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PART 18 - UNIFORM ADMINISTRATIVE REQUIREMENTS FOR GRANTS AND COOP... Page 20 of 38 <br />(b) States. A State will use, manage, and dispose of equipment acquired under a grant by the State in accordance <br />with State laws and procedures. Other grantees and subgrantees will follow paragraphs (c) through (e) of this <br />section. <br />(c) Use. <br />(1) Equipment shall be used by the grantee or subgrantee in the program or project for which it was <br />acquired as long as needed, whether or not the project or program continues to be supported by Federal <br />funds. When no longer needed for the original program or project, the equipment may be used in other <br />activities currently or previously supported by a Federal agency. <br />(2) The grantee or subgrantee shall also make equipment available for use on other projects or programs <br />currently or previously supported by the Federal Government, providing such use will not interfere with <br />the work on the projects or program for which it was originally acquired. First preference for other use <br />shall be given to other programs or projects supported by the awarding agency. User fees should be <br />considered if appropriate. <br />(3) Notwithstanding the encouragement in Sec. 18.25(a) to earn program income, the grantee or <br />subgrantee must not use equipment acquired with grant funds to provide services for a fee to compete <br />unfairly with private companies that provide equivalent services, unless specifically permitted or <br />contemplated by Federal statute. <br />(4) When acquiring replacement equipment, the grantee or subgrantee may use the equipment to be <br />replaced as a tradein or sell the property and use the proceeds to offset the cost of the replacement <br />property, subject to the approval of the awarding agency. <br />(d) Management requirements. Procedures for managing equipment (including replacement equipment), <br />whether acquired in whole or in part with grant funds, until disposition takes place will, as a minimum, meet the <br />following requirements: <br />(1) Property records must be maintained that include a description of the property, a serial number or <br />other identification number, the source of property, who holds title, the acquisition date, and cost of the <br />property, percentage of Federal participation in the cost of the property, the location, use and condition of <br />the property, and any ultimate disposition data including the date of disposal and sale price of the <br />property. <br />(2) A physical inventory of the property must be taken and the results reconciled with the property <br />records at least once every two years. <br />(3) A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of <br />the property. Any loss, damage, or theft shall be investigated. <br />(4) Adequate maintenance procedures must be developed to keep the property in good condition. <br />(5) If the grantee or subgrantee is authorized or required to sell the property, proper sales procedures must <br />be established to ensure the highest possible return. <br />(e) Disposition. When original or replacement equipment acquired under a grant or subgrant is no longer needed <br />for the original project or program or for other activities currently or previously supported by a Federal agency, <br />disposition of the equipment will be made as follows: <br />(1) Items of equipment with a current per -unit fair market value of less than $5,000 may be retained, sold <br />or otherwise disposed of with no further obligation to the awarding agency. <br />http: / /www. dot .gov /ost/m60 /grant/49cfr18.htm 8/30/2012 <br />