Financial Administration

FAP - Accountability for Capital Equipment (F33) - Attachment F

FINANCIAL AND ADMINISTRATIVE POLICIES

ACCOUNTABILITY FOR CAPITAL EQUIPMENT   (F33) - ATTACHMENT F


PROPERTY PURCHASED IN WHOLE OR IN PART WITH FEDERAL FUNDS

Typically it is only capital equipment that is purchased in whole or in part with federal funds. However, the provisions of this section also apply if items within the other categories of personal property are purchased in whole or in part with federal funds.

  • Title

    1. Title to property purchased in whole or in part with federal funds normally vests with the University. However, the granting agency retains what might be considered a "lien" on the property which controls equipment management requirements, its use and disposition. The granting agency also retains the right to require transfer of title of property with a current per unit fair market value of $5,000 or more to the federal government or an eligible non-federal party up to 120 days after the end of federal support for the program or project.

    2. If title remains with the federal government, it shall be referred to as "federally titled equipment." Federally titled equipment should be included in the institutional inventory system. System Risk Management recommends insuring federally titled equipment due to the complex nature of claiming loss reimbursement from the federal government.

  • Use

    Federally titled equipment shall be used as directed by the federal government. Equipment must be used in the project of program for which it was acquired as long as needed, whether or not the project or program continues to be supported by federal funds. When no longer needed for the original project or program, the equipment must be used in the following order of priority:

    1. For projects or programs currently or previously sponsored by the granting agency.
    2. For projects or programs currently sponsored by other federal agencies.

  • Disposition

    All federally titled equipment, no longer used in projects or programs currently or previously sponsored by the federal government, must be reported to the sponsoring federal agency requesting disposition instructions.

    For property with title vested with the University, the federal government may still have control over how the equipment is used, including transfer to another institution, and may have rights to a portion of the proceeds from sale or salvage. Refer to OMB Circular A-110, granting agency regulations and the grant award for use and disposition restrictions.


FAP - Accountability for Capital Equipment (F33) | Financial and Administrative Policy Index | Financial Administration


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Last Edited: 08/24/2001