Vol. 29 Iss. 17 - April 22, 2013

Chapter 120
Final Regulation

REGISTRAR'S NOTICE: The Department of General Services is claiming an exemption from the Administrative Process Act in accordance with § 2.2-4006 A 3 of the Code of Virginia, which excludes regulations that consist only of changes in style or form or corrections of technical errors. The Department of General Services will receive, consider, and respond to petitions by any interested person at any time with respect to reconsideration or revision.

Title of Regulation: 1VAC30-120. Federal Property and Administrative Services Act of 1949, As Amended (amending 1VAC30-120-20 through 1VAC30-120-140, 1VAC30-120-160).

Statutory Authority: § 2.2-1123 of the Code of Virginia.

Effective Date: May 22, 2013.

Agency Contact: Rhonda Bishton, Regulatory Coordinator, Department of General Services, 1100 Bank Street, Suite 420, Richmond, VA 23219, telephone (804) 786-3311, FAX (804) 371-8305, or email


This action updates the chapter by (i) correcting citations to state and federal law and regulation, (ii) correcting the address and description of the distribution center facilities, and (iii) increasing the threshold dollar requirement from $3,000 to $5,000 for items that must have a separate inventory card and be inventoried at least two times each year.

1VAC30-120-20. Designation of state agency.

A. The Section 2.2-1123 of the Code of Virginia § 2.1-445.1 effective July 1, 1984 designated designates the Department of General Services, Division of Purchases and Supply, as the official agency of the Commonwealth of Virginia to administer the State Plan of Operation throughout the Commonwealth pursuant to the provisions of the Federal Property and Administrative Services Act of 1949, as amended, 40 USC § 549, FMR 102-37, GSA federal General Services Administration regulations, and this plan.

B. The activity, in the Division of Purchases and Supply, to administer the State Plan of Operation is the Virginia Federal Property Agency, hereinafter referred to as the ("State Agency"). The State Agency will administer all phases of the operation including acquiring, storing, and distributing Federal federal property to eligible public and nonprofit agencies, establish regulations and procedures, assess service charges, maintain property accounting systems, and as required, execute certifications and agreements pertaining to this Act chapter and 40 USC § 549 with eligible agencies, institutions, and organizations of the Commonwealth, other States states, and agencies of the Federal federal government. Financial accounting is maintained by the Bureau of Fiscal Services of the Department of General Services.

C. Under the general administration of the Administrator Director of State Surplus Property, the State Agency is directed and supervised by the Manager manager who is responsible for all phases of the operation. The manager has an assigned staff including clerical, screeners, distribution centers, and driver personnel. In addition, the Manager manager cooperates with the State state surplus property activity. The State Agency is a special fund activity paying all expenses from service charge revenues.

D. Two distribution center facilities are operated. The Richmond center is State Agency owned and includes a 43,000 55,000 square foot warehouse within a fenced storage area on a 10-acre site located at 1910 Darbytown Road, Richmond, Virginia. The 12,000 square foot warehouse addition is rented to the state surplus property activity. Although the warehouse and outside storage spaces are presently satisfactory, additional outside space is available for future expansions. The second center is a rented 14,000 45,000 square foot warehouse located in Ivanhoe retail facility located at 800 East Main Street, Wytheville, Virginia, for the southwest services. Both distribution centers are co-located with state surplus property offices and facility costs are equitably shared.

E. The managers of federal and state surplus property activities operate under an Administrator the Director of State Surplus Property with the next higher authority as the Division Assistant Director for Public Marketing and Support of Procurement Services.

1VAC30-120-30. Inventory control and accounting system.

A. Property Accountability accountability.

1. Accountability records will be maintained on all federal property transferred to the State Agency, recording receipts, issues, balances, date, and document number. This documentation is by one or more federal stock groups.

2. A separate inventory card will be maintained for all items with an original acquisition cost of $3000 $5,000 or more and passenger motor vehicles. The inventory records are separate from the records of items of less than $3000 $5,000.

B. Receiving and Verifying Property verifying property.

1. When property is received, a physical inspection and count is made and checked against the approved Federal federal Form SF-123 or available shipping documents. Receiving notations will be made on the document.

