|Financial Audit Division Report 16-14||Released October 20, 2016|
ClearWay MinnesotaSM (originally known as the Minnesota Partnership for Action Against Tobacco), is a nonprofit foundation created and funded through a legal settlement.
In 1994, the State of Minnesota and Blue Cross Blue Shield of Minnesota (Blue Cross) sued the major tobacco companies. Before the case went to the jury, the companies agreed to pay more than $6 billion to compensate the state and Blue Cross for health care costs caused by tobacco products. The settlement, reached in 1998, earmarked $202 million to fund a nonprofit, public health foundation for 25 years.
The court established a 19-member board to govern the foundation. The board appoints an executive director, who supervises a 28-person staff. The board and staff must operate the foundation consistent with the settlement agreement and subsequent court orders. The court granted the Office of the Legislative Auditor authority to audit the foundation. This is our third audit of the foundation.1 In this audit, we examined ClearWay Minnesota’s expenditures from July 2013 through March 2016. We focused on whether ClearWay Minnesota had adequate internal controls and complied with legal requirements and its own policies and procedures.
ClearWay Minnesota had adequate internal controls and complied with legal requirements and its own policies and procedures.
1 Office of the Legislative Auditor, Financial Audit Division Report 01-24, Minnesota Partnership for Action Against Tobacco, issued May 11, 2001; Office of the Legislative Auditor Financial Audit Division Report 07-24, ClearWay MinnesotaSM issued September 13, 2007.