Equipment and Property

Equipment and Property Overview

Property acquired with award funds is subject to a number of requirements.

Types of Property

• Real property - Land, including land improvements and structures
• Personal property - Property other than real property; can be tangible or intangible
  • Equipment is tangible property (including information technology systems) having a useful life of more than one (1) year and per-unit acquisition cost of at least $5,000
  • Supplies are tangible property other than those described as equipment

Management Requirements: your organization should

• Create policies for acquisition of property and equipment as part of your internal controls and train your organization's staff on them
• Have procedures for managing equipment and supplies until disposition takes place
• Have adequate maintenance procedures to keep property in good condition
• Perform a physical inventory of property and equipment at least every two (2) years
• Strengthen internal controls to ensure adequate safeguards against loss, damage, or theft

Disposition

• During the grant period of performance, equipment or property purchased with award funds may not be sold, transferred, encumbered, or otherwise disposed without prior approval from IDHS
• Always obtain disposition instructions from IDHS when equipment and supplies are no longer used for its original purpose or the period of performance of the award has concluded

Grantee reminders:

1. Follow procurement requirements when acquiring property with award funds
2. Prioritize sourcing products made in the United States
3. Maintain, store, and insure the equipment and/or property
4. Conduct inventory frequently
5. Request instructions from IDHS before disposing of any equipment or property
6. Include planned costs in the equipment budget expenditure category as part of your grant application