Understanding the Federal Share of Real Property, Equipment, or Supplies [Education]
Definition & meaning
The federal share of real property, equipment, or supplies refers to the portion of the costs associated with acquiring property or equipment that is funded by federal financial assistance. This includes not only the purchase price but also any expenses related to improvements that have been covered by federal funds. Understanding this term is crucial for institutions receiving federal grants, as it impacts how they manage and report their assets.
Legal use & context
This term is primarily used in the context of federal grants and funding agreements, particularly in education and non-profit sectors. It plays a significant role in compliance with federal regulations, such as those outlined in Title 34 of the Code of Federal Regulations. Institutions must accurately report the federal share of their property and equipment to ensure proper accountability and adherence to grant conditions.
Real-world examples
Here are a couple of examples of abatement:
Example 1: A university receives a federal grant of $500,000 to purchase laboratory equipment. If the university spends $300,000 of that grant on equipment, the federal share of that equipment is 60 percent.
Example 2: A non-profit organization uses $100,000 in federal funds to renovate a building. If the total renovation cost is $150,000, the federal share of the real property would be 66.67 percent. (hypothetical example)
Relevant laws & statutes
34 CFR 74.2 outlines the definition and implications of the federal share of real property, equipment, or supplies in relation to federal funding. This regulation is essential for understanding compliance requirements for institutions receiving federal grants.