Property Management Manual (Complete)
1. About Property Management
1.1 Overview
Presents a basic definition of property and background on the administration of property at Stanford.
1. Introduction
Property management at Stanford University is an integral process supported by all departments. Effective and efficient management of equipment and materials, throughout their life cycle, help ensure university activities are performed in accordance with our policies, procedures and sponsor requirements. The property management system is comprised of policies, procedures, online systems, and people, which support the overall educational, research, and administrative missions of the University.
2. Definition
Within the context of this manual, “property” primarily includes equipment. However, depending on regulatory or other compliance requirements it may also include materials and supplies.
3. Stewardship
Effective stewardship and accountability of property, both Stanford- and sponsor-owned, are essential. Property is accountable to designated departments, each of which is responsible for the day to day management, use, care, record-keeping, and disposal of those assets.
Each member of the Stanford community has a general obligation to safeguard and make appropriate use of property owned by or accountable to the University. This includes property either assigned for individual use, or as part of a common area. This obligation includes but is not limited to:
- notifying the appropriate Department Property Administrator (DPA) of the acquisition, movement or disposal of property
- exercising reasonable care in use to prevent damage and maintain good condition
- exercising reasonable security measures to prevent theft or misuse
- reporting lost, stolen, damaged or otherwise impaired property to appropriate parties, including but not limited to a direct supervisor or common area manager
Stanford is one of the largest research universities in the country. Because the federal government and other granting agencies often sponsor funding for research, management of this property has high visibility and may be subject to greater scrutiny and audits. Also, if your department receives donated equipment, there are additional rules and regulations to follow. See Chapter 2.5 for information on how to handle donated property. Accurate recording of all equipment, whether sponsor-funded or not, directly impacts indirect cost recovery requirements and other reporting requirements.
Accurate and effective management will benefit individual departments and Stanford as a whole. For assistance, departmental staff should contact their Department Property Administrator (DPA). DPA’s requiring assistance should contact their Property Service Representative (PSR).
4. Official Systems of Record
The financial systems at Stanford University are integrated as of 9/1/2003. Property systems are part of the financial systems; Oracle Financials contains several inter-related modules. The final repository of all financial transactions and balances is the General Ledger. The following systems, working in conjunction with each other, make up the “official” property record.
- Sunflower Assets (SFA): Used by DPAs and the Property Management Office (PMO) to create and maintain asset records for the accountability, tracking, physical inventory and disposal of property
- Grants Accounting (GA): Used by DPA’s and PMO to track fabrications while they are still work in process
- Oracle Fixed Assets (OFA): Used to calculate and track equipment depreciation and University accounting (central office use only)
- PMO Material Tracking System: Used by DPAs and PMO to create and maintain records for the accountability, tracking, physical inventory and disposal of government-owned material
PMO is the authorized group on campus to grant access to SFA. Additional supporting documentation is obtained from other University systems, such as iProcurement.
Stanford's campus is, by its nature, a decentralized place. The Sunflower Assets (SFA) database provides a central information resource where departments and administrative offices can locate a given piece of equipment by searching for an SU.ID tag number, serial number, steward, custodian, etc. SFA and FA form the central, auditable property record for Stanford University; they provide crucial information for the university relative to Stanford capital assets and government or sponsor funded assets. At Stanford a capital asset is defined as having all of the following:
- An acquisition cost of $5,000 or more (for items paid for after 9-1-2003; prior to 9/1/2003 the threshold was $1,500)
- A useful life of more than one year
- Be an individual, stand-alone, moveable, tangible item
All capital and sponsor-owned property, except material which is tracked in the PMO Material Tracking System (MTS), must be recorded and tracked in SFA. Departments are also encouraged to use SFA as a single repository for all other property they manage, such as sensitive property, and other non-capital items the department chooses to track. Having a single record facilitates reporting, eliminates redundant and duplicate record entry into unofficial shadow systems, and can be used to track purchase trends within the department. It can also help maximize reutilization to avoid unnecessary purchases, and be used as a tool for replacement planning.
5. Security of Property
Each member of the Stanford community has a general obligation to safeguard and make appropriate use of University and sponsor-owned property and equipment either assigned for individual use or part of a common area. Each department must ensure that there are reasonable security measures implemented in their areas to prevent theft, damage or misuse of equipment. The Department Property Administrator (DPA) must play an integral role relative to these issues. Please review Section 3.6 for detailed information on security.
1.2 Roles and Responsibilities
The PMO provides guidance and training to departments on all property related issues, from pre-purchase considerations through retirement of assets. Departments involved in sponsored research should contact PMO for assistance with equipment issues at the time of proposal development, project performance, and at the conclusion of projects or the retirement of equipment.
1. Organizational Structure of Property Management
The PMO resides within the Research Financial Compliance and Services (RFCS) office. The PMO develops and implements policies, procedures, and a system that enables effective property management for the University, and works closely with the Controller’s Office (CO) in the development and implementation of policies for capital equipment. The PMO also maintains close communications with the Office of the Dean of Research in the development and implementation of policies for managing sponsor-owned equipment.
Property management issues are coordinated between the PMO and the local-area Department Property Administrator (DPA). The functional responsibilities of the DPA role may be distributed among several individuals within a department. The distribution of duties may vary depending on the size and complexity of the property management needs of the department or sponsored project. When distributing the responsibilities, the department must ensure that adequate checks and balances exist to ensure adequate process and data integrity are maintained. The DPAs carry out the day-to-day responsibilities within their respective departments and provide guidance to department personnel concerning property matters such as acquisition, coordination of transfers, equipment at sub-recipient locations, maintenance, physical inventory, and disposal. The PMO will provide guidance and direction to departments where distribution of the DPA responsibilities is needed.
The Board of Trustees has delegated to deans, department chairs, directors, principal investigators and other University officers the responsibility for management of their funds. See Administrative Guide Memo 36. On June 9th, 1997, the Provost and Chief Financial Officer issued a memorandum supporting effective property management from every member of the Stanford community, starting with the officers. These officers are responsible for ensuring that policies and practices applicable to the work of the University, including instruction, research and public service are carried out, and those standards, policies and regulations are consistent with sponsor and donor expenditure restrictions. The following organization chart shows how the roles and responsibilities flow down:
Property management information is disseminated at training, Property Administration Continuing Education (PACE) meetings, and via email – all DPA’s are added automatically to the dpa-distribution@lists.Stanford.edu distribution list.
2. Custodians and Asset Users
Custodians are Stanford employees responsible for a designated group of assets. Asset users are the persons who use the equipment on a regular basis, and can help readily locate or provide information about it. A custodian may also be the asset user. Non-Stanford personnel may be authorized to use Stanford or sponsor owned property; if so, the Stanford University person they report to should be listed in the property record. There are various rules of thumb to follow when recording a custodian. Following are some common scenarios; work with your department management to determine what is best for your area.
- the actual asset user (Stanford University employee) is listed as the custodian
- the business manager is listed as the custodian and the individual employees or positions (i.e.: receptionist) are listed as asset users
- in lab situations, the Principle Investigator (PI) is listed as the custodian and research assistants or graduate students are listed as asset users
- for departmentally used items such as copiers, the key operator or business manager is listed as the custodian
3. Department Property Administrators
Property management is an important function at the University. Prudent business practices help protect the University's multi-million dollar investment in capital equipment, meet government and sponsor requirements, and support indirect cost recovery associated with assets at Stanford. Each dean, vice provost, and vice president is responsible for implementing property administration effectively and compliantly within their school or department by ensuring that DPAs receive full cooperation from end-users and purchasers of property.
A. Choosing a Department Property Administrator
Selecting and designating a well-qualified DPA is critical to ensure effective property management occurs at the departmental level. It is imperative that the right people are hired into (or assigned) the DPA responsibility, as they must interface with all faculty, staff and students working in their respective area. They are also the liaison between their department and the PMO. Following is a recommended profile for a person appointed as a DPA:
- must be a Stanford University employee with a SUNet ID and SU.ID card/number
- registered in authority manager
- demonstrated effective communication skills
- problem solving skills
- knowledge and understanding of all facets of property management, including associated policies and procedures
- receives support from management in carrying out property management tasks and attending required training and updates
- positive and persistent attitude toward accomplishing tasks
- has basic accounting and organizational skills
- knowledge of Windows programs and internet navigation
- knowledge of Oracle Financials and Sunflower Assets
- holds at least a Certified Professional Property Specialist certification
B. Training and Tools for Department Property Administrators
All DPAs must attend the initial required property management training, and subsequent ongoing update training. Following are training classes (both required and recommended) for DPAs. Please note that Property Administration Continuing Education (PACE) sessions should always be attended as they provide important update information and also provide a mechanism for DPAs to give input to the property process. Attendance sheets for these sessions are used in departmental internal audits to ensure all staff are adequately trained and updated. Additionally, people who support the DPA function by purchasing, receiving and tagging equipment, but do not perform data input into Sunflower Assets (SFA) should attend policy training and PACE sessions. Classes are usually scheduled monthly; people can register on-line in Stanford Training Registration. PACE sessions are scheduled quarterly and registration is not required. Anyone involved in property management should review training schedules frequently for updated information.
If you have a DPA to be trained and do not see any classes scheduled in the near future, or need more information, please contact your Property Service Representative (PSR).
1. Required Training for Department Property Administrators
Attendance at property management training is mandatory for DPAs, and recommended for other people involved in the property process; some training must be completed before access to Sunflower Assets will be granted.
Following is a list of classes DPAs are required to take – schedules and additional materials are available on the web. You may review this information prior to taking a class, or use it after a class as a desktop reference, or share it with others in your office. PACE sessions should always be attended as they are used to update the DPA community on property initiatives.
- ORA 1310 – Property Policies and Procedures (Required for DPAs; recommended for people involved in the property process)
- ORA 1320 – Creating/Maintaining Records in Sunflower for DPAs (required for access to Sunflower Assets)
- ORA 1330 – Reporting and Excessing Records in Sunflower for DPAs (required for DPAs)
- PACE Sessions (Property Administration Continuing Education)
2. Recommended Training for Department Property Administrators
The following training should be completed within 6 months of hire into the position. These courses are all available online 24 hours a day, or in instructor led formats:
- FIN 102 - Cost Policy (Outlines the Chart of Accounts and accounting structure at Stanford University
- iProcurement - (DPAs approve purchase requisitions and should understand the system)
- iJournals - (DPAs are often involved in journal transactions and should understand the system)
DPAs working in a research environment need a basic understanding of the intricacies of sponsor requirements, which can be unique to various agencies. They need to know about external screening, cost sharing and fabrication requirements, as well as other sponsor-specific topics. Also, in a research environment, there is added audit scrutiny and additional documentation requirements. For those DPA’s seeking a higher level of professionalism, there are higher levels of training and certification available:
Level One Cardinal Curriculum Certification
The Cardinal Curriculum is a certification program created to ensure a standard level of expertise for those who support the research endeavor of Stanford University. It is required for both new and continuing employees working in research administration and all administrative staff who support sponsored research including those who:
- are involved with proposal preparation
- originate or approve transactions on sponsored accounts
- review or monitor expenditures on sponsored projects
Certification by the National Property Management Association (NPMA)
This professional organization has developed a 4-part certification program specifically focused on the regulations and accepted practices of university property managers. For those DPAs with additional experience and qualifications, there are higher levels of certification available. For further information, contact your PSR.
2. Acquisition
2.1 Overview
The acquisition process initiates the asset life cycle. It begins with the identification of a specific need and concludes with the physical receipt of an item. Through the acquisition process the ownership, accountability, and responsibility are determined for equipment at Stanford. Ultimate responsibility for the accuracy of equipment acquisition transactions rests with the transaction originator and approvers.
Funding for equipment is available from various sources including operating budgets, sponsored projects, and gifts. Equipment for which Stanford is accountable is intended to directly benefit the academic and research mission of the University and enable the associated administrative processes.
The following defines policy and provides guidance and principles to help ensure effective and compliant acquisition of equipment.
1. Key Policy Statements
- The capitalization threshold for Stanford-owned equipment is $5,000.
- Software acquisitions <$500,000 are not capitalized – they are expense items.
- Title to equipment vests with either the University or with the project sponsor. Title does not reside personally with faculty or staff.
- Title to gifted or donated equipment vests with Stanford University.
- Accountability for Stanford-owned equipment resides with the Department.
- Accountability for equipment on Sponsored Projects resides with the Principal Investigator (PI).
- The acquiring organization must screen for available items to minimize duplicative acquisitions.
- Responsibility for accurately coding acquisition transactions for equipment and approving funding sources rests with the originator and the approvers.
2. Ownership or Title
Title to equipment is primarily determined by source of funding and/or method of acquisition. The following conditions exist:
-
Title to equipment purchased or fabricated with unrestricted or other University designated funds will vest with the University at the time of acquisition; it does not vest with individual staff or faculty
-
Title to equipment acquired or fabricated with Sponsored Project funds, or provided by the Sponsor is determined by the type of agreement and the specific terms and conditions therein. Title will vest with either the University or the Sponsor; it does not vest with individual staff or faculty. Sponsors may opt to transfer title to equipment when no longer needed for its original intended purpose; if so, written authorization is required from the sponsor and the asset record is adjusted accordingly.
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Title to equipment received as a donation or gift to Stanford will vest with Stanford; it does not vest with individual staff or faculty. Please see the section on donations later in this chapter.
Personally-owned items should not be brought onto campus. Should this occur, it must be clearly marked to indicate personal ownership. These items are generally not covered by Stanford’s insurance programs. Please refer to the Office of Risk Management for additional information.
3. Acquisition Principles
The following guiding principles apply when acquiring equipment/supplies:
- The acquisition of equipment and or supplies is based on an established need in support of Stanford related business.
- The acquiring organization must screen for available items to minimize duplicative acquisitions.
-
Acquisitions are allowable, reasonable, allocable, and consistent in accordance with:
- University Administrative Guide Memo Chapter 5
- *OMB Circular A-21 (See Note)
- *OMB Uniform Guidance December 26, 2014 (See Note)
- FAR 52.245-1
- Applicable terms and conditions of sponsored agreements
- Acquisitions are appropriately funded and required approvals obtained in a timely manner.
*NOTE: For grants awarded prior to 12/26/2014, OMB A-110 and OMB A-21 will apply unless the grant has been modified. For grants awarded on 12/26/2014 or later, OMB A-81 Uniform Guidance will apply. A-81 will supercede A-110, A-21, A-133 (and others not directly applicable to our property management processes).
4. Methods of Acquisition
There are a variety of methods by which equipment is acquired at Stanford. The method of acquisition used is determined by factors such as source of funding, type of project, and duration of need. In general order of frequency, acquisition methods are listed below.
Method of Acquisition |
Description |
---|---|
Purchase |
Acquisitions made using the Stanford Purchasing systems. Source of funding may vary. |
Loan |
Equipment provided to Stanford, free of charge, by a third party for a specific period of time. Ownership is retained by the lender. |
Incoming No-Cost Transfer |
Equipment to which ownership and accountability is transferred to Stanford by another entity. |
Lease |
Contracts under which a Stanford has committed to pay cash payments for use of an asset (e.g. equipment) for a period greater than one year and total payments of $5,000 or more over the lease period. |
Rental |
Contracts under which Stanford has agreed to cash payments meeting either:
|
Fabrication |
Specialized equipment not commercially available which require design, development, construction, and Stanford labor over a specified period of time. Usually fabricated within the scope of work of a sponsored project. Aggregate cost of components is equal to or greater than $5,000 |
Donation |
A gift of equipment to Stanford. No performance expectations associated with the gift. |
Sponsor Furnished or Gov't Furnished |
Equipment provided by a sponsor for use on a specific research project. May be provided directly by the sponsor, or via a third party designated by the Sponsor. Ownership usually remains with the sponsor. |
2.2 Accounting
Acquisition transactions are coded based on equipment type and source of funding. Accuracy is critical to facilitate reconciliation and ensure accurate reporting. Expenditure Type (ET) codes are defined within the University Chart of Accounts. For detailed information, refer to the "Common Expenditure Types Used for Property and Equipment" and the "Sponsored Award Expenditure Type Guidelines" documents at the end of this section.
1. Capital Equipment
The capital threshold for Stanford-owned equipment is $5,000. Capital equipment must meet all of the following three criteria:
- acquisition cost $5,000 or greater
- useful life of more than one year and
- be an individual, stand-alone, moveable, tangible item
Stanford-owned capital equipment is financially depreciated based on its asset category and associated expenditure type code. Correct use of expenditure codes is critical to ensure accurate asset accounting and reporting. Its useful life may extend well beyond its financial depreciation period; as such, it remains on record until disposed at the end of its life cycle.
Accountability (e.g. proper recording, use, tracking, reporting, etc.) is not limited to Stanford capital equipment; it is also affected by ownership, terms and conditions, and other stewardship responsibilities. See section 3.3, Records, for additional information.
2. Acquisition Cost
The acquisition cost of an item is a determining factor when assigning a capital equipment ET to the purchase transaction.
For items acquired through Stanford’s purchasing process, the acquisition cost is the cost incurred for the initial purchase of an item. Various types of costs may be included in the acquisition transaction. The following table provides specific details.
Expenses Included | Expenses Excluded |
---|---|
Asset cost |
Warranties |
Freight | Maintenance service agreements |
In-transit insurance | Installation services or other in-house labor provided by Stanford personnel |
Federal excise tax | Upgrades to the infrastructure of a building necessary for the asset to become operational |
Sales or use tax | Training costs |
Duty | Vehicle license and registration fees |
Vendor installation costs directly attributed to the asset | |
Accessories (e.g., lenses, covers, etc.) |
3. Acquisition Costs for Non-Purchase Acquisitions
For items acquired by means of loan, incoming no-cost transfer, lease, rental, donation, or sponsor furnished, the acquisition cost or value is provided by the owner or sponsor or it is determined by other means of evaluation such as estimates or appraisals. Please contact your Property Service Representative (PSR) for guidance regarding appraisals, cost estimates, or valuation of sponsor-owned equipment.
4. Upgrades to Existing Capital Assets
During the life of a capital asset, there may be a need to upgrade the equipment by acquiring additional components. For components to be considered a capital upgrade they must have an individual cost of $5,000 or greater and a useful life of more than one year. The components must also enhance the asset’s capability beyond its original functionality and extend the useful life of the capital equipment by at least one year. The upgrade component must be assigned its own Stanford barcode and entered separately into Sunflower (SFA) property management database.
5. Software Capitalization
Software is capitalized when its acquisition value is $500,000 or more, excluding warranty and training. Contact your PSR for guidance regarding recording of software in Sunflower.
When the acquisition cost of software is less than $500,000 it is expensed. This is true even if the software is integral to the operation of the equipment.
