What does the Uniform Guidance say about Equipment
The Uniform Guidance outlines expectations for managing and using equipment purchased with Federal funds. Equipment is defined as “tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds the lesser of the capitalization level established by the non-Federal entity for financial purposes, or $5,000.” (2 CFR 200.33.)
Equipment must be used in the program for which it was acquired for as long as it is needed, whether or not the program continues to be supported by the Federal award. As long as it does not interfere with the operation of, or is no longer needed by the original program, the equipment should be made available for use in other activities supported by the Federal awarding agency.
Equipment cannot be encumbered without prior approval of the Federal awarding agency. Managers of Federally funded grant programs should maintain detailed equipment records and perform equipment inventories at least once every two years. That rule applies even if the equipment was only partly funded by the Federal grant. Maintenance procedures and control systems must be implemented to ensure equipment is kept in good working condition and is not lost, damaged, or stolen. If the non-Federal entity is authorized or required to sell the equipment, proper sales procedures must be established to ensure the highest possible return.
Equipment must be used in the program for which it was acquired for as long as it is needed, whether or not the program continues to be supported by the Federal award. As long as it does not interfere with the operation of, or is no longer needed by the original program, the equipment should be made available for use in other activities supported by the Federal awarding agency.
Equipment cannot be encumbered without prior approval of the Federal awarding agency. Managers of Federally funded grant programs should maintain detailed equipment records and perform equipment inventories at least once every two years. That rule applies even if the equipment was only partly funded by the Federal grant. Maintenance procedures and control systems must be implemented to ensure equipment is kept in good working condition and is not lost, damaged, or stolen. If the non-Federal entity is authorized or required to sell the equipment, proper sales procedures must be established to ensure the highest possible return.
