Property Menu - Property Manual

Policies

Due to the systems implementation efforts underway throughout the campus, the implementation of this policy is May 1, 2004. This change is applicable to federal contracts or subcontracts awarded in FY04 as well as any new fabrications initiated in FY04 on existing contracts.

The university must capture and report the costs of materials, supplies, components, and labor related to bringing the fabrication to completion for initial use.

Equipment fabrications, while work-in-process, will be accounted for in Oracle Grants Accounting (GA). To facilitate the process, specific tasks must be established with the Project-Task-Award (PTA) setup in the Grants Accounting system for each fabrication. Each fabrication on a Sponsored federal contract will require a FAB task on a capital project and a burdened fabrication task. The task number for both tasks will include the fourdigit FAB number assigned by PMO to facilitate reporting. Throughout the fabrication process, project personnel must appropriately charge expenses for materials, supplies, labor and other associated costs to each appropriate fabrication task. Upon completion of the fabrication, the tasks will be closed and total cost reported is included in the subsequent asset record. Please see “Records Section” for details on the fabrication record. Additional guidance may be obtained from the Property Service Representative [link to contact page on web]

All directly related costs associated with a fabrication will be accounted for under the designated project tasks and will be available for sponsor reporting (see below for types of allowable expenses). Costs required to bring the item to completion shall be properly documented, supported and retained; supporting documentation shall be made available for audit upon request.

Upon completion for initial use, the fabrication is “capitalized” and subsequently tracked as an asset in Sunflower Assets and Oracle Fixed Assets. Changes made to completed fabrications are considered modifications and accounted for as a separate task. Stanford will not capitalize labor and other indirect costs associated with a fabrication; this information is collected and available for sponsor reporting and property management records only. Ongoing maintenance or repair costs are not included as part of the acquisition cost of the fabrication.

Expenditure Types for Fabrications

Materials and supplies for a Fabrication Task should always be charged to the following Expenditure Types:

Purchases from outside vendors, use

53195 (SU CAP FABRICATION) or
55095 (NON-SU CAP FABRICATION)

Purchases from Stanford Stores, use

58671 (INTRA-DEPT SU CAP FABRICATION)
58676 (INTRA-DEPT NON SU CAP FABRICATION)

Fabrications charged to the old Expenditure Types for fabrications don't need to be changed to the new Expenditure Types if charged before 12/1/05. These Expenditure Types are:

53115 (SU TECH SCIENTIFIC EQUIP) or
55010 (NON-SU SCIENTIFIC EQUIPMENT)

If you have any questions, you should contact your Property Service Representative (PSR).

Use of University Purchase Cards (PCards) for fabrication expenditures

In accordance with Administrative Guide Memo 54.5, the use of Pcards
is not permitted for expenditures on fabrication tasks. Use the Rapid Purchase Order for material or supplies with an acquisition cost under $1,500