Handbook of Operating Procedures > Series 400 Budget, Finance and Operations > 4.1.2 Movable Equipment Acquired Under Grants from the Federal Government

4.1.2 Movable Equipment Acquired Under Grants from the Federal Government

A.  Purpose

This policy provides guidelines for employees at The University of Texas at Tyler, and The University of Texas Health Science Center at Tyler (collectively, University employees), regarding the responsibilities to the United States government for movable equipment acquired through federal grants.

B.  Persons Affected

This policy applies to University Budget Authorities / Department Heads who obtain federal funds with authorization to purchase movable 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.  See website for additional information: 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). See website for additional information: https://fmx.cpa.texas.gov/fmx/pubs/spaproc/appendices/appa/appa_6.php
2. Department Budget Authority- person, designated by the University President, responsible for the care, maintenance and safe-keeping of any property assigned to their account.
3. Grant – any externally funded project including grants (assistance actions), contracts (procurement actions), cooperative agreements and agreements.

D.  Policy

1. Title to movable equipment acquired by a recipient with federal funds shall vest in the University subject to conditions of this section and grant terms and conditions.
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 if needed, whether 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. 5. If the University no longer needs the movable equipment, the University shall review award terms and conditions and request disposition instructions from the federal awarding agency if required. 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: https://www.ecfr.gov/current/title-2

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 / Department Head 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. The Budget Authority / Department Head that has custody of movable equipment shall give written notice of the circumstances in the event the equipment is missing, stolen, destroyed, or damaged to the Asset Management and Inventory Control or Accounting Office at their campus.

F.  Review

This policy shall be reviewed every five years or as legislation changes.