See additional information regarding software capitalization policies.
6. Computer Clusters
Computer clusters are acquired in place of larger supercomputers to perform a task usually assigned to a supercomputer. A cluster consists of computers individually having an acquisition cost less than $5,000 but with an aggregate cost for the cluster purchase of $5,000 or greater.
To qualify for capitalization, a computer cluster purchase must meet all of the following criteria:
- include a minimum of 24 computer processors
- all work together as parallel computing units for a minimum of three years
- the computer cluster is intended to serve a specific purpose
- the need for a computer cluster must be clearly justified and documented
Note: If any part of the computer cluster needs replacement, the replacement is considered an expense since it is the total value of the cluster that is being used for accountability and depreciation expense purposes.
Upgrades to a computer cluster need to meet all of the following:
- cost $5,000 and greater
- extend the original useful life of the cluster by at least one year
- enhance the asset’s capability beyond its original functionality
7. Vehicle Purchases
Vehicles with an acquisition cost of $5,000 or greater are capital equipment and should be charged to ET 53140. Vehicle license and registration fees are not included in the capital acquisition cost. They are expensed costs and should be charged to ET 56510.
8. Fixed Equipment
Fixed equipment must meet all of the following criteria:
- items must be considered as part of a building; usually permanently installed
- items are accounted for as a composite cost of the building structure
- must be acquired using a capital project account supplied by the Capital Accounting Department in the Controller’s Office
- must use ET 53145
- not recorded in SFA property management database
- recorded as a capital project in Oracle Fixed Assets (FA) by the Capital Accounting Department
9. Modular Furniture
Modular Furniture must meet all of the following criteria:
- comprised of components integrated to create work station(s)
- average cost of a workstation is $5,000 or greater
- must be acquired using a capital project account supplied by the Capital Accounting Department in the Controller’s Office
- must use ET 53135
- not recorded in SFA property management database
- recorded as a capital project in Oracle Fixed Assets (FA) by the Capital Accounting Department
10. Non-Capital Equipment and Supplies
Acquisitions not meeting the definition of capital equipment are categorized as expense transactions. On Sponsored Projects, these transactions are generally subject to the application of Facilities & Administration (F&A) cost rates.
Tracking and management of non-capital equipment and supplies may be required as defined within the terms and conditions of the sponsored agreement funding the purchase.
Computing Devices-OMB Uniform Guidance Definition:
- Computing devices are machines that cost less than $5000 and are used to acquire, store, analyze, process and publish data and other information electronically, including accessories (or "Peripherals") for printing, transmitting and receiving, or storing electronic information.
Computing Devices-Federally Sponsored Agreements:
- New Uniform Guidance Policy announced by Dean of Research Office on September 5, 2014.
-
Effective December 26, 2014, per Section 200.20 and 200.453 of OMB Uniform Guidance, computing devices may be charged directly to federally sponsored agreements awarded on or after December 26, 2014.
- The direct charging of computing devices applies only to Federal grants and for those grants awarded prior to this date. The direct charging of computers may still be unallowable. The specific terms of the grant will continue to apply.
- OMB Circulars A-21 and A-110 are effective for federally sponsored agreements awarded prior to December 26, 2014. See Property Manual, Chapter 3.7-Agreement Management, for additional details.
Computing Devices-Non Federally Sponsored Agreements:
- Direct charging of computing devices to a non-federally sponsored project is appropriate if the computing device benefits the sponsored project. Some non-federal sponsors may have specific requirements for direct charging of computing devices.
NOTE: Computers with acquisition cost of $5000 and a useful life of at least 1 year should be categorized as capital equipment.
11. Accounting for Fabrication Labor Cost
Appropriately accounting for labor costs associated with each fabrication will be critical for sponsor reporting on federal contracts. You can collect this information through the Labor Schedules in the Labor Distribution system. Each department establishes and communicates procedures for time-keeping.
Individuals typically charging time (e.g. directly related or hands-on labor) to a burdened fabrication tasks include:
- research assistants
- professional and hourly technical staff
- research associates
- post-docs
A PI's general project supervision and oversight time is not charged to a burdened fabrication task.
Departments should establish procedures to follow for making any adjustments to the amount of salary expense charged to fabrication task. Adjustment, if needed should be completed in a timely manner.
Review and adjustment procedures could follow 3 scenarios:
- PI requests adjustment to % charged before the end of a pay period; Labor Schedule adjusted
- PI requests adjustment to % charged following monthly review of Expenditure Statements.; journal transfer is processed
- PI requests adjustment to % charged following quarterly Expenditure Statement certification review; journal transfer is processed
2.3 Purchases
1. Purchase Operational Procedure
Purchase requisitions are generated in the iProcurement system by departmental personnel. For information on processing of purchase requisitions please review the Buy and Pay Guide and/or contact the Financial Support Center.
Note: Use of Stanford Pcards, personal funds or personal credit cards to purchase capital equipment or material for fabricated equipment is prohibited by Stanford policy. See Administrative Guide Memos 5.3.3 and 5.4.3 for additional information.
A. Capital Equipment Purchase Requisitions
Purchase requisitions are generated in the iProcurement system. Proper selection of an account number (also known as PTA-Project/Task/Award), expenditure type (ET), and purchase order category are critical to ensure accurate completion of the transaction.
All requisitions require routing to the appropriate financial approvers. In addition to financial approval, requisitions for the following require approval of a DPA:
- capital equipment
- sponsor-owned equipment or materials
- equipment leases, loans, and donations
- fabrication components
B. Pre-purchase Screening
To maximize utilization of equipment on hand and eliminate unnecessary purchases, internal pre-purchase availability screening is required by the Department Property Administrator (DPA) (or designee) on capital equipment acquisitions. In addition, external screening may be required on purchases made on federal contracts. Screening thresholds are listed below.
Capital Equipment |
Internal Screening Requirement |
---|---|
Unit Acquisition Cost below $25,000 |
|
Unit Acquisition Cost $25,000 or greater |
|
If Sponsor-owned Equipment |
External Screening Requirement |
Department of Defense (DoD) National Science Foundation (NSF) National Institutes of Health (NIH) |
|
NASA and JPL |
|
Other Sponsoring Agencies |
|
Find Form DD1419 below in the Documents tab in Related Items.
2. Purchases from other Universities
Occasionally property is sold by another university to Stanford at a negotiated cost. Preliminary due diligence and negotiation of this cost is the responsibility of an individual with financial authority within the acquiring department at Stanford. Final approval of the cost for capital equipment is reviewed within the Purchasing workflow process and may be adjusted prior to placement of the Purchase Order.
Criteria required for these transactions:
- reasonableness of negotiated cost
- payment made with Stanford unrestricted funds. Use of sponsor funding must have prior written authorization from the PMO
- ensure Stanford obtains any necessary software licenses
- generate an itemized iProcurement Purchase Requisition
- acquiring department must obtain and provide to PMO an itemized listing of the assets involved from the releasing institution, including the following details:
- description
- manufacturer
- model
- serial number
- original acquisition date and cost
- negotiated cost to Stanford
- year of manufacture
- original funding source
- current title (ownership)
- condition
- auxiliary or accessory items, where applicable
3. Purchases Using Sponsor Funds
Purchases using sponsor funds require additional care and may be affected by unique circumstances. Contact your Property Service Representative (PSR) for guidance.
General requirements for these transactions include:
- The items must directly benefit the funding project and comply with the terms and conditions of the respective award.
- Pre-purchase screening, internal and/or external
- Changes to terms and conditions, or unplanned purchases, must be approved in writing by authorized sponsor and Stanford representatives.
- Inclusion in approved project budget.
-
Allowability as a direct charge:
- Per Uniform Guidance, effective December 26, 2014, computing devices may be charged directly to Federally-sponsored grants. See section 4, below, for additional details.
- Unless specifically authorized, general purpose equipment is not allowable as a direct charge on a Federal contract.
- Prior approval from sponsor’s Contracting Officer, if required by terms of award.
- Purchases within 90 days before period-of-performance end date require a justification.
- Accurate documentation of original funding source in Sunflower (SFA) property management database for duration of asset life cycle.
- Acquisitions of equipment originally purchased with federal funds by an outside institution should be transferred at no cost to Stanford.
4. Computing Devices
Stanford’s policy reflects section 200.20 of the Uniform Guidance that defines Computing Devices and section 200.453 (c) that establishes that such costs are supplies and may be charged directly to federally sponsored projects as described below.
Computing Devices are machines that cost less than $5,0001 and are used to acquire, store, analyze, process, and publish data and other information electronically, including accessories (or “peripherals”) for printing, transmitting and receiving, or storing electronic information.
-
Charging computing devices as direct costs is allowable for devices that are essential and allocable (provide benefit), but are not solely dedicated, to the performance of a federal award.
- Such devices are also allowable if solely dedicated to the performance of a federal award
- Federal sponsors may impose requirements for these costs to be included in the proposal budget and may require a budget justification. Until the federal agencies release specific information, budget justifications may be used at the discretion of the principal investigator. Requirements may be forthcoming from each sponsoring agency in fall 2014 or winter 2015.
Non-federally Sponsored Projects: Direct charging of computing devices to a non-federally sponsored project is appropriate if the computing device benefits the sponsored project. Some non-federal sponsors may have specific requirements for direct charging of computing devices. Such requirements need to be addressed in proposals.
Stanford’s policy (RPH 15.4) on charging other technical expenses remains unchanged by the Uniform Guidance.
1There is no change in policy regarding treatment of items over $5,000. If the acquisition cost of a computer is greater than $5,000 (and has useful life of more than 1 year), it should be categorized as capital equipment. See the Property Management Manual for more information regarding capital equipment.
5. Vehicle Purchases
Vehicles with an acquisition cost of $5,000 or greater are capital equipment and should be charged to ET 53140. Vehicle license and registration fees are not included in the capital acquisition cost. They are expensed costs and should be charged to ET 56510.
Fleet Garage approval is required for vehicle acquisitions. Contact the Fleet Garage prior to creating requisition.
For additional information please see Administrative Guide 8.4.1 Vehicle Acquisition, Ownership and Disposition and Administrative Guide 8.4.2 Vehicle Use.
2.4 Loans, Transfers, Leases and Rentals
1. Incoming Loans of Equipment
Incoming loans are comprised of property which has been provided to Stanford free of charge, for a specified period of time (short or long term), by an institution or individual. Loans of equipment originate primarily for:
- Manufacturer Evaluation
- Clinical Trial Support
- Other Sponsored Research Support
Ownership during the loan period resides with the lender. Stewardship and accountability responsibilities exist for Stanford and require compliance with the terms and conditions of the loan.
2. Incoming Loans of Equipment Operational Procedure
The Property Management Office (PMO) must be notified of all incoming loans of equipment prior to their arrival. PMO will review and involve the Office of Sponsored Research (OSR), Office of Technology Licensing (OTL), Procurement, and the Office of Risk Management as needed.
All loans of equipment must be documented and include, at a minimum:
- Listing of equipment being loaned
- Value of equipment
- Specific start and end dates of the loan period
- Liability/Insurance clauses
- Purpose and/or intended use for the loaned property
- Delivery and Return responsibilities
- Authorized signatures, per Administrative Guide Memo 5.2.3
In all cases, loaned equipment must be identified, recorded, and tracked in the Sunflower (SFA) property management database. Please refer to Administrative Guide Memo 5.2.3.
Loan terms and conditions may vary. To facilitate closure of a loan, as the end of the loan period approaches, the Department Property Administrator (DPA) should be notified by the accountable department as to the status of the loaned equipment. If the equipment is being retained past the end date of the current loan agreement, the loan document should be updated by the DPA in coordination with PMO. If the equipment is being returned, the DPA should process an Excess Request in the Sunflower (SFA) property management database. For further guidance, the DPA may contact their Property Service Representative (PSR) for disposition instructions.
Though they share characteristics, each incoming loan type has additional unique steps for acquisition, as outlined below.
A. Manufacturer Evaluation Loans
A purchase requisition is required. In addition to the standard information, the requisition must include the following:
- clear identification of the transaction as a loan
- itemized listing of equipment being loaned
- loan period beginning and end dates
- equipment value if Stanford were to purchase the item at the end of the loan period (usually provided by lender)
- routing to Department Property Administrator (DPA) and applicable department approvers
B. Clinical Trial Support Loans
Clinical trials pose unique risks to the University, particularly when they involve human subjects. Prior to initiating a loan of equipment supporting a clinical trial, contact the School of Medicine Research Management Group.
Close coordination with Stanford hospitals will also be necessary.
C. Other Sponsored Research Support Loans
Sponsors may elect to provide equipment for use in support of sponsored research. They may refer to this as Sponsor Furnished Property, or a Bailment Agreement. In addition, equipment may be loaned to Stanford by peer institutions in support of collaborative research projects. Timely documentation for these types of equipment loans is very important. As soon as the DPA, receives notification of the impending loan he/she should complete the Property Incoming Loan Form and forward it to the PMO with all documentation provided by the lender. PMO will assign a loan number and approve the loan via signature. See Sponsor or Government Furnished Equipment below for additional information.
3. Incoming No-Cost Title Transfers from other Universities
Equipment is often brought to Stanford by new faculty from their prior institution. When planning for an incoming transfer, it is critical to identify whether or not the transfer is associated with a Sponsored Grant or Contract. The asset’s original source of funding or affiliation with an active grant or contract will determine documentation, recording, and management requirements. Common scenarios include:
- equipment acquired by the prior institution with unrestricted funds
- equipment purchased with sponsor funds and award is closed
- equipment transferring with an active grant
- equipment transferring with an active contract
The department personnel coordinating the transfer of the incoming faculty must inform their DPA of the incoming transfer. The DPA should contact their PSR as soon as possible after their initial notification of equipment transferring in to their department from another university or outside entity
The DPA will serve as primary liaison with the PMO to ensure documentation is complete and records are established in an accurate and timely manner
The following information is needed:
- written release by an authorized individual from the relinquishing institution
- point of Contact at the relinquishing institution
- equipment description
- relinquishing institution’s asset tag number
- model number
- serial number
- original acquisition date
- original acquisition cost
- condition
- original source of funding
- ownership at time of transfer
- current or last accountable agreement (grant, contract, or other agreement)
Upon receipt of this information, PMO will review and obtain clarification, if needed, from the Point of Contact at the relinquishing institution.
PMO will subsequently provide the DPA and Principal Investigator (PI) guidance and instruction for proceeding with the completion, acceptance and recording of the incoming transfer.
Note: Care must be taken that all required software licenses are obtained by Stanford.
4. Leased Equipment
Leasing as an acquisition method is an option after other methods have been considered and deemed less desirable.
An equipment lease must meet the following criteria:
- lease period must exceed one year
- contract with Stanford has a commitment for cash payments of $5,000 or greater over term of lease
- terms and conditions should, at a minimum, address the following property management elements:
- listing of equipment
- ownership of equipment
- liability terms
- delivery, use and maintenance and scope and responsibilities
- disposition terms
- buy-out option
- leasing fees and payment terms
- lease period
5. Capital Leases
In addition to other special circumstances, if the lease payments exceed $200,000 the lease may be considered a capital lease for accounting purposes. Contact the Capital Accounting Department in the Controller’s Office for further guidance. See Administrative Guide Memo 5.2.2.
6. Leasing on Sponsored Projects
Generally, leasing equipment on federal sponsored projects is not allowable as a direct charge. Specific authorization from the sponsor is required. Contact your PSR for further guidance.
7. Equipment Lease Operational Procedure
The iProcurement system is used to process a Standard Lease requisition for leased equipment.
A. Lease Acquisition Attributes
In addition to basic information, the following unique information is required when preparing a Standard Lease requisition:
- expenditure types: 52921 (General Purpose Lease) and 52951 (Special Purpose Lease)
- lease period begin and end date
- location where equipment will be used
Please read the instructions for completing requisitions in iProcurement for more information.
B. Leased Equipment Records
Leased equipment must be tagged and recorded in Sunflower for accountability and reporting purposes. The DPA must create these records using the PO Interface within the Sunflower property management database. Records must reflect the acquisition method of “LEASE” to facilitate reporting requirements.
8. Equipment Purchase at the End of the Lease Agreement
To exercise the buyout option at the end of a lease, the department must submit a new online requisition referencing the original lease purchase order number. If the buyout is for $5,000 or greater for an individual asset, use the requisition category Standard.Capital Equipment. If the buyout amount is less than $5,000 for an individual asset, use requisition category Standard.Goods.
The DPA is responsible for contacting their PSR for guidance in updating the Sunflower property database record.
9. Equipment Rentals
Equipment rentals are contracts under which Stanford has agreed to cash payments meeting either of the following:
- a payment period greater than one year with less than $5,000 committed
- a payment period one year or less, regardless of dollar value
The iProcurement system is used to process a Standard.Goods requisition for rented equipment. The Expenditure Types (ET’s) for Rentals are:
- 52920 (General Purpose Equipment),
- 52930 (Other Equipment…tools), and
- 52950 (Special Purpose)
2.5 Donations and Gifts
A donation is a gift of equipment or tangible property to the University without an expectation by the Donor of anything in return. A donation may be directed for use by a particular department, research program, or PI; however Stanford University is the owner of all donations, without exception. Donations are not the property of faculty, staff or students, even if they may have been the primary contact or delivery point for the donation and the designated end user. Department staff, PIs, the Department Property Administrator (DPA), the PMO and the Office of Development (OOD) all must work together to accurately and completely document and report equipment gifts received by the University.
1. Donations—Use and Restrictions
Stanford must retain all corporate and private donations of equipment for at least 3 years from date donated to the University unless the donor authorizes otherwise in writing. During the retention period, donations may not be transferred in exchange for money, other property, or services.
If the item is disposed of prior to the three year limit, both the donor and the IRS may need to be notified. Exceptions to the three year limitation are supplies or materials that have a useful life of less than one year. For more detailed interpretation of these regulations, please contact your Property Service Representative (PSR).
2. Donations Intended for Immediate Sale
Donations of property intended for immediate sale must be processed expediently. As soon as possible after receipt of the donated equipment by the department, the DPA should contact Surplus Property Sales (SPS) to coordinate the sale. The sale should occur within a reasonable time frame after receipt of the item by the department. Donations intended for sale are handled on a case-by-case basis. For guidance, please contact your PSR or OOD if your department is receiving this type of donation.
3. Non-Capital Asset Donations
Donated items of equipment that are valued less than $5,000 (non-capital asset donations) do not require recording in the Sunflower (SFA) property management database. It is required, however, that the DPA notifies the PMO as soon as possible. Copies of all documentation must be submitted to PMO so the donation can be properly accounted for by PMO and reported to the OOD and to the Controller’s Office for IRS purposes.
