PRIOR APPROVAL FOR EQUIPMENT REQUIREMENT … - 2 cfr 200 equipment

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• (1) 2 cfr 200.313 equipment
• (2) 2 cfr 200 equipment definition
• (3) 2 cfr 200 equipment inventory
• (4) 2 cfr 200 capital expenditure

United States National Institute
Department of of Food www.nifa.usda.gov Discover USDA highlights at
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FACT SHEET
PRIOR APPROVAL FOR EQUIPMENT REQUIREMENT
FOR NON-COMPETITIVE CAPACITY AWARDS
IF YOU ARE A CAPACITY GRANT RECIPIENT AND PLAN TO PURCHASE EQUIPMENT WITH CAPACITY GRANT FUNDS, THERE
are requirements you must follow; please read this information sheet to learn about prior approval requirements,
as well as equipment use and disposition requirements. Prior to purchasing general purpose equipment costing
$5,000 or more and special purpose equipment costing $150,000 or more, you must request and receive prior
approval from NIFA. This information sheet outlines the background, requirements, waiver authority, definitions,
and the resources available to help you request prior approval.
BACKGROUND and does so knowing that special purpose equipment is scientific
In December 2014, the Office of Management and Budget in nature and relates directly to the goals of research and exten-
(OMB), together with federal awarding agencies, issued the sion capacity grants. NIFA enforces the prior approval requirement
Uniform Administrative Requirements, Cost Principles, and for general purpose equipment.
Audit Requirements for Federal Awards (Uniform Guidance).
The Uniform Guidance is located at 2 CFR 200. NIFA REQUIREMENTS FOR CAPACITY GRANTS
(NON-COMPETITIVE)
REQUIREMENT You must have prior approval from NIFA before incurring
Grantees must request prior written approval from awarding expenditures for:
agencies in advance of incurring certain costs. The intent behind ? General purpose equipment costing $5,000 or more and having
this Uniform Guidance requirement is to help you avoid possible an anticipated useful life of more than one year; and
disallowance or dispute of certain costs due to reasonableness, ? Special purpose equipment costing $150,000 or more and
necessity, or allocability questions. Equipment purchases, unless having an anticipated useful life of more than one year. (NIFA
waived in the grant terms and conditions, are one type of cost waives prior approval for special purpose equipment costing
where prior approval is required (2 CFR 200.407). Equipment is less than $150,000.)
defined as tangible personal property having a useful life of more DETAILS ABOUT PRIOR APPROVAL
than one year and a per-unit acquisition cost $5,000 or more ? Provide requests, in writing, in advance of expenditure
(2 CFR 200.439(b)(1)). ? Approvals from NIFA will be in writing from the authorized
WAIVER AUTHORITY departmental officer
The Uniform Guidance provides limited authority (within 2 CFR ? Requests must include item name, description, approximate
200.308, Revision of Budget and Program Plans) for agencies cost, purpose, and estimated useful life
to waive certain prior approvals for federal awards that support ? Requests are specific to an individual grant
research. ? Prior approval is required even if you purchase the equipment
with multiple sources of funds
COMPETITIVE AWARDS ? Requests should be submitted as an attachment to
NIFA exercises its authority and includes the waiver for prior capacityequpiment@nifa.usda.gov. For more information
approval for equipment, subject to conditions being met, as a and templates, please visit Capacity Grantee Resources
grant term and condition for competitive research awards. at www.nifa.usda.gov/program/capacity-grants.
CAPACITY AWARDS continued next page >>
NIFA waives prior approval for special purpose equipment under
the $150,000 simplified acquisition threshold. NIFA has the
authority to waive this prior approval for research institutions
NIFA invests in and advances agricultural research, education, and extension and seeks to make transformative discoveries that solve societal challenges.
Learn more by visiting www.nifa.usda.gov or following @USDA_NIFA on Twitter. | USDA is an equal opportunity provider and employer ? November 2016
FACT SHEET: PRIOR APPROVAL FOR EQUIPMENT REQUIREMENT
FOR NON-COMPETITIVE CAPACITY AWARDS (CONTINUED)
EQUIPMENT DEFINITIONS 5) When acquiring replacement equipment, you may use the
Source: Uniform Guidance (2 CFR 200.33, 200.48, and 200.89) old equipment as a trade-in or sell the property and use the
? E quipment: Tangible personal property having a useful life of proceeds to offset the cost of the replacement property.
