Federal Equipment Policy
Disposal of Fixed Assets Purchased with Federal Funds
Certain federal grants allow the university to purchase capital equipment. The university and the federal government define capital equipment as having an acquisition cost of at least $5,000 and a useful life of greater than one year. The purpose of this procedure is compliance with Federal Property Standards specified in Office of Management and Budget Circular A-110. This procedure is an extension of the University’s policies and procedures regarding fixed assets.
The Principal Investigator on each grant will be responsible to the University for the care and maintenance of equipment acquired with federal grant funds. If a grant requires additional reporting or management procedures, the Principal Investigator accepts responsibility for monitoring adherence to these additional requirements.
The Office of Research and Sponsored Programs will notify the Controller’s Office upon purchase of any capital equipment with a federal grant. The Controller’s Office will maintain inventory records and will conduct an annual physical inventory of all equipment covered under this procedure. The Controller’s Office will notify the Office of Research and Sponsored Programs of any discrepancies. The Office of Research and Sponsored Programs will then notify the appropriate sponsoring agency.
Before using federally-funded equipment for other activities, disposing of the equipment, or transferring equipment to another institution, please contact the Director of Purchasing in the Controller’s Office. The Director of Purchasing will work with the appropriate individuals in the Office of Research and Sponsored Programs in requesting disposition instructions from the Federal awarding agency and in determining the amount of compensation which is required to be paid to the agency. Written approval must be received from the sponsoring agency before the disposal or sale can take place.