This section describes disposition requirements when purchased equipment or supplies (including materials) are no longer needed for federally funded activities. In the context of disposition, equipment is any tangible personal property (including information technology systems) having a useful life of more than one year and a per-unit acquisition cost that equals or exceeds the lesser of the capitalization level established by the non-federal entity for financial statement purposes, or $5,000.[266] Tangible personal property that does not fall under this definition of equipment is a supply.[267] When equipment or supplies (including materials) purchased with HMA are no longer needed for HMA activities, the non-federal entity may use the items for other federally funded programs or activities, provided the recipient informs FEMA.[268]
266. 2 CFR § 200.1