4. Donation Documentation
Per Administrative Guide Memo 4.2.3 – Records of Donated Equipment, donations of property having a fair market value of $5,000 or greater must be recorded in the SFA property management database by the DPA. For IRS purposes, the PMO must be notified of all donations of equipment, regardless of value. Timeliness in notification is critical to ensure that all applicable regulations are adhered to and correctly documented. For complex donation transactions, involving the PMO at the negotiation stage is recommended.
The following documentation is generally required for donations of equipment or other tangible property. Find the Donated Equipment Transmittal Form below in the Documents tab in Related Items.
- letter of intent to donate and/or donation agreement from donor
- itemized list of the donated items, with complete descriptions
- shipping and receiving documents; e.g. packing list, if applicable
- established value (new equipment – the manufacturer’s suggested retail price, used equipment – estimated fair market value; from donor or as determined by PMO or both)
- any additional documentation regarding the donation, if any
Copies of the above documentation should be submitted to your PSR.
5. Equipment Donation—Operational Procedure
The department receiving the donation shall generate a zero dollar purchase order in the iProcurement system, using the following guidelines:
- Create a one dollar ($1.00) Standard.Capital Equipment category requisition. Use the donor as the vendor, individually list the items being donated and use a gift account (award range GAAAA-JZZZZ) with the expenditure type 53125 (SU EQUIP GIFTS).
- Check the Contract box on the requisition to ensure that the requisition goes to a buyer.
- A receiving event in iProcurement is required. This will trigger the information to flow into the PO Interface of the SFA property management database to be used in the creation of the property record(s).
- Create records in the SFA property management database for those donated items with a fair market value of $5,000 or greater. The PMO will ensure Accounts Payable (AP) creates an invoice for property donations valued at $5,000 or greater, and financially reconcile the value in the Oracle Fixed Assets (FA) system.
6. Gift Acknowledgement
Gift Processing in the OOD will prepare and send an official university gift receipt for gifts of equipment and other tangible personal property, including gifts valued at less than $5,000. Such receipts should not be generated by local departments.
Thank you notes or similar acknowledgements from departments or individuals are appropriate, but official University acknowledgement of receipt of a donation should only be generated by Gift Processing. These receipts confirm delivery of described items and the date the gift was received, but do not include the value of the item(s). IRS rules require donors, not the university, establish the value of items donated for their tax-related purposes. Receipts may be requested by contacting OOD. If Stanford obtains an appraisal, it is to be used internally only. See Administrative Guide Memo 4.2.2.
Some donors may request completion of an IRS form 8283 (Non-Cash Charitable Contributions). If so, the form should be forwarded to your PSR. Per Administrative Guide 42.2, the form can only be signed by the University Accounting Officer or the authorized designee in the PMO. Departments are not authorized to sign the IRS form 8283 on behalf of the University.
7. Federal Agency or Other Sponsor Furnished Equipment
Equipment or other property may be provided to Stanford for specific use on a sponsored project. Ownership (title) remains with the sponsor unless authorized in writing by an authorized Sponsor representative.
Sponsor-furnished property of any value must be identified and approved within the grant, contract, or other agreement. The documentation and process of these transactions are often unique and complex. The PMO should be included in the early planning stages when sponsor-furnished equipment is being considered.
Upon receipt, the DPA must be notified to ensure the tagging and recording of the asset is completed in a timely manner. The PMO must subsequently be notified to link the asset record to the appropriate agreement for accountability and reporting purposes.
2.6 Fabrication
Stanford’s dynamic research environment often requires the creation of one-of-a-kind equipment intended to perform unique, specific functions. Fabrications are complex, not commercially available items, configured and built by Stanford University personnel. Federal sponsoring agencies often refer to these as Special Test Equipment (STE) or Special Tooling (ST).
Equipment fabrications may be Stanford or Sponsor funded. They have specific requirements for acquisition, accounting, tracking, capitalization, and reporting processes.
This document outlines the criteria and administrative principles associated with fabrications. It also provides guidance to facilitate accounting, stewardship, and Sponsor compliance.
1. Definition
“Equipment fabrication” is the building of a unique individual piece of equipment, or scientific instrument by Stanford personnel (not a vendor or subcontractor).
A fabrication must meet all of the following criteria:
- The item has unique specifications and is described in the research proposal or award. Details are specified in a dimensioned engineering drawing. When design changes occur, the engineering drawing should be subsequently updated.
- The total cost for acquired materials, supplies, and components must be $5,000 or greater. All items acquired for a fabrication must be permanently integrated into the resulting discrete item.
- The completed fabrication has an estimated useful life of one (1) year or more. (Note: If the fabrication is owned or funded by NASA, the useful life must be two (2) years or more.)
- When completed, the item will not be affixed permanently to a building or structure.
- The fabrication results in a unique, stand-alone, tangible item capable of specific identification and continuous control through tagging and periodic physical inventory. Components should be designed to remain at one position in the fabrication; they are not to be removed and replaced throughout the useful life of the fabrication.
- It must be completed in ample time to directly benefit the funding project and used for its intended purpose. If it is a contract-deliverable item, it must be completed in time to meet the delivery schedule as outlined in the funding sponsored project.
Definition – Notes for Clarification:
- Modifying equipment to achieve a desired effect, researching a technique, or developing a new piece of equipment with an untested design are all processes that do not constitute a fabrication.
- Simply connecting components into a system, either physically or “virtually,” does not constitute an equipment fabrication, e.g., when individual computers and servers are joined to create a network, or when accessories are added to experimental test beds (e.g. optical tables).
- Equipment costing $5,000 or more that is not permanently integrated into the fabrication, should be purchased and tagged separately as capital equipment. It is not considered part of the fabrication.
- Software development (the writing of code) does not constitute an equipment fabrication. Additional information regarding software capitalization can be found in Section 2.2-Acquisition in the Property Management Manual.
- Stanford labor, though not included in the capitalized cost, may be included in the cost reported to Federal sponsors. The terms and conditions of individual agreements apply.
- Once completed, subsequent modifications of fabricated equipment do not qualify for an indirect exemption unless the modification meets all of the following criteria:
- It increases the original capabilities of the item.
- The modification itself costs $5,000 or more; and
- It extends the useful life of the fabricated equipment by at least one year.
2. Administrative Principles and Guidance
The following principles and guidance are provided to ensure accurate administration, accounting, classification, stewardship, and reporting of equipment fabrications:
Allowable and Unallowable Costs
Allowable Costs
The following costs may be charged to a capital fabrication Project-Task-Award (PTA):
- Fabrication components (raw materials and parts)
- Reasonable start-up supplies and parts to be incorporated in or otherwise consumed in the research and development of the fabrication
- Freight and handling
- Third party installation charges (i.e.: vendor or manufacturer)
Unallowable Costs
The following costs may not be charged to a fabrication PTA:
- Documentation
- Repair or maintenance to retain existing functionality or capacity
- Warranty
- Administrative support equipment
- General purpose equipment, tools, and other material that is not integrated into the fabrication
- Enhancements to equipment that is not integrated into the fabrication
- Stanford Service center charges
- For technical services for parts provided directly to a vendor. (e.g. precision machining, polishing, plating, annealing). Contact the Property Management Office (PMO) for specific guidance.
- Any other costs not directly allocable to the fabrication
3. Accounting Protocols
There are specific accounting protocols for capturing the fabrication cost that will be capitalized. Fabrication expenses are charged to a capital Project-Task-Award (PTA) in Oracle Grants Accounting.
- Each fabrication requires a separate Project and Task setup in Oracle Grants Accounting. In addition:
- For NASA contracts only, the cost of all labor associated with the fabrication is tracked in a separate Task, using the same Task number appended with an “L” (e.g. 4000L) and is included in the acquisition cost reported to the sponsor.
- If a fabrication includes cost sharing or multiple awards, one Project and one Task should be set up for all awards funding the fabrication. Complete information on cost sharing can be found in the Research Policy Handbook (RPH) Section 15.3.
- Fabrication expenditures for materials, supplies and components must be charged to the following expenditure types (ETs):
For purchases from outside vendors, use
- 53195 (SU Owned Cap Fabrication) or
- 55095 (Non-SU Owned Cap Fabrication)
For purchases from Stanford Stores, use:
- 58671 (Intra-Dept SU Owned Cap Fabrication) or
- 58676 (Intra-Dept Non-SU Owned Cap Fabrication)
- Quantities of goods acquired must be reasonable and directly allocable to the specific fabrication.
- Reimbursement transactions are not allowed.
- PCARD transactions are not allowed when title (ownership) to the fabrication will vest with the sponsor. PCARD transactions on Stanford-owned fabrications have strict requirements and are subject to additional audit scrutiny. Contact your Property Service Representative (PSR) for information and guidance.
- A fabrication should be completed in ample time for it to benefit the funding project; for those that are not, costs will be reclassified as expense.
- Completed fabrications must be in use for one year or more (two years, if NASA funded). Disassembly prior to meeting the useful life requirements will result in the re-categorization of costs as expense and indirect costs will apply per University policy.
- In-process fabrications are subject to periodic review and verification for allowability, allocability and reasonableness.
4. Fabrication Completion
A realistic completion date for each fabrication is very important. It should be completed in ample time to benefit the funding project. Completion is normally recognized as the date that the fabrication was first used for its intended purpose.
Requests to extend the fabrication period from that originally proposed require written justification from the researcher and may require a physical verification of progress and the original budget by PMO. Fabrications that extend past their scheduled completion dates with no significant progress will be disallowed and expensed.
5. Residual Materials
Unused material remaining after the completion of the fabrication should be accounted for and reported according to University policies, applicable federal regulations and/or the terms and conditions of the sponsored award.
The residual material is subject to regulations found in OMB Circular A-110, Section 35-Supplies and other Expendable Property, OMB Uniform Guidance Section 200.34-Supplies (*See Note) or the specific terms of the contract. For Sponsor-owned fabrications, approvals from the sponsor should be obtained prior to the disposal of all residual material, regardless of aggregate value.
*NOTE: For grants awarded prior to 12/26/2014, OMB A-110 and A-21 will apply unless the grant has been modified. For grants awarded on 12/26/2014 or later, OMB A-81 Uniform Guidance will apply. A-81 will supersede A-110, A-21, A-133 (and others not directly applicable to our property management processes.)
In order to be in compliance with all applicable regulations and University policies, it is important to notify your PSR as soon as possible of any residual material remaining at the completion of a fabrication.
6. Disposition of Fabrications
Disposition of fabrications is primarily accomplished through disposal as excess, by cannibalization, or by meeting deliverable terms of a contract.
Contact your PSR prior to any disposal action, including cannibalization, so appropriate approvals can be obtained.
7. Administrative Procedures
The following procedure details the steps of what needs to be done and who is responsible during the initiation, work-in-progress and completion of a fabrication.
Process Steps (What needs to be done) |
Responsible Group (Who does it) |
|
Initiating a Fabrication …… |
||
1 |
Before a fabrication can be initiated, the Sponsored Project Office (SPO) number for the research project must be awarded and the Oracle award number set up in Oracle.
|
Office of Sponsored Research |
2 |
Request for a fabrication number by completing the form “Fabrication Request Form”. Submit form and supporting documents to Property Management Office (PMO). Include a specific bill of materials and dimensioned drawing showing locations of all components. |
Principal Investigator or designee |
3 |
Review request and assign Fabrication Number. Return approved form to Principal Investigator (PI) or designee.
|
Property Management Office |
4 |
Request Office of Sponsored Research (OSR) to set up a fabrication account using the provided fabrication number (from step #3) as the task number, linked to the established award (from step #1) and a unique capital project.
|
Principal Investigator or designee |
5 |
Set up fabrication Project Task Award (PTA) and notify PI or designee. |
Office of Sponsored Research |
Fabrication Work In Progress …. |
||
6 |
Participate in periodic review of expenses, material consumption and progress to meet completion date.
|
Principal Investigator or designee |
When Fabrication is completed …. |
||
7 |
When fabrication is completed, notify Property Management Office (PMO) by completing the form “Fabrication Completion Form” and route for approval by Principal Investigator (PI). Submit form, a photograph of the completed fabrication and other supporting documents to (PMO).
|
Principal Investigator or designee |
8 |
Verify and reconcile correctness of expenditures for Fabrication |
Property Management Office and Department |
9 |
Assign a barcode (tag number) and initiate an asset record in Sunflower |
Property Management Office |
10 |
Complete asset record in Sunflower and apply barcode tag to the fabricated equipment |
Department Property Administrator |
11 |
Capitalize asset in Oracle |
Property Management Office |
3. In Service
3.1 Receiving
Receiving includes the process of accepting delivery of equipment or materials into Stanford University. It is the point at which custody, responsibility, accountability, and liability for the property begins. During the receiving process information is collected and documentation created to ensure a complete and accurate asset record is established.
1. Key Policy Statements
-
All capital equipment purchases must have a receiving event recorded in the Oracle iProcurement system; discrepancies should be reported to the designated purchasing agent in the Procurement department for resolution.
-
The receiving event should be recorded promptly after the physical delivery of the item and the property record created within 30 days of receipt.
-
Notification of the receipt of non-purchased equipment, such as sponsor-furnished, loaned, or donated property must be made in a timely manner to the Department Property Administrator (DPA).
2. Accountability
Once receipt is acknowledged, the asset-owning department and Stanford University assume accountability for the assets and associated liabilities. For this reason, one should always ensure that the shipment is complete and assets are undamaged. Timely reporting of damages, losses or any other discrepancies is imperative as it may affect asset depreciation, liability, warranties, as well as performance schedules for University business or sponsored projects.
3. Process
A. Purchased Equipment
The receipt of capital equipment purchases must be recorded in the Oracle iProcurement system by an authorized representative with the receiving department. This will allow the invoice(s) to be paid by Accounts Payable, and triggers the PO information to flow into the property management system (provided the correct expenditure codes were used). A receiving event populates the PO interface to facilitate the creation of the asset record in the Sunflower (SFA) property management database.
Prior to recording the event in iProcurement, the contents of the shipment should be inspected and at a minimum, the following should be verified:
- item received matches item ordered
- quantity received matches quantity ordered
- inspect for signs of visible damage and document the damage as appropriate
Discrepancies noted with purchase transactions, such as damages, loss in transit, overages, shortages, etc. should be reported immediately to the designated buyer in Procurement for resolution. Please read Fingate How To Receive Goods on what is to be received and how to receive in iProcurement.
B. Equipment Received in Offsite Locations
In the event the equipment is being delivered to an off-site remote location (sometimes known as a “drop shipment”), it is important to alert the anticipated offsite recipient that they must notify authorized personnel within the accountable department when the equipment is received. It is the responsibility of the accountable department personnel to ensure that the receiving process is completed in an accurate and timely manner.
C. Sensitive or Hazardous Material
The receiving process for some sensitive or hazardous materials may require special handling and safety precautions. In such cases it is important that the accountable department adhere to applicable regulations and manufacturer’s requirements. These regulations and requirements will vary based on the specific equipment being received. For additional guidance, contact your PSR.
D. Sponsor-Furnished, Loaned or Donated Equipment
The receipt of items not acquired through iProcurement, such as sponsor-furnished equipment, loans, or donated property, also requires verification of quantity and condition details as stated above. In addition, these transactions may have varying requirements for documentation including:
- DD1149
- DD250
- Bailment Agreement
- Transmittal Letter
Discrepancies related to the receipt of all non-purchased items must be reported promptly to the DPA. Discrepancies affecting sponsor/government-owned items are subsequently reported to your PSR to initiate completion of Form SF364, "Report of Discrepancy" and/or for required notification to the sponsor. Issues requiring intervention for resolution may involve the Office of Naval Research, our cognizant oversight agency for most federally owned assets.
4. Supporting Documentation
For equipment acquired through iProcurement, the on line record of the receiving event in the iProcurement system serves as the official receiving report.
For non-purchased equipment, such as sponsor-furnished, donations, loans and incoming transfers, both electronic and non-electronic documentation should be retained by the department and/or the Property Management Office (PMO). See Section 3.3 - Records, for information on records and retention policies.
3.2 Identification
The primary purpose of asset identification is to readily identify ownership. By accurately identifying items once they are received, Stanford can better defend rightful ownership should a dispute occur, and can keep track of assets for many purposes including use, availability, stewardship, compliance, tax, depreciation, and insurance. It is essential that all University owned capital equipment, and all sponsor owned equipment, loans and leases be properly identified, tagged with a barcode, and recorded in the Sunflower (SFA) property management database.
The Department Property Administrator (DPA) is responsible to ensure that equipment is correctly identified, tagged, and recorded in a timely manner. Tags and overlays are available from the Property Management Office (PMO) and can be ordered online by using PMO’s Property Tag Order Form on the PMO website. The form contains a detailed list and description of each tag and overlay.
1. Key Policy Statements
- University owned capital equipment must be tagged using a Stanford barcode tag and recorded in the Sunflower database within 30 days of receipt.
- Sponsor-owned, loaned and leased equipment must be tagged using a Stanford barcode tag and recorded in the Sunflower database within 30 days of receipt. In addition, sponsor identification tags are affixed to equipment when and as required.
- U.S. Government owned equipment must have “U.S. Government Asset” identification strip affixed adjacent to Stanford barcode tag.
- Item Unique Identification (IUID) tags will be affixed in accordance with contractual requirements.
- Additional department-specific identification may be affixed at the discretion of the accountable department.
2. Required Identification and Tagging
The following property requires tagging and recording in the Sunflower database:
- All Stanford-owned capital equipment
- All sponsor-owned equipment for which Stanford is accountable, regardless of cost or location; may include property at a Subcontractor’s facility
- Sponsors may require and provide special individual agency tags which must be affixed in addition to Stanford University tags.
- All equipment owned by a third party (other than the Federal government) for which Stanford is accountable. Examples include loaned and leased equipment
- All donated capital equipment
3. Optional Identification and Tagging
Optional department identification tags may also be assigned to property, depending on department policies, or requirements. Examples:
- non-capital equipment
- items that departments track for utilization or management purposes
4. Obtaining Identification Tags and Overlays
Stanford University barcode tags and overlays are provided by the PMO. A sample and description of each tag is available on the Property Tag Order Form on the PMO website.
When tags are needed, the DPA should submit their order directly to PMO following the instructions at the top of the form.
5. Placement of Tags
When the space allows, it is recommended to affix the tag on the equipment so that it directly faces the user and can be conveniently read or scanned without disrupting the item when it is in active use. Care should be taken to not cover manufacturer’s markings. When space on the front of the asset is insufficient, recommended alternative location is the front right side.
