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3.7 Property and Equipment

Equipment Acquired With Juvenile Justice Act Formula and Victims of Crime Act Assistance (Formula) Funds

If you have acquired equipment using one of these funds from the Office of Juvenile Justice and Delinquency Prevention (OJJDP) or the Office for Victims of Crime (OVC), then you are legally required to ensure that the equipment is used for criminal justice purposes. The following standards and procedures govern ownership, use, management, and disposition of this type of equipment:

  • Title to equipment acquired under an award or subaward will vest in you or your subrecipient organization with the right of immediate or future legal ownership upon acquisition, subject to the obligations and conditions set forth in  Title 2 Code of Federal Regulations (CFR) §215.34 [PDF - 182 Kb].
  • A State should use equipment acquired under an award in accordance with State laws and procedures. The awarding agency encourages the States to follow the procedures that are in this Guide.
  • Recipients and subrecipients other than States should use equipment in accordance with the following requirements:
  • Equipment must be used by you or your subrecipient in the program or project for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed for the original program or project, the equipment may be used in other activities currently or previously supported by a Federal agency.
  • You or your subrecipient must also make equipment available for use on other projects or programs currently or previously supported by the Federal Government, provided the use does not interfere with the work on the projects or programs for which it was originally acquired. First preference for other use should be given to other programs or projects supported by the awarding agency. User fees should be considered and treated as program income to the project, if appropriate.
  • Aside from program income you or your subrecipient should not use equipment acquired with these funds to provide services for a fee or to compete unfairly with private companies that provide equivalent services, unless specifically permitted, or contemplated by Federal law.
  • When acquiring replacement equipment, you or your subrecipients may use the equipment to be replaced as a trade-in or may sell the equipment and use the proceeds to offset the cost of the replacement equipment, subject to the written approval of the awarding agency.
  • A State should ensure equipment acquired under an award to the State is managed in accordance with State laws and procedures for property.
  • The procedures recipients and subrecipients other than States must use for maintaining equipment acquired in whole or in part with project funds (including replacements) must, at a minimum, meet the following requirements:
  • You must maintain property records which include all of the following information:
  • Description of the property
  • Serial number or other identification number
  • Source of the property
  • Identification of the title holder
  • Acquisition date
  • Cost of the property
  • Percentage of Federal participation in the cost of the property
  • Location of the property
  • Use and condition of the property
  • Disposition data, including the date of disposal and sale price
  • You must take a physical inventory of the property and reconcile the results with the property records at least once every 2 years.
  • Loss, damage, or theft:
  • You must have a control system in place with adequate safeguards to prevent these occurrences.
  • As the recipient or subrecipient, you must promptly and properly investigate any loss, damage, or theft.
  • You must establish and use adequate maintenance procedures to keep the property in good condition.
  • If authorized or required to sell the property, the recipient or subrecipient must establish proper sales procedures to ensure the highest possible return.
  • If you are a State recipient, you must dispose of equipment acquired under your award in accordance with State laws and procedures. Other recipients and subrecipients must dispose of the equipment when original or replacement equipment acquired under the award or subaward is no longer needed for the original project. They are also required to dispose of equipment acquired under the award when the equipment will be used for other activities currently or previously supported by a Federal agency.
  • You must adhere to the following rules in equipment disposition:
  • If the item to be disposed of has a current per-unit fair market value of less than $5,000, you may retain, sell, or otherwise dispose of it with no further obligation to the awarding agency.
  • If the item has a current per-unit fair market value of $5,000 or more, you may retain and sell it, but the awarding agency will have a right to a specific dollar amount. Calculate this amount by multiplying the current market value or proceeds from the item sale by the awarding agency’s share of the equipment. The seller is also eligible for sale costs.
  • In cases where you or your subrecipient fails to take appropriate disposition actions, the awarding agency may direct you to take other disposition actions.