FAQs

If my equipment was purchased on a Federal grant or cooperative agreement requiring title, can the University retain the equipment?

Question:

If my equipment was purchased on a Federal grant or cooperative agreement requiring title, can the University retain the equipment?


Answer

Upon completion of a grant or cooperative agreement, requests to obtain title of government owned property should be routed to SPA.  SPA will contact Sponsor to provide justification and request title.  If the sponsor agrees to transfer title, unit and property accounting are notified.  Property Accounting will update title information in management system and a new control number (p-tag) is assigned.  Department will affix new control tag and remove “Property of U.S. Government” tag.

When the total value of Federally titled supplies and other expendable property exceeds $5,000 the item(s) may be retained if:

Property may be used on other federally supported activities If no longer needed or usable on other federally supported activities, the University may retain the property as long as the federal government is compensated for its share in the acquisition costs.

 

The amount of federal compensation is computed by applying the percentage of federal participation in the cost of the sponsored project to the sales proceeds. Per the UG, the awarding agency may permit the non-Federal entity to deduct and retain from the Federal share, $500 or 10% of the proceeds, whichever is less, for selling and handling expenses. The chart on the following page shows a sample calculation of federal compensation:

 

Line Item Percent Amount
Federal contribution 95% $95,000
University contribution 5% $5,000
Total cost of project 100% $100,000
Acquisition cost of supplies   $6,000
Proceeds from sale   $5,500
Federal compensation Proceeds w/95% federal participation rate applied $5,225
  Less selling and handling ($500)
Total federal compensation   $4,725

 

Upon completion of a grant or cooperative agreement, when the total value is $5,000 or less, the University may retain the property without further accountability to the federal government (unless specifically restricted by the grant or cooperative agreement). The University may dispose of the property only if it has been determined the property cannot be used by the unit or any other University unit.  Refer to Property Accounting Office for proper disposition procedures.


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