Section NR 193.14 - Maintenance and disposition of assets 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: 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.Wis. Admin. Code Department of Natural Resources NR 193.14
Adopted by, CR 19-078: cr. Register May 2020 No. 773, eff. 6-1-20; correction in (3) (c) 1., (4) made under s. 35.17, Stats., Register May 2020 No. 773, eff. 6/1/2020