Federal Grant Equipment After Closeout: Title, Use, Inventory, Disposition
Direct sources. Clear status. Practical public information.
Reviewed November 7, 2026 · federal financial assistance · 2 CFR Part 200 current through the November 5, 2026 eCFR issue.
Closing an award and closing an equipment record are not necessarily the same event. Section 200.345 preserves property-management and disposition duties after closeout, while section 200.313 controls many equipment records for recipients and subrecipients.
Six controls that travel with the equipment
| Control | Evidence to preserve | Do not assume |
|---|---|---|
| Conditional title | Federal award, FAIN, title holder, contribution percentage, award terms | Possession means unrestricted ownership. |
| Authorized use | Original project purpose, current use, approvals, competing-use priority | A closed award makes any new use permissible. |
| Property record | Description, identifier, funding source, acquisition date/cost, location, use, condition, disposition data | An invoice alone is a complete property record. |
| Physical inventory | Count date, custodian, observed condition, location, reconciliation | The accounting ledger proves the asset is present. |
| Safeguards and maintenance | Loss/damage/theft controls, investigation, agency notice when applicable, maintenance history | Closeout ends the need to protect the equipment. |
| Disposition | Need assessment, current fair-market value, requested instructions, response, sale/retention/transfer record | Surplus equipment may simply be sold or discarded. |
Current threshold—keep the scope attached
For equipment no longer needed for the original or other federally supported activities, 2 CFR 200.313(e) states that equipment with a current fair-market value of $10,000 or less per unit may be retained, sold, or otherwise disposed of with no further responsibility to the federal agency or pass-through entity. Higher-value equipment and award-specific instructions follow additional rules. States use state laws and procedures; Indian Tribes use tribal laws and procedures, with the regulation’s fallback where those procedures do not exist. The award terms and responsible agency remain controlling.
Reversible equipment decision card
- Freeze disposal until the legal recipient, award, asset identity, title, contribution percentage, and award terms are matched.
- Confirm whether the equipment is still needed for the original project or another federally supported activity.
- Reconcile the physical asset to the property record and current condition.
- Document current fair-market value and whether disposition instructions are required.
- Preserve the responsible agency or pass-through entity’s written direction and the final transaction evidence.
- Pause for the grants officer, property officer, accountant, attorney, or other responsible professional before a consequential certification or disposition.
Official sources
Public-information notice: This Pulse is a dated, source-linked research summary for general educational use. It reports what the cited sources state or what the identified public record shows as of the date reviewed. Citation does not mean endorsement, partnership, certification, or independent confirmation of every third-party assertion. This is not individualized legal, medical, tax, accounting, investment, insurance, cybersecurity, licensing, regulatory, procurement, employment, real-estate, or other professional advice. Rules, facts, availability, and eligibility can change. Verify the controlling source, jurisdiction, effective date, and your own facts, and consult the responsible agency or a qualified professional before a consequential decision. External links are provided for attribution and may change. Use this information and any reader-controlled checklist at your own discretion and risk.
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