4.1.2 Movable Equipment Acquired Under Grants from the Federal Government

A.  Purpose

The purpose of this policy is to acquaint faculty and staff with The University of Texas at Tyler’s special responsibilities to the United States government for movable equipment acquired through federal grants.

B.  Persons Affected

This  policy  applies  to  University  account  managers  who  obtain  federal  funds  with authorization to purchase equipment as part of the grant conditions.

C.  Definitions

  1. Movable equipment - Any equipment that is not permanently attached to a building or land. As per State of Texas Comptroller’s Office guidelines, controlled or capitalized equipment that meets the following criteria must be maintained as part of the agency’s inventory:
    1. all controlled items regardless of cost or fund source.  Guide (see website: https://fmx.cpa.texas.gov/fmx/pubs/spaproc/appendices/appa/appa_6.php)
    2. all items that have a value of $5,000 or more per single unit (capitalized).
  2. Accountable Property Officer – A department Budget Authority   with authority and responsibility delegated by the President to care, maintain, and safe-keep the property assigned to their account.

D.  Policy and Procedures

  1. Title to movable equipment acquired by a recipient with federal funds shall vest in the University subject to conditions of this section.
  2. The University shall not use movable equipment acquired with federal funds to provide services to non-federal outside organizations for a fee that is less than private companies charge for equivalent services, unless specifically authorized by federal statute, for as long as the federal government retains an interest in the equipment.
  3. The University shall use the movable equipment in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by federal funds and shall not encumber the property without approval of the federal awarding agency.
  4. When the movable equipment is no longer needed for the original project or program, the University shall use the equipment in connection with its other federally-sponsored activities in the following order of priority: (i) Activities sponsored by the federal awarding agency which funded the original project, then (ii) activities sponsored by other federal awarding agencies.
  5. If the University no longer needs the movable equipment, the University shall request disposition instructions from the federal awarding agency. The federal awarding agency shall determine whether the equipment can be used to meet the agency’s requirements. Certain conditions apply when the equipment has a per-unit fair market value of $5,000 or more. See Office of Management and Budget Circular A110.

E.  Responsibilities

  1. All offices/departments accountable for movable equipment must be aware of the requirements stated in subsection D above.
  2. The Budget Authority in each department is responsible for making sure that no federally funded equipment is used as a trade-in or turned in as a credit toward the purchase of other equipment.
  3. Departments that have custody of movable equipment shall give written notice of the circumstances in the event the equipment is missing, stolen, destroyed, or damaged to the Financial Services Department.

F.  Review

This policy shall be reviewed by Financial Services and Sponsored Research every five years or as legislation changes.

LAST AMENDED:  04/15/2016