A grantee may purchase supplies, equipment, or capital
assets with a grant provided under this chapter, consistent with limitations
for each subprogram and federal guidelines, if applicable. The grantee shall
adhere to all of the following maintenance and disposition procedures for
supplies, equipment, and capital assets purchased with grant funds awarded
under this chapter:
(1) SUPPLIES. The
grantee may retain, sell, or dispose of project supplies after the term of the
grant agreement and may retain sale proceeds.
(2) EQUIPMENT.
(a) The grantee shall maintain equipment
purchased with a grant awarded under this chapter in good working order during
the term of the grant agreement, including use of proper fuel, routine
maintenance, and fresh batteries.
(b) Equipment purchased with a grant awarded
under this chapter may not be sold or donated during the term of the grant
agreement.
(c) After the term of a
grant agreement the grantee may retain, sell, or donate equipment purchased
with a grant under this chapter and may retain sale proceeds. Sales to state of
Wisconsin employees are prohibited unless items are sold at announced public
sales or auctions. Acceptable methods for sale or donation include any of the
following:
1. Competitive bid.
2. Public auction.
3. Open negotiated and documented
sale.
4. Offer to the public at a
fixed sale price.
5. Donation,
transfer, or sale to another grantee qualified to receive a grant under this
chapter.
6. Sale for salvage
value.
7. Donation to a scrap yard
or business when the equipment has no or limited
value.
(3)
CAPITAL ASSETS. The grantee shall retain capital assets purchased with grant
funds awarded under this chapter in good working order during the term of the
grant agreement, including use of proper fuel, routine maintenance, and fresh
batteries. Other conditions pertaining to capital assets include the following:
(a) Capital assets purchased with grant funds
awarded under this chapter may not be sold or donated during the term of the
grant agreement.
(b) Capital asset
costs are depreciated over the useful life of the item and prorated for the
length of the grant period.
Example: Suppose water sampling equipment
costs $6,000 to purchase. Since the value is greater than $5,000 the equipment
is considered a capital asset and shall be depreciated for grant purposes.
Suppose further that the water sampling equipment has a useful life of 10
years. For a planning grant award with a 3-year term and 67% DNR cost share
rate, the maximum amount that can be paid with grant funds awarded under this
chapter is $1,206.
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(c) All of
the following disposition procedures apply to capital assets purchased with
grant funds awarded under this chapter:
1. If
the per-unit fair market value of the capital asset at the end of the grant
project is less than $5,000, the grantee may retain, sell, or donate the
capital asset and may retain sale proceeds. Sales to state of Wisconsin
employees are prohibited unless items are sold at announced public sales or
auctions. Acceptable methods for sale or donation are the same as for
equipment, as described under sub. (2) (b). For purposes of this subdivision,
"fair market value" means the price agreed upon between a willing buyer and a
willing seller, with neither being required to act, and both having reasonable
knowledge about the make, model, age, condition, maintenance history, and other
relevant facts about the capital asset.
2. If the per-unit fair market value of the
capital asset at the end of the grant project is $5,000 or more, repayment may
be owed to the department if the capital asset is to be sold or donated to
another party and the department provided cost-shared funding for the entire
cost of the capital asset. Acceptable methods for sale or donation of capital
assets after the life of the grant agreement are the same as described for
equipment under sub. (2) (c).
3. If
a grantee purchased a capital asset in part with federal funding, the capital
asset is subject to federal law for purposes of asset
disposal.
(4)
DISPOSITION . A grantee shall retain records relating to
disposition of the equipment and capital assets as a condition of the grant
agreement and make such records available to the department upon request for a
period of 6 years after the date of final sale.
