Legal Term
federal grant compliance nonprofit equipment purchase clause
Legal Definition
A contractual provision that obligates nonprofit recipients of federal financial assistance to adhere to specific regulatory requirements, such as those in the Uniform Guidance (2 CFR Part 200), for the acquisition, management, and disposal of equipment purchased with grant funds, ensuring accountability and proper use of public resources.
In Plain English
A rule in a contract that says when a nonprofit buys equipment with federal grant money, they must follow strict federal guidelines to keep the grant and avoid penalties.
Example in a Contract
The Recipient shall comply with 2 CFR §200.313 regarding equipment acquired under this Federal Award, including maintaining a detailed inventory, using equipment solely for approved program purposes, and obtaining prior written approval from the Federal awarding agency before any disposal or transfer. Failure to comply may result in corrective actions or funding recovery.
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