Property Menu - Property Manual - Chapter 8

Utilization

Each item of property at Stanford University, whether university or sponsor-owned, is accountable to a designated organization (department). This organization is responsible for the stewardship and appropriate use of the property throughout its life.

Primary objectives of an effective utilization program are to ensure that the property is used to the maximum extent possible throughout its useful life and that it is declared excess in a timely manner when no longer needed (see “excess property” below).

Each property record, either in Sunflower or in the PMO Materials Tracking System, requires a location for the item. Maintaining accurate location information is critical. It enables prompt location of the asset, helps define the purpose for which it is used, and is a key factor in providing data used to substantiate negotiations which directly impact the amount of potential Indirect Cost the university receives from the government.

Ownership and Use of Sponsor-Funded or Sponsor-Owned Property

Ownership (title) of property acquired with sponsor funds may vest with either the University or the Sponsor. This is determined by the terms and conditions within the sponsored project. Ownership of government-furnished property will vest with the sponsoring agency. The ownership of an asset is recorded in the Sunflower asset record or the PMO Material Control System and must be considered when managing the use of an asset. In some cases, sponsor-owned property is provided for a specific purpose and care must be taken to ensure the use restrictions are met.

All property (equipment and materials) purchased with sponsored funds must be in quantities that are reasonable, allowable, and allocable to the project. They must directly benefit the project. Although in educational research environments, sponsors often permit use of sponsor-funded and sponsor-owned property on various concurrent projects, priority for use should be the funding project.

When property is no longer needed on the project for which it was acquired or provided, it must be made available for possible use on other sponsored projects. This may occur prior to the scheduled end date of the overall project. If no longer needed at Stanford, the DPA prepares an Excess Request in Sunflower to initiate the disposal process for the item. The PMO processes the request and ensures disposition instructions are obtained from the sponsor and provides guidance to the DPA. The DPA and project staff personnel are responsible for completing the physical disposition actions required.

In some instances there may be a need for retaining the property for future use. If so, the retention justification must be documented and the property stored in an appropriate manner (see Storage section below).

It is recommended that departments periodically review the activity status of property in their areas. Excess items should identified in a timely manner and be made available for possible reassignment within the university or external disposition. (see use of inter-department market below) The activity status of property is also verified at the time of the biennial physical inventory for those eligible for inventory verification.

Use of University and Sponsor-Owned Vehicles

Vehicles for which Stanford is accountable must be used for university-related activities only. University Guide Memos 28.7 Operation of Vehicles and 57.2 University Vehicles provide additional details.

Excess Property

Property is considered “excess” when it meets one or more of the following criteria:

The accountable department or sponsored project no longer has a need or potential use for the asset. (Sponsor-owned property may become excess to the needs of the accountable project at any time during the life of the project, not only at the time the project ends.)
The asset is technically obsolete for the needs of the accountable project or department.
The asset is in need of repair to the extent that it is not economically feasible or is no longer operable.

When equipment becomes excess, the activity status in the Sunflower record should be updated to reflect “excess” and the condition updated to reflect the current operational condition of the asset. When government-owned material becomes excess, the property custodian, user or Principal Investigator is responsible for informing the DPA of excess property so reutilization efforts can be made or appropriate disposition activities initiated. The DPA should then coordinate with PMO to obtain disposition instructions. Refer to the Disposal Chapter for additional information on disposal.