Memorandum
Date: July 28, 2026
To: The Honorable Lake County Board of Supervisors
From: Elise Jones, Director, Lake County Behavioral Health Services
Subject: Consideration of Opioid Settlement Funds Status Update, Reconciliation, Restoration Framework, and Future Governance Direction
Executive Summary:
Lake County Behavioral Health Services is returning to the Board with a comprehensive update regarding Opioid Settlement Funds (OSF), including funds received to date, projected future receipts, prior and current commitments, payments made, current reconciliation findings, restoration planning, corrective controls, and recommended governance structure.
The purpose of this item is to provide a transparent status update and establish a stronger governance framework for the remainder of the opioid settlement period. The presentation is intended to distinguish between received funds, projected future funds, awarded or committed funds, paid or applied funds, current restricted cash held, and amounts identified for restoration.
The County has received opioid settlement funds over multiple fiscal years. These funds were received into Fund 141 / Substance Use Disorder Services and were not structurally separated from other SUD operating cash during early implementation. During this same period, the Department was implementing and expanding significant SUD services, including DMC-ODS, MAT/NTP access, treatment capacity, and opioid-remediation activities. Reconciliation indicates that restricted OSF cash may have temporarily supported broader SUD operating activity during periods when certain costs were not reimbursed, not yet reimbursable, or delayed in reimbursement.
Behavioral Health is now distinguishing final OSF uses from temporary cash-flow support. Amounts that cannot be confirmed as allowable, authorized, documented, and reportable OSF expenditures will be restored to the OSF balance. The Department is also requesting Board direction regarding future governan...
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