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This is the eighth section in our thirteen part series on “The Busy Person’s Guide to Grant Management.”

HOW DO YOU DISPOSE OF PROPERTY PURCHASED FOR A FEDERAL GRANT?

All good things must come to an end. Maybe you have finished up all your Grant work, or there have been other changes that mean the property that was purchased with Federal funds is no longer needed.

The first step in the disposal process is for the Grantee to ask the Awarding Agency for disposition instructions. Now’s your chance to turn the tables on your Federal Agency and get to bug them for a change! You may be amazed at how hard it is to get disposal instructions, and how long it takes to actually get a decision. To paraphrase my kids: “Have you decided yet? Have you decided yet?”

The Busy Person’s Guide to Property Disposal

Based on the instructions you receive from the Awarding Agency, (OK, I am assuming you have actually heard back from them) there are three things that can happen. The property may be:

In general, if the property is sold or retained, the Federal Government must be paid a share of the value of the property. The amount that must be paid is based on the Awarding Agency’s percentage of participation in the original purchase.

Three ways to dispose of Real Property

When it comes to real property, there are three primary options for disposing of real property.

In contrast with the first two methods, in this case, the Grantee or Subgrantee will be paid their percentage share of the current Fair Market Value of the property.

In all the cases, the Federal Government either gets their percentage share of the value, or gets the real property after paying the Grant Recipient for their share of the value.

What about Equipment?

When equipment is no longer needed for the original project or program, it may be re-deployed or transferred to another project or disposed of. (Remember the Federal definition of equipment includes tangible personal property with a cost of over $5000.)

How is Equipment re-deployed?

There is an order of priority which is usually followed for re-deploying the equipment.

The Awarding Agency should provide instructions on where to send un-needed equipment.

What if Equipment is disposed of instead of re-deployed?

If the equipment is to be disposed of as opposed to re-deployed, then the requirements for disposal depend on the current per-unit Fair Market Value.

What do I do with supplies?

Again, what to do with supplies depends on the total current Fair Market Value. Here’s the breakdown:

P.S. Here’s even more free information.

Check out the Property Disposal Video Lesson.

Length: Approx. 3 minutes


 Get your own very cool, one page “Quick Reference Guide: Property Disposal.”

(Just click on the link to download the .pdf file.)

This is the eighth section in our thirteen part series on “The Busy Person’s Guide to Grant Management.”

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