Chapter Seven

Disposition

Sections

Disposition of Assets

Section Topics

• Points of Contact
• Overview
• Disposition of Computers
• Disposition of Fabrications
• Procedure for Processing On-Line Disposal Requests
• Disposal Methods and When to Use Them
• Non-Capital Disposal Procedure
• Selling through Surplus Sales (SPS)
• CAMS Update Procedures when Selling through SPS
• Disposition of Assets through a Transfer to Another Institution
• Disposition of Assets due to Contract/Grant Expiration
• Loss, Damage or Destruction of Assets
• PMO Internal Procedure for Processing LD&D
• Disposal of Assets That May Have Environmental or Health Impacts
• References and Resources

Points of Contact

Common Situations	Property Management Office Phone 736-0006	Surplus Property Sales (SPS) Phone 3-3001	Environmental Health & Safety (EH&S) Phone 3-0448 Med School EH&S Phone 3-8143	Risk Management Phone 3-0042
Re: Loss, Damage & Destruction				X
Re: Screening for Disposal Eligibility	X
Re: Disposal of Equipment that may contain Hazardous Waste	X (2nd)	X (3rd)	X (1st)
Re: Posting Excess Equipment on the PMO Bulletin Board	X
Re: Equipment Pick-up	X	X
Re: Appraisal		X
Re: Bill of Sale		X

Overview

In everyday life disposal is what we do when we throw something away. However, in the world of property management, disposal means a bit more than throwing something away. It means a series of actions that lead to final disposition of property.

The source of funding for an asset has a direct impact on how it can be disposed. For example, sponsor funded purchases and donations may have specific disposal restrictions. The key to determining disposal restrictions is to read the sponsor agreement or donation documentation. You can view agreement information on-line in the Capital Asset Management System (CAMS); specific disposal restrictions will also be linked to the "Disposal" form in CAMS. If there is a restriction on a type of disposal, for example a donation that cannot be sold, you will not be able to choose that method of disposal in CAMS.

Currently, Stanford is utilizing a combination of "new" technology (Oracle Fixed Assets, ie: CAMS) and a legacy technology (Prism) to process on-line disposal requests (DRs). The DR is initiated in CAMS, and then the Prism approval routing is used to capture on-line "signatures" of the DPA and approvers. Details on how to perform these tasks follow later in this section. If you have any questions, your Property Service Representative (PSR) can assist you in resolving disposition issues.

The first step of the process is determining if the item is excess or needs to be transferred and identifying condition of the asset at that point. The second action is to research disposition restrictions. If there are any, they will have to be met prior to disposition. If there are no restrictions, a DR must be generated for assets recorded in CAMS. For items which need to be disposed but are not recorded in CAMS, you must determine if the item is a capital asset. If so, a CAMS record must be created and the DR initiated. If the item is not capital, an SU.13 is required. Details on these actions follow later in this section.

Determine When Equipment is Excess

Excess equipment is a term that describes a lack of use or benefit a piece of equipment can give to a project or person. Any excess equipment, whether Stanford funded or sponsor funded, should immediately be considered eligible for disposition. If it is sponsor funded, it may have to be made available to another department on Stanford's campus, or another institution through screening. The goal is to provide an opportunity for maximum utilization of assets. If the excess equipment is Stanford funded, PMO can notify other Stanford departments that this equipment is available for use via an email bulletin board. If you wish to "advertise" in this manner, send an email to AS.CAM@Forsythe with your request, including tag number of the asset, condition, and amount desired or transfer, if any.

Reutilizing assets can save both Stanford and sponsors a great deal of money. If reutilization is not possible internally, proceed with disposition immediately. PMO will ask for disposition instructions if the equipment has sponsor or IRS restrictions, or will process the equipment through Surplus Property Sales (SPS) if there are no restrictions for disposal.

No disposals should be thrown away

Do not throw equipment into the trash can without PMO approval. Stanford is liable for all equipment for the life of the asset, including; hazardous, government-owned, donated, etc. If special sign-offs are required, such as for hazardous or radioactive items, be sure to contact Environmental Health and Safety. Please refer to the "Who to Contact" chart at the beginning of this section.

