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.

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.

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 University Property Administrator (UPA) for guidance regarding appraisals, cost estimates, or valuation of sponsor-owned equipment.

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.

Software is capitalized when its acquisition value is $500,000 or more, excluding warranty and training. Contact your UPA 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.

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

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.

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

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

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.

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

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.

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 University Property Administrator (UPA) for disposition instructions.

Though they share characteristics, each incoming loan type has additional unique steps for acquisition, as outlined below.

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 UPA 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.

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:

1. lease period must exceed one year
2. contract with Stanford has a commitment for cash payments of $5,000 or greater over term of lease
3. 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

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.

Generally, leasing equipment on federal sponsored projects is not allowable as a direct charge. Specific authorization from the sponsor is required. Contact your UPA for further guidance.

The iProcurement system is used to process a Standard Lease requisition for leased equipment.

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 UPA for guidance in updating the Sunflower property database record.

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)

• 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.

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

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

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.

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.

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.

Identification of material inventories or bonded store room operations is done in accordance with contract terms or specific project needs. Contact your University Property Administrator (UPA) for additional guidance. Also see Section 3.3 (Records) for additional information.

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 UPA.

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

• 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

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.

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

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.

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:

1. Visible management advocacy of property administration requirements
2. Department-wide understanding of property management processes and performance goals
3. Timely and effective interaction with the Department Property Administrator (DPA) by all personnel
4. Accurate and timely record-keeping by DPA
5. 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.

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

Methodology

The majority of assets are verified during the inventory via one of the following three methods:

• Wall to wall physical verification

  • Searching each room of a building for all assets within

• Inventory by exception

  • Substantiating asset via pre-defined alternate method (e.g. maintenance or calibration record, transfer documents, network pinging report)

• Attestation with sample verification

  • Used in low volume, low risk areas only

  • Selecting and verifying a random sample from a listing which an authorized department representative provided as confirmation of inventory

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.

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 to be fully inventoried in conjunction with the initial scanning event for the area in question.

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), and identify them during the wall to wall scan.

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. 

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). 

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 UPA 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.

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.

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 UPA 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 UPA 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.

 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

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.

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.

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.

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.

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.

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.

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.

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.

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

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.

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.

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.

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.

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.

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.

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.

• 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).

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.

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

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.

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.

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.

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.

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.

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.

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.