more than one year and a per-unit acquisition cost that equals
or exceeds the lesser of the capitalization level established by MANAGEMENT REQUIREMENTS
institution of higher education for financial statement purposes You must:
or $5,000. (2 CFR 200.33) 1) Maintain property records that include: a description of the
? General Purpose Equipment: Not limited to research, medical, property; a serial number or other identification number; the
scientific, or other technical activities. Includes: motor vehicles, source of funding for the property (including the Federal Award
office and laboratory furnishings (not scientific laboratory Identification Number); the title holder; the acquisition date;
equipment), air conditioning equipment, reproduction and cost of the property; percentage of federal participation in the
printing equipment, and audio-visual equipment. (2 CFR 200.48) project costs for the federal award under which the property
? Special Purpose Equipment: Used only for research, medical, was acquired; the location, use, and condition of the property;
scientific, or other technical activities. Includes: research and and any ultimate disposition data, including the date of disposal
laboratory equipment, including microscopes, x-ray machines, and sale price of the property.
surgical instruments, and spectrometers. (2 CFR 200.89) 2) Take a physical inventory of the property and reconcile
More information, resources, and FAQs are available at: www.nifa. with the property records at least once every two years.
usda.gov/program/capacity-grants. For assistance with grant- 3) Develop a control system to ensure adequate safeguards
specific equipment prior approval questions or to submit a prior to prevent loss, damage, or theft of the property. Any loss,
approval request, email capacityequipment@nifa.usda.gov damage, or theft must be investigated.
4) Develop adequate maintenance procedures to keep the
ADDITIONAL REQUIREMENTS RELATED property in good condition.
TO EQUIPMENT PURCHASED WITH GRANT AWARD 5) Establish proper sales procedures - if you are authorized
FUNDS (2 CFR 200.313 AND 200.439): or required to sell the property - to ensure the highest
Title: Title to equipment acquired under a NIFA award vests possible return.
in the awardee.
Use: DISPOSITION OF EQUIPMENT PURCHASED
1) Use of the equipment is for the authorized purposes of the
WITH GRANT FUNDS
grant during the period of performance or until it is no longer
You must request disposition instructions from NIFA prior to
needed for the purposes of the project, whether or not the
disposing of equipment when it is no longer needed for the original
federal award continues to support the project or program.
project or for other activities supported by any federal awarding
2) The grantee must not encumber the property without prior
agency. NIFA may approve transfer, sale, or disposal of the
approval from NIFA.
equipment and may or may not request compensation. If the
3) When no longer needed for the original purpose or project,
equipment is sold, NIFA may permit you to deduct and retain from
the equipment may be used for other activities in the following
the federal share $500 or 10 percent of the proceeds, whichever
order or priority:
is less, for its selling and handling expenses.
? Activities under a federal award from NIFA Equipment with a current per unit fair market value of less than
? Activities under federal awards from other federal awarding $5,000 may be retained, sold, or otherwise disposed of with
agencies (this includes consolidated equipment for informa- no further obligation to NIFA.
tion technology systems) RESOURCES
4) As long as the equipment is used on the project or program For more information and templates, please visit Capacity Grantee
for which it was acquired, you must make equipment available Resources at www.nifa.usda.gov/program/capacity-grants.
for use on other projects or programs currently or previously
supported by the federal government, provided that such use
will not interfere with the work for which it was originally
acquired. First preference for other use must be given to other
programs or projects supported by NIFA; second preference
must be given to programs or projects under federal awards
from other federal awarding agencies. Use for non-federally-
funded programs or projects is also permissible. User fees
must be considered if appropriate.


How much is 2 percent of 200? What is 2% of 200 and other numbers? 2% of 200.0 = 4.000. 2% of 202.5 = 4.050. 2% of ...

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