6. Untaggable Assets
In some situations, it is not possible or feasible to affix a barcode tag to the equipment due to extremely small size of the equipment/property, inaccessibility, sensitivity or weather/tag deterioration factors. In these instances, the DPA must create an “Untaggable Asset Record” by affixing the barcode tag to a printed copy of the SFA property management database record. This record must be retained by the accountable department and be readily accessible for inventories, audit verifications, etc.
The untaggables record file should be periodically reviewed and updated by the DPA to ensure accuracy.
7. Materials
Identification of material inventories or bonded store room operations is done in accordance with contract terms or specific project needs. Contact your Property Service Representative (PSR) for additional guidance. Also see Section 3.3 (Records) for additional information.
8. Replacement of Tags
Replacements for barcode tags that are lost or damaged can be obtained from the PMO. The Property Tag Order Form contains a choice for requesting a replacement for an existing barcode tag number.
Typical examples of circumstances where a replacement tag is needed include:
- tag fell off of or was removed from asset
- tag affixed to an asset is damaged or illegible
- tag is removed by a service vendor
For replacement of Sponsor provided tags, contact your PSR.
9. Removal of Tags
Identification tags should remain on the asset for its entire useful life with only a few exceptions. Unless otherwise directed by the PMO, the DPA should only remove property identification tags when an item is:
- returned to the manufacturer for replacement
- used as a trade-in towards another purchase
- returned to the sponsor or other third-party owner
- when specifically instructed by PMO
3.3 Records
Accurate and comprehensive property records are a required component of a successful property management system. Records are the repository for compiling the basic identification elements and tracking day to day activity of equipment and material for which Stanford is accountable. Information contained in the property record is the basis for depreciation, audit, reporting, inventory, and stewardship throughout the life of an asset. At the end of the asset life cycle, the property record reflects the disposition and retirement outcomes and provides a historical picture of the asset from cradle to grave.
1. Key Policy Statements
- Sunflower (SFA) property management database combined with the Oracle Fixed Assets (FA) system constitute the official on-line property records for capital assets.
- Asset accounting and depreciation functions are performed in FA.
- Accountability, stewardship, inventory, agreement management, and disposition actions are performed in SFA.
- SFA record entry should be completed by the Department Property Administrator (DPA) within 30 days of receipt of the asset.
- Financial reconciliation of the asset record in Oracle Fixed Assets (FA) is performed by the Property Management Office (PMO).
- SFA record entry for non-capital equipment is encouraged but not required.
- Sponsor-owned material is tracked in our Material Tracking System (MTS).
2. Official Records Systems
Property records are necessary to:
- ensure consistent, complete record keeping
- comply with sponsor and government agency requirements
- track accountability, movement, utilization, status, and disposition of equipment
- mitigate risk, maximize accuracy of insurance, and tax reporting
- allow for accurate accounting, budgeting, and planning for the University
- provide information from which depreciation, indirect costs, and other financial determinations are made
- facilitate redeployment and reutilization of property
- support accurate system analyses and audits
3. Equipment Records
The official data repository for the recording of equipment at Stanford is the on-line Sunflower (SFA) property management database. The following classifications of equipment are required to be entered into SFA by a DPA within 30 days of receipt of the asset:
- Stanford-owned capital equipment
- Federal or sponsor-owned equipment (capital and non-capital)
-
Leased equipment when lease meets both of the following criteria:
- lease amount is greater than $5,000
- the lease extends longer than one year
4. Equipment loaned to Stanford
5. Capital equipment donated or transferred to Stanford
SFA property record includes data from Oracle Financials (iProcurement, Accounts Payable and FA). Detailed steps for creating or uploading asset records are available in the Sunflower User Guide.
Recording and tracking of non-capital equipment in SFA is strongly encouraged— particularly for those items which are of critical need for the work being performed, subject to potential theft, contain sensitive data, or those which may need additional control due to the value of the information they may contain.
4. Records of Sponsor-Owned Material
Material generally consists of component parts, precious metals or other consumable goods. Records of Federal or sponsor-owned material are maintained in accordance with the terms and conditions of the award(s) under which they were acquired. When necessary, material that is not immediately consumed at the time of acquisition is recorded and tracked in the MTS.
Access to the MTS is granted to authorized DPAs by the PMO.
5. Property Record Data Elements
The property record includes a variety of data elements which support compliance and business operation needs related to equipment. Records for Federally-owned and other Sponsor-owned equipment or material have additional record data elements requirements specific to the sponsor requirements. Asset records should be maintained routinely to ensure the data is current, accurate, and complete.
Mandatory data elements in each property record are listed below:
A. Required Data Elements for All Capital Property Records
- SU Tag Number
- Service Status
- Manufacturer
- Year of Manufacture
- Model Number
- Taggable/Untaggable Flag
- Serial Number
- Acquisition Document Number
- Description
- Asset Category
- Acquisition Method
- Ownership
- Acquisition Date
- Net Book Value (NBV)
- Acquisition Cost
- FA ID Number
- Capital Status Flag
- Condition
- Business Unit
- Retirement Date and Status
- Department
- Disposition Method
- Custodian
- IDC Allowability
- Location
- Inventory Resolution information
B. Additional Required Data Elements for Sponsor-Owned Equipment Records
- Sponsor Agreement
- Sponsor ID Number, if applicable
- National Stock Number, if applicable
- Unique Item Identification , if applicable
- Unit of Issue, if consumable material
- Balance on Hand, if consumable material
C. Additional Helpful Data Information Elements
In addition to the above required record elements, the following data elements are helpful information to include in the property record:
- User name
- Attachments, photos
- Department ID tag number
- Maintenance records
- Fleet garage ID number, if applicable
- Other descriptive information
- Additional comments
- Other descriptive flags
6. Supplemental Documentation
In addition to creating and maintaining the Sunflower property record, the DPA is also responsible for supplemental documentation including:
- equipment off-campus forms
- untaggable record files
- Stanford equipment loan forms
- government transfer/movement forms
Supplemental forms are considered a part of the complete property record for the asset, and as such should be kept up to date and readily accessible.
7. Untaggable Records
Untaggable records are created and maintained for items that are physically incapable of holding a barcode property tag (i.e. due to size, shape, environment, etc.). They are also used for equipment that is inaccessible, inside another piece of equipment or in cases where the equipment would be damaged if a barcode tag were affixed.
A SFA record is created for an untaggable asset, and the tag is affixed to a printed copy of the SFA record. The printed records must be routinely reviewed and updated, and kept on file by the DPA for review by the PMO or Internal Audit & Institutional Compliance (IAIC) department upon request.
8. Stanford Equipment Loan Forms
A. Outgoing
Equipment being loaned to other institutions requires an equipment loan form to authorize and document the equipment, the borrowing entity, the purpose and other specific terms and conditions of the loan. All loans must have demonstrable benefit to Stanford, and require PMO approval.
B. Incoming
For equipment items being loaned to Stanford, please see Acquisitions in chapter 2.5.
9. Government Transfer and Movement Forms
Unless otherwise specified in the accountable contract, a Standard Form DD1149 is used for movement (shipping/receiving) of government owned equipment when it is used off-campus. A DD1149 can also be used to document a transfer of accountability from one contract to another, or a final delivery.
A Standard Form DD250 is used for final deliverables on federal contracts.
Call your PSR for additional information as needed.
10. Equipment Off-Campus Forms
Off-Campus Equipment Verification Worksheet forms are required for any non-federally owned capital asset that is housed in a location not listed in the Stanford Space Inventory (iSpace) system. This includes private residences, businesses, other institutions and remote sites. It is highly recommended that the form be used for non-capital equipment that is off campus as well.
The form can be filled out by the official custodian or the Department Property Administrator (DPA), but must be signed by the custodian. The DPA must verify and initial the form and maintain a copy in the department’s property management files. The document must be verified, updated as needed and re-initialed annually by the DPA. Specific instructions are included on-line with the form.
Note: The official custodian is the Stanford University employee who is responsible for the equipment. If the item is federally-funded, the Principal Investigator (PI) should be listed as the custodian.
11. Record Transfers
Equipment records are associated with a single accountable department within the Sunflower system. When equipment transfers from one department to another, the accountable department in the SFA record must be updated by a PSR in the PMO. Once the transfer is complete, the DPA of the receiving department is responsible for updating the location and custodian as needed.
12. Maintaining Asset Location Information
Maintaining accurate location information for capital assets is important for several reasons. The location of an asset has implications in the following areas:
- Indirect cost recovery
- Use
- Audit
- Inventory
- Compliance
It is, therefore, very important that the correct location information for an asset be accurately maintained in the property record. It is very common for an asset to change location to meet the needs of research, instruction and other university activities. A location change of less than 30 days is considered temporary. If the location of an asset will change for more than 30 days, it is considered a permanent change, and the new location must be updated in the Sunflower property record.
For items with frequent movement (e.g. checkout laptops, projectors, etc.) a sign-out log should be maintained by the department owning the asset.
If an asset is located off-campus in non-Stanford space (at a business or a private residence, for example) an Off-Campus Verification Worksheet must be completed and signed by the custodian per instructions with the form. See the section on Equipment Off-Campus Forms earlier in this chapter for more information.
The asset location is recorded in the Sunflower property record by entering the complete quad/building/floor/room as listed in the university space registry (iSpace) for Stanford locations. There are also specific quad/building/floor/room designations to enter in the record for assets located off campus and overseas. The Sunflower database contains a list of values from which to choose the correct information.
See the Sunflower User Guides in Section 5.1 for creating and maintaining records for more information and instructions on entering and updating location information in the Sunflower property record.
13. Vehicle Records
All vehicles, including golf carts, are to be recorded in the Sunflower (SFA) property management database. The Fleet Garage will place the Stanford barcode tag on the vehicle. It is the responsibility of the owning department DPA to create and maintain the property record in Sunflower.
For vehicles, use the main administrative office of your department as the location on the record. Enter the Vehicle ID #, assigned by the Fleet Garage, into the appropriate field in SFA.
14. Record Retention
Property records should be kept on file by departments and central offices per the University policy for records retention as specified in Administrative Guide Memo 3.1.5. Retention policies apply to on-line records such as SFA and Oracle FA as well as all associated and supplemental paper records.
3.4 Physical Inventory
A physical inventory is performed in accordance with University policy and Sponsor compliance requirements. At a minimum, the process includes a physical sighting or other approved method of verification to confirm the existence, location, department, project accountability, and use status of equipment.
In general, inventory results are indicators of the overall effectiveness and level of compliance with property management processes and controls. Inventory results confirm the accuracy of the property records and are used as the basis for financial, stewardship, and compliance reporting. Results confirm what may be considered as a best practice or may be used to identify areas of potential improvement.
1. Key Policy Statements
- A campus-wide inventory is performed on a biennial basis; more frequent inventory events may occur depending on the terms and conditions of the accountable sponsored project or other identified risk.
- Asset accountability is at the department level, with additional stewardship responsibilities at the custodian or user level.
- To ensure separation of duties, the primary inventory verification is performed by the Property Management Office (PMO), with reconciliation of exceptions done by departments.
- The Sunflower (SFA) property management database is used as the data source and system of record for equipment for physical inventory activity
2. Inventory Performance Goal
Departments are required to meet a performance goal of 98% (100% for sponsor owned) which conforms to current industry standards for property management.
Departments not meeting inventory performance goals may be required to submit a corrective action plan to PMO.
3. Inventory Frequency
A biennial physical inventory is performed on a cyclical basis at Stanford. Circumstances which may warrant more frequent inventories include:
- Award close-out or termination
- Terms and conditions of a sponsored project
- Results of a prior inventory
- Changes in level of departmental compliance
- Large organizational changes
- Emergency response or support
- Other identified risks
4. Inventory Baseline
At a minimum, the assets included in an inventory baseline are comprised of the following asset groupings for which the University is responsible and accountable, regardless of their physical location:
- Stanford-owned capital assets
- Government or other Sponsor-owned equipment and material (regardless of cost)
- Leased equipment
- Equipment on loan to the University
- Designated sensitive property
Other assets, such as Stanford-owned non-capital equipment, may be identified and recorded in the SFA property management database. Such assets, if encountered during the verification process, may be scanned but are not included in the baseline results of the biennial inventory.
Special inventories are performed as needed. Assets included in the baseline for a particular event will be based on the circumstances leading to the requirement for performing the inventory.
5. Physical Inventory Planning, Preparation and Scheduling
PMO is responsible for the development and implementation of the biennial inventory schedule. Prior to each inventory, communications occur with each department involved to confirm details including:
- Schedule
- Key personnel
- Area escorts and access
- Asset baseline
- Space to be included in walkthrough
- Verification and reconciliation expectations
- Documentation requirements
- Inventory event communications
- Additional considerations as needed
Critical factors contributing to the success of an inventory include:
- Visible management advocacy of property administration requirements
- Department-wide understanding of property management processes and performance goals
- Timely and effective interaction with the Department Property Administrator (DPA) by all personnel
- Accurate and timely record-keeping by DPA
- Completion of the steps included in the Pre-Inventory Checklist
Inventory Schedule Changes
The Biennial Physical Inventory schedule is developed by PMO in collaboration with the designated Department Property Administrator (DPA).
A primary objective in scheduling is to maintain approximately a 2-year interval between inventory events for a given area/department; however, we strive to support the needs and availability of departmental staff.
Should a schedule change be required, please contact PMO at (650)723-1735.
6. Key Roles and Responsibilities
Property Management Office
- Establish policy, procedure, performance criteria, and process implementation
- Define inventory schedule
- Conduct initial scanning event
- Provide interim, reconciliation and final reports
- Review and approve inventory adjustments
Department Management
- Ensure adequate resources are available to support inventory event
- Disseminate inventory information to maximize staff participation
- Support ongoing property management awareness and compliance
Principal Investigator (For equipment accountable to sponsored projects)
- Ensure assets are accessible for inventory verification
- Maintain ongoing communication with the DPA regarding property activities and record updates
- Assist in subcontractor communication, as needed
- Provide assistance to DPA during reconciliation
Department Property Administrator
- Ensure property is tagged and records are current, complete, and accurate
- Provide adequate escort and access during scanning and reconciliation activities
- Provide documentation for untaggable and off-campus assets, including those in storage
- Research and provide resolution for unfound assets within reconciliation period
Asset Custodian
- Assist the DPA as needed during inventory scanning and the reconciliation periods
7. Verification and Data Collection
Methodology
The majority of assets are verified during the inventory via one of the following three methods:
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Wall to wall physical verification
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Searching each room of a building for all assets within
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Inventory by exception
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Substantiating asset via pre-defined alternate method (e.g. maintenance or calibration record, transfer documents, network pinging report)
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Attestation with sample verification
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Used in low volume, low risk areas only
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Selecting and verifying a random sample from a listing which an authorized department representative provided as confirmation of inventory
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Wall to wall verification is the primary method used for physical inventory. Inventory by exception and sample inventories may be used for special situations and require the prior approval of the Director of the Property Management Office.
Technology/Data Gathering
For the majority of assets, barcode technology is used to record the equipment location and verify the following data elements:
- Stanford ID number (SU barcode number)
- Description
- Location
- Manufacturer Name
- Model Number
- Serial Number
- General Use Status
- General Asset Condition
- Other data elements as needed or specified in the biennial inventory plan
Each asset physically verified during the inventory is marked with an inventory decal identifying the current inventory cycle. Missing or damaged ID tags may be identified and replaced as needed.
The Sunflower property management database is updated to correct inaccurate data which is discovered during the physical inventory scanning and verification process.
Asset Record History
The Sunflower asset record for each item included in an inventory baseline has an inventory event recorded in its transaction summary and history. The posting will include an inventory resolution type and inventory date.
8. Special Circumstances
In addition to the verification methods stated above, the following special circumstances may require alternate inventory protocols:
Untaggable Assets
Untaggable assets (As defined in Section 3.2– Identification) are inventoried using sampling methodology.
Department Property Administrators (DPA's) are expected to provide the Inventory team with current copies of the required supporting documentation (e.g. “Untaggable Binder”) for all untaggable assets in their department(s).
Off–Campus Assets
Assets may be located off-campus and inaccessible for physical verification. Such circumstances include:
- Items in use at a subcontractor facility
- Items approved for use at a residential location of a University employee
- Items in use at an alternate business/work location
- Items out for repair
Generally, for verification of an item that is inaccessible due to an off-campus location, the DPA is expected to provide the Inventory Group with a copy of a current (updated within the last 12 months) Off Campus Equipment Verification Form. This document serves to verify the current asset status. Periodically, the custodian may be required to return the item(s) to campus for physical verification.
Government Owned or Furnished Property at Subcontractor Facility
Government-owned or Government furnished equipment at a subcontractor’s facility for which Stanford is accountable may have specific inventory requirements per the terms and conditions of the accountable award. PMO will work closely with the PI and the subcontractor to ensure the inventory is completed, reconciled, and reported.
Items in Storage
Stored equipment may or may not be located on campus. Items in storage on campus can usually be inventoried during the wall to wall physical scanning and verification of a department’s assets. On-campus assets that are inaccessible (i.e. packed or crated) should have an accompanying listing verifying the contents of each storage container for use as an attestation. Sampling verification may be used as needed.
Equipment stored off campus should be documented as an off campus asset, and inventoried as such. Refer to Section 3.3, Records regarding the proper documentation and accounting for equipment stored off-campus.
Particular attention should be paid by the DPA to verify that the status of the equipment is correctly annotated as “Inactive” while the item is in storage.
Cannibalized Assets
Cannibalized assets should be immediately identified as such and the record retired from the system.
Fabrications - Work in Process
Until completed, fabrications are not considered capital equipment; they are work-in-process (WIP). This includes components that exceed the capital threshold, which have been clearly identified as fabrication components. Unless otherwise specified in the agreement terms and conditions, WIP is not included in the biennial physical inventory.
9. Material Inventories
Material that is Government-owned or Furnished (GFM) and is accountable to a sponsored project is inventoried biennially and/or per the terms and conditions of the sponsored award.
Material items are not usually bar coded. Quantities are verified in a method appropriate to the type of material. The inventory of GFM is limited to the balance on hand items as reflected in the Material Tracking Database (See Section 3.3 – Records).
10. Reconciliation and Reporting
Reconciliation Period
After the initial sweep of an area by the inventory team, preliminary results are provided to the DPA and the department’s management, usually within 5 working days. The preliminary results indicate progress to date and identify items still to be located. This hand-off initiates the start of the reconciliation period.
Reconciliation periods vary based on the number of assets in a department. The specific timeframe will be communicated to the department prior to the start of the inventory. Departments should plan to have personnel available through the completion of the inventory and reconciliation, to identify, locate or otherwise account for unfound equipment. As unfound items are located, the DPA should contact the Inventory group to arrange for the items to be scanned. Documenting extraordinary circumstances requires prior approval from the PSR and the Inventory Manager in order to resolve the inventory discrepancy.
