termination hearing pursuant to paragraph (e) of this section will also be authorized to designate two persons in addition to an attorney whose travel and per diem expenses to attend the meeting or hearing may be paid from the organization's current operating grant. Such travel and per diem expenses shall conform to the policies set forth in the Standard Government Regulations and in 45 CFR 1069.3-1 to 1069.3-6 (CSA Instruction 6910-1a).

(h) Modification of procedures by consent. The responsible CSA official or the presiding officer of a termination hearing may alter, eliminate or modify any of the provisions of this section with the consent of the grantee and, in the case of a termination hearing, with the consent of all delegate agencies that have a right to participate in the hearing pursuant to paragraph (c)(5) of this section. Such consent must be in writing or be recorded in the hearing transcript.

(i) Other remedies. The procedures established by this section shall not preclude CSA from pursuing other remedies authorized by law.

(j) Consequences of termination. Upon termination, the disposition of unexpected Federal funds and of property purchased with program funds shall be according to the provisions of CSA Instruction 6800-12, Grant Closeout Procedures. Termination shall not affect expenditures or legally binding commitments made prior to the grantee's receipt of notice of the termination, provided such expenditures were made in good faith and are otherwise allowable. Funds shall not be considered to be legally committed solely by virtue of a grantee's contract or other commitment to a delegate agency.

Subpart N Standard Form for Applying for Federal Assistance (SF 424) (CSA Instruction 6800-14)

§ 1050.120 References.

(1) CMB Circular A-110, Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations (Attachment M).

(2) FMC 74-7, Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments (Attachment M).

(a) Standard Form 424 will be used by public agencies and private organizations as a face sheet for applications when applying for any CSA grant.

(b) The SF-424 will be used to fulfill the requirements of OMB Circular A95 for a notification of intent from applicant to clearinghouse(s) that assistance will be applied for from CSA in those instances where clearinghouses do not require other forms.

(c) The SF 424 will also be used by CSA funding offices to report to the clearinghouses on major actions taken on applications reviewed by clearinghouses in accordance with OMB Circular A-95, and to notify States of grants-in-aid awarded in accordance with Treasury Circular 1082.

§ 1050.122 CSA implementing policies and procedures.

(a) Detailed CSA policies regarding the uses of the SF 424, including information on completing the form, will be found in reference (3).

(b) Detailed policies and procedures for applying for grants under the Economic Opportunity Act will be found in references (4) through (8).

Subpart O-Property Management Standards

SOURCE: 45 FR 8299, Feb. 7, 1980, unless otherwise noted.

§ 1050.130-1 Applicability.

This subpart applies to all grants, delegate agency agreements, and other

agreements to public and private organizations/agencies under the Economic Opportunity Act of 1964, as amended, when such assistance is administered by the Community Services Administration.

§ 1050.130-2 References.

(a) OMB Circular A-110, Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations.

(b) OMB Circular A-102, Uniform Administrative Requirements for Grants-in-Aid to State and Local Governments.

(c) Pub. L. 94-519, Disposal of Excess and Surplus Federal Property, 90 Stat. 2456, 40 U.S.C. 483c.

(d) 45 CFR 1067.5, General Conditions Governing CSA Grants Funded Under Titles II, III-B and VII.

(a) Real property. Real property means land, including land and improvements, structures and appurtenances thereto, but excluding movable machinery and equipment.

(b) Personal property. Personal property means any kind except real property. It may be tangible-having physical existence, or intangible having no physical existence, such as patents, inventions and copyrights.

(c) Nonexpendable personal property. Nonexpendable personal property means tangible personal property having a useful life of more than one year and an acquisition cost of $300 or more per unit except that grantees subject to Cost Accounting Standards Board regulations may use the CASB standard or $500 per unit and useful life of two years. A grantee may use its own definition of nonexpendable personal property provided that the defi

nition would at least include all tangible personal property as defined above.

(d) Expendable personal property. Expendable personal property refers to all tangible personal property other than nonexpendable property.

(e) Excess property. Excess property means property under the control of any Federal agency that, as determined by the head thereof, is no longer required for its needs or the discharge of its responsibilities.

(f) Acquisition cost of purchased nonexpendable personal property. Acquisition cost of an item of purchased nonexpendable personal property means the net invoice unit price of the property including the cost of modifications, attachments, accessories, or auxiliary apparatus necessary to make the property usable for the purpose for which it was acquired. Other charges such as the cost of installation, transportation, taxes, duty or protective in-transit insurance, shall be included unless it is contrary to the grantee's established accounting practices.

