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Property Management ORA-1310 Property Policy and Procedures Revised May 2007 Session Objectives Review Roles & Responsibilities for Effective Property Management Increase understanding of the “Big Picture” Develop working knowledge of policies and procedures

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Property management l.jpg

Property Management

ORA-1310

Property Policy and Procedures

Revised May 2007


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SessionObjectives

  • Review Roles & Responsibilities for Effective Property Management

  • Increase understanding of the “Big Picture”

  • Develop working knowledge of policies and procedures

  • Identify online systems and reference tools

  • Provide opportunity for Q&A


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Where do you, the DPA, fit into this picture?

Whyis this important for SU?

Multiple “Hats” that Property serves

  • Compliance

  • Financial

  • Business Mgmt/Asset Management

  • Stewardship

    Source of Revenue

  • IDC recovery

  • Sponsor funds


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Property Management Office


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Property Service Reps

Sandy Passetti, CPPM

[email protected]

725-7890

Vicky Vargas, CPPM

[email protected]

725-7574

Stan Dunn, CPPM

[email protected]

725-0081

Brian Bretz, CPPM

[email protected]

725-9839


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Primary DPA Roles & Responsibilities

  • Be an Advocate for Property Management

  • Establish and maintain timely, complete, and accurate property records

  • Ensure compliance and other requirements met

  • Be aware of activities within your organization

  • Assist Staff and Faculty in handling property matters and responsibilities

  • Collaborate with PSR on property matters

  • Establish effective communications network

  • Attend property-related training events


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DPA Challenges

  • Property function often part-time

  • Level of school/departmental support

  • Competing Priorities

  • Turnover and inherited open issues

  • Time to attend training


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Key Stakeholders

  • Board of Trustees and University President

  • CFO and Provost

  • Associate VP - Research Administration, Controller

  • Central Offices

    • ORA, Controller’s Office (AP, Plant Accounting), ITS, Procurement, Facilities, Risk Management, Internal Audit, EH&S

  • Principal Investigators, Schools and Departments

  • Property Administration & Inventory Staff

  • Audit & Compliance

  • Sponsors

  • ONR and DCAA

  • University

Daily Interactions


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CorePartnerships

Property

Management

Office

DPA

Custodians

Users

ITS

Property Management Process

OSR and

CMA

Sponsors

Risk

Management

EH&S

Controller’s

Office

Must work in tandem for success!


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Financial Perspective

FY2003 Capital Equipment Acquisitions (est.)

$62M

Stanford Acquired

$25M

Direct Charge

Capital Equipment

Includes

$3.5M

Donations & Transfers

(FMV)

Note: Annual increases in all areas


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Key Property Policies and Concepts

  • Let’s discuss key policies and concepts that affect you as DPA…..


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The Compliance “Umbrella”

  • University Policies & Procedures

    • Property Manual, Guide Memos

  • Office of Management & Budget (OMB) Circulars

    • A110, A21, A133

  • Federal Acquisition Regulations (FAR)

    • Property Clauses and subparts

  • Agency-Specific Supplements

    • NASA, NIH, and others.

  • Generally Accepted Accounting Principles (GAAP)

  • Cost Accounting Standards


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System of Record

  • Sunflower Assets (SFA)

    • Physical Attributes and Accountability

  • Oracle Fixed Assets (FA)

    • Financial Attributes

  • Oracle Grant Accounting (GA)

    • Agreement Attributes

      • Grants and Contracts

      • Limitations and restrictions


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System Interactions


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Accountability

  • Defined as:Ownership or stewardship responsibility

  • Three basic types

    • Organizational Accountability and Liability

      • Managing Organization (Business Unit)

      • Steward (Department)

      • Custodian (and/or User)

    • Sponsor Accountability

      • Agreement Designation

    • Financial Accountability

      • Line Item Integrity

      • Controller and CFO Certification of financial data


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Property Management

Reports

Audits

Acquisition

Receiving

Identification

Records

Fabrication

Inventory

Subcontract Admin.

Utilization

Consumption

Storage/Inactive

Movement/Transfers

Disposals/Excess

Agreement Closures

Functional Elements for Property Management

Note: Each color-coded section relates to a Life Cycle Phase

Ongoing

PhaseII

PhaseI

PhaseIII


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Property Life Cycle

Rules & Business Needs

Policies & Procedures

Phase I

Phase II

Phase III

Close-out

and

Disposal

Acquisition

In Service

Tracking & Reporting

Reconciliation & Adjustments

System Management & Audits


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“Capital” Equipment

  • SU Capital Equipment must...

    • Cost $5,000 or greater

    • Have useful life of more than one year

  • Fabricated items must have...