2. When differences are discovered, an overage and shortage report will be prepared and submitted to the GSA federal General Services Administration (GSA) regional office under the provisions FPMR 101-44.115 FMR 102-37.70 and 41 FMR102-37.350. In cases of an overage of $500 or more, or estimated per line item, it will be listed on a SF-123 and submitted to the GSA regional office.

3. Property items received and issued are posted to the inventory card. Posted transactions show date, document number, receipts, issues, and balance. It refers to the identified receiving and issue document and therefore provides the item history.

4. A verification of property on hand will be accomplished each year with a physical inventory. A written list identifying the items is prepared and checked with the inventory card. Inventory differences which that cannot be accounted for by the distribution center supervisor will be reported to the State Agency manager and adjustments may be made only with the manager's written approval. All reasonable efforts to reconcile the differences will be made before adjustments are approved. A verification of items with an acquisition cost of $3000 $5,000 or more and passenger motor vehicles will be made at least two times each year.

5. All property distributed by the distribution center is issued on the form "Distribution Document and Invoice" Exhibit 1, 1VAC30-120-150. Property picked up directly from a holding agency by a donee is issued on the form, "Surplus Property Transfer Document" Exhibit 2, 1VAC30-120-150.

C. Fiscal Accounting System accounting system.

1. The State Agency will accept payment for services only in the form of checks, warrants, or Interdepartmental Transfer Invoices interdepartmental transfer invoices, drawn or issued by, and in the name of, the approved donee. All receipts are deposited with the Treasurer of Virginia to the account of the Special Fund. All disbursements are made by the Treasurer from the account on receipt of invoices properly certified to the State Comptroller. In addition, the State Agency has an approved petty cash fund.

2. The fiscal accounting system is acceptable to the Department of General Services (DGS), Division of Purchases and Supply, and approved by the State Comptroller, along with other DGS fiscal systems. The system is composed of a chart of accounts, a donee jacket type account receivable subsidiary ledger, receipts ledger which accounts for all cash received, and a general ledger which accounts for all assets, liabilities, and expenses. An accrual statement of profit and loss and a balance sheet is prepared at the close of each month.

3. The fiscal accounting records are maintained as a separate Special Fund by the Department's Bureau of Fiscal Services accounting for all revenues, disbursements, assets, and liabilities.

1VAC30-120-40. Return of donated property.

A. Conditions and Donee Reporting Procedure donee reporting procedure. Property that is still usable as determined by the State Agency but not placed in use within one year from date of acquisition or ceases to be used during the 12 or 18 month use restriction period thereafter shall be reported to the State Agency for disposition instructions. The report in writing shall give item identifying data, condition, reasons for nonutilization, and recommended action.

B. Disposition Instructions instructions. The State Agency will review the donee report and if it is determined the donee has not conformed to the terms and conditions as stated on the donation document, Exhibits 1 or 2 of 1VAC30-120-150, it will authorize in writing a procedure deemed appropriate for the best utilization or disposal of the item. The authorization may include:

1. Return the item to the State Agency distribution center at donee expense and with no reimbursement of service charges.

2. Transfer item to another donee, SASP state agency for surplus property (SASP), or federal agency.

3. Authorize sale if there are no other requirements.

4. Authorize cannibalization or secondary utilization.

5. Authorize scrapping.

6. Amend, modify, or grant releases on terms and conditions in conformance with GSA Regulations federal General Services Administration regulations.

C. Dissemination of Requirements requirements to Donees donees.

1. A flyer will be prepared and mailed approximately four times a year to each eligible donee. The flyer is basically a promotional item listing of property on hand. In addition, it will contain news items of the program, including basic requirements of 1VAC30-120-40 and 1VAC30-120-60.

2. Announcements concerning the responsibilities of donees on the requirements referred to in this section will be given by State Agency personnel at meetings, seminars, workshops, correspondence, special notices, and utilization and compliance surveys.

1VAC30-120-50. Financing and service charges.

