appeal through Bureau and Departmental grievance procedures (370 DM 771). (b) In the case of property loss/damage/destruction, the Board of Survey will follow the guidelines set forth in 114-60.106.

(c) Boards of Survey should carefully examine property being surveyed. Where the Board finds that the property has further usefulness, either as is or after justifiable repairs or reconditioning, it may recommend that the property be continued in service.

(d) Where final Board of Survey action directs the destruction or reduction to scrap of property, such disposition should be witnessed by at least one member of the Survey Board. In those instances where a member of the survey board cannot witness the reduction of property to scrap, the Board will appoint a witnessing officer who shall be a responsible official other than the accountable officer or a previous custodian of the property.

§ 114-60.905 Reviewing authority.

Authority to approve or disapprove Reports of Survey and Certificates of Loss or Damage shall be vested in a reviewing authority. This reviewing authority shall be (a) the head of the bureau or office (b) the head of a regional, area, or com parable office, or (c) traveling survev officers designated by either of the fore. going designated to serve as a reviewing authority such as provided in § 114 60.903(b). With the exception of traveling survey officers as provided in § 114-60.903(b), a reviewing authority shall not include any member of the Board of Survey which acted in the particular case under consideration. Under no circumstances shall a reviewing authority include the accountable officer for the property involved.

NOTE: The Department of Interior Manuals (DM's) referred to in this document have not been filed with the original document, and these references are not to be considered incorporated by reference within the meaning of 5 U.S.C. 552 and 1 CFR Part 51. Subpart 114-60.10-Vesting of Title to Equipment Purchased With Grant or Contract Funds

AUTHORITY: 5 U.S.C. 301, 40 U.S.C. 486 (c), 42 U.S.C. 1892.

SOURCE: 40 FR 55858, Dec. 2, 1975, unless otherwise noted.

(a) Section 2 of Pub. L. 85-934 (42 USC 1892) provides discretionary authority for the vesting of title to equipment purchased with grant or contract funds when the grant or contract is for the conduct of basic or applied scientific research at nonprofit institutions of higher education, or at nonprofit organizations whose primary purpose is the conduct of scientific research.

(b) Federal Management Circular (FMC) 73-7 establishes the policy that vesting of title to equipment in educational institutions furthers the overall Government objective of strengthening the scientific capability of such institutions, and reduces or eliminates the Government's costs and administrative burden of accounting, shipment, storage, disposition, and otherwise treating the equipment as Government property. (c) Federal Management Circular (FMC) 74-7 prescribes uniform administrative requirements for grants-in-aid to State and local governments, including standards governing the utilization and disposition of property furnished by the Federal Government or acquired in whole or in part with Federal funds.

§ 114-60.1002 Educational institutions.

To the extent permitted by statute, title to equipment purchased or fabricated under any type of research instrument at educational institutions shall be vested in the institution without further obligation to the Government unless:

(a) There is not the proper authority to vest title in the institution;

(b) It is determined that such vesting is not in furtherance of the sponsor's objectives, and such determination has been approved, in writing, by the head of the bureau/office or his authorized representative. Authority to approve such determinations shall not be delegated below the Chief Administrative Officer of a region or comparable office;

or

(c) The acquisition cost of the item is $1,000 or more and the sponsor desires to reserve the right to otherwise utilize the equipment, and then only un

When nonexpendable personal property is acquired wholly or in part with Federal funds provided under a grant to a State or local government, title shall be vested in the grantee subject only to the restrictions on use and disposition set forth in FMC 74-7. Attachment N (See Appendix A). The only exception to this policy is that the grantor may reserve title to property with an acquisition cost of $1,000 or more when such property is:

(a) Financed solely with Federal funds;

(b) Unique and/or would be difficult or costly to replace;

(c) Appropriately identified in the grant agreement or otherwise made known to the grantee; and

(d) Use and disposition is in accordance with the standards and procedures set forth in FMC 74-7, Attachment N. § 114-60.1004 Documentation.

In all instances, the research instrument should clearly indicate where title to equipment is to be vested and specify which items are to be Government property.

§ 114-60.1005 Federally-owned nonexpendable personal property.

When Federally-owned nonexpendable personal property, including excess, is made available to a grantee or contractor, title to such property remains vested in the Federal Government unless there is specific statutory authority to transfer title (see § 114-43.320). APPENDIX A-FEDERAL MANAGEMENT CIRCULAR 74-7, ATTACHMENT N

PROPERTY MANAGEMENT STANDARDS

1. This attachment prescribes uniform standards governing the utilization and disposition of property furnished by the Federal Government or acquired in whole part with Federal funds by State and loca governments. Federal grantor agencies shall require State and local governments to observe these standards under grants from the Federal Government and shall not impose additional requirements unless specifically required by Federal law. The grantees shall be authorized to use their own property

management standards and procedures as long as the provisions of this attachment are included.

