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McKinsey Opioid Settlement Funds
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INFORMATION CONTACT:
Clayton Voignier, Assistant County Manager, 704-283-3687.
ACTION REQUESTED:
Adopt Budget Amendment #18 to recognize, receive and appropriate funds from the McKinsey Settlement Agreement.
PRIOR BOARD ACTIONS:
None.
BACKGROUND:
A settlement has been reached in a class action lawsuit against McKinsey & Company, Inc., and related entities. Allocations to eligible subdivisions, including Union County, were made following the same methodologies as applied in the national opioid settlement with Janssen Pharmaceuticals, a Wave One opioid settlement. For prior Wave One and Wave Two opioid settlements, decisions on how settlement funds will be allocated within a state are subject to the North Carolina Memorandum of Agreement (MOA), including supplemental agreements to the MOA, on the allocation, use, and reporting of funds. However, funds from the McKinsey settlement are not subject to the MOA or any supplemental agreements to the MOA since NC Department of Justice was not involved in this litigation. Thus, these funds are not appropriated within the County’s Special Revenue Fund for Opioid Settlement. As a recipient of this allocation, Union County is required to use the settlement funds exclusively for approved uses designed to abate the opioid epidemic. Staff recommends a portion of the McKinsey Settlement Funds be used for audit testing in the amount of $5,000 that was required as part of the County’s Single Audit for FY2024.
FINANCIAL IMPACT:
Union County will receive an allocation of $86,677.12 in FY25, a portion of which will be used to fund audit testing that was required for opioid funds ($5,000).