    • Aggregate cost of $5,000 or greater

    • A useful life of more than one year after completion

Note: For sponsor-owned property there may be different acquisition and reporting thresholds; financial notion of “capital” for purposes of depreciation does not apply.


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Acquisition Cost

What gets included in the cost?

*Stanford Labor is tracked and recorded on fabrications for sponsored projects, but is not included on standard installations


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Acquisition Steps

  • Need identified

  • Funding and approvals obtained

  • Pre-Purchase Screening completed

  • Purchase Requisition processed

  • Asset(s) purchased or otherwise acquired

    • i.e. Donation, sponsor-furnished

  • Items received, identified, tagged and recorded in the system


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Pre-Purchase Screening

  • Checking for asset availability to avoid unnecessary or duplicative purchases

  • Attest on requisition to having performed screening

  • Auditable compliance requirement

  • May be a potential savings to the University

Acquisition Cost

Screening Level Required

Cost $5K - $24,999.99

Cost > $25K

Within Steward Organization

Across entire SFA database

Note: Occasionally, some sponsors require screening below the $5,000 threshold.


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Purchase Requisitions

  • Your role as approver

  • Key things to look for

    • Expenditure Type

    • Line item detail

    • Prior Sponsor Approval, where applicable

    • Complete screening attestation

  • Tip: Maintain suspense file - requisitions requiring additional information or otherwise on “hold”, or to track incoming capital assets for future tagging


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Accounting Structure

THE PTAEO

  • P - Project

  • T - Task

  • A - Award

  • E - EXPENDITURE TYPE

  • O - Organization

    Please ensure the expenditure type is correct before approving the requisition; a determining criteria for populating the PO Interface in SFA


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Asset

Category

Expenditure Type

Useful

Life

Equipment Expenditure Types

  • Assigned at time of Purchase Requisition

  • Critical to Purchasing and Classification

  • Key Field for Financial Reporting

  • Consistency and Accuracy are Key

Data Mapping


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The “Smell Test”

All acquisitions must meet the following criteria, regardless of request:

  • Reasonable

    • Is the purchase reasonable?

  • Allocable

    • Will the asset be used on the project?

  • Allowable

    • Does the project permit the purchase?

Beware of end-of-period purchases on sponsored projects!


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Changing Purchase Data

  • Transactions involving capital expenditure codes:

    • To change expenditure type, or

    • To change PTA used for purchase

    • Use PTAE Equipment Change Template

    • http://ora.stanford.edu/ora/pmo/dpa_resources/reconciliation.asp

  • If caught BEFORE any payments are made

    • Send request to [email protected]

      • Procurement Office will change the PO to reflect new PTA data


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Equipment Change Template

Purchase Requisition No.: (i.e. 12345670)

Department Property Administrator: (Your Name)

Authorized Financial Approver(s): (Whoever has signature authority)

------------------------------------------

-SU.ID Tag Number(s) affected: (we need this for reconciliation purposes)

-To Credit

Project:

Task:

Award:

Expenditure Type:

Payment Date: (at least month/year – should match the invoice payment)

*Amount: $

-To Debit

Project:

Task:

Award:

Expenditure Type:

Payment Date:

*Amount: $

Justification/Comments: (why this request is being made)

Same information as a journal, just different format


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Agreements (Awards)

  • Sponsored Projects agreements identify terms and conditions for Property Management

  • Provides source of funding

  • Agreement Characteristics

    • Most Common Types at Stanford

      • Grants, Contracts, Gifts/Donations, Loans

    • Award Levels

      • Prime or Sub-awards


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Asset Title (Ownership)

  • Three options in Sunflower Asset record:

    • Stanford University

    • Federal Government

    • Other Agency

  • May change throughout asset life, title at any given time affects many factors:

    • Reporting

    • IDC eligibility

    • Transfer processes available

    • Authority to modify

    • Taxability

    • Use

    • Disposal

For capital non-Stanford owned equipment, there are special expenditure codes


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Sponsor-Owned Assets

  • Tagging must meet Sponsor Requirements

  • Stanford Barcode tag ALWAYS

    • May also require sponsor ID tag

    • Special attention to Gov’t-owned assets

    • Change in Ownership may require removal or change of overlay (more on this in a moment):


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Equipment Funding Sources

  • Can be single source or multiple source

  • Stanford funds vs. sponsor funds

    • Restricted

    • Unrestricted

  • Gift funds

  • Joint funding can affect:

    • title

    • taxability

    • accountability

  • Matching funds

    • Cost Sharing

    • Donations


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What must be recorded in SFA?

SFA - Sunflower Assets, is used to maintain the University’s official individual asset records for:

  • Capital equipment

  • Capital fabricated equipment

  • All sponsor-owned property, regardless of cost

  • Donated capital equipment

  • Loaned equipment of any value

  • Leased equipment of any value

Note: Transfers of equipment to Stanford from other institutions may need to be tracked in SFA. Contact your PSR for determination.


