The inventory form (Diagram 17) is used at the end of each financial year or at any time it becomes necessary to undertake an inventory exercise in the dispensary. Both shortages and excesses can be found in the exercise. In either situation, a thorough investigation needs to be done (e.g. reviewing all additions and subtractions in the inventory sheets). It is advisable to carry out an inventory exercise at six-monthly intervals (or even quarterly) in order to identify any problems early enough rather than waiting for the end of the year.

A representative of both the medical store and the health committee should participate in the inventory exercise. The following activities should be carried out during the inventory:

• Any cash in hand should be counted first and included in the inventory figures.

• Any supply made before the inventory must be counted with the other items.

• Count all drugs in the store and dispensing area and record the numbers. Use a tablet counter to prevent contamination.

• Do not open full tins and packages to count the contents.

• Verify all full tins and packages to make sure that their contents are intact.

• Calculate the total value of stock by adding the values of all items.

• Compare this number with the current balance in the CCSC. The two should correspond if there has been efficient management of stock and cash during the period being audited.

• These figures will be used by an external auditor to prepare a balance sheet for the dispensary.

• The health worker should pay for any deficits established at the end of the audit.

• Profits declared in the audit report should be put back into the health system.

Diagram 17 Example of Inventory Form

Place: _____________ Date: ____________________

Cash in hand:

Total capital:______________________________________________________________
Amount on CCSC: _________________________________________________________
Deficit/Surplus amount: _____________________________________________________
Name/Signature of health worker: _____________________________________________
Name/Signature of head of centre: ____________________________________________
Name/Signature of health committee representative: ______________________________
Name/Signature of person taking over Dispensary, where applicable): _________________