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Iowa State Auditor

Opioid Settlement Information

The State of Iowa along with other states settled claims that certain prescription drug companies and pharmaceutical distributors engaged in misleading and fraudulent conduct.

Because the State Attorney General’s Office states the opioid settlement date is December 27, 2021 and the amounts to be paid to each county is measurable; at June 30, 2022, each county should record the related opioid settlement receivables, deferred inflows of resources and applicable revenues.

The entire amount 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,, 2022 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, 2022 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 including a sample footnote.  Please note the file titled “County Allocations Audit Totals” should be used for reporting purposes.  The other files are included to provide more detail.

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.  These funds will be distributed sometime after December 2022.

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