forms and policies

Fixed Asset Grants Policy

Effective Date:
7/1/95
1/22/07, Revised

Policy:
Capital assets acquired with Federal financial assistance are subject to property management standards set by the Federal government. These standards are found in the Common Grants Management Rule (Common Rule) of revised OMB Circular A-102 (1997). Additional property management standards may be included in the grant agreement. All Federal property requirements must be met in addition to the requirements set forth in this manual.

When the State does not hold title to property acquired with Federal funds, the property should not be capitalized. (Possession does not equal ownership). The property can be inventoried for tracking purposes. However, all inventoried assets acquired with Federal funds must be flagged to ensure that Federally funded assets will not be sold or transferred without following Federal property disposition guidelines. When federally funded assets are no longer needed for the grant program, the state must dispose of the assets according to these property disposition guidelines.