At closeout, states only need to provide an inventory list for any equipment that has a current fair market value over $5,000. If states subgrant funds, they are responsible for providing oversight for the inventory and usage of equipment at the subaward level prior to certifying their closeout.

The regulation at 2 CFR 200.33 defines equipment as tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost of $5,000 or a lesser amount if the state has a lower threshold. 

When the grantee requests a final FFR and progress report, the EAC provides closeout instructions that describes the process. The states must conduct an inventory of equipment and supplies, complete all final accounting, and close out any subgrants under the grant as part of the process. The state must also ensure the subgrantees have completed required financial and programmatic reporting, reviewed their inventory of equipment and residual supplies, and confirmed usage or requested instructions from EAC for disposition. The states then submit final FFRs and progress reports and a letter describing the disposition of equipment and supplies and certifying the completion of closeout of any subawards. Once the EAC receives and reviews the FFR, progress report, inventory lists, certification letter and any unexpended federal or interest balances are returned, we will issue a formal closeout letter describing the requirement for record retention and any other remaining requirements.

Full closeout guidance can be found on our website: https://www.eac.gov/payments-and-grants/financial-progress-reporting

In general, the EAC will close grants within 120 days of the date the grantee submits a final Federal Financial Report (FFR) and progress report. This provides both the EAC and grantees time to complete all required steps. As part of the closeout process, the EAC needs to confirm the usage of any equipment bought with grants funds that has a current fair market value over $5,000, any unused supplies with a current aggregate fair market value over $5,000, and any unexpended amount that must be returned to the U.S. Treasury.

Full closeout guidance can be found on our website: https://www.eac.gov/payments-and-grants/financial-progress-reporting