Based on 2 CFR 200.313 Equipment, title to equipment vests in the recipient subject to certain conditions. Title may be classified as “exempt” or “non-exempt.”
Non-Exempt: The federal regulation states that the recipient (UW) is given “conditional title," which means the government retains rights to the equipment even though the equipment is in the possession and care of the UW. For example, the government may claim the equipment at any time, is entitled to reimbursement of the cost of the equipment if the UW wants to keep or sell the equipment, or may require that UW transfer the equipment to another entity if the PI and/or the Award moves to another institution. This is defined as Non-Exempt, as the equipment is not exempt from the standard conditions.
Exempt: Title is vested with the UW if the Award specifically states that the recipient has unconditional title. Therefore, there is no obligation to the Federal Government at the end of the Award. Sample terminology in an Award might include, “without further obligation to the government” or “equipment is exempt from the standard regulation.” This is defined as exempt, as the equipment is exempt from the standard conditions.
Note: As the UW is the recipient of the federal Award, title to equipment vests with the UW and not the individual department(s) administering the Award on behalf of the UW.
Both Non-exempt and Exempt equipment purchased or fabricated under an Award must be reported to the awarding agency at the end of the Award.