Other Considerations

Disposing "Obsolete" Assets

If an item is considered "obsolete" to your department, you should dispose the item using the actual method of disposal (ie: Sale, Scrap, etc.) and use the following guidelines to identify the asset as obsolete:

1. The DPA will reference "Obsolete for Department Use" in both the "Comments" field in the MAD form and the "Originator Comments" field on the Disposal Request (DR).
2. The condition of the asset should reflect the true working order (ie: Good, Requires Minor Repair, etc.)
3. The DPA is to reference in the "Comments" field in the MAD form that Surplus Property Sales (SPS) established this item has no market value

Documenting Disposals "After the Fact"

Periodically, assets are disposed without the DPAs knowledge. A DR must be processed as soon as this disposal is discovered. DPAs will use the following procedure to document this type of disposal:

• Verify the asset is definitely gone
• Research the circumstance
• Establish the date of occurrence (Estimate if necessary)
• Document findings:
  1. Obtain a written statement from the person who is certifying the condition of the disposal (email will suffice)
  2. Keep this document on file with other paperwork on this asset
  3. Write a statement in the "Comments" field in the MAD form of CAMS about the disposal
  4. Enter a brief statement in the "Originator Comments" field on DR (example: "Item scrapped last month, no pickup necessary")
  5. If additional documents are needed or relative to the disposal, fax them to PMO 650-725-7870
• Enter the actual disposal method used in the CAMS DR (ie: Scrapped, Shipped to Sponsor, Even Exchange, etc.)
• Route disposal request for approval signature as you would any other DR
• Route an FYI copy to your PSR

PMO will review and approve these DRs upon satisfactory completion of the process outlined above.

Disposition of Computers

In addition to the traditional disposal requirements, the University has to deal with situations that may compromise Stanford database access and security, or licensed software agreements and sensitive and proprietary information that may be stored on computer hard disks or other media.

When disposing of an item in CAMS, Stanford is now utilizing the Prism routing system to capture electronic signatures, similar to the previous practice of manually signing an SU.13. When electronically approving a CAMS disposal request (DR) for computer equipment through Prism, the DPA and the department manager or administrator in charge of property disposals attest to the following:

• "I certify that the listed computer equipment has no University confidential or sensitive data on any storage media."
• "I certify that simply erasing data is not sufficient because many programs are available that can retrieve erased data. The data has been either be overwritten or reformatted."
  Note: There are several programs that will overwrite data. Some examples are Norton Utilities (using the clean function) or Disk Doubler (using the copy clear function). Be aware that reformatting a hard disk will remove everything including software which may be okay to transfer. If you choose to reformat the hard disk, then the operating system must be reloaded before the hard disk is of any use again.
• "I further certify that all licensed software has either been removed or properly transferred."

For purposes of resale, the Samson and Leland software, all freeware, and all operating system software such as DOS, Windows, Mac/OS, etc. can be transferred with the machine. Any other software transferred will depend on the particular license agreement. When in doubt, assume that the software may not be transferred and must be permanently removed from any storage media being disposed of. Please see Guide Memo 56.4.e for further details. Contact your ITSS support or call Customer Assistance for help.

Disposition of Fabrications

Fabrications, by their nature, are usually comprised of numerous items, some of which are usable after cannibalization or reconfiguration of the fabrication. Prior to disposition of a fabrication, contact your PSR to discuss plans to reuse fabrication components so that proper CAMS records can be created, modified or disposed.

If the fabrication is on an active agreement, please contact your PSR before cannibalizing any equipment. Usually approval from the sponsor is necessary. If there are donated items which were integrated into the fabrication, disposition requirements can be very different for donated items than for the balance of the fabrication.

Procedure for Processing On-Line Disposal Requests

Some general notes:

• In the "Disposal Request Details” sub-form shown later in the procedure, the example is “Sale”
• Each DR is limited to one department code
• No changes are allowed in the DR form after selecting “Route DR”. This initiates the link to Prism for on-line approval routing.
• CAMS disposal routing in Prism is set up the same as other Prism routing, and you may set up a template.
• All approver remarks will be uploaded to CAMS

The "Procedure":

