[Code of Federal Regulations]

[Title 45, Volume 1]

[Revised as of October 1, 2006]

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

[CITE: 45CFR95.705]



[Page 498-499]

 

                        TITLE 45--PUBLIC WELFARE

 

                    SUBTITLE A--DEPARTMENT OF HEALTH

                           AND HUMAN SERVICES

 

PART 95_GENERAL ADMINISTRATION_GRANT PROGRAMS (PUBLIC ASSISTANCE, MEDICAL 

ASSISTANCE AND STATE CHILDREN'S HEALTH INSURANCE PROGRAMS)--Table of 

Contents

 

      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, 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



[[Page 499]]



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.