The Acquisition phase consists of:
- Propose anticipated equipment
- Assure required prior approvals are received
- Pre-purchase screening of all equipment
- Use appropriate Expenditure Type
- Asset identification (i.e., tag equipment)
In submitting requisitions for purchase, it is important to identify proper owner, purchasing account, and expenditure type. Hardware, software, and maintenance charges must be itemized and distinguished. It is important to use the appropriate expenditure type, which determines ownership and drives depreciation. This in turn helps Stanford be consistent in its accounting practices. For questions, please consult your Department Property Administrator (DPA).
For each requisition or purchase order, a pre-purchase screening process takes place to check if the asset is already available at Stanford prior to purchase. All capital equipment must be screened; your DPA does this for you when they approve the purchase order. If equipment is being borrowed from another institution, contact your DPA who will guide you in completing the loan process detailed below.
When equipment physically arrives at Stanford, it is important to notify the DPA immediately. The equipment will be identified with a Stanford barcode tag and a Sunflower record will be created. Because of the way the Oracle Financial System and Sunflower reconcile, it is imperative that receiving is performed and asset records are created within 30 days of receipt.
Stanford uses a barcode tag for equipment, and each asset is assigned an individual number. Additional identification, in the form of overlays, is used to identify the equipment as government-owned, donated, leased, or non-capital. In addition to uniquely identifying equipment, this also facilitates the Physical Inventory. It is also important to identify "non-capital" assets and assets that do not belong to Stanford.
Some assets are too small or sensitive to tag; for these we assign a tag number but do not put the actual tag on the equipment.
Purchases
Purchase requisitions are generated in the iProcurement system. Proper selection of an account number (also known as PTA-Project/Task/Award), expenditure type (ET), and purchase order category are critical to ensure accurate completion of the transaction.
All requisitions require routing to the appropriate financial approvers. In addition to financial approval, requisitions for the following require approval of a DPA:
- capital equipment
- sponsor-owned equipment or materials
- equipment leases, loans, and donations
- fabrication components
Note: If you are trading in equipment towards a new purchase order, please work with your DPA to properly form the order.
For assistance with properly creating a Purchase Order, please consult with your local Admin and DPA. Additional information regarding purchases can be found in the Property Management Manual: Acquisition: Purchases.
Loans, Evaluations, Transfers
Incoming Loans are comprised of property which has been provided to Stanford free of charge, for a specified period of time (short or long term), by an institution, company or an individual. Loans of equipment originate primarily for:
- Manufacturer Evaluation
- Clinical Trial Support
- Other Sponsored Research Support
Ownership during the loan period resides with the lender. Stewardship and accountability responsibilities exist for Stanford and require compliance with the terms and conditions of the loan.
The Property Management Office (PMO) must be notified of all incoming loans of equipment prior to their arrival. The PMO will review and involve the Office of Sponsored Research (OSR), Office of Technology Licensing (OTL), Procurement, and the Office of Risk Management as needed.
- All loans of equipment must be documented and include, at a minimum:
- Listing of equipment being loaned
- Value of equipment
- Specific start and end dates of the loan period
- Liability/Insurance clauses
- Purpose and/or intended use for the loaned property
- Delivery and Return responsibilities
- Authorized signatures, per Administrative Guide Memo 5.2.3
In all cases, loaned equipment must be identified, recorded, and tracked in the Sunflower (SFA) property management database. Please refer to Administrative Guide Memo 5.2.3.
Loan terms and conditions may vary. To facilitate closure of a loan, as the end of the loan period approaches, the DPA should be notified by the accountable department as to the status of the loaned equipment. If the equipment is being retained past the end date of the current loan agreement, the loan document should be updated by the DPA in coordination with PMO. If the equipment is being returned, the DPA should process an Excess Request in the Sunflower (SFA) property management database. For further guidance, the DPA may contact their Property Service Representative (PSR) for disposition instructions.
In the example of Evaluations, also known as, Manufacturer Evaluation Loans, a purchase requisition is required. In addition to the standard information, the requisition must include the following:
- clear identification of the transaction as a loan
- itemized listing of equipment being loaned
- loan period beginning and end dates
- equipment value if Stanford were to purchase the item at the end of the loan period (usually provided by lender)
- routing to DPA and applicable department approvers
For property Transfers to Stanford at no cost, it is critical to identify whether or not the transfer is associated with a Sponsored Grant or Contract. The asset’s original source of funding or affiliation with an active grant or contract will determine documentation, recording, and management requirements.
The department personnel coordinating the transfer of the incoming faculty must inform their DPA of the incoming transfer. The DPA should contact their PSR as soon as possible after their initial notification of equipment transferring in to their department from another university or outside entity.
The DPA will serve as primary liaison with the PMO to ensure documentation is complete and records are established in an accurate and timely manner. The following information is needed:
- written release by an authorized individual from the relinquishing institution
- point of Contact at the relinquishing institution
- equipment description
- relinquishing institution’s asset tag number
- model number
- serial number
- original acquisition date
- original acquisition cost
- condition
- original source of funding
- ownership at time of transfer
- current or last accountable agreement (grant, contract, or other agreement)
For assistance with Loans, Evaluations and Transfers, please consult with your local Admin and DPA. Additional information regarding these topics can be found in the Property Management Manual: Acquisition: Loans, Transfers, Lease and Rentals (http://)
Equipment Donations
A donation is a gift of equipment or tangible property to the University without an expectation by the Donor of anything in return. A donation may be directed for use by a particular department, research program, or PI; however Stanford University is the owner of all donations, without exception. Donations are not the property of faculty, staff or students, even if they may have been the primary contact or delivery point for the donation and the designated end user. Department staff, PIs, the DPA, the PMO, and the Office of Development all must work together to accurately and completely document and report equipment gifts received by the University.
Per Administrative Guide Memo 4.2.3 – Records of Donated Equipment, donations of property having a fair market value of $5,000 or greater must be recorded in the SFA property management database by the DPA. For IRS purposes, the PMO must be notified of all donations of equipment, regardless of value. Timeliness in notification is critical to ensure that all applicable regulations are adhered to and correctly documented. For complex donation transactions, involving the PMO at the negotiation stage is recommended.
The following documentation is generally required for donations of equipment or other tangible property:
- letter of intent to donate and/or donation agreement from donor
- itemized list of the donated items, with complete descriptions
- shipping and receiving documents, e.g., packing list, if applicable
- established value (new equipment: the manufacturer’s suggested retail price; used equipment: estimated fair market value from donor or as determined by PMO or both)
- additional documentation regarding the donation, if any
For assistance with Donations, please consult with your local Admin and DPA, who will help generate a zero dollar purchase order for the donated equipment. Additional information regarding these topics can be found in the Property Management Manual: Acquisition: Donations and Gifts.
