Property records are maintained that include:

A description of the property.
The manufacturer’s serial number, model number, federal stock number, national stock number, or other identification number.
The inventory number.
The source of the property (including grant or agreement number).
Indication of with whom title is vested (generally vests with the subgrantee).
The acquisition date.
The percentage (at the end of the budget year) of federal participation in the cost of the project.
The location, use, and condition of the property and the date the information was reported.
The unit acquisition cost.
The ultimate disposition date (including the date of disposal and sales price or the method used to determine the current fair market value).

A physical inventory of the property is taken and the results reconciled with the subgrantee’s property records on an annual basis (an employee other than the one to whom the equipment is assigned should take the physical inventory and record the physical count).

An inventory control system is maintained to ensure adequate safeguards to prevent loss, damage, or theft of the property.

Any loss, damage, or theft of the property is investigated.

Maintenance procedures are adequate to keep the property in good condition.

Proper sales procedures are established to ensure the highest return in the event the subgrantee is authorized or required to sell the property.