DRUGS and medicines procurement of the Iloilo Provincial Hospital (IPH) using petty cash fund (PCF) in 2022 hit P12.35 million or an average monthly utilization of P1.029 million.
An audit conducted on the hospital’s drugs and medicines expenditures last year found that the monthly spending exceeded the P100,000 monthly spending limit of PCF by a whopping 929 percent.
These were revealed in the 48-page Citizen Participatory Audit report released by the Commission on Audit last January 2. The report can be accessed and downloaded at the commission’s official website.
A copy of the same report was submitted to the office of Iloilo Governor Arthur Defensor Jr. on December 29, 2023.
Under the General Policies of the IPH, the supply officer was authorized to purchase drugs and medicines up to P100,000 out of the PCF to be liquidated to the cashier upon presentation of the official receipt.
“In CY 2022, D&M procured out of the PCF reached P12.350 million for 206 items, with average monthly utilization of P1.029 million, which exceeded the P100,000.00 monthly limit,” the audit team said.
In comparison, auditors noted that similar purchases that underwent public bidding only amounted to P5.04 million traced through copies of purchase orders.
Records showed the biggest purchases in 2022 took place in December totaling P4.11 million. It necessitated replenishment of the PCF no less than 44 times in just one month.
Other months with purchases exceeding the one-million mark were September (P1.6 million) with 17 replenishments, July (P1.163 million) with 12 replenishments, and October (P1.053 million) with 11 replenishments.
The head of the hospital’s Pharmacy Department explained that some of these purchases were transacted on credit from suppliers because, for some bulk purchases of certain medicines, the hospital’s requirements were only filled up partially through public bidding.
The audit team countered that since the transactions were agreed upon on credit, they should have been paid through checks rather than cash.
“While the IPH management acknowledged that their actions/steps are inconsistent with the existing guidelines, their primary concern is to provide the best service to the patients.
With the inadequate quantities and items of D&M procured through bidding and the longer processes and delivery, which affect other requirements like the No Balance Billing, the cash advance provides the best option for the IPH,” the COA noted.
