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

Accounting

This regulation establishes accounting procedures for the Indigent Drug Program administered through community mental health centers under the Alabama Department of Mental Health/Mental Retardation. Operators must record drugs received and dispensed in the general ledger as revenues and expenditures on a monthly, quarterly, and annual basis. Annual physical inventories are required, and procedures are specified for the destruction of expired drugs, including controlled substances.

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

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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.

Notes

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

Amended: Filed March 30,
 1993.

Statutory Authority:

Code of Ala.
 1975
, §
 
22-50-11
.

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