• Identify items which are excess
• Determine from the asset user or custodian the method of disposal and current condition of the asset
• Determine if they are in CAMS, or if they are non-capital
• Segregate in the following categories (and sub-categories if you have multiple items). When segregation is complete, you will be able to determine how many DRs you will prepare:
• Capital/Non-capital
  • Department Code
  • Property Type (ie: sponsor-funded, donated, unrestricted)
  • Disposal Method (ie: sale, scrap, return-to-manufacturer, etc.)
  • If the items are sale or scrap, segregate further pending pick-up location, whenever possible.
• Select the "Disposal Workbench" from the Main Navigator in CAMS
• You can edit an existing draft DR here, or create a new one
• In the "Header Region", Creation date, initiator name, and phone are all generated by logon ID and current date
• DR Status defaults to DRAFT
• User inputs Department Code (required) and Initiator Comments (If disposal method is "Sale" or "Scrap", enter pick-up location and contact point, including phone number)
• In the "Disposal Lines Region" User inputs SU.ID Tag Number (only tag numbers for department code chosen will be available) and method (from LOV)
• “Parent” will “X” if the item chosen is a Parent Record
• Description, Serial Number, Manufacturer, Model, TV will populate based on Tag Number
• Condition and Status will also default, and if they need to be updated, you will be able to do so right on the CAMS DR form
  Note: Condition should reflect disposal method and Status should ALWAYS be "3-Not in Use"!
• DR Number is system-generated, but does not occur until user either clicks “Save” icon or “Route DR” button

• The “Open” button will change if additional information is required based on method chosen (In the above picture it is showing as "Sale Info."). The following 6 methods will require additional information
  • Sale
  • Stolen
  • Return to Manufacturer
  • Trade-Up
  • Transfer to Outside Institution
  • Ship to Sponsor

• Following is the detailed additional information the DPA (unless otherwise noted) is required to enter for the six methods listed earlier:
  • "Sale" method will require Accounts Credited (including GL Code) data required before routing; Total Account % must equal 100%
  • Other Sale data is entered by PMO after the DR is approved
  • "Stolen" method will require a police report number. This is obtained by the DPA or the department after reporting the incident to the
  • lice.
  • "Return to Manufacturer" method will require an RMA number. (if you are not making arrangements to return the equipment, request this number from the person who is. If no RMA is issued by the manufacturer, enter "None".)
  • "Trade-Up" method will require Purchase Requisition Number and amount credited against new items
  • "Transfer to Outside Institution"
  • "Ship to Sponsor"
  • Please Note: There may be additional fields on the "second screen". Only the fields mentioned above should be filled out. PMO will fill out the others at a later date.
• If you are disposing a "parent" item, the "Child Assets" button will highlight.
• Each "child" record must either be disposed or the relationship to the "parent" must be dissolved. Different methods can be picked for the child records (for example, perhaps the parent item will be scrapped, but the child item will be sold)
• If a "child" record will not be disposed at this time, the DPA must open that record and remove the link to the "parent" record by deleting the "Parent Asset" [Number] from the "Asset Details" form.
• An unlimited number of disposals may be entered on each DR; however, each item must be individually reviewed, so to expedite processing, you may want to limit the DRs to not more than 50 items.
• Click “Route DR” button to route. DR Status changes to “Routing”. The DPA may also choose to click the "save" icon and save the DR in draft form if they need to collect additional information or need to edit child records. The form can be retrieved later and routed.
• Select CAMS DR in Prism (It may take up to one minute for the DR to be retrievable from Prism.)

• Find DR by one of 6 indexed fields (Department, DR Number, Initiator, Date Written, Disposal Method, or Status)
• "Get" the record and verify the data one last time
• Return to set up routing

• DPA defaults as first approver; your name will be on the "Originator" line and after final review of the information for accuracy and completeness, you will type "Approve" under "Action"
• Each DR must have DPA supervisor or higher level second approval; Secondary approvers approve or return DR in Forms Action or in EMS (Electronic Mail)
• Each DR automatically routes to PMO for final approval (Note: If any approver (DPA Supervisor or PMO) returns DR, the DPA must create new DR in CAMS (There is a “Copy DR” function in CAMS that allows a rejected DR to be copied and the data modified) Contact your PSR if assistance is needed.
• PMO reviews DR and approves or returns (PMO may add remarks). Approved "Sale" DRs are then routed to SPS who arranges for pick-up and sale of assets.
• The Prism action is complete - review DR in CAMS
• Some methods will require additional information, either by PMO or the DPA (For example, in "Sale" method, PMO will add sale proceeds at a later date; or, if the item doesn't sell, PMO will change the method and retire the asset a different way). If PMO changes the method in CAMS, we will notify the DPA of the change.
• If any approver returns a DR in CAMS without "approval", the DR will automatically show up with a "Status" of “Rejected” in CAMS.
• If further information is needed, PMO will contact you. PMO will verify that disposal restrictions, if any, were adhered to. If the item was sponsor funded, there may be some time delay while PMO works with the sponsor to finalize disposition instructions. If there are no restrictions, PMO will proceed with processing the disposition request.

