Overview
Despite the recommendation in a previous audit by the Office of the State Auditor, issued in 2014, SOPS did not establish or implement policies, procedures, or related internal controls to ensure that it submitted required reports to the House and Senate Committees on Ways and Means and that those reports were signed by the executive director. Furthermore, we determined that SOPS did not submit both required reports during the audit period.
If SOPS does not submit these reports to the Legislature as required, then it is failing to comply with the law. Also, agencies in the Commonwealth that could be served by SOPS may not know that they have access to pharmaceutical cost savings through SOPS.
Authoritative Guidance
Chapter 24 of the Acts of 2021 states, “Not later than April 15, 2022 [SOPS] shall report to the house and senate committees on ways and means detailing recommendations for the inclusion of other entities that may realize cost savings by joining SOPS.”
Chapter 126 of the Acts of 2022 states, “Not later than April 14, 2023 [SOPS] shall report to the house and senate committees on ways and means detailing recommendations for the inclusion of other entities that may realize cost savings by joining SOPS.”
Reasons for Issue
During an interview with the chief of pharmacy, they stated that reports were not sent to the Legislature because almost every agency that could benefit from SOPS’s service is currently receiving services from SOPS. SOPS was under the impression that the recommendation from the previous report was for the Department of Public Health to update its policies and not SOPS because the Department of Public Health accepted responsibility for not filing the required reports.
Recommendation
SOPS should establish and implement the necessary policies, procedures, and related internal controls to ensure that it annually submits required reports to the House and Senate Committees on Ways and Means and that the reports contain all required information and are signed by the executive director.
Auditee’s Response
[The Department of Public Health (DPH)] and SOPS recognize and agree with this finding and the Auditor’s recommendation. SOPS will develop an internal policy for such legislative reporting requirements. The Commissioner’s Office within DPH monitors and tracks legislative reporting requirements and deadlines internal to the Department. In addition, DPH is working to remove from future appropriations acts the language that requires the reporting of other entities that could benefit from the SOPS program as SOPS feels that all appropriate Commonwealth entities that could benefit from the SOPS program have already been converted.
Auditor’s Reply
Based on its response, SOPS is taking measures to address our concerns regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | March 20, 2025 |
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