Property and Equipment Regulations for Federally Sponsored Awards

Property and equipment in federally sponsored awards are governed by:

OMB Circular A-21 (J.18)

  • Establishes principles for determining costs applicable to grants, contracts, and other agreements with institutions of higher education.
  • Defines “equipment” as nonexpendable, tangible personal property having a useful life of more than one year and an acquisition cost which equals or exceeds the lesser of the capitalization level established by the institution for financial statement purposes, or $5,000.
  • Defines “special purpose equipment” as equipment which is used only for research, medical, scientific, or other technical activities such as microscopes, x-ray machines, and spectrometers.
  • Defines “general purpose equipment” as equipment is which not limited to research, medical, scientific or other technical activities such as office equipment and furnishings, IT equipment, and vehicles.

OMB Circular A-110 (C.30 – C.37)

  • Provides requirements for federal grants and agreements with institutions of higher education.
  • Establishes title to equipment acquired by a recipient with federal grant or agreement funds vests in the recipient, subject to conditions listed in C.34.
  • Provides list of information that must be maintained in recipient’s equipment records (for recipient acquired and owned equipment and for federally transferred equipment which is titled to the federal government).
  • Establishes use and disposition requirements of recipient acquired equipment and federally transferred equipment.

Federal Acquisition Regulations (FAR) Part 45 – Government Property

  • Provides uniform policies and definitions for contractor acquired and government furnished property and equipment under a federal contract.
  • Identifies whether the government or the contractor retains title to property (45.401 and 45.402)
  • Establishes reporting and disposal policies and procedures for government owned property.