Common use of Program Property Clause in Contracts

Program Property. Any personal property having a useful life of more than one year and purchased wholly or in part with sub-grant funds from this Agreement at a cost of three hundred dollars ($300) or more per item shall upon its purchase or receipt become the property of the City. The Subrecipient shall be responsible for all such property, including its care and maintenance, and shall comply with the following procedural requirements: A. Property records shall be maintained accurately and provide for: A description of the property; manufacturer's serial number of other identification number; acquisition date and cost; source of the property; percentage of block grant funds used in the purchase of property; location, use, and condition of the property. 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 ensure adequate safeguards to prevent loss, damage, or theft to the property. Any loss, damage, or theft of the property shall be investigated and fully documented. D. Adequate maintenance procedures shall be implemented to keep the property in good condition. E. If the Subrecipient elects to capitalize and depreciate such non-expendable personal property in lieu of claiming the acquisition cost as a direct item of cost, title to such property shall remain with the Subrecipient. An election to capitalize and depreciate or claim acquisition cost as a direct item of cost shall be irrevocable. F. Non-expendable personal property purchased by the Subrecipient under the terms of this Agreement, in which title is vested in the City or Federal Government, shall not be rented, loaned, or otherwise passed to any person, partnership, corporation, association or organization without the prior express approval of the Department. G. Any non-expendable personal property furnished to, or purchased by, the Subrecipient, title to which is vested in the City or federal government, shall, unless otherwise provided herein or approved by the City, be used only for the performance of activities defined in this Agreement. H. The Subrecipient shall be responsible for any loss or damage to the property of the City of Xxxxxxx or federal government (including expenses entered thereunto) which results from negligence, willful misconduct, or lack of good faith on the part of the Subrecipient to maintain and administer in accordance with sound management practices that property, to ensure that the property will be returned to the City or federal government in like condition to that in which condition the property was acquired by purchase, fair wear and tear accepted.