Grant recipients must manage and account for all federally funded or government-loaned property prior to closeout to ensure compliance with federal regulations. Various disposition options are available depending on the property's condition and federal contribution share.
Key Insights
- Recipients may retain, sell, transfer, or scrap property acquired with federal funds, but must follow specific guidelines to account for the federal government's share.
- If retaining or selling property, recipients must reimburse the awarding agency for its proportional funding share and may keep up to $500 in sale proceeds as an administrative fee.
- Property can also be transferred to another federally supported project at government expense or returned to the awarding agency to support continued use in federal programs.
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During the grant period, recipients may purchase supplies and equipment with federal funds for use in grant-related activities. Additionally, awarding agencies may have loaned government-owned equipment for use during the project's period of performance. Prior to grant closeout, each type of property must be accounted for or disposed of in accordance with federal regulations.
Recipients have several options under subsection 311. When it comes to property disposition, they can retain a title with proportional compensation. The recipient may keep the property but must compensate the agency for its proportionate share of the federal contribution.
This ensures fairness based on the percentage of the federal funds used to acquire the property. They can sell the property. The recipient can sell the property and reimburse the federal agency for the proceeds for its proportional share.
The grantee may retain up to $500 of the sold proceeds as an administrative fee. They can transfer the property. Title to the property can be returned to the awarding agency or transferred to a third party designated by the agency.
This allows for continual use in federal programs or other approved projects. They can dispose of as scrap. If the property has no remaining useful life or fair market value, it may be disposed of as scrap in a responsible manner.
They can transfer to another federally supported project. At government expense, the property may be moved or delivered to another federally supported project where it can be used for a similar purpose, maximizing the benefit of federal funds. Proper accounting and disposition of property at closeout ensures compliance, transparency, and efficient use of federal resources while safeguarding both the recipient and the federal government.