(g) Exempt property. Exempt property means tangible personal property acquired in whole or in part with Federal funds, and title to which is vested in the grantee without further obligation to the Federal Government except as provided in § 1050.130-8a. Such unconditional vesting of title will be pursuant to any Federal legislation that provides the Community Services Administration with adequate authori

ty.

§ 1050.130-5 Standard-real property.

(a) Title to real property shall vest in the grantee subject to the condition that the grantee shall use the real property for the authorized purpose of the project as long as it is required.

(b) The grantee shall obtain approval by the Community Services Administration for the use of real property in other projects when the grantee determines that the property is no longer required for the purpose of the original grant. Use in other projects shall be limited to those under other federally sponsored projects (i.e., grants or other agreements) or pro

12-154 0-83--19

grams that have purposes consistent with those authorized for support by the Community Services Administration.

(c) When the real property is no longer needed as provided in § 1050.130-5 (a) and (b) the grantee shall request disposition instructions from the appropriate administering office of the Community Services Administration. CSA shall apply the following rules in its disposition instructions:

(1) The grantee may be permitted to retain title after it compensates the Federal Government in an amount computed by applying the Federal percentage of participation in the cost of the original project to the fair market value of property.

(2) The grantee may be directed to sell the property under guidelines provided by the Community Services Administration and pay the Federal Government an amount computed by applying the Federal percentage of participation in the cost of the original project to the proceeds from sale (after deducting actual and reasonable selling and fix-up expenses, if any, from the sales proceeds).

(3) When the grantee is authorized or required to sell the property, proper sales procedures shall be established that provide for competiton to the extent practicable and result in the highest possible return.

(4) The grantee may be directed to transfer title to the property to the Federal Government provided that in such cases the grantee shall be entitled to compensation computed by applying the grantee's percentage of participation in the cost of the program, or project to the current fair market value of the property.

§ 1050.130-6 Standard-federally

nonexpendable personal property.

owned

(a) Title to federally-owned personal property remains vested in the Federal Government. Grantees shall submit an annual inventory listing of federally-owned property in their custody to the appropriate CSA Property Administrator. When the grant is completed, or when the property is no longer required, the grantee shall report the property to the appropriate CSA Prop

erty Administrator for further utilization or disposition.

(b) If CSA has no further need for the property it shall be declared excess and reported to the General Services Administration. Disposition instructions will be issued to the grantee after review by the appropriate CSA Property Administrator.

§ 1050.130-7 Standard-exempt property.

(a) When statutory authority exists, (e.g. Pub. L. 95-224, 41 U.S.C. 506b) title to nonexpendable personal property acquired with project funds, shall be vested in the grantee upon acquisition unless it is determined that to do so is not in compliance with the objectives of the Community Services Administration.

(b) When title is vested in the grantee, the grantee shall have no other obligation or accountability to the Federal Government for its use or disposition. The provisions of § 1050.1308(a)(1) apply.

[45 FR 53155, Aug. 11, 1980]

(a) When other nonexpendable tangible personal property is acquired by a grantee with project funds, title shall not be taken by the Federal Government but shall vest in the grantee, subject to the following conditions:

(1) Right to transfer title: For items of nonexpendable personal property having a unit acquisition cost of $1,000 or more, CSA reserves the right to transfer the title to the Federal Government or a third party named by the Federal Government when such third party is otherwise eligible under existing statutes. Such reservation shall be subject to the following conditions:

(i) The property shall be appropriately identified in the grant or other agreement or otherwise made known to the grantee in writing.

(ii) The appropriate CSA Property Administrator shall issue disposition instructions to grantees within 120 calendar days after the end of the grant for which it was acquired. If disposition instructions are not issued within the 120 calendar day period, the grant

ee shall apply the standards of § 1050.130-8 (b) and (c) as appropriate.

(iii) When CSA exercises its right to take title, the personal property shall be subject to the provisions for federally-owned nonexpendable property discussed in § 1050.130-6.

(iv) When title is transferred either to the Community Services Administration or to a third party, the provisions of § 1050.130-8(c)(2)(B) below should be followed.

(b) Use of other tangible nonexpendable property for which the Grantee has title. (1) The grantee shall use the property in the project or program for which it was acquired as long as needed, whether or not the project or program continues to be supported by Federal funds. When no longer needed for the original project or program, the grantee shall use the property in connection with its other federally sponsored activities in the following priority:

(i) Activities sponsored by the Community Services Administration.

(ii) Activities sponsored by other Federal Agencies.

(2) Shared use. During the time that nonexempt nonexpendable personal property is held for use on the project or program for which it was acquired, the grantee shall make it available for use on other projects or programs if such other use will not interfere with the work on the project or program for which the property was originally acquired.

(i) First preference for such other use shall be given to other projects or programs sponsored by the Community Services Administration.