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What can also be recorded in SFA?

Non-capital property that the department elects to track:

  • Computers

  • Items with hazardous waste implications

  • Projection equipment

  • Cameras

  • Non-capital items transferred from other universities


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Loans v. Leases

  • Loans

    • Set time frame

    • No monetary consideration

  • Leases

    • Set charges (i.e. monthly billing)

    • Time may be open-ended

    • MUST go through Procurement

      • Use appropriate Lease expenditure type

  • Depending on loan type, may have different procedures. In all cases, notify PMO.

    • Loan part of Grant – PMO

    • Loan from Manufacturer – Procurement

    • Loan part of Contract – OSR


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Incoming Loans

PMO Issue Loan Document

  • Loan on a grant

  • Loan on contract; no modification issued

  • Federal government loan

  • Loan part of existing or new sponsored project

  • Ensure appropriate terms and conditions

  • Process contract modification

  • Contact Office of Technology Licensing, as needed

Refer to OSR

  • Equipment evaluation/testing, not usually associated with a specific government sponsored project

  • Director of Procurement must negotiate terms and conditions of loan

  • Processing requisition in iProcurement pending clarification of process

Refer to

Procurement


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Asset Identification

Purpose

  • Identify Ownership

  • Standardize Designation of Asset Control Numbers

  • Facilitate Inventory

  • Deter Theft

    Tag placement

  • Readily visible and accessible

    • Upper right-hand corner is default location

      Source

  • Provided by PMO

  • Contact: Drina Adams 723-9004

Note: Must be recorded in SFA within 30 days of receipt


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Asset Identification, cont.

If owned by the

US Government,

This tag is required!

Overlay Options

  • Non-Stanford

  • Government-Owned

  • Non-Capital

  • Donated

    Other tagging options

  • Non-Inventory Asset

  • Fabrication

  • Lease (recommended)


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Untaggable Assets

  • An item that is too sensitive, inaccessible, or would be damaged by affixing the decal

  • What do you do?

    • Assign barcode ID tag

    • Record in Sunflower Assets (SFA)

    • Print record; affix tag to file copy

    • Flag SFA record as “untaggable”

    • Keep “untaggable” binder in office

Property

Record

Note: Must be recorded in SFA within 30 days of receipt


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Asset Location

  • SFA/FAMIS

  • Location structure

    • Quad__Building-Floor__Room

      • i.e. STERN_040-01_124

    • Includes off-campus locations

  • Areas of implication include:

    • Indirect Cost Recovery

    • Use

    • Audit

    • Inventory

    • Grant Compliance


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Location Documentation

  • SFA record at time of acquisition

  • Update SFA record if location change 30+ days

  • Sign-out logs for temporary moves

  • Off-campus location worksheet


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Off-Campus Assets

  • Two types of off-campus locations:

    • Stanford Space

      • Includes Leased buildings, remote sites

        • Location is in the Space registry

      • In SFA, use location from the list of values

    • Non-Stanford Space

      • May be business or private residence

        • Location not in space registry

      • In SFA, use “Areas not in 1-14” for Quad

        • Private Residence 510E-99999_9999999999

        • Private Business 550E-99999_9999999999

      • Requires Off-campus Worksheet

        • http://www.stanford.edu/dept/UPA/DPAupdate/5offcamp.xls

      • SLAC & PAVA = 998 & 990, no worksheet required

        • Add building or other location info in comments


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Off-Campus Worksheet


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Storage & Movement

  • Justified retention

    • Purpose

    • Storage period

  • Secure location

  • Document what is in storage

  • Travel

    • Domestic

    • Foreign


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Export Controls

  • Research equipment leaving the country MUST be pre-approved, including laptop computers for research personnel

    • Certification needed even if no license is required

    • Computers for administrative personnel are not restricted

  • Steve Eisner, Export Control Officer

    • [email protected]

    • http://www.stanford.edu/dept/DoR/exp_controls/


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Utilization

  • Assets must be used

    • In support of Stanford-related job responsibilities

    • By Stanford staff, students or related personnel

    • In a Stanford-approved location

      • Location leads to use questions

      • If sponsored-owned, may require authorization for use


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Maintenance/Calibration

  • Required per manufacturer specifications or project needs

  • Types of information to record:

    • Extended warranty information

    • Maintenance/calibration dates

    • Maintenance/calibration costs

  • Useful in determining when replacement needed

  • Maintain file with supporting documentation

  • Information may be auditable

Sponsor-owned assets MUST be maintained to manufacturer specifications


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Physical Inventory

  • Purpose

    • Verify accuracy of property records

    • Check “overall health” of property system

  • Frequency and Recording

    • Biennial inventories required

    • Departmental inventories discretionary

    • Posted in Sunflower Assets

  • Special inventories

    • Closeout of sponsored contracts

    • Departmental requests

    • Sponsor directives


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Physical Inventory, cont.

