Purchase of Equipment on a Grant
Definition of Equipment
Idaho State University defines equipment as an item that meets both of the following criteria:
- A unit cost of $5,000 or more, and
- An expected useful life of more than one year
When preparing proposals that include equipment purchases, it is essential to review sponsor requirements and institutional policies to ensure compliance.
Terms and Conditions
Before purchasing equipment on a grant, review the sponsor’s terms, Uniform Guidance, and ISU policies to ensure compliance.
Always consult with your Grant and Contract Accounting (GCA) to confirm requirements before making the purchase.
- Title (Ownership)
Title refers to the ownership of equipment purchased with sponsored funds, and ownership rules vary by award type:
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- Federal Grants: Title is generally conditional and vested in ISU at the time of purchase. Under Uniform Guidance (2 CFR §200.313), when the project ends, the equipment must be made available for use on other federally sponsored projects before it can be used for internal ISU purposes or external use. Departments must track equipment, maintain proper inventory records, and ensure compliance with any federal reporting requirements.
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- Federal Contracts: Title typically remains with the federal government. Equipment may need to be returned or reassigned to a new project at the end of the contract, following the sponsor’s closeout and disposition procedures.
ISU’s preference is to retain title to all equipment purchased with sponsored funds whenever possible. Because transfer of title occurs on a case-by-case basis, departments should ensure proper planning for project use and disposition in accordance with sponsor and university policies.
Additional Uniform Guidance Considerations:
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- Equipment must be used primarily for the authorized federal project while the project is active.
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- ISU must maintain equipment records, including a description, serial number, source of funding, cost, and location.
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- Any disposition or transfer of equipment (e.g., to another federally funded project or for sale) must comply with federal requirements, including possible proceeds return to the federal government if the equipment is sold.
- Reporting Requirements
Many sponsors—both federal and non-federal—require reporting on equipment purchased with award funds. Reporting requirements may include:
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- Inventory tracking
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- Periodic equipment reports
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- Final disposition documentation
Departments are responsible for understanding and complying with these sponsor-specific requirements. The GCA can assist in interpreting and documenting these expectations.
Closing Out an Award
Title at Closeout
Ownership of equipment may change at the end of a project. Some sponsors allow ISU to retain title or request title transfer once the project concludes.
If ISU does not hold title during the project period:
- Review the sponsor’s closeout procedures
- Submit any required documentation or title transfer requests through GCA