Disposition of equipment purchased with grant funds is an important issue to address with regard to closeout requirements. Disposition of equipment acquired under the grant is subject to the specific regulations of the funding agency and begins with the determination of which party has title to the equipment (grantee vs. grantor).
OMB A-110, Subpart C, .34(g) states that if any capital asset has fallen below $5,000 of fair market value, that asset may be retained without compensation to the government.
Equipment retained by Drake University must remain on the University fixed asset inventory records. If equipment is no longer needed for the original project, Drake's disposition procedures should be followed.
Title to supplies and other expendable property shall vest in the grant recipient upon acquisition. However, if there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon completion of the project and the supplies are not needed for any other federally-sponsored project, Drake shall retain the supplies for use on non-federal sponsored activities or sell them, but shall in either case reimburse the federal government (OMB A-110, Subpart C .35(a).
More information: for guidance on "special purpose" equipment purchases (i.e. valuing more than $5,000), visit, Determining Costs: Equipment