Settlement Commission to spend tobacco settlement funds for the cost of monitoring the program. The Commission receives its funding from the interest earned in the Tobacco Settlement Program Fund.
Objectives:
Our objectives for evaluating the distribution of funds set forth in the Tobacco Settlement Proceeds Act are as follows:
- Determine Tobacco Settlement Funds have been allocated properly according to the percentages set forth in Arkansas Code.
- Compile and analyze expenditures over a 5-year period to identify anomalies. For example, perform more in depth review of programs with expenditures that appear unusual in relation to other programs.
- Determine how programs have fulfilled their stated missions.
- Compile grants awarded and determine the effectiveness of monitoring and reporting procedures for those grants.
- Search for duplicative programs.
- Check fund balances.
- Review status of bonds and when bonds were paid off.
The Joint Subcommittee of the Public Health Committees will also be conducting a review related to the Tobacco Settlement Programs. There will be al top to bottom review of all agencies and organizations that recieve tobacco settlement money. The subcommittee will perform complete performance reviews including but not limited to strategic plans, mission statements, goals, organizational structures, performance metrics, and evaluate and require at their budget coordinate explicitly with the mission, goals and objectives of the organization.
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