[Code of Federal Regulations]
[Title 45, Volume 1]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 45CFR95.705]

[Page 475-476]
 
                        TITLE 45--PUBLIC WELFARE
 
                           AND HUMAN SERVICES
 
     Subpart G--Equipment Acquired Under Public Assistance Programs
 
Sec. 95.705  Equipment costs--Federal financial participation.

    (a) General rule. In computing claims for Federal financial 
participation,

[[Page 476]]

equipment having a unit acquisition cost of $25,000 or less may be 
claimed in the period acquired or depreciated, at the option of the 
State agency. Equipment having a unit acquisition cost of more than 
$25,000 shall be depreciated. For purposes of this section, the term 
depreciate also includes use allowances computed in accordance with the 
cost principles precribed in subpart Q of 45 CFR part 74.
    (b) Exceptions. (1) Equipment purchased under service agreements 
with other State agencies and under cost-type contracts shall be 
depreciated. However, equipment having a unit acquisition cost of 
$25,000 or less may be claimed in the period acquired if (a) the State 
agency approved the specific purchase and the claiming of the cost of 
the item, and (b) the contract or service agreement requires that the 
equipment or its residual value be transferred to the State agency when 
the equipment is no longer needed to carry out the work under the 
contract or service agreement.
    (2) Reimbursement for ADP equipment having an acquisition cost in 
excess of $25,000 and subject to subpart F of this part must be 
depreciated over its useful life unless otherwise specifically provided 
for by the Department. ADP equipment not subject to subpart F is subject 
to the requirements of this subpart.