A. Policy Statement statement. The Virginia Federal Property Agency is classified as a Special Fund activity and the Agency Manager is responsible for the management of the fund. There are no appropriations and service charges are the principle source of revenue to cover the costs of operation. Sales/compliance proceeds, transportation services, and gifts may produce additional revenue. Service charges are assessed for all property transactions and services. It is the policy of the agency that service charges shall be fair, equitable, and minimal, but established to maintain a financially sound agency. All operating costs are included in this Special Fund activity including but not limited to all employee costs, screening, transportation, maintenance, utilities, administration and accounting, supplies, equipment, packing and handling, compliance and utilization, insurance, fund operation, capital maintenance, and outlay.

B. Factors in Establishing Charges establishing charges. To establish item service charges a number of factors are used. Included are circumstances of expenses and revenues, property acquisition cost, condition and usability, general or special availability, need, demand, accumulated use experiences, storage and display, administrative and screening, freight and deliveries. Additional factors pertain to current expenses, property repair or reutilization, special packing and handling, disposal, and compliance and utilization services.

C. Method of Establishing Charges establishing charges.

1. General Guide -The Code of Virginia § 2.1-445.1 Section 2.2-1123 of the Code of Virginia provides that the Division division may collect service charges sufficient to defray the costs of carrying out this program. The policies, factors, and item acquisition costs covered in 1VAC30-120-50 of this section determine charges assessed. Any period of time may result in fluctuations in the amount of property received, acquisition costs, and economic changes and status. Adjustments to variable changes are necessary to revise service charges. The total of the service charges for all property donated by the agency during any given fiscal year shall not exceed 20 percent 20% of the original government acquisition cost of the property during that year.

General Guide for Item Service Charges

Charge Percentage of Acquisition Cost

Acquisition Cost







2. Factors given in subsections A, B, and C of this section account for the service charge rates.

3. Unusual or additional expenses will be added to the usual service charges and may include, but not limited to, property rehabilitation, overseas property returns, unusual transportation, and special handling or extraordinary charges.

4. The computation guide for computing service charges will be reviewed periodically, which may be as frequently as each month, to evaluate the income-expense status. When warranted, changes in the guide will be made to conform to the provisions in the FPMR 101.44.202(d) FMR 102-37.275.

D. Reduced Charges charges for Direct Pickup direct pickup. When property is screened or picked up directly from a holding agency by a donee, the service charge will be reduced on a pro-rata basis for the specific services not rendered by the State Agency such as screening, transportation, and warehousing costs. The charges will be reduced 10-25% 10% to 25% of the normal or usual service charges when the donee performs the partial over-all services. In general, the remaining factors will apply in establishing service charges because such transactions must also bear a part of the total operating costs.

E. Use of Funds funds. Revenue derived from service charges as well as from other sources such as sales, compliance action, gifts, and appropriations may be used to cover all direct and indirect costs of the agency including personnel, capital purchases and improvements for office and distribution center facilities, property rehabilitation, equipment purchases and maintenance. The current state budget major classifications cover Personal Services, Contractual Services, Supplies and Materials, Transfer Payments, Continuous Charges, Property and Improvements, Equipment, Plant and Improvements. The classifications may be changed, added, or deleted. Capital Outlay plans and expenditures must receive approvals in accordance with the Commonwealth of Virginia requirements. The integrity of the special fund is assured in that the funds shall be used only in the operation of the agency and the promotion of the program.

F. Working Capital Reserve Fund capital reserve fund. A financial reserve fund may be accumulated and maintained in an amount not to exceed the total agency expenses for prior year, plus an inflation factor, and current activity cost pace. Funds in excess of the above may be accumulated provided the agency has written plans for increased needs such as maintenance costs, capital outlay for new facilities, expansion, repairs or remodeling, new programs, equipment purchases, and personnel costs. If funds should accumulate in excess of that described above, service charges will be reduced to lower the special fund to the authorized level. Proceeds from any facility sale will be deposited to the fund and subject to the provisions of this paragraph.

G. Accumulated Funds funds. Funds from service charges or from other sources accumulated prior to October 17, 1977, are to be used for the continuance of agency operation for the benefits of all participating donees.

H. Deposits and Investments investments. All funds derived from service charges or other sources are deposited with the Treasurer of Virginia. The Federal Property State Agency is not authorized to invest funds.

1VAC30-120-60. Terms and conditions on donable property.

