The State of Iowa along with other states settled claims that certain prescription drug companies and pharmaceutical distributors engaged in misleading and fraudulent conduct.
The entire amount from all drug companies and pharmaceutical distributors will need to be reported as an opioid settlement receivable and the related deferred inflow of resources. Some receipts were received by certain counties prior to August 31 of each year and therefore would be recognized as an opioid settlement receivable and revenue source 8140 government opioid settlement and not a deferred inflow of resources in the fund financial statements. The remaining amount not received by August 31 of each year will be recognized as an opioid settlement receivable and a related deferred inflow of resources in the governmental fund financial statements.
Reporting in the government-wide financial statements require recognition of the opioid settlement receivable and revenue and appropriate identification in the reconciliations included with the audited financial statements.
According to the Uniform Chart of Accounts for Iowa County Governments, revised 2022, these funds should be reported in a Special Revenue Fund named Local Government Opioid Abatement Fund and the recommended fund number is 0030.
The following links include important information related to this matter from each drug company and pharmaceutical distributors. Note two of the three distributors prepaid amounts owed in year 7, as those amounts have changed from the previous estimates. In addition, there is a publicly available website with the necessary information.
The file Mallinckrodt County Allocations is an additional distribution separate from the Janssen and Distributors. This distribution will be determined annually by the Trustees, you will need to review this distribution with the county for materiality.
https://www.nationalopioidofficialsettlement.com/Home/StateAllocationAmounts