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DISPOSTION OF EQUIPMENT
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Disposition of equipment purchased in whole or in part with Federal funds should be fully documented and follow these guidelines:
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As part of project monitoring, periodic reviews of property management procedures and records are made.
- Equipment with a current per-unit fair market value of less than $5,000 may, with approval, be returned, sold or otherwise disposed of with no further obligation to the Federal government.
- Equipment with a current per unit fair market value in excess of $5,000 may be retained or sold. If sold, and the Division shall have a right to an amount calculated by multiplying the current market value or proceeds from sale by the Division's share of the equipment.
- If a project ends, or if equipment is no longer needed for a project, the equipment shall be sold or transferred to another federally funded project at the discretion and approval of the State and Federal Grants Office. (If the equipment is sold and has an acquisition cost of greater than $1,000 per unit, the Federal government retains the right to an amount calculated by multiplying the current market value by the Federal percentage of the acquisition cost.) Ten percent or $100 (whichever is greater) may be kept by the recipient as a handling fee.
- Property records shall be maintained for at least five years after the date of the equipment's final disposition, replacement or transfer. When disposal or transfer of Federal property is anticipated, the State and Federal Grants Office should be contacted for assistance.
- A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years.
- A control system must be developed to ensure adequate safeguards to prevent loss, damage or theft of the property. Any loss, damage or theft of equipment must be investigated.
- Adequate maintenance procedures must be developed to keep the property in good condition.
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