A. Certification by Donee donee on all Donated Property donated property. The donee authorized representative certifies and agrees to all the terms, conditions, reservations, and restrictions included on the issue documents shown as exhibits in 1VAC30-120-150.

1. Distribution Document and Invoice.; Exhibit 1

2. Surplus Property Transfer Document.; Exhibit 2

B. Additional Certification certification by Donee donee for Donation donation of Aircraft aircraft and Vessels vessels.

1. Combat-Type Aircraft Conditional Transfer Document.; Exhibit 3;

2. Non-Combat-Type Aircraft Conditional Transfer Document.; Exhibit 4;

3. Vessel Conditional Transfer Document.; Exhibit 5.

C. Amendment and Release release of Terms terms and Conditions conditions.

1. The State Agency may amend, modify, or grant releases of any term, condition, or restriction it has imposed on donated items in accordance with the standards prescribed in Exhibit 3, 1VAC30-120-150, in this plan provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State Agency and made a matter of record.

2. Pursuant to FPMR 101-44.208(h) FMR 102-37.465(1) the State Agency may grant approval to the donee to cannibalize or accomplish secondary utilization of an item which is subject to the terms, conditions, reservations, or restrictions as listed on the Distribution Document and Invoice, Exhibit 1. The State Agency may issue an item for the purposes of cannibalization or secondary utilization with approval for such action marked on the Distribution Document and Invoice. If a donee finds that it cannot use the donated item for the purposes for which acquired, and therefore wishes to cannibalize it or accomplish secondary utilization, a written request for an approval must be submitted to the State Agency. The request shall give item identification, condition, and proposed use. The State Agency will respond in writing and may grant approval when it is determined that such action appears to be the best utilization of the item.

3. Standards to amend or grant releases. In accordance with 1VAC30-120-60 this section of the plan of operation, the State Agency may amend or grant releases during the period of restriction from the terms, conditions, reservations, or restrictions it has imposed on donated property; in accordance with the following standards provided that the conditions pertinent to each situation have been affirmatively demonstrated to the prior satisfaction of the State Agency, and have been made a matter of record:

a. Secondary utilization or cannibalization. Secondary utilization or cannibalization may be accomplished provided that:

1. (1) Disassembly of the item for use of its component parts for secondary use or repair and maintenance of a similar item has greater potential benefit than utilization of the item in its existing form;

2. (2) Items approved for disassembly or cannibalization will remain under the period of restriction imposed by the transfer document pending completion of the proposed secondary use or cannibalization; and

3. (3) A written report of such action is made by the donee to the State Agency, including a list of all components resulting from the secondary utilization or cannibalization which that have a single item acquisition cost of $3000 $3,000 or more. These components will remain under the restrictions imposed by the transfer document. Components with a single item acquisition cost of less than $3000 $3,000 will be released from the restrictions imposed by the transfer document. However, these components will continue to be used or be otherwise disposed of in accordance with applicable law and regulations.

b. Trade-in of an item on a similar replacement. An item of donated personal property may be traded in or used as whole or part payment for another like item of property provided:

1. (1) The item being traded in is not, when the request is made, in compliance status for violation of the terms, conditions, reservations, or restrictions placed on it;

2. (2) The item being traded in has been used by the donee for eligible purposes for at least 6 six months from the date of being placed in use, and it has been demonstrated that the trade-in will result in increased utilization value to the donee;

3. (3) The trade-in is on a one-for-one basis only, i.e., one donated item being traded for one like item having similar use potential;

4. (4) The item being acquired has an estimated market value at least equal to the estimated market value of the item being traded in; and

5. (5) The item acquired is made subject to the period of restriction remaining on the item traded in.

c. Abrogation. Except in cases involving the failure to use or the misuse of donated property, abrogation of restrictions imposed by the State Agency in the transfer instrument may be authorized upon payment to the State Agency of an amount representing the fair market value at the time of donation less a credit for the time the property was used for the purpose for which donated, during the period of restriction, and provided that the State Agency determines that such action will not result in a windfall revenue to the donee, and provided further that the property has been used for at least 12 months from the date of being placed in use.

d. Revision of the acquisition cost. The acquisition cost of an item may be revised provided that the request therefore is made in writing by the donee, and it is determined by the State Agency that the listed acquisition cost is unrealistic in view of its research and development costs, its incompleteness due to missing parts, or its generally deteriorated condition.

