The Department of State Health Services (Department) did not sufficiently manage and monitor its pharmaceutical wholesaler contract with Morris & Dickson Company to
verify that the contractor performed according to the terms of the contract.
The Department should sufficiently design payment processing controls for payments to Morris & Dickson Company for the contract audited.
The Department did not make payments within the time lines set by the contract or pay interest, and it paid service charges that were not included in the contract as a result of those late payments.
The Department did not have a contract manager assigned to the Morris & Dickson Company contract to oversee compliance with contract terms, and it did not always conduct and document certain monitoring activities.
The Department did not have documented contract management policies and procedures for governing certain aspects of vendor contracts that are primarily for goods.
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