2013 NPMA Fall Conference Value Through Professional Asset Management The Lifecycle of an Excess Asset at Stanford University Presented by Ivonne Bachar,

2013 NPMA Fall ConferenceValue Through Professional Asset Management

The Lifecycle of an Excess Asset at Stanford University

Presented by Ivonne Bachar, CPPM CF

Director, Stanford University PMOPrepared in collaboration with

Stan Dunn, CPPM , Assoc. Director and Alex Perez, SPS Manager

November 13, 2013


Our “City”

8,200 acres, 670 major buildings (13.1 million square feet)

5th largest employer in Silicon Valley

11,000+ administrative staff

15,200 undergraduate and graduate

students across seven schools,

representing every US state and 88 other

countries

1,900 professorial faculty


Property Management - Context

Systems used: SPARC, Sunflower, Oracle

Capital Threshold: $5K• Sunflower broader superset of records

Excess/Disposal policy includes all items except land and buildings

A few Excess-related facts as of 8/31/13• 872 open Sponsored Awards w/Property Activity• Excess Requests – 2,502• Excess Item Count – 16,997• Reuse item count – 976


Surplus Property Sales• Self-Funded Auxiliary• 2.5 FTE• Onsite sales area• Store Hours: Wed 9-4, Thurs 8-12

Furniture Reuse Program• In place for 4 yrs.• 1 FTE• Items held in off-site warehouse• Inventory turnover target: 90 days• Furniture Reuse Warehouse Hours: Tues 8-4, Thurs 1-4

(by appointment)

Property Management – Context


Organizational Perspective

VP for Business AffairsChief Financial Officer

AVP of Research Compliance and Financial Services

DirectorProperty Management Office

DirectorSponsored Receivables Mgmt.

DirectorPolicy and Compliance

DirectorResearch Financial Reporting

DirectorCost and Management Analysis

ResearchManager

Financial Compliance Manager

Assoc. Director

DepartmentProperty

Administrators

Disposal and Sales Team

Inventory Team

Research Mgmt. Team

FinanceTeam

AVP of Financial Management Services Operations

300+ Departments~200 DPAs


Excess Process

SaleorRecycle

Available forCampusReuse

CollectionAndAssessment

AgreementTransfer

DepartmentDeclare Excess

Custodians & DPAs

PMO

Surplus Sales

PMO

Surplus Sales PMO

Note: All asset disposal requests are reviewed by PMO for any potential restrictions or other issues prior to collection

approval

GenerateExcess orDispositionRequest

Final Event

Retirement FinancialAdjustments


Excess – Step I

DepartmentDeclare Excess

Occur Daily From any original funding source Initiators of Excess Requests

• Must be authorized DPAs Custodians Others, as authorized

Key Participants• PMO• Environmental Health & Safety• PSSI

Concludes when item prepared for movement


Excess – Step II

Available forCampusReuse


Excess – Step III

Distributed Systems Requires Authorized Access Stewardship and Finance Included in DPA Training Primary Disposal Options

• Reuse• Sale• Scrap• Transfers• Return to Sponsor• Recycle

GenerateExcess orDispositionRequest


Excess – Step IV

Joint effort – SPS/DPAs Planning of campus route Handling off-campus items Turn-around time Assessment Physical collection and relocation Biohazard items handled per EH&S Policies Resources

CollectionAndAssessment

AgreementTransfer


Excess – Step V

SPS External Recycling Service Provider Various Sales Methods Customer Communications Transfers Primarily Cash Sales Staff & Departmental Discounts Listed in “Stanford Sweeteners”

Sale orRecycle


Excess – Step VI

Key Participants• PMO• Capital Accounting• ACO, PCO, Sponsor Representatives

Special sales on individual invoices Weekly deposits Checks and Balances in process Crediting of Sales Proceeds Distribution of Sales Proceeds

Final Event

Retirement FinancialAdjustments


Transfers

Key Participants• Department Personnel• PMO• Export Control• ACO, as needed

Key points considered• Asset funding source• Title• Status of accountable agreement• Ongoing need• Asset type and age• Net Book Value


Campus Cleanup Partnership with sustainability Planning committee

• Representatives from PMO, LBRE, Labor Shop, PSSI, Schools• Campus communications

Building and Zone Managers, DPAs, Campus Report, etc. Initially held annually; now biannually 2013 Fall Campus Clean-up

• SPS collected 78 pallets of electronics and recyclable materials ~750 Lbs. each = 58.5K lbs 825 Barcoded items


Data Security

Process Approved by• Information Security Office• SoM Information Technology

Secured Data Destruction Area• Restricted Access• Dban v 2.2.7• 12-unit wipe station• Tape/Drive Shredder

Shred hard drive platters; recycle balance Campus Encryption Project in process


The significant spike in FY12 was due to the closure of the Graduate School of Business, allowing long-term access to a very large volume of high-quality furnishings, and extensive efforts to maximize reutilization.


Disposal Activity

Collection Activity• Items collected by SPS personnel approx. 2.5 days/week• Average of one item every 3 minutes



FY13 Sales Origins

The majority of sales involve non-capital equipment items. Most capital sales are high-dollar transactions, and reflect the

majority of monies returned to departments.


Challenges

Predictability (?) of inventory Offsite excess items

• Local• In U.S., but not local• International

Ongoing process awareness Small number of staff Annual break-even expectation Move to use of “light or zero clients” for desktop computing


Q & A

Documents

2013 NPMA Fall Conference Value Through Professional Asset Management The Lifecycle of an Excess Asset at Stanford University Presented by Ivonne Bachar,