 Equipment means tangible , non @-@ expendable property acquired with federal assistance funds , that has a useful life of more than one year , and an acquisition cost of $ 5 @,@ 000 or more per unit ( though , consistent with a recipient ’ s own equipment policy , lower cost limits may be established ) . Basically , this section requires that , as per A @-@ 102 Common Rule and OMB Circular A @-@ 110 regulations , equipment must be used in the federal program it was bought for , or — when appropriate — other federal programs . Additionally , the recipient must keep equipment records , perform a physical equipment inventory at least once every two years , and implement an appropriate internal control system to safeguard and maintain the equipment . When equipment with a current fair market value of $ 5 @,@ 000 or more is no longer needed , it may be retained or sold , as a proportionate share is provided to the federal government amount of the current fair market value , based on the percent of federal funds to own recipients fund used to buy the item . 
