Page 2039

(A) calculating the amount that the grant project contributed to the purchase of the property, as a percentage of the total cost of that property;

(B) applying the percentage calculated under (A) of this subsection to the current fair market value of the property; and

(C) including reimbursement to the grantee for reasonable shipping and storage costs incurred in connection with the transfer of the property. (d) Except when the department has exercised the right to transfer title under (c) of this section, a grantee shall retain property purchased under (b) of this section in the grant project as long as the property is needed for successful accomplishment of an objective of the grant project. During that time, the grantee shall make the property available for use in other activities conducted by the grantee that use financial assistance from the state if this use does not interfere with the grant project. Among the other activities, the grantee shall give priority to the use of the property in an activity receiving financial assistance from the department. (e) If the grantee no longer needs property purchased under (b) of this section in the grant project, the grantee may retain the property if the grantee compensates the state, or may dispose of the property as instructed by the department. If the grantee wishes to retain the property, the grantee shall reimburse the department, computing the amount of compensation by calculating the amount that the grant project contributed to the purchase of the property, as a percentage of the total cost of that property, and applying that percentage to the current fair market value of the property. The grantee may deduct from the amount of compensation 10 percent of the proceeds of the sale or $100, whichever is greater. If the grantee does not wish to retain the property, the grantee shall request disposition instructions from the department. The department may instruct the grantee to ship the property elsewhere or sell it in accordance with procedures specified by the department. (f) A grantee shall maintain accurate property records as well as effective inventory, control, and maintenance procedures for nonexpendable personal property purchased under (b) of this section. The department may require a property inventory of items valued at less than $5,000 by listing those items in the grant agreement. These records must include the following information:

(1) a description of the property and the manufacturer’s serial number or other identification number;

(2) the grant program under which, and the grant project for which, the property was acquired;

(3) the acquisition date and cost of the property;

(4) the percentage of the total cost of the grant project contributed to the grant project by the department for the budget period in which the property was acquired;

(5) the location, use, and condition of the property, and the date on which that information was recorded;