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Finance director: OAA has received $175.7 million; FY26 budget amended and audited by state auditor
Summary
The OAA finance report updated trustees on settlement receipts (about $175.7 million deposited), projected total payments to the authority ($620.1 million), FY25 cash flows and an amended FY26 administrative budget. The Auditor of Public Accounts has begun a performance audit.
The Opioid Abatement Authority's finance director reported on settlement receipts, cash flow, investment returns and the FY26 budget during the board meeting.
Staff reported estimated total settlement payments to the OAA are now $620,100,000, and that approximately $175,700,000 has been deposited to the opioid abatement fund to date. For the fiscal year through May 31, inflows from settlement payments and interest totaled about $36.5 million and outflows (including state and local grant distributions and administrative costs) were about $30.0 million, leaving a cash balance of roughly $125.7 million.
The director summarized a recent analysis of investment options and recommended continuing to hold funds in the Treasury primary liquidity portfolio. That approach was projected to yield a risk‑free return around 4.4%, approximately $5.8 million for the fiscal year, and staff noted interest earnings exceed the OAA’s annual administrative costs by roughly $2 million.
The FY26 administrative budget was amended to include several items the director described as critical to operations; the administrative budget share is now about 4.9% of total OAA expenditures (below the board’s 5% target). Proposed administrative amendments total about $847,000 and include professional services and a part‑time-to-full‑time position for a regional coordinator that the board authorized.
Board members were also briefed that the Auditor of Public Accounts (APA) has commenced a performance audit of OAA activities. The APA’s scope covers administrative expenses processed by the Department of Behavioral Health and Developmental Services, internal controls in the grants management system, grant compliance with settlement agreements and applicable laws, and information-system security. Staff said the APA aims to complete preliminary work and share findings with the OAA staff prior to finalizing the report.
