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

2. 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
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Texas Education Agency 2012

3. 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)
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Texas Education Agency 2012

4. 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
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Texas Education Agency 2012

5. 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.
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Texas Education Agency 2012

6. 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)
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Texas Education Agency 2012