COA Auditors found inventory irregularities in City Hall’s medicine supplies

November 8, 2008

By Lizanilla J. Amarga

Drugs and medicine supplies at the J.R. Borja Memorial Hospital and City Health Department cannot be fully accounted for because of inventory irregularities, government auditors reported.

The report came amidst the pending graft and corruption charges filed by some City Hospital’s personnel at the Office of the Ombudsman-Mindanao against former city health officer Dr. Jerie Calingasan and former city mayor now vice-mayor Vicente Emano.

Atty. Manuel Ravanera earlier said the graft investigator has requested for a full blown audit on the drugs and medicine supplies and purchases at the City Hospital and City Health involving P18 million in 2006-2007.

Meanwhile, Commission on Audit (COA).State Auditor Olivia Flores said their auditing team had evaluated the inventory process of the City Hospital and City Health Office ending Dec. 31, 2007.

She said they found out that P15.1 million in drugs and medicines were received by the pharmacist at the City Hospital and storekeeper at the City Health Office from the City General Services Officer (CGSO).

However, she said these drugs and medicine supplies, which were still for distribution to various city departments and barangay health centers, were immediately recorded as expenses.

Flores said the National Government Accounting System (NGAS) requires that a Summary of Supplies and Materials Issued (SSMI) which will contain the summary of the quantity and those issued should first be accomplished to have a more reliable inventory.

And as such, she said the balance account of P7,796, 219.21 for drugs and Medicines ending Dec. 31, 2007 is “doubtful.”

Flore said their recommendations since the previous annual audits were not followed.

She said the “Perpetual Inventory Method” was still not adopted in recording and issuing drugs and medicines and other hospital supplies.

“Hence, the absence of the said monitoring system on receipt and issuances of inventories rendered the inventory balances of drugs and medicines doubtful,” she said in the COA Annual Audit Report 2007.

The City Government through city accountant Wilma Rugay had responded to Flores’ findings with an admission that there is an absence of appropriate guidelines at the City Hospital and City Health Office to “effectively comply” with the National Government Auditing System (NGAS).

She said the deficiencies are noted and appropriate instructions has been made to the concerned offices for immediate compliance and strictly adhere to the guidelines issued for the purpose.

She added that there is also a current study now being made by the offices concerned in coordination with the City Council for an appropriate legislative action on hospital fees and sales of drugs and medicines

Rugay said this will also form part of the policy of the city government to improve the monitoring and appropriate reporting of hospital operation.

Still, Flores is recommending that the J.R. Borja Memorial City Hospital Pharmacist and the City Health Storekeeper must be required to submit a weekly report on the summary of supplies and materials issued (SSMI) to the City Accountant.

She said these SSMIs should be duly supported by requisitions and issue slips and that the total quantity still in store and the quantity issued must correlate with the total amount requisitioned by the City Hospital and the City Health Office.

“The totals in delivery receipt column in the Stock Cards of the City Hospital and CHO shall also equal to the additions to the Debit Column of D&M inventory of the books of accounts,” she said.

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