  • Process

    • Barcode scanning or approved alternatives

    • Physical verification of asset attributes, condition, location and status

    • Reconciliation and variance resolution required

  • Uses of data include

    • Use active items as depreciation base

    • Obtain Indirect Cost Recovery for depreciation

    • University and Sponsor Reporting

    • Risk Management Assessments


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Auditing Organizations

  • Office of Naval Research

  • Defense Contract Auditing Agency

  • Sponsors

  • Internal Audit

  • Price-Waterhouse Coopers

  • Others...

Note: All property audits must be coordinated through PMO or Internal Audit


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Audits

  • As DPA, you may be asked to assist in or provide:

    • Sample verification

    • Area Access

    • Supporting Documentation

      • Acquisition Approvals

      • Explanation of Use

    • Property Process confirmation

    • Follow-up Actions

      • Assist PMO with reports

      • Feedback, communication, etc


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Excess

  • The term “excess” (or “disposal”) does not always refer to the act of “throwing away” an item – it can refer to many forms of disposition:

    • Sales

    • Transfers (to other institutions)

    • Returns to vendors/sponsors

    • Property Record elimination

  • In all cases, an “Excess Request” is required in the Sunflower Application

    • (For scrap or sale, this requirement also includes non-capital or items not recorded in the system)


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    Disposing of Excess Assets

    • Offer Asset for Reutilization First

      • Reuse Web Site

        • Just type the word REUSE in your browser

  • SFA Excess Requests (a.k.a.: Disposals)

    • Required for SFA Retirement of asset

  • Various Disposal Methods

    • May require unique processing steps

    • Financial implications vary

  • Sponsor-owned assets

    • Must have prior PMO approval

  • Timely and appropriate reporting reduces storage costs, unauthorized use, and landfill

  • Note: Never dispose of electronics in trash dumpsters.

    These should always be recycled - especially monitors!


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    Pre-excess Activities

    • Receive notification of excess from staff

    • Verify condition

    • Offer to campus at large for reutilization

    • Ensure EH&S clearances obtained

      • Radioactive, biohazard, etc

    • Ensure sensitive data and licensed software has been removed

    • Request Labor Shop work order, as needed

    It is the department’s responsibility to sanitize computers

    and ensure cleansing of biohazards from scientific equipment

    prior to disposal


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    Computers

    • Computers and data storage devices require special handling to ensure information security

      • Hard drives removed or “wiped” clean

      • Special labels indicating compliance

      • Responsibility at the user level

        • Departments obligated to protect users

        • Serious consequences for failing to comply


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    Disposal/Excess Tips

    • Attempt to reutilize assets within Stanford prior to disposal

      • Advertise on reuse web site prior to excessing

    • Have any pre-excess steps complete prior to generating ER

    • Use SFA to generate excess requests (ER)

    • Complete comments in detail

      • include suggested method of disposal template

      • arrange for labor shop assistance if needed

    • Segregate or mark items ready for pick-up

    • Contact Manuel George, ext. 3-2246, for disposal questions

    It is the department’s responsibility to sanitize computers

    and ensure cleansing of biohazards from scientific equipment

    prior to disposal


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    Subcontract Administration

    • Primarily applies to Sponsored Projects

    • Contact your PSR


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    Training & CommunicationResources

    • Property Policy and Systems classes

    • Open Lab sessions

    • Property Forums (PACE)

    • PMO Website

    • Individualized training

    • Cardinal Curriculum

    • E-mail communications

    • National Property Management Association

    • Your Property Service Representative


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    Online Systems andReference Tools Used

    Sunflower Assets

    • Physical and Accountability Information

    • Financial and Agreement data

    • Reporting Features

      Oracle FA (Central Offices access only)

    • Financial Data, Agreement Information

      iProcurement

    • Purchasing and Receiving

      ReportMart(3)

    • Reporting; data from multiple sources

      PMO and ORA Websites

    • Resources, instruction aids

    • Reuse Website

    • Links to other relevant Stanford sites


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    A Few Final Points…..

    • YOU as Communicator and Facilitator

      • Let folks know who you are, where to reach you, and WIIFT

      • Set up infrastructure that works for your area

      • Be visible

      • Distribute information

      • Know your job

      • Be assertive

      • Use your PSR as a daily resource!!!!


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    In Closing…..

    • Congratulations! The DPA role is very important to your organization

    • If you’re not sure, ask your PSR - we’re here to assist you

    • Be proficient and be visible

    • Are there any other questions?


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