Interim Reporting
At the end of each department’s reconciliation period, a report detailing final results of the inventory will be generated by PMO and sent to the DPA and higher management as applicable.
Corrective Actions
Departments not meeting the inventory performance goals will be required to submit a corrective action plan, outlining in detail the steps they will take to improve performance in subsequent cycles going forward. Failure by a department to successfully meet the inventory performance goal may also result in a department’s physical inventory being performed more frequently than every two years.
11. Final Reporting and Financial Adjustments
At the conclusion of the two-year cycle, items not located will be declared unaccounted in the SFA property management database. Overall University results are analyzed and final reports generated. Inventory results of government-owned property are provided to the cognizant sponsor representatives per the terms of each accountable agreement.
Should Government-owned assets remain unaccounted at the conclusion of the inventory period the Sponsor will be notified. A corrective action plan is submitted with a request for relief of accountability in compliance with Federal Acquisition Regulations (FAR) regulations and terms and conditions of the award. If a Government-owned asset reported as unfound is later located, the sponsor will be notified and the property record reactivated. Adjustments to the property record will be made in accordance with Sponsor directives.
Non-federal Sponsor-owned assets not located during the inventory cycle are reported to the Sponsor as required by the terms and conditions of the award.
Stanford-owned items not found for two consecutive cycles will be evaluated for potential write-off. Financial adjustments are recorded in the SFA and Oracle Fixed Asset systems.
12. Special Inventories
Location Updates
Location inventories are usually independent of the biennial physical inventory. Moves of equipment into or out of labs, administrative areas, etc. necessitate updating the location information in the SFA property management database. For large moves, a “Location Inventory” is an expeditious method to update the records with the new location. This will help to ensure that equipment affected by the move has been accounted for.
Contact your PSR to arrange a location inventory.
Contract Closeout
A final physical inventory of the equipment accountable to a sponsored award and associated subawards is often required as part of the contract closeout process. These inventories are conducted on an award by award basis at the end of the award period, or as required by the terms and conditions of the sponsoring agency. All accountable property, regardless of location, must be included. The results are reported to the sponsoring agency as specified by the terms of the award.
Contract Terminations
Per Federal Acquisition Regulations (FAR) 52.245-1.f. (iv), a complete inventory of equipment or material accountable to the contract is usually required if a contract is terminated before the end of the performance period. Contract terminations are time-sensitive. Contact your PSR as soon as the issue arises.
Subcontracts
Government-owned property at sub-contractor facilities, for which Stanford University is ultimately accountable, is also subject to physical inventory. Sub-contractor physical inventories are performed biennially or as required by the terms and conditions of the sponsored award. The subcontractor provides signed attestation as to the accountable property in their possession. The attestation information is subsequently reported by PMO to the Sponsor as required.
3.5 Use and Maintenance
Stanford University acquires significant amounts of equipment every year, through purchasing, gifts, loans, leases, or other means. Every member of the Stanford community has an interest and responsibility in the use and care of the University’s assets.
Proper stewardship in the areas of utilization, maintenance, calibration, storage, and movement of equipment will ultimately reduce cost and losses, maximize the useful life of the assets and demonstrate compliance to Sponsor and University requirements for proper treatment and protection of equipment.
1. Key Policy Statements
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Equipment should only be used for its intended purpose in the furtherance of Stanford activities.
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Equipment should be maintained or calibrated in accordance with manufacturer’s specifications.
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Use of personally-owned property on campus should be avoided.
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Off-campus use or storage of equipment must be properly documented.
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When Stanford-owned property is no longer needed, functional equipment should be offered to other Stanford departments for reuse.
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Sponsor-funded equipment must be utilized in accordance with the terms of the accountable agreement or otherwise declared excess for reutilization.
2. Utilization
Equipment and other property at Stanford should only be used in direct support of University activities (education, research, operations, administration), whether it is on or off campus. Every effort must be made to maximize the benefit derived throughout the useful life of the asset.
Optimally, only University or Sponsor owned property, or assets for which Stanford is accountable should be on campus. Utilization of personally-owned property within the workplace is discouraged. In those instances where personally owned equipment is present on campus, the owner is responsible and liable for their property.
Property for which Stanford is accountable, regardless of ownership, should be protected and secured. Reasonable efforts must be made to prevent loss, damage, destruction, or theft (LDDT). Incidents of LDDT should be reported to the Risk Management Department and PMO as soon as discovered. In cases of theft, a police report must be filed with the Stanford University Department of Public Safety (SUDPS).
3. Use & Maintenance of Vehicles
All vehicle maintenance should be done by the Fleet Garage. Written pre-approval from the fleet Garage Manager must be obtained prior to any off campus maintenance. Contact the Fleet Garage prior to arranging for servicing.
Vehicle use is governed by additional rules as outlined in Administrative Guide 8.4.1, Vehicle Acquisition, Ownership and Disposition and Administrative Guide 8.4.2, Vehicle Use.
4. Movement
Research, instruction, and other university activities often require frequent changes in the location of equipment. If the duration of the move is less than thirty (30) days, the move is considered temporary. Location changes lasting thirty (30) days or longer are considered permanent. For permanent location changes the Sunflower (SFA) property management database must be updated to reflect the new location. Equipment that is being moved to an off campus location also requires the completion of an Off-Campus Equipment Verification Worksheet in addition to the SFA updates. See the section on Off- Campus Assets later in this chapter for more information. For temporary moves, the use of a sign-out log may serve as sufficient documentation. See Section 3.3 (Records) for more detailed information
Movement of equipment outside of the U.S. may require export control documentation. Refer to Stanford’s Export Control website for additional information.
5. Storage
Storage of property is coordinated through the Department Property Administrator (DPA). The DPA is available to provide guidance and assist in the documentation of the storage activity. Adequate protection during storage is required to prevent loss, damage, destruction, or theft of the property.
Short-term (6 months or less) or long-term storage may be required at varying times during the life of an asset. Storage of items should be justified to minimize unnecessary retention. Items in storage should be periodically reviewed by designated department personnel for continued retention. If no longer needed, the items should be made available for reutilization or processed as excess for disposal.
The storage of items must be documented, including the update of the Sunflower (SFA) property management database to reflect the storage location and inactive status. Items stored off-campus are documented using an Off-Campus Equipment Verification Worksheet. When the assets return to use, the records should be updated accordingly.
Stored equipment must be accounted for during the University’s biennial equipment physical inventory cycle. During a department’s inventory period, the DPA should submit appropriately signed and updated copies of the Off-Campus Equipment Verification Worksheet. The forms will serve to verify and account for the stored equipment for inventory purposes.
6. Unneeded or Unused Property
Periodic reviews of their accountable equipment by department personnel are a key to ensuring maximum utilization and control of University and Sponsor owned assets. It greatly facilitates the physical inventory process and successful completion of audits. In addition, it provides opportunity to identify unneeded assets to expedite timely reuse or disposal.
The funding source, title, and agreement terms and conditions define the utilization options for equipment that is no longer needed by the accountable department.
Functional Stanford owned equipment purchased with unrestricted Stanford funds should first be offered to other departments when no longer needed. This can be done via the Stanford University Reuse Website. If another department has no need for the equipment, or the equipment is non-functional, an excess request is generated by the DPA. Excess items are processed for disposal through the PMO protocols for excess equipment. See section 4.2 for additional information.
When Stanford owned property funded by non-government sponsors is no longer needed on the project for which it was acquired or provided, it must first be made available for possible use on other sponsored projects. This may occur prior to or on the scheduled end date of the overall project. When the project has concluded, all property acquired with the project’s funds should be made available for use elsewhere, whether on similar projects in the same department, or if not needed there, it should be offered to the rest of the campus via the Stanford University Reuse Website. Contact your Property Service Representative (PSR) for additional guidance.
Government owned equipment, regardless of condition or functionality, must have prior government approval for reuse or disposal. Contact your PSR for guidance regarding unneeded government owned equipment.
Unneeded equipment that has been declared excess will be picked up by the PMO and processed for eventual sale by Surplus Property Sales (SPS) or for recycling as scrap. See section 4.2, for more information.
7. Inter-Department Transfers
When no longer needed by a department, functional equipment may be offered to other departments for use. In some cases, this may be in connection with compensation in the form of a fund transfer (sometimes referred to as an interdepartmental “sale”). If so, a journal is created to move the funds. The accounts used in the transaction must be unrestricted Stanford funds, and the Expenditure type (ET) 58510 should be used.
For a capital asset transfer, where a property record is involved, assistance from the PMO is necessary to have the property record(s) updated to reflect the new department stewardship.
Assets acquired on a sponsored project that is still active may require additional clearances before they can be transferred. Particular care should be taken with assets acquired on Federal contracts. Please seek assistance from your PSR to ensure these clearances are properly obtained.
8. Computer Transfers
Computers require additional steps and processes when transferring between departments. There are restrictions on data that can transfer with the computer. Restricted data must be removed whenever a computer is transferring from one user to another within a department, or when transferring between departments. Please see Administrative Guide 6.3.1 Information Security, for additional information. Contact your local DPA or the PMO for details and current requirements.
9. Off-Campus Assets
Occasionally, an asset may need to be taken to a non-Stanford location in furtherance of research or other university activities. In such cases, the removal of the asset from the campus for more than 30 days must be recorded using the Off-Campus Equipment Verification Worksheet and the location data changed in the SFA property management database to reflect off-campus status. A signed copy of this document must be kept on file by the local DPA and the signature must be updated annually. (This update may be performed via email for convenience). Copies of the off-campus worksheets must be provided to the Inventory team during the biennial inventory.
When an asset is frequently removed from campus for short periods of time, such as projectors or departmental ‘check-out’ laptop computers, a supplemental log should be established by the custodian and used to record when the item is checked out and subsequently returned.
10. Maintenance and Calibration
Departments are responsible for the performance of maintenance and/or calibration of all property for which they are accountable. It must be performed in accordance with the manufacturer’s specifications or as needed. Records of maintenance or calibration events are maintained by the department throughout the life of the asset.
Maintenance and calibration may be suspended on items while in storage. Prior to being returned to active use, any necessary maintenance or calibration must be completed.
3.6 Security
Each member of the Stanford community has a general obligation to safeguard and make appropriate use of university and sponsor-owned property and equipment either assigned for individual use or part of a common area. Each department must ensure that there are reasonable security measures implemented in their areas to prevent theft, damage, or misuse of equipment.
1. Physical Security
The Department Property Administrator (DPA) must play an integral role relative to these issues. This includes, but is not limited to:
- Exercising reasonable care in use to prevent damage and maintain in good condition
- Provide adequate protection for equipment during movement, storage or while being used
- Ensure that equipment is properly stored and secured when not in use
- Do not commingle equipment in a manner that would pose a risk, i.e. equipment/flammable supplies
- Segregate government-owned property where feasible
- Where specialized security is necessary, ensure access is controlled and limited
- Ensure staff, faculty, and students and other personnel accessing the area are aware of your security requirements
- Challenge unknown or suspicious persons in your area
- Exercising reasonable security measures to prevent theft or misuse
- Reporting lost, stolen, damaged, or impaired property to appropriate individuals, including but not limited to a direct supervisor or common area manager, and notifying the appropriate property administrator of capital equipment/property moved to a different location
2. Online Systems Security
Stanford uses an authorization [WebAuth] to grant authorized employees access to on-line applications. Specific levels of access within applications are defined by roles assigned with the Authority Manager. Roles within the Sunflower Assets application used for property management are granted by the Property Management Office. Login IDs and passwords for any Stanford system are to be used only by the individual to which they are assigned. Refer to the Administrative Guide Memo 6.3.1, Information Security for additional Stanford Policy. Upon termination of employment with Stanford, access to on-line systems is discontinued.
When you are finished using secure Stanford websites (such as Oracle Financials, Stanford Mailing List Services, pages with employee confidential information, etc.) be sure to quit the browser or logoff. If you don’t, people subsequently using your computer will be able to use the browser program to go to those websites, and the websites will treat that person as you, giving that person access to Stanford’s and your web assets. You are responsible for preventing this type of “identity theft”, and the best way to do it is to quit the browser program when you are finished with it, or lock your computer if you need to leave your computer but aren’t through with the browser. Please contact HelpSU if you need assistance with access or information on Stanford-secure websites.
3. Departmental or Area Security
Access to departmental areas is generally available to Stanford employees and visitors. Each department is responsible for determining and implementing adequate access restrictions within their respective areas as needed to ensure the safeguarding of assets, data, or personnel.
4. Custody and Return of Property by Departing Employees
Each DPA should periodically review the “Custodian” field in Sunflower Assets (SFA), for assets under their responsibility, to verify all custodians are current Stanford employees. It is recommended that this occur at least annually. Each department is responsible for establishing a standard departure process for terminating employees. Custody for any assets assigned to a terminating employee should be transferred to another custodian.
If an employee departs the University prior to accounting for all their assigned property, the DPA should contact their Human Resources (HR) representative and inform PMO. When the employee returns the equipment, the department manager or HR representative should notify the DPA so the SFA records can be updated. The annual update of off campus equipment forms is a good review. This review should also be performed, and applicable forms and records updated when employees transfer between Stanford departments. Equipment belonging to one department should be returned prior to any new equipment from another department being distributed. Again, work with your personnel manager and DPAs in other departments to ensure records are kept up to date.
3.7 Agreement Management
1. Overview
Grants, contracts, and other types of agreements are awarded to Stanford University to support research, instruction, clinical trials and other endeavors. The sponsorship and funding for these awards comes from many entities including Federal and State agencies, commercial contractors, foundations, peer institutions, and others; both foreign and domestic.
The specific terms and conditions within each award determine the financial, stewardship, and administrative requirements for property management. Compliance with these requirements has a direct impact on audit results, minimizes risk to Stanford and our Sponsors, and helps ensure ongoing approved status of our property management processes and systems.
2. Key Policy Statements
Property management activities are performed in accordance with the terms and conditions of the award; if contradictions arise between University policies, procedures, and the award – the terms of the award shall supersede.
PMO serves as the subject matter expert regarding property management policies, procedures, and administrative processes.
Contractually-required property management reports are prepared and submitted by PMO to the Sponsor(s) or designated cognizant officer.
3. Agreement Lifecycle and Property
The Notice of Award (NOA) provided by the Office of Sponsored Research (OSR) informs the Property Management Office (PMO) of the receipt of an award. The Principal Investigator (PI) and PMO, among others, should carefully review all details of the award, such as budget, any unilateral changes the agency made, terms and conditions, reporting requirements, equipment budget, fabrication costs, hardware deliverables, sponsor furnished property, and period of performance. This is the most opportune time to get clarification on questionable issues from the sponsor, or get needed changes into the award.
OMB Circular A-110 defines Funding Period as, “the period of time when federal funding is available for obligation by the recipient.” This period of performance, is the time allocated to complete the project work and get reimbursed for directly related expenses. Equipment purchases are allowed, per the terms of the award, throughout the period of performance; however, acquisitions within the last 90 days of the project require written justification on how the specific acquisition will benefit the project. The justification, if not on the requisition, must be provided to PMO. See also OMB A-81, Uniform Guidance, Section 200.39-Period of Performance, for additional clarification.
Key property management processes that occur throughout the life of the award include the following; others may apply based on the terms of the agreement.
- Acquisition
- Receiving and Identification
- Records
- Physical Inventory
- Subcontractor Control
- Utilization and Maintenance
- Reports
- Disposition and/or Relief of Accountability
- Award Closeout
- Audit
4. Accountability and Stewardship
Established standards such as the OMB Circulars, OMB A-81 Uniform Guidance, the FAR, GAAP, internal policies and guidelines and Stanford’s Government Property Plan provide rules, regulations and guiding principles that effect accountability, stewardship, and liability.
Stanford University is responsible for ensuring appropriate stewardship of Sponsor owned or funded property per the terms and conditions of each agreement. Each award lays out the groundwork for how it is to be administered; should any conflict in requirement arise, the terms within the agreement will supersede.
5. Property Plan
Federal contracts require that Stanford and its subcontractors have a Property Plan. The purpose of the Plan is to ensure that the institution has implemented effective processes, policies and guidelines, which are measurable and that enable the control, preservation, protection and maintenance of government property. Detailed information on the requirement can be found within the Federal Acquisition Regulations, FAR 52.245(f)(1) (f) Contractor plans and systems. Within the Plan, Stanford may adopt industry leading practices and best business practices when controlling property, whether it belongs to Stanford or is sponsor owned.
6. Terms and Conditions
It is critical to read and understand the agreement in its entirety to determine which terms and conditions are relevant to property acquisition and management throughout the life of the award. The scope of work provides an overview of what the project entails and how the property is going to be used or whether it will be delivered to the sponsor.
For contracts, the Contract Deliverables Requirements List (CDRL) should identify items that are considered deliverables to the sponsor under the contract, including hardware, services, and reports. This section should also contain a delivery schedule including specifics as to how delivery and acceptance are to be handled for each deliverable item. Liability during shipping is an important issue. To minimize risk, it is critical to determine whether shipment is FOB origin or destination prior to the shipment occurring.
7. Identification of Equipment within the Agreement
Equipment needs are initially defined within the proposal for a grant or contract and are subsequently defined within the award. There are three primary sources for equipment used in support of a sponsored project. The most frequent at Stanford is to purchase equipment with sponsor funds; this is known as contractor acquired property (CAP). Other sources include the use of existing property or stating the need for sponsor (e.g. government) furnished property.
Funding for CAP is normally budgeted either in detail (contracts) or in summary. Grants may have re-budgeting authority to acquire equipment, so long as it’s within scope of work. For federal contracts where equipment was not in the original budget, prior authorization and internal/external screening is required before purchase.
Fabrications are normally identified as separate line items in the agreement budget. On grants, fabrications are usually Special Test Equipment (STE) and are generally not a final deliverable. Contracts may have fabrication deliverables that require shipments to the sponsor, or the sponsor’s designee.
If a sub-award is contemplated, a sub-award plan must be part of the negotiated agreement. The sub-award plan identifies the scope of work, period of performance and the terms and conditions the subcontractor must follow. Stanford University, as the upper tier contractor, is responsible for management and control of property at the subcontractor site.
8. Title and Associated Impact
Confirmation of equipment ownership (aka Title) at the time of acquisition is critical. Ownership will determine if a purchase transaction is taxable. It is also the key to identifying management and reporting requirements throughout the life of the award - including the closeout process – and subsequently defining disposal options.
