Guidelines for assets

When purchasing assets, it is important to understand the compliance requirements based on the asset procured.  Below is the definition of what an asset is and the basic requirements of owning an asset purchased with federal and state funds.

Assets are defined as real property, rolling stock, and equipment

• Real property is land and anything permanently affixed to the land, such as buildings, fences, and those things attached to the buildings.
• Rolling stock describes equipment that is used to transport passengers which includes buses, vans, cars, locomotives and trolleys.
• Equipment is a tangible item that has having a useful life of more than one year and the value of the item cost is more than $5,000. Examples of equipment include but are not limited to: Forklifts, generators, trailers, tire balancers, vehicle lifts, etc.

Federal and state funded asset terms

• Federal or state funded assets must be used for the purpose of which it was acquired, as long as needed, whether or not the award continues to be supported with additional funds.
• Subrecipients must not encumber property with federal and state funds without prior approval from PTN.
• Subrecipients shall maintain equipment to ensure that the equipment remains in good condition.
• Subrecipients shall perform necessary maintenance and groundskeeping to preserve the value of the original investment and its physical appearance and integrity.
• Asset cannot be disposed of without prior approval from PTN.
• Real property and rolling stock must have the appropriate insurance coverage.
  •  This includes flood insurance and windstorm insurance, if applicable
• Incidental use: If a Federal or State funded property needs to be used for incidental purposes, the recipient must contact PTN for prior approval except when it involves coordinated public transit human service transportation. For more information on the specifics of Incidental use, see Circular 5010.1E
• For rolling stock, incident reports (PTN101) must be submitted to PTN within five days of the occurrence or discovery of each reportable incident (TAC 43 §31.48).

For real property, PTN must be listed as the lienholder on the Deed of Trust.

• Liens are required for facility rehabilitation projects as well.

For rolling stock, PTN must be listed as the lienholder hold on the Title of Registration. 

Deeds of trust and vehicle title lien terms

• For real property, PTN must be listed as the lienholder on the Deed of Trust. A Deed of Trust must be recorded prior to Project Grant Agreement closeout.
• A Deed of Trust may be required for facility rehabilitation projects depending on the level of investment.
• For rolling stock, PTN must be listed as the lienholder on the Title of Registration.