2.4 Loans, Transfers, Leases and Rentals

Contact

Questions about this policy can be answered by:

Stanley Dunn

Associate Director

Property Management Office

(650) 725-0081

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pmo-dor-webmasters@lists.stanford.edu

1. Incoming Loans of Equipment

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 or 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.

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2. Incoming Loans of Equipment Operational Procedure

The Property Management Office (PMO) must be notified of all incoming loans of equipment prior to their arrival.  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 Department Property Administrator (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 University Property Administrator (UPA) for disposition instructions.

Though they share characteristics, each incoming loan type has additional unique steps for acquisition, as outlined below.

A. 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 Department Property Administrator (DPA) and applicable department approvers

B. Clinical Trial Support Loans

Clinical trials pose unique risks to the University, particularly when they involve human subjects. Prior to initiating a loan of equipment supporting a clinical trial, contact the School of Medicine Research Management Group.

Close coordination with Stanford hospitals will also be necessary.

C. Other Sponsored Research Support Loans

Sponsors may elect to provide equipment for use in support of sponsored research. They may refer to this as Sponsor Furnished Property, or a Bailment Agreement. In addition, equipment may be loaned to Stanford by peer institutions in support of collaborative research projects. Timely documentation for these types of equipment loans is very important. As soon as the DPA, receives notification of the impending loan he/she should complete the Property Incoming Loan Form and forward it to the PMO with all documentation provided by the lender. PMO will assign a loan number and approve the loan via signature. See Sponsor or Government Furnished Equipment below for additional information.

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3. Incoming No-Cost Title Transfers from other Universities

Equipment is often brought to Stanford by new faculty from their prior institution. When planning for an incoming transfer, 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. Common scenarios include:

  • equipment acquired by the prior institution with unrestricted funds
  • equipment purchased with sponsor funds and award is closed
  • equipment transferring with an active grant
  • equipment transferring with an active contract

The department personnel coordinating the transfer of the incoming faculty must inform their DPA of the incoming transfer. The DPA should contact their UPA 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)

Upon receipt of this information, PMO will review and obtain clarification, if needed, from the Point of Contact at the relinquishing institution.

PMO will subsequently provide the DPA and Principal Investigator (PI) guidance and instruction for proceeding with the completion, acceptance and recording of the incoming transfer.

Note:  Care must be taken that all required software licenses are obtained by Stanford.

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4. Leased Equipment

Leasing as an acquisition method is an option after other methods have been considered and deemed less desirable.

An equipment lease must meet the following criteria:

  1. lease period must exceed one year
  2. contract with Stanford has a commitment for cash payments of $5,000 or greater over term of lease
  3. terms and conditions should, at a minimum, address the following property management elements:
  • listing of equipment
  • ownership of equipment
  • liability terms
  • delivery, use and maintenance and scope and responsibilities
  • disposition terms
  • buy-out option
  • leasing fees and payment terms
  • lease period

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5. Capital Leases

In addition to other special circumstances, if the lease payments exceed $200,000 the lease may be considered a capital lease for accounting purposes. Contact the Capital Accounting Department in the Controller’s Office for further guidance. See Administrative Guide Memo 5.2.2.

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6. Leasing on Sponsored Projects

Generally, leasing equipment on federal sponsored projects is not allowable as a direct charge. Specific authorization from the sponsor is required. Contact your UPA for further guidance.

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7. Equipment Lease Operational Procedure

The iProcurement system is used to process a Standard Lease requisition for leased equipment.

A. Lease Acquisition Attributes

In addition to basic information, the following unique information is required when preparing a Standard Lease requisition:

  • expenditure types: 52921 (General Purpose Lease) and 52951 (Special Purpose Lease)
  • lease period begin and end date
  • location where equipment will be used

Please read the instructions for completing requisitions in iProcurement for more information.

B. Leased Equipment Records

Leased equipment must be tagged and recorded in Sunflower for accountability and reporting purposes. The DPA must create these records using the PO Interface within the Sunflower property management database. Records must reflect the acquisition method of “LEASE” to facilitate reporting requirements.

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8. Equipment Purchase at the End of the Lease Agreement

To exercise the buyout option at the end of a lease, the department must submit a new online requisition referencing the original lease purchase order number. If the buyout is for $5,000 or greater for an individual asset, use the requisition category Standard.Capital Equipment. If the buyout amount is less than $5,000 for an individual asset, use requisition category Standard.Goods.

The DPA is responsible for contacting their UPA for guidance in updating the Sunflower property database record.

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9. Equipment Rentals

Equipment rentals are contracts under which Stanford has agreed to cash payments meeting either of the following:

  • a payment period greater than one year with less than $5,000 committed
  • a payment period one year or less, regardless of dollar value

The iProcurement system is used to process a Standard.Goods requisition for rented equipment. The Expenditure Types (ET’s) for Rentals are:

  • 52920 (General Purpose Equipment),
  • 52930 (Other Equipment…tools), and
  • 52950 (Special Purpose)

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