Disposal Methods and When to Use Them

Use this Method...	If the item...
SALE	Has been requested to be sold through Surplus Property Sales
SCRAP	Is broken or beyond repair with no reasonable value other than recovery value of the basic raw materials. PMO will pick scrap items up and store them in a recycle trailer. Periodically scrap vendors will pick the items up and the University will recover some money that is applied to the general operating fund. Contact PMO if you require pickup within a specific time frame. Additionally, never scrap Title Vest 2 (government-owned) or Title Vest 3 (other sponsor-owned) equipment.
RETURN TO MANUFACTURER (Permanent)	Is being returned to the manufacturer for credit
EVEN EXCHANGE	Is determined by the manufacturer or an authorized service representative to be malfunctioning and needs to be replaced
CANNIBALIZATION	Is not functioning properly and will be used for replacement parts or spare parts. Contact your PSR prior to using this method.
STOLEN	Has been reported stolen, and a police report has been filed
TRADE-UP	Is being returned to the manufacturer for trade-in value toward new equipment
DUPLICATE	Has two unique SU ID tag numbers with the same serial number Note: Dispose the item with the tag number that has the least accurate information. Retain the asset record that has the most accurate information.
TRANSFER TO OUTSIDE INSTITUTION	There are many restrictions in this category. Call your PSR for clarification. In addition, the Administrative Dean must be listed as an approver on the Prism routing of the CAMS record.
SHIP TO SPONSOR	Is to be returned to the sponsor when a contract or grant has expired
ABANDONMENT	Cannot be disposed in a cost-effective manner. Note: Call PMO before using
PHYSICAL INVENTORY ADJUSTMENT	(This disposal method is for PMO use only.)
ACCESSORY	Has cost included in parent, and breakdown is impossible

Non-Capital Disposal Procedure

Part of the decision on how to dispose of equipment is determining if it is a capital asset or not, and also whether there is a CAMS record for the asset or not. If your department chooses to track non-capital items in CAMS, you must process a CAMS DR, regardless of the cost or value of the equipment. If no CAMS record exists for the item, you must determine if the item is capital (i.e.: what was it's cost at the time of acquisition?). Following is a chart to assist you in making your decision:

Capital Asset Threshold

Acquisition Date	Acquisition Cost
Prior to 9/1/96	$500 or greater
After 9/1/96	$1,500 or greater
Government Property	No $$ threshold; all must be recorded
Loaned Assets	No $$ threshold; all must be recorded
Donated Property	$500 or greater, regardless of acquisition date

If you determine the asset is capital or in a category that must be recorded in CAMS, and no record exists, you must create a CAMS, then initiate a CAMS DR. If, however, you determine the item was not capital at the time of acquisition, you may dispose of it as non-capital property. An SU.13 must be filled out, signed by the DPA, approved by the DPA supervisor, and forwarded to PMO for approval. The labor shop will not move equipment without an approved SU.13, and Surplus Property Sales (SPS) will not sell any non-capital equipment without an approved SU.13. If Peninsula Sanitary is contracted with to move large pieces of equipment, a Work Order must be completed as well. Following is the information necessary on the SU.13:

• Department name and code
• DPA name and signature
• Item description (noun name)
• Model and Serial Numbers (if applicable)
• Acquisition Cost
• Disposal Method (Sale, Scrap, etc.)
• Pick-up location, contact name and phone number
• Additional Comments

Selling through Surplus Property Sales (SPS)

SPS is the only department on campus authorized by the Board of Trustees to sell equipment on behalf of the University (see Board of Trustees Resolution Number 3). SPS will pick up property to be disposed once documentation (CAMS DR for capital assets, or an SU.13 for non-capital assets) has been processed and approved by PMO. If items are too large for pick-up, the DPA will be notified and SPS will coordinate with the labor shop for movement. SPS will remove the SU.ID tags once the equipment is sold and prior to it leaving the premises. Tags should not be removed prior to sale. Upon sale, SPS will credit proceeds to the account listed in the CAMS DR or SU.13.

