Material & Disbursement Services (MSD)
POLICY 26
Effective Date: 03/01/1998
Last Modified Date: 11/25/2003
University-Operated Storerooms
Through Materials Management and Distribution, Material & Disbursement Services (M&DS) operates storerooms containing supplies routinely required by the University.
The Scientific Storeroom maintains an inventory of scientific, educational, and research lab-oriented glassware; chemicals; and other laboratory/research supplies.
The Dental Storeroom (located in Tarrson Hall) maintains an inventory of dental supplies.
Department-Operated Storerooms
(This policy does not apply to retail inventories, such as Student Stores, Morehead Planetarium, Finley Pro Shop, etc.)
The dean, director, or department head of a University business unit may write a letter to the Director of M&DS requesting delegation to operate a storeroom. Should permission be granted, the following standards must be observed:
- Carry only inventory items that meet the requirements of the department; do not resell inventory to other departments.
- Establish proper internal controls in accordance with sound business practices. For example, segregate duties so that different people are responsible for ordering inventory and paying vendors.
- Follow general guidelines and detailed operating procedures about inventory control that are periodically issued by the Director of M&DS.
- Cooperate with Internal Audit in reviewing operating procedures.
- Submit sufficient annual reports to the Director of M&DS and to the University Controller. All storerooms must report what safeguards they employ to protect inventory from theft, abuse, or physical damage. The level of additional reporting required depends on the average annual inventory value:
*Inventory must be completed as close as possible to, but not after, June 30.
When feasible, Internal Audit will observe the taking of physical inventory.Average Annual Inventory Value Frequency of Reporting Items Reported $10,000 or more At least annually* Beginning inventory value, purchases, usage/sales, and ending inventory value Less than $10,000 Annually* Inventory value
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