2. The following definitions apply for the purpose of this attachment:

a.

Real property. Real property means land, land improvements, structures and appurtenances thereto, excluding movable machinery and equipment.

b. Personal property. Personal property means property of 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. A grantee may use its own definition of nonexpendable personal property provided that such definition 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 which, as determined by the head thereof, is no longer required for its needs.

3. Each Federal grantor agency shall prescribe requirements for grantees concerning the use of real property funded partly or wholly by the Federal Government. Unless otherwise provided by statute, such requirements, as a minimum, shall contain the following:

a. The grantee shall use the real property for the authorized purpose of the original grant as long as needed.

b. The grantee shall obtain approval by the grantor agency for the use of the real property in other projects when the grantee determines that the property is no longer needed for the original grant purposes. Use in other projects shall be limited to those under other Federal grant programs, or programs that have purposes consistent with those authorized for support by the grantor.

c. When the real property is no longer needed as provided in a. and b., above, the grantee shall return all real property furnished or purchased wholly with Federal grant funds to the control of the Federal grantor agency. In the case of property purchased in part with Federal grant funds, the grantee may be permitted to take title to the Federal interest therein upon compensating the Federal Government for its fair share of the property. The Federal share of the property shall be the amount computed by applying the percentage of the Federal participation in the total cost of the grant program for which the property was acquired to the current fair market value of the property.

4. Standards and procedures governing ownership, use, and disposition of nonexpendable personal property furnished by the Federal Government or acquired with Federal funds are set forth below:

a. Nonexpendable personal property acquired with Federal funds. When nonexpendable personal property is acquired by a grantee wholly or in part with Federal funds, title will not be taken by the Federal Government except as provided in paragraph 4a (4) but shall be vested in the grantee subject to the following restrictions on use and disposition of the property:

(1) The grantee shall retain the property acquired with Federal funds in the grant program as long as there is a need for the property to accomplish the purpose of the grant program whether or not the program continues to be supported by Federal funds. When there is no longer a need for the property to accomplish the purpose of the grant program, the grantee shall use the property in connection with other Federal grants it has received in the following order of priority:

(a) Other grants of the same Federal grantor agency needing the property.

(b) Grants of other Federal agencies needing the property.

(2) When the grantee no longer has need for the property in any of its Federal grant programs, the property may be used for its Own official activities in accordance with the following standards:

(a) Nonexpendable property with an acquisition cost of less than $500 and used four years or more. The grantee may use the property for its own official activities without reimbursement to the Federal Government or sell the property and retain the proceeds.

(b) All other nonexpendable property. The grantee may retain the property for its own use provided that a fair compensation is made to the original grantor agency for the latter's share of the property. The amount of compensation shall be computed by applying the percentage of Federal participation in the grant program to the current fair market value of the property.

(3) If the grantee has no need for the property, disposition of the property shall be made as follows:

(a) Nonexpendable property with an acquisition cost of $1,000 or less. Except for that property which meets the criteria of (2)(a) above, the grantee shall sell the property and reimburse the Federal grantor agency an amount which is computed in accordance with (iii) below.

(b) Nonexpendable property with an acquisition cost of over $1,000. The grantee shall request disposition instructions from the grantor agency. The Federal agency shall determine whether the property can be used to meet the agency's requirement. If no requirement exists within that agency, the

availability of the property shall be reported to the General Services Administration (GSA) by the Federal agency to determine whether a requirement for the property exists in other Federal agencies. The Federal grantor agency shall issue instructions to the grantee within 120 days and the following procedures shall govern:

(i) If the grantee is instructed to ship the property elsewhere, the grantee shall be reimbursed by the benefiting Federal agency with an amount which is computed by applying the percentage of the grantee's participation in the grant program to the current fair market value of the property, plus any shipping or interim storage costs incurred.

(ii) If the grantee is instructed to otherwise dispose of the property, he shall be reimbursed by the Federal grantor agency for such costs incurred in its disposition.

(iii) If disposition instructions are not issued within 120 days after reporting, the grantee shall sell the property and reimburse the Federal grantor agency an amount which is computed by applying the percentage of Federal participation in the grant program to the sales proceeds. Further, the grantee shall be permitted to retain $100 or 10 percent of the proceeds, whichever is greater, for the grantee's selling and handling expenses.

(4) Where the grantor agency determines that property with an acquisition cost of $1,000 or more and financed solely with Federal funds is unique, difficult, or costly to replace, it may reserve title to such property, subject to the following provisions:

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

(b) The grantor agency shall issue disposition instructions within 120 days after the completion of the need for the property under the Federal grant for which it was acquired. If the grantor agency fails to issue disposition instructions within 120 days, the grantee shall apply the standards of 4a (1), 4a (2) (b), and 4a (3) (b).

per

b. Federally-owned nonexpendable sonal property. Unless statutory authority to transfer title has been granted to an agency, title to Federally-owned property (property to which the Federal Government retains title including excess property made available by the Federal grantor agencies to grantees) remains vested by law in the Federal Government. Upon termination of the grant or need for the property, such property shall be reported to the grantor agency for further agency utilization or, if appropriate, for reporting to the General Services Administration for other Federal agency utilization. Appropriate disposition instructions will be issued to the grantee after completion of Federal agency review.