(ii) Second preference shall be given to projects or programs sponsored by other Federal agencies. If the property is owned by the Federal Government, use on other activities not sponsored by the Federal Government shall be permissible if authorized by the Community Services Administration. User charges should be considered if appropriate.

(c) Disposition of other nonexpendable property. When a grantee no longer needs the property as provided in § 1060.130-8(b), the property may be used for other activities in accordance with the following conditions:

(1) Nonexpendable property with a unit acquisition cost of less than $1,000.00. The grantee may use the property for other activities without reimbursement to the Federal Government or sell the property and retain the proceeds.

(2) Nonexpendable personal property with α unit acquisition cost of $1,000.00 or more. (i) The grantee may retain the property for other uses provided that compensation is made to the Community Services Administration. The amount of compensation shall be computed by applying the percentage of Federal participation in the cost of the original project or program to the current fair market value of the property. If the grantee has no need for the property and the property has further use value, the grantee shall request disposition instructions from the appropriate CSA Property Administrator.

(ii) The Community Services Administration shall determine whether the property can be used to meet the agency's requirements. If no requirement exists within the agency, the availability of the property shall be reported to the General Services Administration by CSA to determine whether a requirement for the property exists in other Federal agencies. The Community Services Administration shall issue instructions to the grantee no later than 120 days after the grantee's request. The following procedures shall govern disposition under this paragraph (c)(2)(ii) and the preceding paragraph (c)(2)(i):

(A) If instructed, or if disposition instructions are not issued within 120 calendar days after the grantee's request, the grantee shall sell the property and reimburse the Community Services Administration in an amount computed by applying to the sales proceeds the percentage of Federal participation in the cost of the original project or program. The grantee shall be permitted to deduct and retain from the Federal share $100 or ten percent of the proceeds, whichever is greater for the grantee's selling and handling expenses.

(B) 'If the grantee is instructed to ship the property elsewhere, the grantee shall be reimbursed by the

Federal agency which receives the property an amount which is computed by applying the percentage of the grantee's participation in the cost of the original grant project or program to the current fair market value of the property, plus any reasonable shipping or interim storage costs incurred.

(C) If the grantee is instructed to otherwise dispose of the property, the grantee shall be reimbursed by the Community Services Administration for such costs incurred in its disposition.

(d) Property management standards for nonexpendable property. The grantee's property management standards for nonexpendable personal property shall include the following procedural requirements:

(1) Property records shall be maintained accurately and shall include:

(i) A description of the property.

(ii) Manufacturer's serial number, model number, Federal stock number, national stock number, or other identification number.

(iii) Source of the property, including grant or other agreement number. (iv) Whether title vests in the grantee or the Federal Government.

(v) Acquisition date (or date received, if the property was furnished by the Federal Government) and cost. (vi) Percentage of CSA participation in the cost of the project or program for which the property was acquired. (Not applicable to property furnished by the Federal Government.)

(vii) Location, use and condition of the property and the date the information was reported.

(viii) Unit acquisition cost.

(ix) Ultimate disposition data, including date of disposal and sales price or the method used to determine current fair market value where a grantee compensates CSA for its share.

(2) Property owned by CSA must be marked to indicate Federal ownership. (3) A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records shall be investigated to determine the causes of the difference. The grantee shall, in

connection with the inventory, verify the existence, current utilization, and continued need for the property.

(4) A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft of the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented. If the property was owned by the Federal Government, the grantee shall promptly notify the appropriate CSA Property Administrator.

(5) Adequate maintenance procedures shall be implemented to keep the property in good condition.

(6) Where the grantee is authorized or required to sell the property, proper sales procedures shall be established which would provide for competition to the extent practicable and result in the highest possible return.

[45 FR 8299, Feb. 7, 1980; 45 FR 25064, Apr. 14, 1980; 45 FR 53156, Aug. 11, 1980]

Title to expendable personal property shall vest in the grantee upon acquisition. If there is a residual inventory of such property exceeding $1,000.00 in total aggregate fair market value, upon termination or completion of the grant other agreement, and the property is not needed for any other federally sponsored project or program, the grantee shall retain the property for use in nonfederally sponsored activities, or sell it, but must in either case, compensate the Federal Government for its share. The amount of compensation shall be computed in the same manner as nonexpendable personal property.

§ 1050.130-10 Standard-intangible erty.

prop

(a) Inventions and patents. If any program produces patentable items, patent rights, processes, or inventions, in the course of work sponsored by the Federal Government, such fact shall be promptly and fully reported to CSA. Unless there is a prior agreement between the grantee and CSA on disposition of such items, CSA shall determine whether protection on the invention or discovery shall be sought.