Equipment and Furniture Capitalized vs. Non-Capitalized Disposition of Equipment Copyright © Texas Education Agency 2012

Equipment and Furniture All capitalized equipment and furniture must be approved in your grant application Capitalized Equipment means: Tangible nonexpendable personal property having a useful life of more than one year and an acquisition cost which equals or exceeds $5,000 or more per unit, or which meets the capitalization level of the organization for financial statement purposes, whichever is less (34 CFR 74.2 and OMB Circular A-122, Attachment B, section 15) Title to equipment belongs to the grantee TEA reserves the right to transfer equipment due to noncompliance or after the grant ends, regardless of how it is classified Copyright © Texas Education Agency 2012

Texas Education Agency 2012 Use of Equipment Grantee shall use equipment as long as needed for the project for which it was originally purchased, whether or not the project continues to be federally funded. When no longer needed, equipment may be used in other federal grants funded by TEA (if purchased with state funds, would be used in another state program). If no other grants funded by TEA, then may use in other federal grants. Shall make equipment available for other federally funded projects as long as doesn’t interfere with project under which it was originally acquired. (34 CFR 74.34) Copyright © Texas Education Agency 2012

Property Management Records 34 CFR 74.34(f) Equipment records shall be maintained accurately and shall include: Description of the equipment Serial number, model number or other identification number Funding source of the equipment, including the award number Acquisition date and cost, including the unit acquisition cost Percent federal participation Location and condition of the equipment and the date reported Ultimate disposition of the equipment Copyright © Texas Education Agency 2012

Texas Education Agency 2012 Other Requirements A physical inventory of equipment must be taken and the results reconciled with the equipment records at least once every two years. A control system must be in effect to insure adequate safeguards to prevent loss, damage, or theft of the equipment. Implement procedures to adequately maintain the equipment to keep it in good condition. Provide insurance for property purchased with grant funds equivalent to insurance for property purchased with non-grant funds (34 CFR 74.31) If authorized by TEA to sell the equipment, establish procedures which provide for competition to the extent practicable and result in highest possible return. Copyright © Texas Education Agency 2012

Disposition of Equipment 34 CFR 74.34(g) When no longer needed for original project or another federally funded project: Grantee shall request disposition instructions from TEA If approved by TEA, equipment with current fair market value of less than $5,000 - may be retained, sold, or otherwise disposed of with no further obligations to TEA (except as noted below) Equipment with current fair market value of $5,000 or more – may be retained or sold but TEA shall have right to the proceeds TEA reserves the right to transfer title to another grantee for noncompliance or as needed after the project ends (regardless of how equipment is classified) Copyright © Texas Education Agency 2012