Title to equipment provided by the Sponsor (e.g. government furnished property or GFP) remains with the Sponsor throughout the award period. At the time of disposition, a transfer of title to Stanford may be requested. Title transfers are requested by PMO with the appropriate Sponsor representative; if granted, records are adjusted accordingly. Title to equipment purchased by Stanford with Sponsor funds is based on the terms of conditions of the funding award.
Additional details regarding title and taxability can be found in the Acquisition chapter.
9. Equipment Fabrications
Fabrications are complex, not commercially available items, configured and built by Stanford University personnel. Federal sponsoring agencies often refer to these as Special Test Equipment (STE) or Special Tooling (ST).
Equipment fabrications may be Stanford or Sponsor funded. They have specific requirements for acquisition, accounting, tracking, capitalization, and reporting processes.
Refer to the Fabrications chapter of this manual for definitions, policy, financial and administrative guidance on equipment fabrications.
10. Subaward Management
PMO reviews sub-awards issued by Stanford to ensure proper flow-down of property management regulations and policies. Appropriate flow down of requirements ensures compliance with the terms of the award and facilitates timely reporting and closeout.
Providing property to subcontractors is frequently done on large contracts. Property furnished to the subcontractor directly from the sponsor is accountable under the subcontract and is required to be identified in both the prime contract and subcontract. The movement of property provided by Stanford to the subcontractor is documented using a DD Form 1149.
Oversight of property requirements is performed by the PMO. For large, complex projects, or those where the subcontractor’s policies and procedures are proprietary, PMO may request oversight assistance from the Office of Naval Research (ONR) or the Government Property Administrator. This delegation request us usually limited to oversight of records, reports, and disposal of property.
11. Property Reports
Depending on the type of award and specific terms, various property reports may be required throughout life of an award as well as at the time of closeout. PMO is responsible for the preparation and submittal of all property reports to Sponsors.
Most common property reports include the following
- Annual property reports are typically required for federal contracts. All federal-owned property accountable under the contract, as of the end of September, is reported to the sponsor by October 12th. If a federal grant has government owned equipment, the same requirement as above apply to the grant.
- Physical Inventory reports are required at the conclusion of each scheduled inventory cycle as well as at the time of award closeout for federal contracts. Inventory reports may be required on grants. Information reported includes a rollup of subcontractor information.
- Loss, Damage, Destruction and Theft (LDDT) reports are a requirement for incidents associated with federally-owned property. PMO prepares LDDT reports which include a comprehensive accounting of the event and a corrective action plan provided by the department or PI that was responsible for the property.
- Termination of an award will prompt PMO to report all accountable property currently on hand to the sponsor, including property at subcontractor sites. PMO will send a Termination Property Report to the sponsor within 60 days after notice of termination, or within 60 days of the resolution of outstanding commitments.
Final Property Reports and Certificates of Closure are discussed in the Closeouts section below.
12. Closeouts
Closeout activities for agreements typically begin 30-60 days before the end of period of performance. On large, complex awards, it may begin substantially earlier and require substantial interaction between PMO, the Principal Investigator (PI) and Research Administrator, the Department Property Administrator (DPA), our Office of Sponsored Research (OSR), and the Sponsor.
The closeout process ensures that contractual requirements have been met and any remaining property, accountable to a specific agreement, is properly disposed. PMO will obtain disposition instructions from Sponsors as needed. Closeout of any open sub-awards associated with a grant or contract must also occur during this period.
PMO is responsible for the final reconciliation and preparation of sponsor reports or certificates of completion. Reconciliation of purchased equipment as well as sponsor-furnished equipment is completed per the terms of the agreement. A physical verification of government-owned property will occur at the time of closeout.
13. Audits
Property related transactions associated with sponsored projects are subject to audit. The PMO serves as primary liaison with auditors, both internal and external. Audit findings resulting in the need for corrective actions are coordinated by PMO.
3.8 Reporting
The Property Management Office (PMO) is responsible for authoring and filing the majority of financial and sponsor reports. They also ensure the reporting data is available for distributed users throughout campus.
Data for property reports is derived from various sources including Oracle financials (grants accounting, iProcurement, accounts payable, general ledger); Sunflower Assets (Web-based asset management system); PMO’s Material Tracking System (MTS) (a repository of data for government-owned material); and subcontractor reports.
In addition to the reports identified below, there is frequent need for additional reports. Content and format is clarified between the PMO and the requesting organization.
1. Certificates of Completion (General)
In cases where a specific sponsor form is not stated, terms of an agreement may require a general certification of completion. In such cases, PMO prepares a final letter citing completion of a final reconciliation which confirms the following:
- All accountable property has been disposed or transferred as authorized.
- Accountable records have been adjusted and reflect zero balance.
2. DOE Form 4300.3 – Semi Annual Summary Report of DOE-owned Plant and Capital Equipment
Data on this financial report reflects balances as of February 28 and August 31 of each year. Reports are submitted to the cognizant property administrator, and are due not later than 45 days after the end of the reporting period and again at the completion of the contract.
3. Grant or Contract Closure Report (Certificate of Completion)
A grant or contract closure report is the final property management report prepared for a sponsored project. They are primarily used for contracts, but may also be required by the sponsor on grants or other types of agreements. When sponsors require a specific format, it is defined in the terms and conditions of the agreement. In cases where no specific format or content is defined, PMO prepares a final letter certifying the completion of the agreement. In either instance, the intent of the report is to certify that all accountable property has been disposed or transferred as authorized and the associated property records have been adjusted to reflect a zero balance.
4. IRS Form 8282 – Donee Information Return
This form has limited use by Stanford as it pertains to donated equipment. It is used, if required by the terms or type of equipment donation, to report information to the IRS about the disposition of certain charitable deduction property when the property was disposed of within 3 years of the donor having contributed the property to the university. When needed, PMO prepares the IRS 8282. It is completed in accordance with the Department of the Treasury, Internal Revenue Service instructions. The Director of PMO and the University Tax Director are authorized to sign these forms on behalf of the University; departmental personnel or faculty have not been delegated this authority.
5. IRS Form 8283 – Non-Cash Charitable Contributions
The IRS form 8283 form is used to report information about non-cash charitable contributions made to Stanford University. Upon request from the donor, PMO prepares the IRS 8283 form for gifts of capital equipment. The forms are completed in accordance with IRS instructions. The Director of PMO and the University Tax Director are authorized to sign these forms on behalf of the University; departmental personnel or faculty have not been delegated this authority.
6. Listing of Accountable Property (General)
Based on the terms and conditions of the sponsored agreement, a listing of all property acquired during the period of performance may be required at its conclusion. This may include property to which Stanford or the sponsor holds title, depending on the requirements of the agreement.
Data on these reports reflect balances in one of the following manners:
- as of September 30
- as stated in the agreement
- the completion date of the agreement, whichever is first during the fiscal year being reported
7. Loss, Damage or Destruction Report
This report is used to notify the sponsor or appropriate university personnel of an incident which resulted in the loss, damage, or destruction of property.
If the items affected are government-owned property accountable to a federal contract, a report of notification is submitted to the cognizant property administrator. It is prepared in accordance with FAR52.245-5 or as otherwise stated in the terms of the agreement.
If the items affected are government-owned property accountable to a federal grant, a report of notification is submitted to the cognizant property administrator. It is prepared in accordance with OMB Circular A-110 Section 34(f)4, or as otherwise stated in the terms of the agreement.
If the items are owned by Stanford University, the report is prepared in accordance with PMO policies.
In all cases, incidents of loss, damage, or destruction shall be investigated and documented. Department or project management staff will ensure adequate measures are taken to mitigate future similar occurrences.
8. NASA 1018 – Report of Government–owned/Contractor-held Property
The NASA 1018 report is prepared for property accountable to NASA contracts, grants, or cooperative agreements in accordance with NASA FAR Supplement 1845.7101, as listed in the terms and conditions of each agreement. Additions, deletions, and changes of reporting categories, are based on transactions recorded in the property management system of record or as reported to Stanford by sub-recipients.
When applicable, submission is made using the NASA Electric Submission System (NESS). There are two primary schedules for submission: (1) Annual, for which the report data reflects balances as of September 30 and is submitted no later than October 15 or as otherwise directed by the cognizant administrative contracting officer or the sponsor; or (2) Quarterly, which would apply only in specific cases as cited in the accountable contract. The quarterly report is not applicable to grants or cooperative agreements. In both cases, negative reports are required.
If any changes to the data are discovered following submittal of the report, the cognizant administrative contracting officer or the sponsor are contacted to discuss the change (as appropriate) and reporting thereof.
9. Physical Inventory Reports
The physical inventory process utilizes various reports. The majority of reports are interim data for purposes of facilitating the physical inventory process and subsequent reconciliation.
Final results for each inventory event are reported to the University department to which the property is accountable. They are provided within 30 days of the completion of the reconciliation period.
Final inventory results for property accountable to sponsored projects are reported within 30 days of after the completion of the reconciliation period, unless otherwise required either by the Office of Naval Research or the sponsor. Almost exclusively, reports of physical inventory for property accountable to federal contracts are reported on an award-by-award basis. The content and format of sponsor inventory reports is defined by terms and conditions of the sponsored project or as defined by the designated administrative contracting officer for the project.
10. SF Form 1428 – Inventory Schedule “B”, Report of Excess Personal Property
This report provides a list of excess property on a contract-by-contract basis. By submitting the inventory schedules, Stanford is requesting disposition instructions for government-owned property from the cognizant property administrator or designee. Project personnel are responsible for identifying when government property is no longer needed by Stanford for use on the contract to which it is accountable, nor on any other sponsored project. Disposal instructions provided to PMO are communicated to the Department Property Administrator (DPA) who is responsible for ensuring they are acted upon in a timely manner. When they are completed, the property records are adjusted as needed.
11. 533 Financial Management Report
This financial management report is required by NASA. It may be required quarterly, monthly, or both per the terms of the agreement. The 533 is used primarily as a budget forecasting tool and is not intended to be used as a property management report.
The Office of Sponsored Research informs the project management personnel when this report is required. It is the responsibility of the project management personnel to define the steps used in preparing this report for each contract and to submit the report(s) to the sponsor in a timely manner. Data for the report is derived from the Stanford University financial systems.
12. Indirect Cost Negotiation Reports
PMO provides various property reports to the Cost and Management Analysis group with the Office of Research Financial Compliance and Services, for use in support of indirect cost negotiations for the university. Data for these reports may be derived from one or more of the data sources identified at the beginning of this chapter.
13. Additional Property Management Reports
Other routine reports, not previously discussed, are used in the course of day to day property management at Stanford. They are used in an as-needed, often ad-hoc basis to meet the needs of conducting general property management related business.
The most utilized reports are contained primarily in the Oracle Business Intelligence-Enterprise Edition (OBIEE) reporting system, as well as in the ReportMart 3 platform. Below is a list of the reports in each reporting platform:
OBIEE DPA Reports:
- FIN_PMO_286_DPA_Comprehensive_Report
- FIN_PMO_288_DPA_Unmatched_Report
- FIN_PMO_292_Equipment_Depreciation_Forecast_Report
- FIN_PMO_294_Stanford Equipment Record
- FIN_PMO_296_Award_Management_Report
ReportMart 3 Reports:
- FIN_PMO_196_CEET (Capital Equipment Expenditure Transactions) Report
- FIN_PMO_198_Fabrication_Exp Report
- FIN_PMO_199_Non_Capital_Exp Report
For instructions in accessing OBIEE reports, refer to the OBIEE Tutorial in Section 5.1 of the Property Management Manual. Instructions for ReportMart 3 reports can be found in the Help files that are affiliated with each report number listed.
The Sunflower property management database also has a menu of various reports that are used for day to day property management functions. Instructions for Sunflower reports can be found in the Sunflower User Guides: Reporting in Sunflower and Exporting Reports to Excel.
3.9 Property Audits
Property management systems, policies, and processes are routinely reviewed and audited to determine whether established performance standards and acceptable levels of compliance are being met.
Audits provide a systemic check or assessment, review, and evaluation of Stanford’s property control system. Results serve as a basis to confirm effectiveness and identify areas for potential improvement and risk management. The key to an acceptable property management system and a successful audit is timely, verifiable, accurate, and complete record keeping that are in compliance with all established policies, procedures, and standards.
Satisfactory audit results are critical. Compliance with University and Sponsor requirements help ensure ongoing availability of assets and maximize the benefits and support to University instruction, research, and administration. Departments are responsible for facilitating ongoing property awareness and enabling compliance with established policies and procedures.
1. Key Policy Statements
- Property Management Office (PMO) is the primary liaison for property related audits.
- Departments are responsible for facilitating ongoing property awareness and enabling compliance with established policies and procedures.
- All external audits must be coordinated through the Internal Audit and Institutional Compliance (IAIC) department.
- Departments should notify PMO if they are directly contacted by an external auditor for a property related audit.
- Departments are responsible for providing and maintaining documentation as necessary for audit support.
- A Department Property Administrator (DPA) should attend all relevant ongoing training to remain aware of property compliance requirements.
2. Auditing Organizations
Various organizations, both internal and external, perform or participate in the performance of property audits at Stanford. These include but are not limited to:
- Stanford IAIC Department
- Office of Naval Research (ONR)
- Defense Contract Audit Agency (DCAA)
- Price Waterhouse Coopers (PWC), Stanford’s independent auditor
- Sponsors
- PMO Self-Assessment
It is Stanford University policy that all external audits be coordinated through the IAIC. However, PMO assumes the role of primary liaison between the University and the departments for property-related audits. If an outside agency contacts a DPA or other department personnel directly regarding an audit, refer the auditor to your Property Service Representative (PSR) within PMO for coordination.
When audits are scheduled, PMO will give as much advance notification to the department as possible. The DPA should be actively involved and may be requested to participate as an escort. They must be able to locate and identify property as requested by auditors and be able to provide supporting documentation upon request. If the DPA cannot provide these services, it is important that they inform the audit liaison of someone that can, such as a technical representative.
3. External Audits
The government and Stanford’s independent auditor, PWC, conduct broad, procedural, audits on a regular basis. These audits may be property-specific or include property-related transactions as part of other system audits.
The ONR is delegated administrative and contractual oversight for the majority of federal awards received by Stanford. They are the primary external auditing agency which conducts the Property Control Systems Analysis (PCSA) reviews on behalf of the government at Stanford. In addition, there may be other sponsors, such as Department of Energy (DoE) and National Institute of Health (NIH), which also conduct property audits. The DCAA also performs audits involving property management. PWC is responsible for the financial systems audits per OMB Circular A-133 requirements.
The purpose of these audits is to determine whether the policies and procedures which reflect government, other sponsor and Stanford requirements are documented, and established standards are met. Successful completion of these audits is critical to ensure appropriate systems controls are in place to mitigate financial or compliance risk as well as continued approval of Stanford's property management system.
4. Internal Audit by Stanford
As a proactive measure, Stanford’s IAIC Department is responsible for conducting audits to ensure system-wide database integrity and training efficacy as well as to confirm that detailed transactions are accurate and timely. IAIC, from an institutional compliance perspective, ensures that laws, regulations and contractual requirements are being met at all levels within the University.
The PMO may periodically conduct self assessments. Self assessments are necessary in order to determine whether PMO and the departments meet established standards for management of property; results are provided as part of the supporting documentation requested by external auditors. More information and general guidance about audits and institutional compliance can be found at IAIC’s Audit Survival Guide site.
5. Property Audit Scope
Property management audits review business process associated with all the facets of the asset life cycle. The scope and audit methodology are determined by the auditing team and is dependent on the purpose for which the audit is being performed. Within the scope of an audit, compliance with any or all of the following areas may be examined:
- property management policies and procedures
- property awareness and compliance with procedures and standards
- pre-purchase screening and approvals
- acquisition and procurement practices
- receiving and identification
- record completeness, accuracy and timeliness
- subcontract management
- physical inventory
- utilization of property
- property reports
- excess property disposal process
- award closeout
- availability and completeness of supporting documentation and records retention
- other facets of property management (i.e. maintenance of equipment and subcontractor property control, system and property security)
6. Audit Results
Throughout an audit, close interaction should occur between the auditor(s) and the designated Stanford liaison. Audit results are provided in writing and include a detailed report of the audit activity.
IAIC audit activities are coordinated directly with department management, usually with a courtesy copy to the PMO). IAIC also provides copies to PMO of audit results and requests for implementation of corrective actions that are related to property.
Audit findings and recommendations may require changes in policies and procedures or departmental practices. Responses are prepared by the PMO. A copy is provided to the IAIC. Creation and oversight of corrective action plans, where needed, are the responsibility of PMO. Departments having audit findings are notified and participation by key personnel is required to ensure satisfactory identification and implementation of corrective actions.
Key personnel, DPAs and their supervisors are informed of general changes via Property Forums, Email notifications and information posted on the PMO Website.
7. Record Retention
It is important that physical or electronic copies of essential property documents are saved and readily available to support audits and self assessment or other types of reviews. See Chapter 3.3 (Records) for additional information on record retention policies.
8. Audit Impact
Satisfactory audit results are critical. Compliance with University and Sponsor requirements facilitate the ongoing availability of assets for instruction, research, and administration. Effective property controls and management processes help ensure that new proposals and on-going research continue unimpeded and that the potential liability associated with risk of loss is minimized.
4. Excess
4.1 Re-Use
1. Overview
Re-utilization and re-purposing of property is a priority at Stanford. Items in operable condition that are no longer needed should be made available to all University departments via the Stanford University Reuse Website for potential reutilization (for Stanford business purposes only) and to help minimize unnecessary expenditures. In this way, the University maximizes the benefit of the items and saves costs of unnecessary duplicative purchases. Items posted and not re-utilized are subsequently declared excess and processed for disposition.
The Furniture Reutilization Program is an additional resource available to Stanford departments seeking to acquire or dispose of furniture. Details of this program and how to utilize its benefits are explained in a later section of this chapter.2. Reuse Website
The Stanford University Reuse Website is Stanford’s on-line mechanism for staff and faculty having a Stanford University Network ID (SUNet ID) to advertise usable items they no longer need and are willing to transfer to another department. Inter-departmental transfers are either for free or for compensation via a transfer of funds. For a transfer of funds, a journal is created to move the funds. The accounts used in the transaction must be unrestricted Stanford funds, and the Expenditure type (ET) 58510 should be used for both the debit and the credit lines of the journal.
Departments can also create a wanted posting for items they need. In addition to capital equipment, individuals may also want to post non-capital items or supplies (e.g.): furniture, toner cartridges, older computer equipment, scientific equipment, etc). Items acquired through the Stanford University Reuse Website can only be used by Stanford departments for use in University business. The website and the items acquired cannot be used for personal purposes.
