TUFF Equipment FAQs
“Equipment” is any article of nonexpendable, tangible, personal property having a useful life of more than one year and a per-unit acquisition cost which equals or exceeds $5,000.
Title vests with the entity that acquired the equipment.
The title must be a conditional title. In addition, the title may not be encumbered – entities may not borrow money against the equipment or use it as collateral.
Yes. Entities must meet the following requirements, at a minimum:
- Records must be maintained that include a description of the equipment, a serial number or other identification number, the source of funding for the equipment, who holds title, the acquisition date and cost of the equipment, percentage of ARPA participation in the project costs (50% or 75%), the location, use and condition of the equipment, and any ultimate disposition data including the date of disposal and sale price of the asset.
- A physical inventory of the equipment must be taken, and the results must be reconciled with the property records at least once every two years.
- A control system must be developed to ensure adequate safeguards to prevent loss, damage, or theft of the equipment. Any loss, damage, or theft must be investigated.
- Adequate maintenance procedures must be developed to keep the equipment in good condition.
- If an entity is required to sell the equipment, proper sales procedures must be established to ensure the highest possible return.
- Entities must provide the equivalent insurance coverage for equipment acquired or improved with ARPA funds as provided to other equipment owned by the entity.
An entity may only use the equipment for the authorized purposes of the TUFF program during the period of performance, or until the equipment is no longer needed for the purposes of the program.
When no longer needed for the TUFF program, the equipment may be used in other activities supported by federal grant funds. Priority must be given to using the equipment for activities funded by ARPA grant funds before using the equipment for other federal grants.
When equipment is no longer needed for the TUFF program or any other federal grant, entities must follow equipment disposition procedures and contact TDA.
If an item of equipment has a per unit fair market value of $5,000 or less, an entity may retain, sell, or otherwise dispose of the item without repaying any grant funds to TDA.
If an item of equipment has a per unit fair market value in excess of $5,000, an entity may elect to retain or sell the asset. In cases where an entity retains an asset, the entity must repay TDA the current market value of the asset multiplied by the ARPA cost share (50%). In cases where an entity sells the asset, the entity must repay TDA the sale proceeds multiplied the ARPA cost share and may deduct and retain from this amount $500 or 10% of the proceeds, whichever is less, for its selling and handling expenses.
Equipment must stay within the state of Tennessee until proper disposition has occurred.