UGMS Equipment Criteria
Are capital assets and related records maintained in accordance
with TSLAC grant requirements?
Source
http://governor.state.tx.us/files/state-grants/UGMS062004.doc
Page 79
Purpose
to document the key requirements for compliance;
Procedures:
documented below
Results
documented below; note that these are required in Texas as they
are also issued by the
governor's office.
Conclusion
for reference.
____.32 Equipment
(a) Title. Subject to the obligations and conditions set forth
in this section, title to equipment acquired under a grant or
subgrant will vest upon acquisition in the grantee or subgrantee
respectively.
(b) States. A state will use, manage, and dispose of equipment
acquired under a grant by the state in accordance with state laws
and procedures. Other grantees and subgrantees will follow paragraphs
(c) through (e) of this section. Local governments and other subgrantees
shall develop and use their own property management systems, which
must conform with all applicable federal, state, and local laws,
rules and regulations. If an adequate system for accounting for
personal property owned by the local entity is not in place or
is not used properly, the Property Accounting System Manual issued
by the State Comptroller of Public Accounts will be used as a
guide. It is the responsibility of the state awarding
agency to provide guidance to local entities on property
accountability and to obtain reasonable assurance that proper
accountability is being used.
(c) Use.
(1) Equipment shall be used by the grantee or subqrantee in the
program or project for which it was acquired as long as needed,
whether or not the project or program continues to be supported
by federal or state funds. When no longer needed
for the original program or project, the equipment may be used
in other activities currently or previously supported by a federal
or state agency.
(2) The grantee or subgrantee shall also make equipment available
for use on other projects or programs currently or previously
supported by the federal or state government,
providing such use will not interfere with the work on the projects
or program for which it was originally acquired. First preference
for other use shall be given to other programs or projects supported
by the awarding agency. User fees should be considered if appropriate.
(3) Notwithstanding the encouragement in Section ____.25(a) to
earn program income, the grantee or subgrantee must not use equipment
acquired with grant funds to provide services for a fee to compete
unfairly with private companies that provide equivalent services,
unless specifically permitted or contemplated by federal or
state statute.
(4) When acquiring replacement equipment, the grantee or subgrantee
may use the equipment to be replaced as a trade-in or sell the
property and use the proceeds to offset the cost of the replacement
property, subject to the approval of the awarding agency.
(d) Management requirements. Procedures for managing equipment (including
replacement equipment), whether acquired in whole or in part with
grant funds, until disposition takes place will, as a minimum, meet
the following requirements:
(1) Property records must be maintained that include a description
of the property, a serial number or other identification number,
the source of property, who holds title, the acquisition date,
and cost of the property, percentage of federal or state
participation in the cost of the property, the location, use and
condition of the property, and any ultimate disposition data including
the date of disposal and sale price of the property.
(2) A physical inventory of the property must be taken and the
results reconciled with the property records at least once every
two years.
(3) A control system must be developed to ensure adequate safeguards
to prevent loss, damage, or theft of the property. Any loss, damage,
or theft shall be investigated. Certain types of equipment are
classified as “controlled assets”. Users of these
standards should contact the Texas Comptroller of Public Accounts’
property accounting staff or review the Comptroller’s State
Property Accounting User Manual, available on the internet, for
the most current listing. Firearms must be maintained on the grantee’s
or subrecipient’s inventory system irrespective of cost,
and the following equipment with costs between $500 and $1,000
must be maintained on the grantee’s or subrecipient’s
inventory system: (1) stereo systems, (2) still and video cameras,
(3) facsimile machines, (4) VCRs and VCR/TV combinations and (5)
cellular and portable telephones. See Texas Government Code, Sec.
403.271(b) for further information. State awarding agencies may
specify special treatment for other items of equipment with costs
between $500 and $1,000 or higher with a high potential for loss.
(4) Adequate maintenance procedures must be developed to keep
the property in good condition.
(5) If the grantee or subgrantee is authorized or required to
sell the property, proper sales procedures must be established
to ensure the highest possible return.
(e) Disposition. When original or replacement equipment acquired
under a grant or subgrant is no longer needed for the original project
or program or for other activities currently or previously supported
by a federal or state agency, disposition of the
equipment will be made as follows:
(1) Items of equipment with a current per-unit fair market value
of less than $5,000 may be retained, sold or
otherwise disposed of with no further obligation to the awarding
agency. Methods used to determine per-unit fair market
value must be documented, kept on file and made available to the
awarding agency upon request.
(2) Items of equipment with a current per-unit fair market value
of $5,000 or more may be retained or sold and
the awarding agency shall have a right to an amount calculated
by multiplying the current market value or proceeds from sale
by the awarding agency’s share of the equipment. Methods
used to determine per-unit fair market value must be documented,
kept on file and made available to the awarding agency upon request.
(3) In cases where a grantee or subgrantee fails to take appropriate
disposition actions, the awarding agency may direct the grantee
or subgrantee to take excess and disposition actions.
(f) Federal or state equipment. In the event a
grantee or subgrantee is provided federally-or state-owned equipment:
(1) Title will remain vested in the federal or state
government.
(2) Grantees or subgrantees will manage the equipment in accordance
with federal or state awarding agency rules and procedures, and
submit an annual inventory listing.
(3) When the equipment is no longer needed, the grantee or subgrantee
will request disposition instructions from the federal or
state awarding agency.
(g) Right to transfer title. The federal or state awarding agency
may reserve the right to transfer title to the federal or state
government or a third party named by the awarding agency when such
a third party is otherwise eligible under existing statutes. Such
transfers shall be subject to the following standards:
(1) The property shall be identified in the grant or otherwise
made known to the grantee in writing.
(2) The federal or state awarding agency shall
issue disposition instructions within 120 calendar days after
the end of the federal or state support of the
project for which it was acquired. If the federal or state awarding
agency fails to issue disposition instructions within the 120
calendar-day period the grantee shall follow Section ____.32 (e).
(3) When title to equipment is transferred, the grantee shall
be paid an amount calculated by applying the percentage of participation
in the purchase to the current fair market value of the property.
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