3. Furniture Re-utilization Program
Stanford’s Furniture Reutilization Program, lead by the Property Management Office (PMO), is a collaborative effort including the Department of Project Management (DPM), Business Affairs and the Office of Sustainability & Energy Management (SEM). This program provides a resource to departments allowing expedient availability, cost savings and opportunities to acquire or upgrade furniture while reducing needless waste and landfill. Additional information about the program and how to utilize its benefits follow.
Program Overview
The furniture reutilization program is a means by which departments can obtain furniture at no cost, other than the costs involved in transporting it to the location in need. Departments or projects with excess furniture are encouraged to make the items available for the program. The program maintains a warehouse in Menlo Park, where furniture is stored until needed. Furniture in the program is for Stanford business use only, and may not be relocated to private business or residential locations.
Please note that items located at the on-campus Surplus Sales store are not included in this program – departments are welcome to purchase furniture at the store, if that is more convenient, but the free reutilization furniture is only available at the warehouse.
Obtaining Furniture for your Office
If you are interested in obtaining furniture for your office, contact Jimmy Baca (650) 996-0574, to make an appointment to go to the Menlo Park Warehouse. The warehouse is not a manned facility. Visits are by appointment only, and may require scheduling well in advance. Once you have selected the furniture, you must make arrangements to have the materials relocated to the campus location – this can be via the Labor Shop or by whatever alternative means can be arranged. The program does not have a delivery service. Please try to have the items relocated within two weeks, and be sure to coordinate with Jimmy Baca in making these arrangements, to ensure the scheduling is able to be accommodated. As noted above, this site is not staffed on a regular basis.
Excess Furniture Collection Process
When your department has furniture that is no longer needed, and you want it removed, please contact your Department Property Administrator (DPA) so they can process a request to have it collected. The furniture will be picked up and delivered to Surplus Property Sales or to Peninsula Sanitary Service Inc. (PSSI) depending on the condition of the items in question. The new Stanford Property Administration Resource Center (SPARC) system has an online request form to have the furniture removed to Surplus Sales. DPAs have access to the system (access is centrally controlled by the Property Management Office).
Large quantities of furniture may require the assistance of the Labor Shop (Event Services), in which case the department removing the furniture will be responsible for the associated costs of moving it to the warehouse.
Furniture in Sellable Condition
For small quantities of small furniture items, Surplus Sales picks up the furniture. This activity generally takes place on Tuesdays. They will transport the furniture to Surplus Property Sales, usually at no cost to the department. In these cases, it make take up to 4 weeks to have the items collected, so please plan ahead.
In the event that more immediate removal of furniture is required or if a department has a large quantity to be removed, please contact Jimmy Baca in PMO to make special scheduling arrangements for the removal. In such cases, the department may need to generate a work request with Event Services to coordinate the collection and delivery to Surplus Property Sales, and will incur the associated costs. An excess request is still required to be generated in SPARC in order for the labor request to be approved by PMO. Please try to arrange delivery to take place on Wednesdays, or contact Jimmy Baca in order to arrange for someone to be available to receive the items at the Surplus location.
Notes
For a No Cost pickup, the DPA should not generate a work order for labor: leave the work order field blank.
Surplus rarely accepts cubicle partitions and modular work surfaces. Please contact Surplus Sales ahead of time for specific instruction on these items.
Furniture To Be Scrapped
For furniture that should be scrapped (disposed of altogether) the DPA must create a work order for Event Services (ES) to collect it and deliver it to Peninsula Sanitary Service Inc. (PSSI). The DPA will also need to create a Customer Funded Work Request for PSSI to accept the material. ES will charge for the labor, and PSSI will charge for the dump fees. Both the ES work request number and the PSSI number are required in the SPARC excess request. (Neither ES nor PSSI will act on the request unless it has been submitted to and approved by PMO.)
Examples of Furniture That Should Be Scrapped
File cabinets that are damaged, missing handles, rusted, severely dented, or have inoperable drawers; desks with peeling laminates, inoperable drawers, broken or missing legs; chairs with torn fabric, heavily stained, broken or torn arms, missing wheels; furniture that is structurally compromised (falling apart). These types of items are not considered to be in sellable condition and should be sent to PSSI for disposal.
4.2 Disposition and Transfers
Disposition is the process by which property owned by or otherwise accountable to Stanford is permanently removed from active University records. When assets become excess to the needs of the University, or the sponsored project under which they were acquired, they must be declared excess and the disposition process initiated. Timeliness in beginning the disposition process is a key to maximizing return on investment while minimizing unnecessary costs associated with the retention and management of the asset. It also mitigates the risk of potential misuse, unauthorized disposition, or theft.
All property must be appropriately monitored once the disposition process begins, whether or not it has been recorded in the Sunflower (SFA) property management database. Sponsor-owned or Sponsor-funded equipment may require special handling during its disposition cycle. Refer to PM 3.7 - Agreements Management for additional details on this topic.
Department personnel must inform their Department Property Administrator (DPA) when assets are no longer needed. The DPA is responsible for preparing the excess items for disposal and initiating the excess request. The PMO approves and coordinates the physical collection and final disposition of all excess property from Stanford departments.
1. Key Policy Statements
- Department personnel are responsible to inform the DPA when items are no longer needed or require disposal. The DPA is then responsible to generate an excess request in a timely manner, and ensure items are protected and secured while disposition is pending.
- For items in operable condition, an attempt should be made to re-utilize within the University. See the Stanford University Reuse Website for details on reutilization for Stanford department use only.
- Non-Stanford owned equipment requires Sponsor approval prior to disposal.
- Prior to declaration of excess, departments are responsible for the removal of proprietary or sensitive data from all data-holding devices or equipment.
- Excess items must be processed for disposal via PMO procedures.
- Sales must be processed through Surplus Property Sales (SPS).
2. Monitoring and Notification
All property must be appropriately monitored once the disposition process begins, whether or not it has been recorded in the SFA property management database. Sponsor-owned or Sponsor-funded equipment may require special handling during its disposition cycle. Refer to PM 3.7 - Agreements Management.
Department personnel must inform their DPA when assets are no longer needed. The DPA is responsible for preparing the excess items for disposal and initiating the excess request. PMO approves and coordinates the physical collection and final disposition of all excess property from Stanford departments.
3. Identifying Excess Equipment
Schools and departments are responsible for implementing established policies and procedures to ensure excess items are identified and disposition is initiated by the DPA in a timely manner. The department must ensure the safe keeping and protection of assets that are pending disposal and provide access for the collection of the excess items.
Departments may identify items as excess for various reasons, including but not limited to:
- obsolescence
- lack of use
- contract or grant expiration
- lack of further benefit to a particular project
- poor condition or need for repair
- residual from authorized cannibalization
In addition, other business reasons to generate a disposal request for an asset include:
- transfer to another institution
- trade in against a new purchase
- return to manufacturer for refund or replacement
- disposition directed by sponsor
- theft
4. Re-utilization
Re-utilization and re-purposing of property is a priority. Items in operable condition should be made available to all University departments via the Stanford University Reuse Website for potential reutilization (for Stanford business purposes only) and to help minimize unnecessary expenditures. In this way, the University maximizes the benefit of the items and saves costs of unnecessary duplicative purchases. Items posted and not re-utilized are subsequently declared excess and processed for disposition.
5. Reuse Website
The Stanford University Reuse Website is Stanford’s online mechanism for staff and faculty having a SUNet ID to “advertise" usable items they no longer need and are willing to transfer or sell to another department. They can also create a “wanted” posting for items they need. In addition to capital equipment, individuals may also want to post non-capital items or supplies (e.g.: furniture, toner cartridges, older computer equipment, scientific equipment, etc.). Items acquired through the Stanford University Reuse Website can only be used by Stanford departments for use in University business. The website and the items acquired cannot be used for personal purposes.
6. Furniture Reutilization Program
Stanford’s Furniture Reutilization Program, is operated jointly by the Property Management Office (PMO) and the Surplus Property Sales department (SPS). This program provides a resource to departments allowing expedient availability, cost savings, and opportunities to acquire or upgrade furniture while reducing needless waste and landfill. Please see Section 4.1, Re-use, for more detailed information on the Furniture Reutilization Program and how to utilize its benefits.
7. Disposal Process
A. Administrative Deactivation of Asset Records
In cases where physical collection of the item for scrap or sale is not needed, an excess request must be generated to ensure timely deactivation and retirement of the asset record. Refer to the section on disposal methods later in this chapter for additional details. Unique instances may be referred to the Property Service Representative (PSR).
B. Physical Removal of Assets
For assets being physically disposed, the DPA must initiate an excess request in SPARC.
The SPS department collects the majority of excess equipment and materials at no charge to departments, usually within 10 business days of the request being generated. Large or heavy items or other circumstances may require additional labor assistance, in which case the department may be required to pay for these services. Contact your PSR for guidance in such cases.
SPS will evaluate the condition and salability of the items and make a decision regarding the final disposition method (e.g. sale, recycle, or scrap).
Refer to the Property Management Manual and the Sunflower and SPARC User Guides for additional information and instructions on disposal requirements and generating excess requests.
8. Stanford Bar-Coded Equipment
Property identified with Stanford University Identification barcode tags must be processed through the appropriate channels for disposition. This helps ensure accurate accountable records, financial reporting, physical inventory, and compliance with sponsor or other requirements.
To initiate the disposal process, a DPA must create an excess request. Prior to final disposition, recorded assets will undergo review by PMO to identify and evaluate any issues related to ownership or sponsor required actions. PMO will also ensure that recorded assets are properly retired from the system.
Certain characteristics of assets require additional review prior to disposal. Some of these attributes include:
- ownership (sponsor-owned, loans/leases, fellowship)
- computers and other equipment with proprietary data
- hazardous materials or conditions (electronics, refrigeration, contamination)
- vehicles
- offsite disposal
Please see the section titled "Disposals Requiring Special Handling" in PM section 4.4 for specific details for each of the above classifications.
9. Campus Cleanup Program
An annual campus cleanup is held each Fall quarter to give departments an opportunity to remove and dispose of unwanted materials from their space. Campus Cleanup provides an opportunity to do so with a minimum of paperwork and expense. The Zone Management Group manages this activity with the assistance and support of PMO and SPS. Tagged assets require additional review and specific processing, and must be disposed through the appropriate procedures.
10. Unrecorded Equipment
While other equipment and material that is not recorded in the SFA property management database may not require the same degree of review as recorded assets, the collection and disposal procedures are handled in a similar manner for consistency and efficiency. Unrecorded items must still be disposed of through the procedures outlined in this chapter.
For the disposal of unrecorded (non-bar coded) items an excess request must be generated in the SPARC platform, specifying the location of the item to be collected, contact information, and any specific instruction as needed. Please refer to the PMO website and SPARC User's Guide for additional information and instructions on disposal requirements and generating excess requests for unrecorded assets.
Refrigeration units (e.g. freezers, chillers etc.) and extremely large or heavy items may require additional labor assistance, in which case the department may be required to pay for these services. The type of equipment and the disposal delivery destination -- either Peninsula Sanitary Service Inc. (PSSI) or SPS--dictate the types of Buildings & Grounds Maintenance (BGM) department work request needed.
11. Methods of Disposition
An excess request in SPARC is required for assets being disposed with a scrap or sale disposal method. All other disposal methods require that an excess request be generated in Sunflower. Each method has unique information requirements. Excess Information Templates are provided in the Forms and Documents section of the Property Management Manual. Accuracy and completeness is important to ensure proper handling and reconciliation.
Only a DPA has access to this system. Contact your local DPA and request that they process the disposal request. There is also a means to have unrecorded equipment collected for proper disposal, which will be discussed later in the chapter.
Below are specific definitions and procedures to follow for the disposition of property recorded in the SFA property management database.
A. Excess
This method is used when the item is to be collected for sale, recycling, or scrap. Accurate location and current contact information is necessary to facilitate the collection of the property. Items used in a laboratory environment may require a certification of decontamination. See PM section 4.4 for details regarding additional steps required for disposing of certain types of equipment. Work request information should be included as needed.
When to use:
For items that are inoperable, obsolete, no longer needed. Pickup by SPS. SPS determines scrap, sale, or recycle. Sponsor owned assets require Sponsor approval prior to disposal.
B. Return to Manufacturer
This disposal method is used when an item is received and subsequently returned for a refund, which will be applied to the original PO by Accounts Payable. Work with the Financial Support Center to ensure the credit is appropriately applied to the proper PO. If a restocking fee is applied to an order that was originally coded as capital, steps should be taken to ensure this cost is re-categorized to reflect an expense by submitting a change request via the Capital Expenditure Account Correction process, using the Expenditure Type 55120 for the restocking fee. This method can also be used when returning an evaluation loan item.
An excess request should be generated in the SFA property management database. The request should include the vendor or manufacturer’s Return Authorization number (if any), date of the return, and the amount of credit received.
An Excess Request is not required when an item is returned to the manufacturer or the vendor due to defect or damage and an identical one is returned in exchange. In such cases, the property record is updated by the DPA to reflect the serial number of the replacement item. It is helpful to annotate the comments field of the record explaining the circumstances of the exchange.
When to use:
Item being returned to vendor for full credit, less restocking fee, if applicable. Coordination with Financial Support Center required. This method can also be used when returning an evaluation loan item.
C. Trade Up
The Trade Up disposal method is used when an item is traded in to a vendor in exchange for monetary consideration which is then credited towards the acquisition of another item. The returned item should be clearly indicated in the purchase requisition (not only the quote) for auditing purposes. The DPA must generate an excess request including the new Purchase Order (PO) number, the amount received for the trade-in item, and the SUID tag number of the new item purchased.
Some vendors will remove and dispose of an older item as a courtesy with the delivery of a new model. This does not constitute a trade up. If this is the case, please contact your PSR for instructions to have the record removed from the system. An excess request will be required, including the PO number and SUID of the new item.
When to use:
Item is being used as a trade-in for credit against a new purchase. New PO generated noting value received for trade-in item. (See additional details regarding Even Exchange.)
D. Transfer to Outside Institution
This procedure can vary greatly depending on the items involved and the institution to which they are going; it may be particularly sensitive if the items are transferring to a foreign location or entity. Please contact your PSR as early in the process as possible. PMO approval is required for such transfers. There are generally significant reviews and documentation involved. This can be time-consuming and cause unnecessary delays if PMO is not involved early. In addition, the Department Chair must approve the transfer, and in many cases, the approval of the Dean’s Office of the School may also be needed.
The original funding source of the equipment being transferred will determine the details of the transfer process. In all cases, PMO will review all pertinent property records to determine if there are any encumbrances on the items involved, including title, remaining depreciation, funding sources, or any other potential issues prior to the transfer being approved. The DPA must provide PMO with contact information of the receiving institution. PMO will facilitate obtaining the required confirmation of receipt.
The original funding source of the equipment will determine the variables involved in the transfer process:
- Equipment acquired under an active federal grant should be transferred to the new institution (must be an eligible recipient) without compensation when the following conditions are met: the receiving institution is also the recipient of the grant and the equipment is needed for continuing the research.
A relinquishing statement must be prepared by the Office of Sponsored Research (OSR) with the assistance of PMO, which will itemize the property included. (In the case of a contract being involved, the transfer will be handled contractually. Please contact PMO for assistance).
-
Property acquired with federal funds where the award is closed may be transferred without compensation to another non-profit educational institution at the discretion of the Department Chair and/or Dean’s Office. First preference should be given to other Stanford research activities. Preservation of Stanford’s infrastructure is paramount. Such transfers require written Dean’s Office and PMO approval. In the case of mixed funding sources for assets on active sponsored awards, the transfer may require Sponsor approval and compensation to one or more of the awards.
-
Property acquired on expired non-federal awards and/or unrestricted Stanford funds, for which Stanford will receive remuneration, should be sold to the new institution through SPS at fair market value. See Administrative Guide Memo 5.2.4.
When to use:
Asset is being transferred at no cost to another university or non-profit research institution. Highly restricted. High level approvals are required. Contact your PSR.
E. Return to Employee
This method is generally only used in the case of property acquired under a fellowship, where the terms and conditions of the fellowship grant title of the property to the fellow. The DPA will generate an appropriate excess request. Some additional documentation may be required from the fellow involved.
When to use:
For recorded items owned by University staff members who are leaving university. Generally used only for fellowships where equipment title granted to fellow.
F. Ship to Sponsor
This method is for use when property has either been furnished by a sponsor for the period of performance of a sponsored project, or is being delivered/shipped under the terms and conditions of a contract.
This typically requires significant documentation and communication with the sponsor. Early involvement with PMO is highly recommended to avoid delays, particularly when the sponsor is a federal agency. Specific documents are necessary prior to shipping property to a sponsor to transfer accountability from Stanford to the sponsor.
When to use:
Used for Sponsor owned equipment being returned to sponsoring agency, usually at close of award period. Also used for items being shipped to sponsor as deliverables on a contract.
After shipping, an excess request is generated in the SFA property management database by the DPA. The excess request should include the shipment date and any transfer document numbers.
G. Duplicate Record
This is used only in such cases where a capital item has been inadvertently recorded twice under two different SUID tag numbers. An excess request should be created, indicating the correct tag number being kept in the system. In the case where one of the records has been financially reconciled, that record shall remain.
When to use:
Used when an item is inadvertently recorded in SFA property management database with two different tag numbers. The incorrect record must be removed from SFA.
H. Stolen
When an item is known to have been stolen (not simply missing) the Stanford University Department of Public Safety (SUDPS) must be notified and a police report completed. Once this has been done, an excess request should be generated, referencing the police report number and the date of the theft. The department should also contact the Office of Risk Management to report the theft. The department may be eligible for compensation by Risk Management (after a $1,000 deductible) for the replacement of the item. Contact the Office of Risk Management for additional information and guidance.
When to use:
Asset has been reported stolen and a police report has been filed with the SUDPS.
I. Non-Capital
To be used only in such cases as an item was recorded as a capital asset in error. The original PO number may be required to verify non-capital status. This is not a means by which a department can purge records from the system, whether the records were created for non-capital equipment items or in the event the items are older and do not meet the current capital threshold.
When to use:
Only used when item has been recorded as capital equipment in error and record needs to be removed from system.
J. Cannibalization
Use of this disposition method requires prior approval from your PSR.
This method is used when a department cannibalizes a piece of equipment for the parts. In these cases, the asset record should be removed from the system. The SUID barcode tag should be physically removed from the item to prevent reactivation of the record. If desired, a label may be placed on the equipment remnants indicating it is being cannibalized. Cannibalization should be an infrequent means of disposition. In most cases, the parts should be removed and the remaining ‘shell’ of the equipment (with SUID tag intact) should be disposed using the “Excess” method.
When to use:
Used when item is being disassembled to be used for parts for other equipment. Requires prior approval from PSR.