In general, it is always a good idea to process property for disposal as soon as it is excess. Please note that donated equipment cannot be sold less than two years after receipt, due to IRS regulations. If the donated equipment was given to Stanford under IRS Regulation 170(e)(4), refer to the "Disposal of Restricted Donations" part of Section 2.2, "Donations to Stanford" for additional information. Timely sale of property provides the following benefits:

• Higher price (equipment not outdated)
• Remove excess equipment from storage
• Less items to inventory and reconcile
• Contribute to successful property audit

Goal: Reuse and Recycle

As part of Stanford's overall goal of reusing and recycling excess equipment, Surplus Property Sales has implemented the following process:
When SPS picks items up from a department, the DPA must decide if they want items back if they are not sold within 90 days. If the DPA decides they do not want the items back, and they are not sold within 90 days, SPS will process the items in lot bids and will retain all proceeds.

Proceeds of Sale on Government Funded Equipment

Before a sale can be consummated, disposition restrictions must be researched and resolved by the PMO office. Sponsor approval may be required prior to sale.

Generally, most sponsor-funded equipment titled to Stanford has future use and disposition restrictions, unless the sponsor gave it to Stanford without further obligation; if in doubt, view the Agreement on-line in CAMS. If the agreement is ongoing, sale funds must be credited back into the project that Purchased the equipment. If the agreement is not ongoing, the next order of preference is to credit another agreement with the same sponsor who originally funded the equipment. If that is not an available option, then credit the funds back to other similar federally sponsored research.

CAMS Update Procedures when Selling through SPS

In an effort to maintain appropriate physical accountability of assets on consignment for disposal at the SPS facility, a new CAMS department code (SPS90) was created in May 2001. Additionally, a new procedure for updating the CAMS records has been established. The data reflected in reports the departments run (such as "Reports by Custodian" and "Reports by Location") will be accurate and will require less data sorting. An asset will be assigned to the SPS department code when a Disposal Request is approved by the PMO Disposal Group and after the asset is physically located at Surplus Sales, Bonair Siding. The only exceptions will be:

• When an asset remains in the owning department/school unit because of pending sale through the bid procedure, or special circumstances such as on-site sales
• Title Vest 2 and 3 - Items must have authorization for disposition from sponsoring agency. Sponsor approval for sale triggers custody transfer to SPS

Note: The only assets in Dept Code SPS90 are those that are on consignment for sale from SU Dept/School. This does not include SPS Department capital assets, which are in the Procurement Department.

This procedure only applies to items recorded in CAMS and only those items marked for disposal with the SALE method. You can expect to see this change made within 5 working days of the monthly upload (generally completed the second week of the month). The following areas of CAMS will be updated through this process:

• Maintain Asset Details (MAD) Screen
  • Dept Code
  • DPA Name
  • Previous Dept Code
  • Comments Field
• Assignment Screen
  • Custodian
  • Location
• Disposal Workbench
  • Sales Proceeds

If you have any questions regarding the following procedure, please contact your PSR or Manuel George.

Step	Responsible Role	Sequential Tasks
1.	Department/Faculty/Staff	Identify asset(s) for sale Notifies Department Property Administrator (DPA)
2.	Department Property Administrator (DPA)	Generates CAMS Disposal Request (DR)
3.	Property Management Office (PMO)	Reviews and approves DR Routes approved DR to Surplus Property Sales (SPS)
4.	Surplus Property Sales (SPS)	Picks up items on approved DRs or receives from Facilities if relocation requested by DPA Each Thursday, fax to PMO (Manuel George and Queenette Baur) a copy of DRs for assets received that week. (PMO Fax No. 5-7870)
5.	PMO	Update CAMS record with SPS Department Code and DPA for items annotated on fax. Note: Location, custodian, etc. will be updated during PMO Monthly wall-to-wall inventory scanning
6a.	Physical Inventory Group of PMO	Perform monthly wall-to-wall inventory in SPS of assets with barcodes affixed or assigned. Inventory will be performed during last week of each month and data uploaded to CAMS
6b.	Property Service Representative (PSR) and CAMS System Administrator	Generate reports and make global changes based on inventory merges
7.	SPS	Process items for sale per established procedures The 10th of each month, provide PMO (Manuel George, cc Queenette Baur) a report of sold, scrapped or assets returned to Depts. that didn't sell the month prior
8.	PMO	Update CAMS record with sales/scrap data per SPS disposal report

