Alaska Administrative Code
Title 7 - Health and Social Services
Part 6 - Miscellaneous
Chapter 78 - Grant Programs
7 AAC 78.280 - Property management

(a) If a grantee plans to acquire an interest in real property with grant money, the grantee must enter into a written agreement with the department on terms that secure the state's interest in the property before acquisition.

(b) Before the grantee may use grant money to purchase nonexpendable personal property, the acquisition cost of the property must be included in the budget, or in an amendment to the budget, of the grant project approved by the department. In this subsection, "acquisition cost" means

(c) Title to property purchased under (b) of this section vests in the grantee upon acquisition, subject to the right of the department to require the grantee to transfer title to the property to the state or to another person or legal entity if

(d) Except when the department has exercised the right to transfer title under (c) of this section, a grantee shall retain property purchased under (b) of this section in the grant project as long as the property is needed for successful accomplishment of an objective of the grant project. During that time, the grantee shall make the property available for use in other activities conducted by the grantee that use financial assistance from the state if this use does not interfere with the grant project. Among the other activities, the grantee shall give priority to the use of the property in an activity receiving financial assistance from the department.

(e) If the grantee no longer needs property purchased under (b) of this section in the grant project, the grantee may retain the property if the grantee compensates the state, or may dispose of the property as instructed by the department. If the grantee wishes to retain the property, the grantee shall reimburse the department, computing the amount of compensation by calculating the amount that the grant project contributed to the purchase of the property, as a percentage of the total cost of that property, and applying that percentage to the current fair market value of the property. The grantee may deduct from the amount of compensation 10 percent of the proceeds of the sale or $100, whichever is greater. If the grantee does not wish to retain the property, the grantee shall request disposition instructions from the department. The department may instruct the grantee to ship the property elsewhere or sell it in accordance with procedures specified by the department.

(f) A grantee shall maintain accurate property records as well as effective inventory, control, and maintenance procedures for nonexpendable personal property purchased under (b) of this section. The department may require a property inventory of items valued at less than $5,000 by listing those items in the grant agreement. These records must include the following information:

(g) A grantee shall take an inventory of nonexpendable personal property of the grant project and must reconcile the results of the inventory with the property records maintained under (f) of this section at the end of the grant period to verify the existence, current use, and continued need for the property.

(h) A grantee shall maintain a control system to ensure adequate safeguards to prevent loss, damage, or theft of nonexpendable personal property of the grant project. A grantee shall provide for the investigation and full documentation of the loss, damage, or theft of nonexpendable personal property of the grant project.

(i) A grantee may, with prior department approval, dispose of property acquired under (a) or (b) of this section that is unserviceable or unsafe or if it is no longer useful to the grant project or grant program.