4.3 Surplus Property Sales
When a department has a piece of working equipment that is of salable quality and no longer needed by any campus department, the Surplus Property Sales (SPS) department should be notified. SPS will make an attempt to locate a buyer for the equipment.
1. About Surplus Property Sales
As stated in Administrative Guide Memo 5.2.4-Surplus Property Sales, the Surplus Property Sales office (SPS) is the only entity authorized by the University Board of Trustees to sell university assets. SPS is organized under the Property Management Office (PMO) under Research Financial Compliance & Services (RFCS). It was reorganized as a self-sustaining Auxiliary in 2005.
SPS serves the university and the surrounding community by promoting reutilization through weekly sales of excess university assets. The operation seeks to support a sustainable environment and green campus while aiming to provide affordable options to both departments and the general public by selling the broad array of items which become excess to university departments and projects each year.
SPS strives to return the maximum proceeds to departments for assets which are sold. We are dedicated to continuous program improvements and growth which will support the university’s needs related to the value of its excess property.
2. Surplus Property Sales Hours and Location
Regular Store Hours
- Wednesday 9:00 am - 4:00 pm
- Thursday 8:00 am - 12:00 pm
- By appointment (650)723-3001
- Hours subject to change; please call ahead (650)723-3001
SPS Warehouse Location
340 Bonair Siding Phone: (650)723-3001 Fax: (650)723-5656Billing Address 122 Encina Commons, Stanford, CA 94305-6025
3. Payments Accepted
Stanford Departments may pay with iJournals. For all others we accept cash, cashier checks, or money orders. Current Sales Tax rates apply. All items are sold "As Is Where Is". No Refunds. No Returns. No Exchanges. All Sales Are Final. For complete terms of sale information, please see the Surplus Property Sales Terms and Conditions section later in this chapter.
4. Surplus Property Sales (SPS) List of Items
A preview of items available for sale can be reviewed prior to making a trip to the Surplus Sales warehouse store. Below are links to various categories of items available for sale. This is not everything that is available at Surplus Sales store; it is a representation of featured items. There are additional items in the store and new stock arrives weekly.
NOTE: Linking on one of these pages will take you away from the RFCS/Surplus Sales site and into a commercial site called “Photobucket”. Follow the instructions on that site to view the pictures.
Product Categories
Furniture – For on-campus use, check Furniture ReUse Program first.
5. Sales of Surplus Property
When a department has a piece of working equipment that is of salable quality and no longer needed by any campus department, the SPS department should be notified. SPS will make an attempt to locate a buyer for the equipment. An excess request must be generated, including an appropriate account number (PTA-Project/Task/Award) which will be credited by SPS with the department’s share of the proceeds, if enough sales revenue is generated to warrant it. If the item was acquired with funding from a sponsored award and the award is still active, the proceeds should be credited back to the award. Otherwise, the account should be an unrestricted account. For additional information see the Surplus Property Sales Fee Structure section later in this chapter.
Occasionally, departments ‘sell’ unneeded equipment to other departments. This is not considered disposition, as the item is not leaving Stanford, but is simply transferring from one department to another. In such cases, a journal should be generated to transfer the funds, using Expenditure Type (ET) 58510 for both the debit and the credit. In all cases, the funds used in these transactions must be from unrestricted accounts. A sponsored account may be credited (and must be if the acquisition was originally on a sponsored project that is still active) but only unrestricted accounts may be debited. Contact SPS for additional information as needed.
6. Excess Property Pickup/Delivery Process
For assets being physically disposed, the Department Property Administrator (DPA) must initiate an excess request in the Stanford Property Administration Resource Center (SPARC).
The SPS department collects the majority of excess equipment and materials at no charge to departments, usually within 10 business days of the request being generated. Large or heavy items or other circumstances may require additional labor assistance, in which case the department may be required to pay for these services. Contact your Property Service Representative (PSR) for guidance in such cases.
SPS will evaluate the condition and salability of the items and make a decision regarding the final disposition method (e.g. sale, recycle, or scrap).
Refer to the Section 4.2, Disposition and Transfers, and the Sunflower and SPARC User Guides for additional information and instructions on disposal requirements and generating excess requests.
7. Vehicle Sales
Vehicles require additional processing, and must be delivered to the Fleet Garage for decommissioning and notification to the California Department of Motor Vehicles. The Fleet Garage will determine whether the vehicle is considered roadworthy and eligible for reassignment to another department or sale. If determined to be unroadworthy, the vehicle is to be scrapped. If transferred, PMO will update the accountable department. If sold, SPS will contact the last accountable department to obtain proceeds directions (if any). If scrapped, PMO will retire the record. When your department has deemed a vehicle to be excess, contact your PSR to have the record transferred to a holding code, pending the determination of the vehicle's final disposal method.
For additional information please see Administrative Guide Memo 8.4.1: Vehicle Acquisition, Ownership and Disposition and Administrative Guide Memo 8.4.2 : Vehicle Use.
8. Computers/Universal Waste
Larger electronic items will be collected by the SPS once an appropriate excess request is received. SPS will remove and wipe or destroy any hard drives that are in computers being picked up as excess. They also destroy all hard drives being disposed of separately from a computer. They will then process them appropriately for either resale or recycling following EPA and California DTSC approved methods.
This does not absolve departments from the responsibility of ensuring that "non-public" Stanford data is removed from the system. Non-public files should be deleted before requesting the computer be collected for disposal. This should also be done prior to transferring a computer from one user to another within Stanford. Please see the Data Classification Guidelines on the Information Security Office website site for details.
The safeguarding of non-public data is a high priority for Stanford, and the responsibility for ensuring this remains with the user of an individual system, including the deletion of files deemed to be non-public in nature. While Surplus Property Sales will take the necessary precautions to protect the collected computers and process hard drives according to requirements, it does not take responsibility for the failure of users to remove such data prior to collection. For additional information, please see the Computer Equipment Transfer and Disposal Guidelines on the Stanford Secure Computing Website and Administrative Guide Memo 6.3.1: Information Security for more information.
9. Excess Furniture Collection Process
When a department has furniture that is no longer needed, and it needs to be removed, the DPA must process a request to have it collected. The furniture will be picked up and delivered to Surplus Property Sales or to Peninsula Sanitary Service Inc. (PSSI) depending on the condition of the items in question. The SPARC system has an online request form to have the furniture removed to Surplus Sales. DPAs have access to the system (access is centrally controlled by PMO.)
Large quantities of furniture may require the assistance of the Labor Shop (Event Services), in which case the department removing the furniture will be responsible for the associated costs of moving it to the warehouse.
Furniture that is in Sellable Condition
For small quantities of small furniture items, Surplus Sales picks up the furniture. This activity generally takes place on Tuesdays. They will transport the furniture to Surplus Property Sales, usually at no cost to the department. In these cases, it make take up to 4 weeks to have the items collected, so please plan ahead.
In the event that more immediate removal of furniture is required or if a department has a large quantity to be removed, please contact Alex Perez in the PMO to make special scheduling arrangements for the removal. In such cases, the department may need to generate a work request with Event Services to coordinate the collection and delivery to SPS, and will incur the associated costs. An excess request is still required to be generated in SPARC in order for the labor request to be approved by PMO. Please try to arrange delivery to take place on Wednesdays, or contact Alex Perez in order to arrange for someone to be available to receive the items at the Surplus location.
Notes
For a “No Cost” pickup, the DPA should not generate a work order for labor: leave the work order field BLANK.
Surplus rarely accepts cubicle partitions and modular work surfaces. Please contact Surplus Sales ahead of time for specific instruction on these items.
10. Surplus Property Sales Fee Structure
The SPS fee structure, as of 9/1/2012 is shown below.
Net Sales Proceeds (pre-tax sale amount) |
Return to Department (pre-tax sale amount) |
<$1,000.00 |
|
$1,000.00-$2,499.99 |
25% |
$2,500.00-$4,999.99 |
50% |
$5,000.00-$9,999.99 |
75% |
$10,000.00-$19,999.99 |
80% |
$20,000.00+ |
Negotiate |
Note: This fee structure relates to the sales of individual items. There may be exceptions where a sale of 1 lot of equipment is generated by a department (such as a PI transfer involving the sale of many pieces of equipment to another institution). In all such bulk sales, the proceeds percentage will be subject to negotiation, and based on level of effort required and other cost considerations.
11. Surplus Property Sales Terms and Conditions
Complete Surplus Property Sales sales terms and conditions are as follows.
Stanford University Property Management Office – Surplus Property Sales Terms of Sale |
|
Payment |
Payment due upon receipt of invoice. Payment must be in the form of a cashier’s check or money order, payable to Stanford University Surplus Sales. Payment must be received prior to release of property to buyer. |
Bill of Sale |
Stanford University Surplus Sales will issue a Bill of Sale to the buyer upon receipt of payment. |
Packaging and Transportation |
Buyer is responsible for all packaging, handling, and shipping costs. Buyer is also responsible for arranging packaging and transportation services necessary to remove the item(s) from the Stanford premises. |
Bill of Lading |
A copy of the bill of lading shall be provided to Stanford University in order to provide documentation that this equipment was shipped to a point outside of the State of California. |
Title and Risk of Loss |
Title to the property herein sold and risk of loss thereof pass to Buyer upon delivery of the Equipment to Buyer or service agent acting on Buyer’s behalf. |
Indemnity |
Buyer agrees to forever indemnify, defend, and save harmless Stanford from and against, and to waive any and all claims against Stanford for: any and all claims, suits and demands of liability, loss or damage whatsoever, including attorney’s fees, whether direct or consequential, or account of any loss, injury, death or damage to any person or persons or property (including without limitation all agents and employees of Buyer and Stanford and all property owned by, leased to or used by either Buyer or Stanford or both) or on account of any loss or damage to business or reputation or privacy of any person, arising in whole or in part or in any way from Buyer’s or any other party’s purchase or use, or from Buyers or any other party’s entry onto Stanford or dismantling or removal, of the property sold hereunder or in any way connected therewith or in any way related thereto, and regardless of whether such loss, injury, death or damage results in whole or in part form (a) the negligence or omission of Stanford, or (b) any product liability of Stanford or any person, or (c) any strict liability of Stanford or any person. There are excluded from the above indemnity and waiver provisions any such claims, suits and demands of liability, loss or damage resulting solely from Stanford's gross recklessness, active negligence, or willful intent to injure. As used in this indemnity and waiver provision, and for the purposes of Buyer's insurance, Stanford shall be deemed to include Stanford University and their Trustees, directors, officers, employees, faculty, students, agents, affiliated organizations and their insurance carriers, if any. |
Export |
The use, disposition, export and re-export of Stanford University property transferred to the purchaser by this transaction are subject to all applicable US regulations, including the Export Administration Regulations (15 CFR 730‐774), the International Traffic in Arms Regulations (22 CFR 120‐130), and the Foreign Assets Control Regulations (31 CFR 500‐600) that among other things prohibit the use or disposition, export or re-export of this property without first obtaining prior US government approval in the form of an export license or other authorization when required |
Warranty and Condition
|
Property is sold, as‐is where‐is, without any warranty expressed or implied. |
4.4 Disposals Requiring Special Handling
Certain categories of assets require scrutiny above and beyond the routine PMO review given to all recorded assets prior to disposal. These categories also require the completion of additional processes that are unique to each group as specified below.
1. Computers/Universal Waste
Many electronic devices are considered universal waste upon disposal. This includes, but is not limited to computers, monitors or any equipment containing cathode ray tubes (CRT) or other significant electronic display, or items that contain internal circuitry (heavy metal containing cards and boards) such as cell phones, keyboards, printers, copiers, and many scientific devices.
These items are closely monitored by the University and disposal records may be reported to the Federal Environmental Protection Agency (EPA) or the California Department of Toxic Substances Control (DTSC). Disposal processes and inappropriate disposal of such items may be audited by these agencies at any time. Failure to adhere to appropriate methods of disposal may result in significant fines and other penalties.
Never dispose of such items in dumpsters or trash receptacles. Small electronics that are not recorded in the SFA property management database may be placed in electronic recycling buckets located throughout the campus by the Environmental Health & Safety (EH&S). When cleaning out an office or a lab, volumes of small electronics in excess of 1-2 gallons by volume should be disposed of using the Stanford Property Administration Resource Center (SPARC) request system. Locations for buckets may be found on the EH&S Electronic Waste Recycling web site.
Larger electronic items will be collected by the Surplus Property Sales (SPS) once an appropriate excess request in received. SPS will remove and wipe or crush any hard drives that are in computers being picked up as excess. They also crush all hard drives being disposed of separately from a computer.
2. Ownership
Ownership is a very important factor in the disposition of property. As steward for a large amount of property that is owned by sponsors and vendors, Stanford must take care to ensure that no property owned by others is inadvertently disposed without prior authorization. All equipment owned by others is required to be recorded in the Sunflower (SFA) property management database and ownership is annotated in the records. Ownership must be determined prior to disposition being completed.
A. Sponsor Owned Equipment
Items furnished to Stanford for sponsored projects require written approval from the sponsor prior to disposition. In the event property owned by a sponsor is no longer needed or becomes inoperable, steps should be immediately taken to obtain permission to return the property to the sponsor or to dispose of the property. If there is urgency in having the property removed from the site, contact the PMO to have the property moved to storage while written disposition instructions are sought.
In all cases, documentation and communications with the sponsor should be performed by PMO. This is particularly important if the sponsor is an agency of the federal government, as there are specific federal forms required.
B. Leased and Loaned Equipment
Items leased or loaned to Stanford by vendors or other entities also require written approval prior to disposition. The exception is the return of the property to the lending entity. An acknowledgement of receipt must be obtained from the lending entity when the property is returned, and PMO notified in order to ensure the appropriate steps are taken to remove the records from the SFA property management database. Barring an extension, loaned property should be returned at the end of the loan period as laid out in the original terms and conditions of the loan. An excess request must be generated in order for the record retirement to take place.
C. Fellowships
Contact your PSR for guidance regarding disposal of equipment purchased on a fellowship agreement. As terms and conditions of a fellowship agreement can vary, it is important to provide your PSR with a copy of the agreement so appropriate guidance can be provided.
3. Refrigerators, Freezers and Other Chilling Devices
Equipment such as freezers, refrigerators, ice makers, some incubators and other similar chilling devices contain gases and oils that are considered hazardous waste, and require special disposal processes. The University uses Peninsula Sanitary Service Inc. (PSSI) for these disposals. SPS generally does not accept refrigerators or freezers. To request the disposal of one of these items will require a Customer Funded Work Request available on the Buildings & Grounds Maintenance (BGM) website to pick up and dispose of the item. An excess request in the SPARC platform, including the work request number for PSSI is also required. PMO will forward approval of the disposal to PSSI for the collection to take place. These collections typically take place on Fridays. Please allow 2 weeks for the request to be completed, depending on the day the request is generated.
4. Vehicles
Vehicles require additional processing, and must be delivered to the Fleet Garage for decommissioning and notification to the California Department of Motor Vehicles (DMV). The Fleet Garage will determine whether the vehicle is considered roadworthy and eligible for reassignment to another department or sale. If determined to be unroadworthy, the vehicle is to be scrapped. If transferred, PMO will update the accountable department. If sold, SPS will contact the last accountable department to obtain proceeds directions (if any). If scrapped, PMO will retire the record. When your department has deemed a vehicle to be excess, contact your PSR to have the record transferred to a holding code, pending determination of the vehicle's final disposal method.
5. Offsite Disposals
There may be situations in which it is necessary to dispose of an item ‘off-site’, whether it is located at a remote site or circumstances make it unfeasible to have the item returned to campus for disposition. Due to the unique circumstances of such an action, these are handled on a case-by-case basis. Please contact your PSR for guidance. It is important that in all cases, every effort be made to ensure the disposition be handled in a means that fully adheres to appropriate environmental guidelines.
5. Appendix
5.1 Property Management Forms and Documents
Forms and documents are listed below for easy reference. You can also find each of the forms in the Related Items section in the policy chapter it is associated with.
Property Management Forms and Documents
Property Asset Recording Worksheet
Property Common Expenditure Types Used for Property and Equipment
Property Form DD250 Material Inspection and Receiving Report
Property Form DD1149 Requisition and Invoice Document
Property Form DD1419 DoD Industrial Plant Equipment Requisition
Property Donated Equipment Transmittal Form
Property Fabrication Request Form
Property Fabrication Completion Form
Property JPL Form 7112 Subcontractor Property Authorization and Title Vesting
Property Loan Document Stanford-Borrower
Property Loan Document Stanford-Lender
Property Off Campus Equipment Verification Form
Property Physical Inventory Calendar 2015
Property Physical Inventory Notice
Property Physical Inventory Sample Email Announcement
Property Pre-Inventory Checklist
Property PTAE Change Template
Property PTAE Change Template Instructions
Property Quad Conversion Table
Property Service Center Capital Equipment Validation Executive Summary
Property Service Center Capital Equipment Validation Job Aid
Property Service Center Capital Equipment Validation Department Checklist
Property Service Center Capital Equipment Validation Central Checklist
Property SFA Model Number Request Form
Property Sponsored Award Expenditure Type Guidelines
Property Sunflower Excess Request Template Information
Property Tags Order Form
Property Administrators Continuing Education (PACE) Presentations
PACE Meetings
Property Administration Continuing Education (PACE)
The quarterly PACE sessions should be attended by all Department Property Administrators (DPAs) as the meetings provide important update information and a mechanism for DPAs to give input to the property process. Attendance sheets for these sessions are used in departmental internal audits to ensure all staff are adequately trained and updated.
Below are presentations from previous PACE meetings:
ORA-1310 Property Policy Class Presentation
The slide presentation from the ORA-1310 Property Policy Class is available here for reference:
5.2 User Guides, FAQs and Reference Material
Available in this section are property management user guides, FAQ's and miscellaneous reference material.
1. User Guides
Property DPA Pre-Purchase Screening Guide
Property OBIEE Reporting Tutorial
Property SPARC Barcoded Items Excess Request User Guide
Property SPARC Non-Barcode Excess Request User Guide
Property SPARC CAP Template User Guide
Property SFA User Guide 1-Accessing Sunflower
Property SFA User Guide 2-Creating Records Through PO Interface
Property SFA User Guide 3-Creating Records From Scratch
Property SFA User Guide 4-Maintaining Records
Property SFA User Guide 5-Adding Comments/Attachments to a Record
Property SFA User Guide 6-Excess Requests-Creating/Withdrawing
Property SFA User Guide 7-Reporting in Sunflower
2. School of Medicine Resources
Below are some basic resources to help you with day to-day property management related activities in School of Medicine:
New DPAs-Basic Property Management Resources
Financial Approvers-Basics for Capital Equipment Purchase Approvals