Property Management ORA-1310 Property Policy and Procedures Revised May 2007
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
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
Property Service Reps Sandy Passetti, CPPM firstname.lastname@example.org 725-7890 Vicky Vargas, CPPM email@example.com 725-7574 Stan Dunn, CPPM firstname.lastname@example.org 725-0081 Brian Bretz, CPPM email@example.com 725-9839
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
DPA Challenges • Property function often part-time • Level of school/departmental support • Competing Priorities • Turnover and inherited open issues • Time to attend training
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
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!
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
Key Property Policies and Concepts • Let’s discuss key policies and concepts that affect you as DPA…..
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
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
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
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
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
“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.
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
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
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.
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
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
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
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!
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 firstname.lastname@example.org • Procurement Office will change the PO to reflect new PTA data
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
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
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
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):
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
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.
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
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
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
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
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)
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
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
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
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
Storage & Movement • Justified retention • Purpose • Storage period • Secure location • Document what is in storage • Travel • Domestic • Foreign
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 • Steve.email@example.com • http://www.stanford.edu/dept/DoR/exp_controls/
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
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
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
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
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
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