Common use of Equipment Management Clause in Contracts

Equipment Management. The recipient’s procedures for managing equipment, whether acquired in whole or in part with financial assistance funds, will, at a minimum, meet the following requirements until disposition takes place: a. The recipient must maintain property records that include a description of the equipment, a serial number or other identification number, the source of funding, the acquisition date, cost of the property, percentage of federal or state participation in the cost of the property, the location, use and condition of the property and disposition information including the date of the disposal and sale price of the property. b. A physical inventory of the property must be taken and the results reconciled with the property records at least once every two years. c. A control system must be developed to ensure adequate safeguards to prevent against loss, damage, or theft of the property. Any loss, damage, or theft shall be reported to and investigated by local authorities. The recipient shall procure and maintain insurance covering loss or damage to equipment purchased with a financial assistance agreement, with financially sound and reputable insurance companies or through self-insurance. Amounts and coverage of such risks should be that which are usually carried by companies engaged in the same or similar business and similarly situated. d. The recipient must develop adequate maintenance procedures to keep the property in good condition. e. If the recipient is authorized or required to sell the property, proper sales procedures must be established to ensure the highest possible return.