[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 45CFR74.35]



[Page 226]

 

                        TITLE 45--PUBLIC WELFARE

 

           SUBTITLE A--DEPARTMENT OF HEALTH AND HUMAN SERVICES

 

    PART 74_UNIFORM ADMINISTRATIVE REQUIREMENTS FOR AWARDS AND SUBAWARDS TO INSTITUTIONS OF HIGHER EDUCATION, HOSPITALS, OTHER NONPROFIT ORGANIZATIONS, AND 

COMMERCIAL ORGANIZATIONS--Table of Contents

 

                    Subpart C_Post-Award Requirements

 

Sec. 74.35  Supplies.



    (a) Title to supplies shall vest in the recipient upon acquisition. 

If there is a residual inventory of unused supplies exceeding $5000 in 

total aggregate value upon termination or completion of the project or 

program and the supplies are not needed for any other federally-

sponsored project or program, the recipient shall retain the supplies 

for use on non-federally sponsored activities or sell them, but shall, 

in either case, compensate the Federal Government for its share. The 

amount of compensation shall be computed in the same manner as for 

equipment. (See Sec. 74.34(g)).

    (b)(1) The recipient shall not use supplies acquired with Federal 

funds to provide services to non-Federal organizations for a fee that is 

less than private companies charge for equivalent services, unless 

specifically authorized by Federal statute as long as the Federal 

Government retains an interest in the supplies.

    (2) If the supplies are owned by the Federal Government, use on 

other activities not sponsored by the Federal Government shall be 

permissible if authorized by the HHS awarding agency.

    (3) User charges shall be treated as program income, in keeping with 

the provisions of Sec. 74.24.



[59 FR 43760, Aug. 25, 1994, as amended at 61 FR 11747, Mar. 22, 1996]