5. The grantees' property management standards for nonexpendable personal prop

erty shall also include the following procedural requirements:

a. Property records shall be maintained accurately and provide for: a description of the property; manufacturer's serial number or other identification number; acquisition date and cost; source of the property; percentage of Federal funds used in the purchase of property; location, use, and condition of the property; and ultimate disposition data including sales price or the method used to determine current fair market value if the grantee reimburses the grantor agency for its share.

b. A physical inventory of property shall be taken and the results reconciled with the property records at least once every two years to verify the existence, current utilization, and continued need for the property.

c. A control system shall be in effect to insure adequate safeguards to prevent loss, damage, or theft to the property. Any loss, damage, or theft of nonexpendable property shall be investigated and fully documented. d. Adequate maintenance procedures shall be implemented to keep the property in good

condition.

e. Proper sales procedures shall be established for unneeded property which would provide for competition to the extent practicable and result in the highest possible return.

6. When the total inventory value of any unused expendable personal property exceeds $500 at the expiration of need for

any Federal grant purposes, the grantee may retain the property or sell the property as long as he compensates the Federal Government for its share in the cost. The amount of compensation shall be computed in accordance with 4a (2) (b).

7. Specific standards for control of intangible property are provided as follows: a. If any program produces patentable items, patent rights, processes, or inventions, in the course of work aided by a Federal grant, such fact shall be promptly and fully reported to the grantor agency. Unless there is prior agreement between the grantee and grantor on disposition of such items, the grantor agency shall determine whether protection on such invention or discovery shall be sought and how the rights in the invention or discovery-including rights under any patent issued thereonshall be allocated and administered in order to protect the public interest consistent with "Government Patent Policy" (President's Memorandum for Heads of Executive Departments and Agencies, August 23, 1971, and Statement of Government Patent Policy as printed in 36 FR 16889).

b. Where the grant results in a book or other copyrightable material, the author or grantee is free to copyright the work, but the Federal grantor agency reserves a royaltyfree, nonexclusive and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use the work for Government purposes.

Part 115-1

Introduction

115-1.104-50

115-1.106

115-1.108

115-1.109

115-1.110

to

Publication of EPPMR.
Applicability of FPMR.
Agency implementation and
supplementation of FPMR.
Numbering in FPMR system.
Deviations.

AUTHORITY: The provisions of this Part 115-1 issued under section 205 (c), 63 Stat. 377, as amended; 40 U.S.C. 486 (c).

SOURCE: The provisions of this Part 115-1 appear at 36 F.R. 8568, May 8, 1971, unless otherwise noted.

Subpart 115-1.1-Regulation
System

115-1.100 Scope of subpart.

This subpart establishes the Environmental Protection Agency Property Management Regulations (EPPMR), chapter 115 of the Federal Property Management Regulations System (FPMR) (41 CFR Chapter 101); states its relationship to the FPMR, and provides instructions governing the property management policies and procedures of the Environmental Protection Agency (EPA).

§ 115-1.103 Temporary-type FPMR. § 115-1.103-50 Temporary-type changes to EPPMR.

Where required, temporary changes will be published as EPPMR-Temporary

Page

801

Regulations. Temporary Regulations will be cross-referenced to related EPPMR Subparts and will indicate dates for compliance with, and cancellation of each issuance.

§ 115-1.104 Publication of FPMR. § 115-1.104-50 Publication of EPPMR.

(a) Material published in the EPPMR will generally not be of interest to nor directly affect the public. Therefore, most EPPMR material will not be published in the FEDERAL REGISTER.

(b) Arrows printed in the margin of a page indicate material changed, deleted, or added by the EPPMR Transmittal Notice cited at the bottom of that page. (See GSA, FPMR Amendment Transmittai pages for illustrations.)

§ 115-1.106 Applicability of FPMR.

The FPMR apply to all EPA activities unless otherwise specified, or unless a deviation is approved.

§ 115-1.108 Agency

implementation

and supplementation of FPMR.

(a) EPPMR implements and supplements the FPMR and follows the FPMR in style, arrangement and numbering sequence. Except to assure continuity and understanding FPMR material will not be repeated or paraphrased in the EPPMR.

(b) Implementing material expands upon related material in the FPMR. Supplementing material deals with subject material not covered in the FPMR. § 115-1.109 Numbering in FPMR sys

tem.

(a) The numbering system used in EPPMR conforms to that of the FPMR