What is required before disposing of federal property?

• A. Prior approvals and ensuring proceeds used for grant purposes.
• B. No approvals needed if value is low.
• C. Just notify the procurement office.
• D. Only document in the disposal log.

Answer: (A)

Before disposing of federal property you must obtain the required approvals and ensure that any proceeds from disposal are used for grant purposes. When property is funded by a federal grant, the grant terms and federal property regulations require review and approval by the awarding agency or responsible official before disposal. This safeguards the proper stewardship of federal assets and ensures compliance with how grant funds and earned proceeds are handled. Once disposal happens, the proceeds should be applied to the grant or returned to the appropriate federal account as the grant terms specify, rather than being kept for other uses.

That’s why simply skipping approvals for low-value property isn’t allowed, and why merely notifying the procurement office or logging the disposal without the necessary approvals and proper use of proceeds does not meet the requirement.