• Short-term storage -- considered to be less than 6 months in duration
• Long-term storage -- retention of the property will exceed 6 months

Retention in long-term storage must be justified; more specifically, the accountable department is responsible for identifying the purpose the property is being retained prior to placing it in long-term storage. If the property is government-owned, it may be necessary to obtain approval for long-term storage from the sponsor. Further guidance on the need for sponsor approval may be obtained by contacting the Property Management Office.

Ideally, excess property should be processed for reutilization or disposal; it should not be placed in storage. Unnecessary storage of property is not cost-effective, fills valuable space, incurs the risk of potential loss, damage or misuse, and continues to require records maintenance and physical inventory.

The Sunflower record for assets in storage should be updated to reflect the following information:

1. For items in long-term storage, the activity status is “inactive”
   Note: The accuracy of “Activity Status” of an asset is one of the critical elements in determining the eligibility of indirect cost recovery that can be obtained for an asset. Exceptions to this require specific negotiations with the Office of Naval Research (ONR).
2. The storage location
3. Any special comments pertinent to the storage. For example: who has access to the storage area, expected duration of storage, and retention justification.

While property is in storage, care should be taken to ensure the method and location of storage is adequate for the type of items being stored and that they are secured in a manner which will prevent loss, damage, or destruction to the property. For clarification or guidance contact your Property Service Representative (PSR).

Property in storage that meets the criteria established for the biennial physical inventory must be accounted for or physically verified during the physical inventory process. (See chapter on Physical Inventory).