Ala. Admin. Code r. 580-2-17-.06

Current through Register Vol. 43, No. 1, October 31, 2024

Section 580-2-17-.06 - Accounting

The Examiners of Public Accounts have determined that there should be entries in the general ledger for drugs received and dispensed by each center. The value of the drugs must be included as part of the center's revenues and, when dispensed, as part of the center's expenditures. To accomplish this, the following procedure must be followed:

(a) Monthly

1. The State Office will send reports of the value of drugs shipped from the State Office. The center must determine the monthly value of drugs received from a prime vendor. Enter the value of drugs shipped for the month in the general ledger as revenue.

2. As drugs are dispensed, a running total should be kept of the amount dispensed and the value of the drugs, using the price list which is provided.

3. The value of the drugs dispensed to clients must be entered in the general ledger as an expense at the close of each month.

(b) Quarterly

1. The value of drugs received should be reported as listed in the general ledger through the Quarterly Receipts and Expenditures Statement. The value should be recorded under "Receipts, Alabama Department of Mental Health/Mental Retardation, Indigent Drugs."

2. The value of drugs dispensed to clients in the general ledger should be reported as an expense.

(c) Annually

1. A physical inventory of drugs on hand should be taken at the close of business September 30 of each year. Determine the value of the drugs on hand, using the prices reflected on the invoices of the prime vendor or those available from the state office. This inventory must be verified by spot checks of selected items by someone other than Indigent Drug Program personnel.

2. The value of the drugs on hand must be entered in the general ledger as an asset of the center.

3. Drugs Destroyed

(a) With prior approval by the Coordinator of the Indigent Drug Program, drugs that have gone "out of date" and are not subject to the federally Controlled Substance Act may be destroyed by the supervising pharmacist. The out of date drugs must be itemized on center letterhead and must identify the name of the drugs being destroyed, the strength of the drugs and the quantity. The destruction of such products must be dated and signed by the pharmacist and by one witness. Adjustments to the inventory records must be made and the value of the drugs destroyed must be provided to the center's business office. The original documentation of the drugs destroyed should be kept in the pharmacy.

(b) Contact the Coordinator of the Indigent Drug Program for detailed directions on having drugs destroyed that are subject to the federally Controlled Substance Act.

Author: Division of Mental Retardation, DMH/MR.

Ala. Admin. Code r. 580-2-17-.06

Amended: Filed March 30, 1993.

Statutory Authority:Code of Ala. 1975, § 22-50-11.