Disposition of Assets through a Transfer to Another Institution

Transfers to Departing Faculty's New Institution

Stanford's practice is that it will transfer title of equipment to a departing faculty member's new home institution under certain circumstances. A-110 applies to grants; FAR or FAR supplements apply to contracts, donated equipment IRS 503C(4) applies to non-profit organizations.

Following are four common issues and how to deal with them:

1. Government owned equipment: PMO must obtain approval to transfer from the Sponsor. The department must call the PSR to obtain guidance. Once the approval has been obtained, the department should group the equipment by agreement on the CAMS DR.
2. Equipment on agreements that are still current: Sponsor approval may be required. Call your PSR for guidance. The department must follow the same process as outlined in 1, above.
3. Federally funded agreement has expired and title has vested to Stanford: As noted, group the equipment by agreement. Stanford's practice is that it will transfer title of equipment to a departing faculty member's new home institution upon the faculty member's request, if (A) the University has title, (B) if the equipment was acquired primarily for that faculty member's use under their federal grant or contract, and (C) there are no competing demands for that equipment within the department. A letter from the Dean approving the transfer is required

Remember, capital equipment can only be transferred to a nonprofit institution and the equipment should be used on government related sponsored agreements (per A-110 guidelines on disposition of equipment).
4. Stanford funded and owned equipment: This equipment should not be transferred. It should be sold through SPS to the institution at fair market value (FMV). Any exceptions require written approval by the dean or area director.

a. Donated equipment - unrestricted and restricted IRS 170(e)(3)&(4): Unrestricted equipment, if kept for greater than two years from acquisition date, should be treated as Stanford funded equipment. If acquired less than two years from original donation date, a copy of the original IRS 8283 form must transfer with the equipment to the benefiting institution and an IRS 8282 form must be sent to the IRS and donor. Please call PMO for coordination of this process.

Disposition of Assets due to Contract/Grant Expiration

Resolution of disposition, according to either grant or contract requirements, is both a department and PMO responsibility. Partial guidance on this matter can usually be found in the agreement property terms and conditions. There may be more than one disposition method per agreement; these may be dependent on future use requirements and restrictions on use. Process disposition of this type of asset via a CAMS DR, as you would any other asset. The disposal restrictions listed in the "Agreement" form in CAMS will be applied, and you will only be allowed to choose an appropriate method. You can view this information prior to initiating a CAMS DR by selecting "Agreements Query" from the main navigator in CAMS.

If government-owned equipment is transferred from one agreement to another, it is then considered GFP. Refer to Section 9.2, "Contract and Grant Closure" for more guidance.

Loss, Damage or Destruction of Assets

When equipment is lost, damaged or destroyed, regardless of ownership, you should notify PMO immediately. Public Safety should be contacted first if a theft occurs. PMO will then serve as the liaison for the department with Risk Management and any sponsoring agency. The department should contact Risk Management to obtain an account number to purchase replacement items; PMO will provide directions regarding additional property administration requirements to the department.

PMO Internal Procedure for Processing LD&D

The following procedures frequently refer to "sponsor" property. While there are steps to take for sponsor owned equipment, all equipment that has been lost, damaged or destroyed must be reported to PMO.

Incidents of loss, damage or destruction of sponsor-owned equipment must be reported to the sponsoring agency or cognizant property administrator. Verbal or preliminary notification to the Sponsor or Property Administrator must be made within 2 working days of discovery or determination. A formal letter to the Sponsor or Property Administrator notifying them of the loss, damage or destruction (LDD) of equipment will be sent within 10 working days of determination or discovery and will outline the date of the incident, the description of the equipment, description of the incident (police report on stolen equipment) and the amount of effort expended to locate the equipment.

