The disposition requirements for equipment and supplies funded through FEMA Public Assistance (PA) grants depend on the type of recipient and the fair market value of the items:

State and Territorial Applicants:

• Equipment: State and territorial applicants have more flexibility in disposing of equipment purchased with PA funds. They can dispose of the equipment according to their own laws and procedures. (https://www.fema.gov/sites/default/files/documents/fema_pa-covid-19-disposition-requirements-equipment-supplies-faq_0.pdf)

All Other Applicants (Local Governments, Tribes, Non-Profits):

• Equipment: These applicants must dispose of equipment in accordance with FEMA regulations.  There are two main options:
  • Retain or transfer the equipment: The applicant can retain the equipment for continued use in federally-funded programs or projects.  They must notify FEMA of their intent to retain the equipment and potentially compensate FEMA for its residual fair market value.
  • Sell or dispose of the equipment: The applicant can sell or otherwise dispose of the equipment, but must ensure disposal complies with applicable state and territorial laws and regulations.

Disposition Requirements for Supplies:

• All Applicants: Regardless of applicant type, all recipients must calculate the current fair market value of any unused residual supplies (including materials) funded by FEMA for any of their projects.
  • If the aggregate total of unused residual supplies is greater than $5,000, FEMA reduces the eligible funding provided in the PA grant by the applicable amount.
  • Applicants must document the disposition of these supplies and maintain proper records.

Important Considerations:

• Disposal Costs: FEMA will provide funding for the disposal of eligible supplies and equipment obtained under a PA grant or provided by FEMA as Direct Federal Assistance. These costs are eligible up to 90 days after the work completion deadline on the PA grant. (https://www.fema.gov/sites/default/files/documents/fema_pa-covid-19-disposition-requirements-equipment-supplies-faq_0.pdf)
• Documentation:  It's crucial for applicants to maintain proper documentation to demonstrate their compliance with FEMA's disposition requirements for both equipment and supplies.

Resources:

• COVID-19 Pandemic: Public Assistance (PA) Disposition Requirements for Equipment and Supplies Frequently Asked Questions Version 2: https://www.fema.gov/sites/default/files/documents/fema_pa-covid-19-disposition-requirements-equipment-supplies-faq_0.pdf
• FEMA Public Assistance Grant Program Website: https://www.fema.gov/assistance/public

By understanding these requirements, applicants can ensure they properly dispose of equipment and supplies funded through FEMA PA grants while maximizing their eligible reimbursement for disaster recovery efforts.

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