Reporting Theft/Loss with DEA Form 106

Controlled substance regulations are not just limited to registration, recordkeeping and storage. The DEA exercises tight control over the inventory of scheduled drugs with specific procedures and documentation extending to disposal of the substances. The regulatory net becomes extremely tight when it comes to theft or loss of controlled substances.

The DEA expressly requires that any theft or significant loss of controlled substances should be reported in writing to the area DEA field office on DEA Form 106 either electronically or manually within one business day of the discovery. However, minor discrepancies in inventory that are not attributable to theft do not have to be reported or recorded on a DEA Form 106

Quantifying Significant Loss

How will you decide whether a loss/theft is substantial or not? The parameters will obviously vary depending on the level of business activity – a hefty quantum for a small drugstore will obviously seem negligibleto a multispecialty hospital.

The Controlled Substances Act lays out the following conditions for determining whether the loss of a controlled substance is significant or not:

  • The specific controlled substances lost
  • The actual quantity of controlled substances lost in relation to the type of business
  • Whether the loss of the controlled substances can be associated with access to those controlled substances by specific individuals, or whether the loss can be attributed to unique activities that may take place involving the controlled substances
  • Whether there is a pattern of losses over a specific time period
  • Whether the losses appear to be random
  • Whether the specific controlled substances are likely candidates for diversion
  • Local trends and other indicators of the diversion potential of the missing controlled substances

Immediate Reporting of DEA Form 106

There is a short reporting window of just one business day from discovery. Once a significant loss or theft is determined, it has to be reported within this period using the DEA Form 106. Following the reporting, the DEA requires updates for up to two months about the possible causes or source.

The Titan Group Assistance

Periodic verification is essential to check whether the actual stock amount ties in with the balance reflected in the records. In case any shortage surfaces, our compliance consultants will immediately initiate a thorough internal investigation before it can catch the attention of the DEA.

We will first try to determine if the discrepancy is a calculation error or not. In case the loss is ‘significant’, the details will be recorded on the DEA Form 106and submitted to the local DEA office. For theft or pilfering, the police will be duly notified as well.

Our practice is to err on the side of caution and alert the authorities in a timely manner! We will also help you institute a system that will prevent such lapses from recurring in the future and ensure that it is followed to the letter.

You can leave the minefield of regulation for loss/theft of controlled substances to us and rest assured that the finger of blame will not erroneously swing your way!