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e-CFR data is current as of October 27, 2020


2 CFR--PART 200

View Printed Federal Register page 85 FR 49568 in PDF format.

Amendment(s) published August 13, 2020, in 85 FR 49568

Effective Dates: Nov. 12, 2020

72. Amend §200.436 by revising paragraphs (c) introductory text, (c)(3) and (4), and (e) to read as follows:

§200.436   Depreciation.

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(c) Depreciation is computed applying the following rules. The computation of depreciation must be based on the acquisition cost of the assets involved. For an asset donated to the non-Federal entity by a third party, its fair market value at the time of the donation must be considered as the acquisition cost. Such assets may be depreciated or claimed as matching but not both. For the computation of depreciation, the acquisition cost will exclude:

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(3) Any portion of the cost of buildings and equipment contributed by or for the non-Federal entity that are already claimed as matching or where law or agreement prohibits recovery;

(4) Any asset acquired solely for the performance of a non-Federal award; and

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(e) Charges for depreciation must be supported by adequate property records, and physical inventories must be taken at least once every two years to ensure that the assets exist and are usable, used, and needed. Statistical sampling techniques may be used in taking these inventories. In addition, adequate depreciation records showing the amount of depreciation must be maintained.

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