4.2 Disposition and Transfers

 

Disposition is the process by which property owned by or otherwise accountable to Stanford is permanently removed from active University records. When assets become excess to the needs of the University, or the sponsored project under which they were acquired, they must be declared excess and the disposition process initiated. Timeliness in beginning the disposition process is a key to maximizing return on investment while minimizing unnecessary costs associated with the retention and management of the asset. It also mitigates the risk of potential misuse, unauthorized disposition, or theft.

Contact

Questions about this policy can be answered by:

Stanley Dunn

Associate Director

Property Management Office

(650) 725-0081

To report a broken link or send comments/suggestions about property management content, send email to:

pmo-dor-webmasters@lists.stanford.edu

1. Key Policy Statements

  • Department personnel are responsible to inform the Department Property Administrator (DPA) when items are no longer needed or require disposal. The DPA is then responsible to generate an excess request in a timely manner, and ensure items are protected and secured while disposition is pending.
  • For items in operable condition, an attempt should be made to re-utilize within the University. See the Stanford University Reuse Website for details on reutilization for Stanford department use only.
  • Non-Stanford owned equipment requires Sponsor approval prior to disposal.
  • Prior to declaration of excess, departments are responsible for the removal of proprietary or sensitive data from all data-holding devices or equipment.
  • Excess items must be processed for disposal via the Property Management Office (PMO) procedures.
  • Sales must be processed through Surplus Property Sales (SPS).

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2. Monitoring and Notification

All property must be appropriately monitored once the disposition process begins, whether or not it has been recorded in the property management database. Sponsor-owned or Sponsor-funded equipment may require special handling during its disposition cycle. Refer to chapter 3.7 - Agreements Management.

Department personnel must inform their Department Property Administrator (DPA) when assets are no longer needed. The DPA is responsible for preparing the excess items for disposal and initiating the excess request.  PMO approves and coordinates the physical collection and final disposition of all excess property from Stanford departments.

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3. Identifying Excess Equipment

Schools and departments are responsible for implementing established policies and procedures to ensure excess items are identified and disposition is initiated by the DPA in a timely manner. The department must ensure the safe keeping and protection of assets that are pending disposal and provide access for the collection of the excess items.

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4. Disposal Process

A. Administrative Deactivation of Asset Records

 

If physical collection of the item for scrap or sale is not needed, contact your PPM to initiate retirement of the asset record. Refer to the section on disposal methods later in this chapter for additional details.

B. Physical Removal of Assets

 

For assets being physically disposed, the DPA must initiate an excess request.

The Surplus Property Sales (SPS) department collects the majority of excess equipment and materials at no charge to departments, usually within 10 business days of the request being generated. Large or heavy items or other circumstances may require additional labor assistance, in which case the department may be required to pay for these services. Contact SPS for guidance in such cases.

SPS will evaluate the condition and salability of the items and make a decision regarding the final disposition method (e.g. sale, recycle, or scrap).

Refer to the SPARC User Guides for additional information and instructions.

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5. Stanford Bar-Coded Equipment

Property identified with Stanford University Identification barcode tags must be processed through the appropriate channels for disposition. This helps ensure accurate accountable records, financial reporting, physical inventory, and compliance with sponsor or other requirements.

To initiate the disposal process, a DPA must create an excess request. Prior to final disposition, recorded assets will undergo review by PMO to identify and evaluate any issues related to ownership or sponsor required actions. PMO will also ensure that recorded assets are properly retired from the system.

Certain characteristics of assets require additional review prior to disposal. Some of these attributes include:

  • Ownership (sponsor-owned, loans/leases, fellowship)
  • Computers and other equipment with proprietary data
  • Hazardous materials or conditions (electronics, refrigeration, contamination)
  • Vehicles
  • Offsite disposal

Additional details may be found in chapter 4.4.

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6. Unrecorded Equipment

For the disposal of unrecorded (non-bar coded) items an excess request must be generated in SPARC. Information must include the location of the item to be collected, contact information, and any specific instruction needed.  Please refer to the SPARC User Guide for additional information and instructions on disposal requirements and generating excess requests for unrecorded assets.

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7. Disposals Requiring Labor Assistance

Refrigeration units (e.g. freezers, chillers etc.), furniture and extremely large or heavy items may require additional labor assistance, in which case the department may be required to pay for these services. The type of equipment and the disposal delivery destination – either Peninsula Sanitary Service Inc. (PSSI) or SPS – dictate the types of Buildings & Grounds Maintenance (BGM) department work request needed.

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8. Furniture Disposals and Reuse Program

Furniture no longer needed by a department should be evaluated for potential inclusion in the Furniture Reutilization Program.  Furniture in good condition is generally eligible to be moved to a storage facility where it is made available for free to departments that can use it. The only costs are those for the moving of the furniture.

For additional information, see chapter 4.1 – Reutilization.

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9. Methods of Disposition

An excess request in SPARC is required for assets being physically collected and disposed. These requests are generated by the DPA or their authorized delegate.  All other disposal methods require that an excess request be generated in Sunflower by the Property Programs Manager (PPM) or their delegate.  Each method has unique information requirements. Accuracy and completeness is important to ensure proper handling and reconciliation.

Below is a list of approved disposition methods and their respective definitions:

Sale

  • Asset has been sold by Surplus Property Sales and is no longer on campus.

Return to Manufacturer

  • Asset is being returned to the vendor or manufacturer for full credit against the PO (less restocking fees, if any).

Lease/Loan return

  • Asset being returned to the lender which were either leased or part of a loan

Trade-In

  • Asset is being used as a trade-in for credit against a new purchase. A new PO is generated.

Transfer to Outside Institution

  • Asset is being transferred at no cost to another University or Non-Profit Research Institution.

Return to Employee

  • Asset is owned by a University staff member, is recorded in SFA, and the employee is now leaving the University. Generally used only for Fellowships. Computers MUST be clear of all Stanford proprietary data.

Ship to Sponsor

  • Asset was furnished by sponsor (government or other), and is being returned to the sponsor agency at the close of the period of the agreement/award. Or asset is a deliverable on a contract and is being shipped to the sponsor.

Duplicate Record

  • Asset has been inadvertently recorded in SFA twice, and one record must be removed from the system

Stolen

  • Asset has been reported stolen, and a police report has been filed.

Non-Capital

  • Record created in error or asset is not capital and the department does not want to maintain a record for it.

Cannibalization

  • Asset is being taken apart for parts to be used in other equipment/projects.

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