Deparment of Justice
acquired in whole or in part with grant
funds, unti] disposition takes place
will, as a minimum, meet the following
requirements:
(1) Property records must be main-
tained that include a description of the
property, a serial number or other
identification number, the source of
property, who holds title, the acquisi-
tion date, and cost of the property, per-
centage of Federal participation in the
cost of the property, the location, use
and condition of the property, and any
ultimate disposition data including the
date of disposal and sale price of the
property.
(2) A physical inventory of the prop-
erty must be taken and the results rec-
onciled with the property records at
least once every two years.
(3) A control system must be devel-
oped to ensure adequate safeguards to
prevent loss, damage, or theft of the
property. Any loss, damage, or theft
shall be investigated.
(4) Adequate maintenance procedures
must be developed to keep the property
in good condition.
(5) If the grantee or subgrantee is au-
thorized or required to sell the prop-
erty, proper sales procedures must be
established to ensure the highest pos-
sible return.
(e) Disposition. When original or re-
placement equipment acquired under a
grant or subgrant is no longer needed
for the original project or program or
for other activities currently or pre-
viously supported by a Federal agency,
disposition of the equipment will be
made as follows:
(1) Items of equipment with a current
per-unit fair market value of less than
$5,000 may be retained, sold or other-
wise disposed of with no further obliga-
tion to the awarding agency.
(2) Items of equipment with a current
per unit fair market value in excess of
$5,000 may be retained or sold and the
awarding agency shall have a right to
an amount calculated by multiplying
the current market value or proceeds
from sale by the awarding agency’s
share of the equipment.
(3) In cases where a grantee or sub-
grantee fails to take appropriate dis-
position actions, the awarding agency
may direct the grantee or subgrantee
to take excess and disposition actions.
§ 66.33
(f) Federal equipment. In the event a
grantee or subgrantee is provided fed-
erally-owned equipment:
(1) Title will remain vested in the
Federal Government.
(2) Grantees or subgrantees will man-
age the equipment in accordance with
Federal agency rules and procedures,
and submit an annual] inventory list-
ing,
(3) When the equipment is no longer
needed, the grantee or subgrantee will
request disposition instructions from
the Federal agency.
(g) Right to transfer title. The Federal
awarding agency may reserve the right
to transfer title to the Federal Govern-
ment or a third part named by the
awarding agency when such a third
party is otherwise eligible under exist-
ing statutes. Such transfers shall be
subject to the following standards:
(1) The property shall be identified in
the grant or otherwise made known to
the grantee in writing.
(2) The Federal awarding agency
shall issue disposition instruction
within 120 calendar days after the end
of the Federal support of the project
for which it was acquired. If the Fed-
eral awarding agency fails to issue dis-
position instructions within the 120
calendar-day period the grantee shall
follow 66.32(e).
(3) When title to equipment is trans-
ferred, the grantee shall be paid an
amount calculated by applying the per-
centage of participation in the pur-
chase to the current fair market value
of the property.
(53 FR 8068 and 8087, Mar. 11, 1988, as amend-
ed by Order No. 1252-88, 53 FR 8068. Mar. 11,
1988; 53 FR 12099, Apr. 12, 1988)
$66.33 Supplies.
(a) The Omnibus Crime Control and
Safe Streets Act of 1968, as amended,
Public Law 90-351, section 808, requires
that the title to all equipment and sup-
plies purchased with section 408 or 1302
(block or formula funds) shall vest in
the criminal justice agency or non-
profit organization that purchased the
property if it certifies to the State of-
fice described in section 408 or 1308 that
it will use the property for criminal
justice purposes. If such certification is
not made, title to the property shall
vest in the State office, which shall
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