Disposition of Federal Award Equipment

Upon completion of an Award, or in the event that equipment is no longer needed for an Award, the equipment may be disposed of. Disposition depends on, among other factors, which entity has ownership (title) of the equipment. Titles to Federal Award Equipment has information about "exempt" and "non-exempt" titles.

Internal Transfer

The following procedure is applicable for both Exempt (UW titled) and Non-exempt (federal titled) equipment.

Transferring possession of the equipment from one (giving) department to another (receiving) department does not require the approval of the awarding agency, since the title is held by the UW, not individual departments.

If the receiving department pays the giving department for the equipment, the funds used by the receiving department to pay for the item cannot be:

  • From a federal award (otherwise the federal government is paying for the same equipment twice) OR
  • From a sponsor or other resource that requires title to the equipment (otherwise both the federal government and the receiving sponsor would have claim to ownership/title). 

The giving department does not need to refund the funds received to the Federal Government.

The receiving department assumes responsibility for the equipment and must adhere to all applicable regulations. The equipment may be subject to recall or transfer at the discretion of the awarding agency. Disposition may require repayment to the Federal Government. The receiving department should obtain all relevant documentation on the original purchase, such as the invoice, receiving report, budget(s) charged, sponsor name, and award number.

Actions Other Than Internal Transfer

Title is Exempt (UW Titled)

The department must follow UW policy on equipment disposition.

Title is Non-Exempt (Federal Titled) and Market Value is Less Than $5,000

In accordance with federal regulation 2 CFR 200.313 Equipment, if the current fair market value is less than $5,000, there is no additional obligation to the government. The department can retain or dispose of the equipment as it deems appropriate. If the equipment is sold, there is no obligation to give any of the proceeds to the Federal Government. The department must follow UW policy on equipment disposition for the sale or transfer of the equipment.

Title is Non-Exempt (Federal Titled) and Market Value is Greater Than $5,000

​​In accordance with federal regulation 2 CFR 200.313 Equipment, if the current fair market value is greater than $5,000:

  • If the department wants to sell the equipment to a non-UW entity, the proceeds from the sale must be refunded to the federal agency (sponsor), less 10% of the sale amount or $500, whichever is less. The UW retains this amount to cover the administrative costs of the sale. All sales must adhere to UW equipment disposition policies.
  • If the department wants to retain the equipment for use on another project/program:
    • If the project/program is currently, or has previously received federal funding, then the department may use the equipment on the project and does not need to request disposition from the government. This is true even if the project is not currently being funded by a federal agency. Remember, however, that as the equipment is non-exempt, the federal government retains an interest in the title. See Cost Re-Allocation for Federal Award Equipment for more information. 
    • If the department wants to use the equipment on another project or program that has never received federal funding, or the department no longer needs the equipment, then the department must request disposition instructions from the awarding agency.
    • The department may also request disposition from the awarding agency at any time, and if granted ownership, the UW will have the title but may have to pay the government back. If the department receives disposition instructions from the awarding agency and the department does not follow those instructions, title to the equipment can be reverted to the Federal Government.


Post Award Fiscal Compliance email: gcafco@uw.edu

For questions and issues relating to Effort Reporting, email: effortreporting@uw.edu

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