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SSAE Competitive Grant Equipment Disposal

Information regarding the disposal of equipment purchased with Title IV, Part A Student Support and Academic Enrichment (SSAE) Competitive Grant funds.

For purposes of this requirement, the federal Office of Management and Budget (OMB) guidance defines “equipment” as any item of nonexpendable personal property with a useful life of more than one year and an acquisition cost that equals or exceeds the federal per-unit capitalization threshold of $5,000, or a lower threshold set by state or local-level regulations.

Disposal of Equipment

Equipment items with an acquisition cost/current per unit fair market value of less than $5,000 may be retained, sold, or disposed with no further obligation to the California Department of Education (CDE). The disposition of such items should be noted on the equipment inventory maintained by the recipient (2 CFR 200.313).

If the current per unit fair market value is $5,000 or more, also known as capitalized equipment, the equipment may be retained or sold and the U.S. Department of Education (ED) shall have a right to an amount calculated by multiplying the current market value or proceeds from the sale by the ED’s share of the equipment. However, the recipient is permitted to deduct and retain from ED’s share $500 or 10 percent of the sales proceeds, whichever is less, for the recipient’s selling and handling expenses.

The disposition of equipment purchased with Title IV, Part A Student Support and Academic Enrichment (SSAE) Competitive Grant funds should be noted on the equipment inventory maintained by the grantee.

If the grantee is disposing of capitalized equipment, equipment with a current per unit fair market value of $5,000 or more, the grantee is also responsible for completing the SSAE Competitive Grant Equipment Removal Form, available below, and submitting it to the CDE SSAE Team for approval before the equipment can be removed from the inventory. This form must be filled out and emailed to the CDE SSAE Team by email at EEED@cde.ca.gov.

SSAE Competitive Grant Equipment Removal Form (PDF)

Questions:   Educator Excellence and Equity Division | EEED@cde.ca.gov | 916-323-4636
Last Reviewed: Tuesday, December 31, 2019
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    Information regarding the disposal of equipment purchased with Title IV, Part A Student Support and Academic Enrichment (SSAE) Competitive Grant funds.