Major reforms underway in the pharmaceuticals supply chain system to address many of the matters raised in the 2018 audit report

The Ministry of Health has acknowledged that the pharmaceuticals supply chain system requires significant reform and a comprehensive review has been undertaken, with a range of detailed recommendations that will make the system more robust and efficient, addressing many of the audit matters raised in the 2018 Auditor General’s Report.

The Ministry confirms in the report that they will take action in relation to the matters that are outside the scope of the supply chain review including the disclosure of stock balances and donation register.

The anomalies noted in the audit report of the Fiji Pharmaceutical and Biomedical Services included that the value of stock balances after annual stock conducted was not disclosed as a Note to the financial statements for the year ended 31st July 2018, the Donations Register did not have any entry for donations between 10th May 2013 to 29th May 2019, some stock held were without cost price and this resulted in the value recorded as nil, and some stock held were below its minimum order level.

The report also says that pharmaceuticals were stored in the aisle, against the wall, up to the ceiling, top of the cold storage room and the energy room due to lack of storage space.

It was highlighted that poor maintenance of records relating to donated items can result in theft which may go undetected.

The Auditor General’s Report says the absence of cost price for the final stock balance would limit the Ministry from disclosing the correct value for closing stock in the financial statements. It also says there is a risk of shortage of pharmaceutical stock when orders are not placed on time.

It has been recommended that the Ministry disclose in the Notes to the financial statements the final stock balance of pharmaceuticals; ensure that the Donations Register is updated regularly; ensure that the cost price is recorded for stock items purchased; maintain minimum stock levels at all times to avoid shortage of pharmaceutical supplies; and identify more storage space to store increasing stock of pharmaceuticals.