Determination is based upon a physical inventory or scan of an area where the equipment was last used. Best effort by the department to locate the equipment will be used in cases where loss is not clearly evident.

Loss

In cases where loss is clearly evident and discovery has been made, such as in a break-in, the term discovery will be used.

Damage or Destruction

Preliminary or verbal notification of Damaged or Destroyed sponsor-owned equipment will be reported by Property Management Office (PMO) to the sponsoring agency or property administrator within 2 working days of the notification by the department to PMO. The department must immediately upon discovery of damage or destruction notify Property Management Office. A written description outlining the date of incident, equipment involved and a description of the damage or destruction (police report if possible if equipment vandalized) must be submitted to PMO by the department upon discovery, preferably by the principal investigator. A formal letter to the sponsoring agency or property administrator will be sent by PMO detailing the extent of damage or destruction within 10 working days after notification from the department.

Theft

In cases of theft, the department must immediately notify the police and request a police report. In cases where federally-owned equipment is stolen, and the acquisition value of the equipment is $15,000 and greater, Property Management Office will confer with the agency or property administrator to identify whether FBI involvement and notification is required. If so, reporting requirements identified at that time will be followed.

Equipment records will be adjusted by PMO after relief of accountability has been granted by the Sponsoring Agency or Property Administrator.

If recovery or discovery of an item previously reported missing occurs, PMO will verbally make a preliminary report to the Sponsoring Agency or Property Administrator within 2 working days asking for determination of resolution. A formal request will be sent by PMO within 10 days if resolution has not already been determined. Equipment records will be adjusted by PMO as soon as determination of resolution occurs.

Risk of Loss for the University will follow requirements set forth in FAR 32.503-16, 46.316, 52.245-5(g)(5)(i thru iv), and 52.245-16 and University Guide Memo 28.5.

Disposal of Equipment That May Have Environmental or Health Impacts

The following information was provided in a memo from Environmental Health and Safety dated July 1995 regarding guidelines for identifying and managing contaminated equipment. For further information, contact EH&S directly. The information was updated in March 1997.

Disposal of Equipment that may have Environmental or Health Impacts

The purpose of this section is to introduce property administrators to the environmental and health and safety considerations that may be pertinent to the disposition of equipment that may be contaminated with chemical, radiological or biohazardous agents. For further information, contact the Department of Environmental Health and Safety directly (see numbers below.)

How To Identify Equipment that May Be Contaminated

Prior to submitting surplus equipment for re-sale or disposal, property administrators should use the following guidelines to determine if the equipment may be contaminated with materials that may be harmful to human health or the environment.

• Talk to the responsible PI and/or equipment users to find out if the equipment may have directly contacted chemicals, biohazardous, or radioactive materials
• Look for obvious stains or spill residue
• Common chemically contaminated equipment includes:
  • transformer, capacitor, heat transfer oil (these items may indicate PCBs)
  • insulation, floor, ceiling tiles (these may contain asbestos)
  • lab ovens and furnaces
  • glove boxes
  • mixers/stirrers/blenders
  • incubators
  • microtomes
  • fraction collectors
  • chemical storage cabinets, refrigerators and freezers
  • laboratory pumps
  • laboratory glass washing equipment
  • laminar flow benches and hoods
  • ethylene oxide sterilizers
  • centrifuges
  • electrophoresis apparatus
  • constant temperature baths
  • distillation apparatus
  • gas chromatographs (GC)
  • high pressure liquid chromatographs (HPLC)
  • mass spectrometers (MS)
  • wet benches
  • sputtering units
  • amino acid analyzers.
• equipment that was in contact with radioactive materials may have yellow and red radioactive stickers on it
• check the life safety box posted outside of a room, it gives a brief digest of the health and safety concerns in that room
• equipment such as refrigerators and air conditioners which are being disposed of and which contain chlorofluorocarbons ( ) or hydrochlorofluorocarbons (HCFCs) may need to be purged of such substances before they can be disposed of in a solid waste disposal facility.

