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520 - Materiel Management

Section: 520-2
Effective: 01/11/1982
Supersedes: 09/20/1976
Next Review Date: TBD
Issuance Date: TBD
Issuing Office: Procurement & Contracts

PPM 520-2 Policy [pdf format]


I.              REFERENCE


    1. Business and Finance Bulletin (B&FB)


BUS 54       Operating Policy for University Supply Inventories


    1. UCSD Policy and Procedure Manual (PPM)


300-85        Control Standards for Supply Inventories




Supply inventories are established as service enterprises when the combined inventory value of new and unissued materiel in a department exceeds $50,000 at one or more locations on a campus or exceeds $50,000 at an off-campus location. Examples of these supply inventories are central stores, department storerooms, production facilities and similar functions that provide exclusive service to University departments. Supply inventories need not be established as a service enterprise if the inventory is part of an existing service or auxiliary enterprise or part of a teaching hospital or other similar business type activity or serves the supply needs of a single department. University activities predominantly selling to customers other than University departments such as bookstore, gift shop, or pharmacy activities are not considered as supply inventories covered by this issuance.


Inventories, temporary in nature, may be on hand for particular contract or grant funded projects or programs. However, activities funded by contracts and grants should not use such funds for acquiring supplies and materials for recharge to other users. Contract and grant funds should be charged only for supplies and materials used on each project or program. All Federal projects are to be credited for any excess material obtained that was expensed but not consumed during the project. (REF. OMB Cir No. A21, Para. 20)




The Materiel Manager has direct operating responsibility for Central Storehouse. The Materiel Manager has coordinating responsibility for the other activities that meet the criteria of supply inventories and as such shall establish operating policies and procedures for an inventory commensurate with user needs and shall measure performance against these standards.


NOTE: Additional information on Supply Inventories can be obtained from Systemwide Business and Finance Bulletin BUS 54.