Laserfiche WebLink
not use equipment acquired with grant funds to provide services for a fee to compete unfairly <br />with private companies that provide equivalent services, unless specifically permitted or <br />contemplated by Federal statute. (4) When acquiring replacement equipment, the grantee or <br />subgrantee may use the equipment to be replaced as a trade-in or sell the property and use <br />the proceeds to offset the cost of the replacement property, subject to the approval of the <br />awarding agency. <br />(d) Management requirements. Procedures for managing equipment (including replacement <br />equipment), whether acquired in whole or in part with grant funds, until disposition takes place <br />will, as a minimum, meet the following requirements: <br />(1) Property records must be maintained that include a description of the property, a serial <br />number or other identification number, the source of property, who holds title, the acquisition <br />date, and cost of the property, percentage of Federal participation in the cost of the property, <br />the location, use and condition of the property, and any ultimate disposition data including <br />the date of disposal and sale price of the property. <br />(2) A physical inventory of the property must be taken and the results reconciled with the <br />property records at least once every two years. <br />(3) A control system must be developed to ensure adequate safeguards to prevent loss, <br />damage, or theft of the property. Any loss, damage, or theft shall be investigated. <br />(4) Adequate maintenance procedures must be developed to keep the property in good <br />condition. <br />(5) If the grantee or subgrantee is authorized or required to sell the property, proper sales <br />procedures must be established to ensure the highest possible return. <br />(e) Disposition. When original or replacement equipment acquired under a grant or subgrant <br />is no longer needed for the original project or program or for other activities currently or <br />previously supported by a Federal agency, disposition of the equipment will be made as <br />follows: <br />(1) Items of equipment with a current per-unit fair market value of less than $5,000 may be <br />retained, sold or otherwise disposed of with no further obligation to the awarding agency. <br />(2) Items of equipment with a current per unit fair market value in excess of $5,000 may be <br />retained or sold and the awarding agency shall have a right to an amount calculated by <br />multiplying the current market value or proceeds from sale by the awarding agency's share <br />of the equipment. <br />(3) In cases where a grantee or subgrantee fails to take appropriate disposition actions, the <br />awarding agency may direct the grantee or subgrantee to take excess and disposition <br />actions. <br />(f) Federal equipment. In the event a grantee or subgrantee is provided federally- owned <br />equipment: <br />(1) Title will remain vested in the Federal Government. <br />(2) Grantees or subgrantees will manage the equipment in accordance with Federal <br />agency rules and procedures, and submit an annual inventory listing. <br />is <br />