Guidelines For Managing Contaminated Equipment

1. If equipment may be contaminated with chemicals:
   1. contact Chemical Waste, 3-5069 for further assistance (including possible referral to decontamination specialists)
   2. perform decontamination
   3. prepare letter for surplus property stating that you have contacted EH&S for decontamination instructions and that you followed those instructions
2. If equipment was in contact with radioactive materials and you need assistance with decontamination protocols, call Health Physics, 3-3201
3. If equipment may be contaminated with biohazardous materials and you need assistance with decontamination protocols, call the Biosafety Officer, 5-1473.
4. If equipment needs to be purged of CFCs or HCFCs before being sent for disposal, contact the University O&M Maintenance Customer Service Desk, 3-2281 (for equipment from University and Medical School departments only). Others should call the nearest equipment manufacturer representative (usually listed in the Yellow Pages).
   In all cases, before the equipment is picked up by Surplus Property Sales, the person requesting disposal of the equipment should also:
   1. remove any hazard warning labels on the equipment exterior, and
   2. check all interior compartments to ensure any containers of hazardous materials and/or empty hazardous materials containers have been removed.

Where To Get Additional Information:

The Stanford Safety Manual provides the framework of Stanford University’s environmental health and safety programs.

Contacts For Environmental Health And Safety Issues

• General, 3-0448
• Chemical Waste, Craig Barney, 5-7529
• Lab Safety, Peter Burnes, 3-0593
• Radioactive Materials, John Holmes, 5-1413
• Safety Manuals, 5-1470
• Biohazardous Agents, Bob Hashimoto, 5-1473
• Asbestos, Kip Fout, 3-0486

References and Resources

• Guide Memo 56, Surplus Property Sales
• Board of Trustees Resolution Number 3
• "Disposal Issues" section of the DPA Update Web-page

Property Loaned by Stanford to an Outside Organization

Section Topics

• Points of Contact
• Overview
• Loan Procedure
• References and Resources
  

Points of Contact

Common Situations	Property Management Office Phone 736-0006	Procurement Phone 3-1751	Risk Management Phone 3-0042
Re: Insurance Issues			X
Re: Loans going to Foreign Countries	X
Re: Domestic Shipping		X
Re: Non-Stanford Property to be Loaned	X

Overview

Property which is loaned by Stanford to a non-Stanford entity must be formally recorded using the loan agreement detailed in this section and recording the event in the Capital Asset Management System (CAMS) property record.

There is a difference between movement and a loan. For example, if property is moved off-campus to a professor's house it is movement of property, not a loan. For more information on that, see "Movement" in Section 7.1, "Caring for Property".

Determine Ownership of Property

If Stanford owned or Stanford funded:

• Record loan information into CAMS
• Correctly fill out Stanford University Outgoing Property Loan Agreement (sample of form at the end of this section).

If Sponsor Funded/Owned

• Contact PMO
• Must obtain written permission from the sponsor if it is an active agreement or if it is sponsor-owned
• Complete Stanford loan agreement form
• Loan cannot exceed the period of performance of the OWNING agreement
• Leave all Stanford Property Tags on loaned property
• Update CAMS with the new off-campus location and information in the "Comments" field of the "Maintain Asset Details" form regarding loan period and point of contact.
• Establish suspense system to follow-up on return of asset at end of loan period

Loan Procedure

1. DPA contacts PMO for Property Loan Agreement form.
2. Loan Initiator at Stanford provides DPA with outgoing loan information on loan form boxes
   Box 2: Loan Period
   Box 3: Inventory Report Date
   Box 5: Name and Address of individual/organization to which asset is being loaned
   Box 7: Purpose of loan
   Lender Signature
   DPA Signature
3. DPA sends Property Loan Agreement form to PMO
4. PMO
   1. Screens each CAMS item and loan document for Allowability. May seek sponsor approval when necessary; if government owned will determine any necessary property insurance.
   2. PMO signs Property Loan Agreement and provides Stanford Loan Number.
   3. Loan Agreement faxed to Borrowing Institution for signature
   4. Borrower faxes back signed Property Loan Agreement to PMO
   5. Provide originator/DPA with copy of completed Property Loan Agreement
5. DPA
   1. Make arrangements for shipment, including appropriate packaging and transportation. Include a copy of the loan document with the package
   2. Update CAMS record and monitor loan period

References and Resources

• SU Outgoing Loan Form: UPAF001
• Sample approval letter from SU to outside entity
• Sample approval letter for sponsor equipment being loaned to an outside entity

End of chapter
Updated 5/98 by L. Forgatsch