Grant Equipment Disposal Guidelines


The Grant Equipment Disposal guidelines are provided to help ensure that ITS follows the Federal Regulations that must be followed when disposing of equipment purchased with federal funds.

General Information

Grant equipment is tagged with a “yellow” Federal tag.

Controller’s Office periodically distributes a list of grant equipment to ITS personnel for updating.  ITS will make the appropriate notes on equipment status, noting the disposition of the equipment and then return the list to Controller’s Office.

ITS personnel will follow the Federal Guidelines.

Federal Guidelines

2 CFR 200.313

(e) Disposition.  When original or replacement equipment acquired under a Federal award is no longer needed for the original project or program or for other activities currently or previously supported by a Federal awarding agency, except as otherwise provided in Federal statutes, regulations, or Federal awarding agency disposition instructions, the non-Federal entity must request disposition instructions from the Federal awarding agency if required by the terms and conditions of the Federal award. Disposition of the equipment will be made as follows, in accordance with Federal awarding agency disposition instructions:

(1) Items of equipment with a current per unit fair market value of $5,000 or less may be retained, sold or otherwise disposed of with no further responsibility to the Federal awarding agency.

(2) Except as provided in § 200.312(b), or if the Federal awarding agency fails to provide requested disposition instructions within 120 days, items of equipment with a current per-unit fair market value in excess of $5,000 may be retained by the non-Federal entity or sold. The Federal awarding agency is entitled to an amount calculated by multiplying the current market value or proceeds from sale by the Federal awarding agency's percentage of participation in the cost of the original purchase. If the equipment is sold, the Federal awarding agency may permit the non-Federal entity to deduct and retain from the Federal share $500 or ten percent of the proceeds, whichever is less, for its selling and handling expenses.

(3) The non-Federal entity may transfer title to the property to the Federal Government or to an eligible third party provided that, in such cases, the non-Federal entity must be entitled to compensation for its attributable percentage of the current fair market value of the property.

(4) In cases where a non-Federal entity fails to take appropriate disposition actions, the Federal awarding agency may direct the non-Federal entity to take disposition actions.

Media Removal and Disposal

All media that is being removed or disposed of must be sanitized or destroyed.  If sent off site for destruction a record of "chain of custody" and "proof of destruction" must be provided and recorded in ITSM. (Primary source document Asset Management Procedures).




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Article ID: 117759
Tue 10/6/20 4:41 PM
Tue 6/4/24 4:13 PM