A PERFORMANCE audit of the Fiji Pharmaceutical Service Centre's Bulk Purchase Scheme found that no documented policy and guidelines existed to govern the operations of the scheme.
In its report on the Auditor-General's report on Performance Audit — December 2009, the Public Accounts Committee said there was also no prioritised list of drugs.
The BPS is a unit within the FPSC that has been in operation since 1981.
It was set up as a commercial arm of the health ministry and operates on a trading and manufacturing account (TMA) with an operating ceiling of $500,000.
The committee said in its report that no adequate list had been developed by the FPSC that states the drug type and quantity to be sold from BPS to all its customers.
"Balance in the Revolving Fund Account-BPS exceeded the authorised financial ceiling of $500,000 from 2006-2008. The highest amount recorded was $1,506,578 that was in regards to 2007.
"There were reductions in arrears of revenue amount of Bulk Purchase Scheme from 2006-2008."
The committee said in its report that a number of debtors who had outstanding arrears from the past had not cleared their accounts and little or no effort had been taken by BPS to follow up with the debtors to ensure the collection of the amount.
It said VAT was included as expense in the TMA which was not in compliance with the financial regulation standards.
"There exist no evidence that the business plan for BPS was prepared for the past three years, in addition, the audit found that the quarterly profit and loss statements had not been prepared.
"The BPS staff was not given any formal training on Epicor system and there were certain applications in the system which the staff were unaware of."