What is the proper process for disposing of federal property?

• A. Sell immediately at market value.
• B. Dispose without approvals to save time.
• C. Donate to any charity without reporting.
• D. Follow approved policies, obtain prior approvals, ensure proceeds are used for grant purposes, and update property records.

Answer: (D)

Disposing of federal property must follow established policies, secure the required approvals in advance, ensure any proceeds are used for grant-related purposes, and update the property records to reflect the disposition. This approach maintains accountability and regulatory compliance because disposal isn’t a freehand action—it goes through formal channels with documented authorization, proper handling of any proceeds (especially when grant funds are involved), and accurate record-keeping. Recording the disposition keeps the asset inventory current and audit-ready, supporting proper fiscal oversight. Methods that skip approvals, avoid reporting, or mishandle proceeds undermine controls and can lead to regulatory violations and loss of government resources.