Purchase of equipment on federal Awards requires written approval from the federal awarding agency, unless otherwise allowed in the sponsor Terms & Conditions or waived in the Award. 2 CFR 200.439 Equipment and other capital expenditures has more information.
Federal awarding agency approval can be obtained in two ways:
- Specific inclusion of the equipment in the proposal budget if the proposal is fully funded.
- Written approval from the awarding agency’s authorizing official. The documented request for approval should include a description and cost of the equipment, how the equipment will benefit the award, and why it was not originally included in the proposal budget.
If awarding agency prior approval is not required (waived), it means that the agency has delegated the approval to the department. This means that the department should maintain the following documentation in their award files:
- How the equipment will benefit the award; and
- Why the equipment was not originally included in the proposal budget.