Pursuant to Section 381.001, Florida Statutes, the Department of Health, in partnership with the State’s 67 county governments, provides public health services through County Health Departments (CHDs).  Pursuant to Section 381.0203, Florida Statutes, the Department has entered into various Statewide contracts for the purchase of pharmaceuticals to be used by State agencies and political subdivisions.

In October 2001, we issued audit report No. 02‑051, in which we reported findings related to pharmaceutical management at 10 CHDs.  This audit encompasses the pharmaceutical management at 15 additional CHDs (see Exhibit 1) and covers the period July 2002 through January 2004.  As in the previous audit, controls in place at the CHDs were not always adequate to ensure pharmaceuticals were properly safeguarded and accounted for.  Specifically:

Finding No. 1:  The CHDs reviewed did not have adequate inventory management controls in place and operating effectively to ensure accountability and safeguarding of pharmaceuticals.  For example, inventory records often did not contain adequate information, which did not allow for proper reconciliation between physical counts and inventory records.

Finding No. 2:  In paying for pharmaceutical purchases, two CHDs did not receive appropriate credits or discounts totaling $4,562.  In another instance, controls over receiving were not adequate to prevent the loss of pharmaceuticals costing $5,300.  One CHD had not monitored a contracted pharmacy.

Finding No. 3:  The values of pharmaceutical inventories held by five CHDs were incorrectly reported or not reported to the Department for inclusion in the financial statements. 

The Secretary's response to the findings and recommendations contained in this report can be viewed on the Auditor General's Web site.