[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: 45CFR95.707]



[Page 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.  95.707  Equipment management and disposition.



    (a) An item of equipment is subject to the property rules in subpart 

O of 45 CFR part 74 if the total cost of the item was claimed in the 

period acquired and if the item was accepted for Federal financial 

participation as a direct cost under a single program or program 

activity. These rules also apply to ADP equipment where the State agency 

was permitted under Subpart F of this part to claim the total cost of 

the equipment in the period acquired.

    (b) Other items of equipment whose costs are claimed for Federal 

financial participation (i.e., equipment that is capitalized and 

depreciated or is claimed in the period acquired and charged to more 

than one program) are not subject to the specific requirements in 

subpart O of 45 CFR part 74. However, the State agency is responsible 

for adequately managing the equipment, maintaining records on the 

equipment, and taking periodic physical inventories. Physical 

inventories may be made on the basis of statistical sampling. The 

following requirements apply to the disposition of this equipment:

    (1) If the cost of the equipment was claimed in the period acquired 

and the equipment is later sold, the proceeds of the sale shall be 

credited to current expenditures in approximate proportion to the 

distribution of the equipment's cost.

    (2) If the cost of the equipment was claimed in the period acquired 

and the equipment is later transferred to an activity which is not 

involved in the performance of programs currently or previously funded 

by the Federal Government, an amount equal to the fair market value of 

the equipment on the date of the transfer shall be credited to current 

expenditures in approximate proportion to the distribution of the 

equipment's costs.

    (3) If the cost of the equipment was claimed in the period acquired 

and the equipment is later traded in on other equipment claims for 

Federal financial participation in the costs of replacement equipment 

shall be limited to the additional outlay.

    (4) If the equipment was depreciated, any gain or loss on the 

disposition of the equipment shall be treated as a decrease or an 

increase to the depreciation expense of the period in which the 

disposition takes place. This provision does not apply to equipment 

whose costs were claimed for Federal financial participation through use 

allowances.