The final category covers systems and controls and recommends that the Department of Treasury identify an individual to act as a compliance officer. Remaining recommendations seek to improve internal procedures. The Department of Treasury's responses to these recommendations can be found in the Recommendation Locator. The Tobacco Settlement Trust Fund does not yet have assets. Funding of the trust is expected in the first quarter of 2000.
Current statutes provide for the trust to be invested in fixed income securities.
The Asset Allocation Study for the Tobacco Settlement Trust Fund, prepared by Callan Associates and enclosed as a separately bound volume, is designed to assist with the asset allocation decision for the trust. The Department of Treasury's response and, if appropriate, the date or expected date of implementation is also set forth below. The investment policy for each fund should contain a duration guideline. The Department of Treasury should pursue simplification of total rate of return benchmarks, wherever possible. The Department of Treasury should simplify the Diversification and Security Standards constraints in the investment policies and standardize these criteria across funds wherever possible.