[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

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

[CITE: 7CFR3015.55]



[Page 114]

 

                          TITLE 7--AGRICULTURE

 

                         CHAPTER XXX--OFFICE OF

                      THE CHIEF FINANCIAL OFFICER,

                        DEPARTMENT OF AGRICULTURE

 

PART 3015_UNIFORM FEDERAL ASSISTANCE REGULATIONS--Table of Contents

 

                   Subpart G_Cost-Sharing or Matching

 

Sec. 3015.55  Valuation of donated equipment, buildings, and land.



    When a third party donates equipment, buildings or land, and the 

title is given to the recipient, the treatment of this donated property 

shall depend upon the purpose of the grant or subgrant as follows:

    (a) Awards for capital expenditures. If the purpose of the grant or 

subgrant is to assist the recipient in acquiring property, such as 

equipment, buildings, and land, then the market value of that property 

at the time of donation may be counted as cost-sharing or matching.

    (b) Other awards. If the nature of the grant or subgrant is not for 

the purpose of acquiring property, the following rules shall apply:

    (1) If approval is obtained from the awarding agency, the market 

value at the time of donation of the equipment or buildings and the fair 

rental rate of the donated land may be counted as cost-sharing or 

matching. In the case of a subgrant, the provisions of the USDA grant 

should require that the approval be obtained from the awarding agency as 

well as the recipient. In all cases, the approval may be given only if a 

purchase of the equipment or rental of the land would be approved as an 

allowable direct cost.

    (2) If approval is not obtained under paragraph (b)(1) of this 

section, no amount shall be counted for donated land. Instead, only 

depreciation or use allowances may be counted for donated equipment and 

buildings and treated as costs incurred by the recipient. They are 

computed and allocated (usually as indirect costs) in accordance with 

the cost principles specified in Subpart T of this part. They will thus 

be handled in the same way as depreciation or use allowances for 

purchased equipment and buildings. The amount of depreciation or use 

allowances for donated equipment and buildings is based on the 

property's market value at the time it was donated.