Audit Information
Use Constraints
The Federal-Surplus approved cardholder for the participating organization is responsible for ensuring the following:
- Federal surplus property that had an original acquisition cost of less than $5,000 must be placed into use within one year and remain in use for one year thereafter.
- Federal surplus property that had an original acquisition cost of $5,000 or more, in addition to all property that must be licensed, must be placed in use within one year and remain in use for 18 months thereafter.
- Federal surplus aircraft and vessels over 50' long must be placed in use within one year and remain in use for five years.
- Federal surplus properties such as carriers and firearms are restricted perpetually and must be returned to the government when the need for the item has expired.
- All property is to be used by the organization/agency only. Personal use of property is prohibited.
Compliance Checks
Indiana Federal Surplus will perform checks on the use of the property to ensure the donee is using the property for the purpose for which it was obtained. If a compliance check reveals that the donee is in compliance with federal laws and regulations, ownership of non-perpetual restricted property will be released to the organization upon the completion of the restricted period. Cases of non-compliance will be turned over to the General Services Administration.
