Summary
Summary
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Report Number: |
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Report Title: |
Department of Corrections – Pharmaceutical Contracts |
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Report Period: |
07/2002-02/2004 and Selected Actions Through 06/30/2004 |
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Release Date: |
09/30/2004 |
As part of our operational audit of the
Department of Corrections for the period July 2002 through February 2004 and
selected actions taken through June 30, 2004, we reviewed the contracts between
the Department and Terry Yon & Associates, Inc. (d/b/a TYA Pharmaceuticals) for
unit dosing of pharmaceuticals for the treatment of inmates. Our audit
disclosed the following:
Contrary to law, the Department did not seek competitive bids for the pharmaceutical contract with an expected value of $72 million over the term of the contract.
The current contract between the Department and TYA Pharmaceuticals has several deficiencies, including omissions of certain items that are necessary for the cost‑effective and efficient delivery of pharmaceuticals.
The Department could not demonstrate that all contractor responsibilities specified in the contract were met. For example, copies of required licenses and registrations were not available, financial and compliance audits had not been obtained, a current procedure manual had not been distributed, and order‑limit maximums were not recognized.
The Department did not have written contract monitoring procedures. In addition, monitoring efforts did not include a verification of TYA Pharmaceuticals status with State and Federal oversight agencies. Also, evidence of monitoring efforts was not sufficient as the frequency of on‑site monitoring and the actions taken by TYA Pharmaceuticals to correct any noted deficiencies were not documented.
Pharmacy orders were not always filled by TYA Pharmaceuticals within the time periods required by the contracts.he method described in the contract for pricing pharmaceuticals provided to the Department was not being utilized.
Invoices were not always adequately supported or approved prior to payment by the Department.
Credits for returned pharmaceuticals were not issued in accordance with the contract.
The Secretary's written response to the audit findings and recommendations is included in this report filed on the Auditor General Web site.