e. Destruction and abandonment. A donated item of personal property may be destroyed or abandoned by a donee when it is determined that the item has no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale. The determination shall be based on a finding made in writing by the State Agency and the State Agency shall prescribe the means and methods whereby the property shall be destroyed or abandoned.

f. Enforcement of compliance. The enforcement of the terms and conditions, reservations and restrictions imposed by the State Agency, of donated property, or the remedy of breaches of such terms and conditions, may be satisfied:

1. (1) When payment is made to the State Agency of any and all fair rental values due and payable for any unauthorized use of donated property;

2. (2) When payment is made to the State Agency of either the fair market value or gross proceeds of sale, whichever is in the best interest of the State state, for the unauthorized disposal or destruction of donated property; or

3. (3) When donated property is recovered by the State Agency accountability and distribution of such property is the responsibility of the State Agency.

g. Reduction in the period of restriction. Provided an item of donated property is not in compliance status, a reduction in the period of restriction may be authorized when a revised standard covering the period of restriction is promulgated by the State Agency.

h. Limitations. These provisions are not applicable to:

1. (1) Donated military-type aircraft, or other items of property on which GSA federal General Services Administration has imposed special handling condition or use limitations; or

2. (2) Property which was not placed in use for the purposes for which acquired within one year from the date the property was placed in use, and continued in use for one year from the date the property was placed in use, except with respect to secondary use or cannibalization as provided in FPMR 101-44.208(h) FMR 102-37.465(c).

D. The State Agency may impose reasonable terms, conditions, reservations, and restrictions on the use of donable property items other than those with a unit acquisition cost of $3,000 or more, and passenger vehicles.

1VAC30-120-70. Nonutilized donable property.

A. State Agency Policy policy. The State Agency will dispose of property in its possession which that cannot be utilized by donees in the State state, and the property will be disposed of in accordance with the provisions of FPMR 101-44.205 FMR 102.37-290 through FMR 102-37.320.

B. Transfers to Other State Agencies other state agencies. Property will be offered to other State Agencies state agencies by circulating a property list or verbal notification. Visits by representatives of other state agencies to inspect and select unneeded property is encouraged. Transfers of property will be accomplished by processing SF 123 by the requesting state submitted through the GSA federal General Services Administration (GSA) office subject to disapproval within 30 days.

C. Report Unneeded Usable Property unneeded usable property. The State Agency may report at anytime unneeded usable property, which is not required for transfer to another state, to the GSA regional office for redistribution or other disposal. The property shall be identified, marked as to Federal federal utilization potential, and reimbursement claims.

D. Disposition. GSA will notify the State Agency of the Disposition disposition to be taken and generally this will be a reutilization transfer or report for sale. With approval of the regional office, property to be sold may be turned in to the GSA Sales Center sales center or a designated DoD Property Disposal Office Department of Defense property disposal office. Generally scrap metal will be sold on State Agency site. Reimbursement may be claimed in accordance with GSA Regulations regulations.

E. Destruction or Abandonment abandonment. When the State Agency finds that it has property in its possession that is unusable by donees in the Commonwealth or other states and otherwise is determined to have no commercial value or the estimated cost of its continued care and handling would exceed the estimated proceeds from its sale, the State Agency will proceed promptly with the destruction or abandonment of such property subject to the disapproval of GSA within 30 days of notice to it by the State Agency.

1VAC30-120-80. Fair and equitable distribution.

A. Policy. The State Agency is responsible for the fair and equitable distribution of allocated surplus property to all eligible donees in Virginia. The distribution plan is based on needs and an evaluation of the relative needs, resources, and utilization ability of all the eligible agencies and institutions. Due consideration and assistance will be offered the more needy recipients.

B. Determination. Relative needs, resources, and utilization abilities will be determined by reviewing donee property requests and justifications, emergency status, program and project priorities as given by responsible authorities, and consulting with advisory persons and bodies such as public and private institutions, Office Virginia Departments of Emergency Services, State Departments of Management, Planning and Budget, Professional and Occupational Regulation, Education, Health, and Social Services, and the Virginia Employment Commission. When the Governor declares a state of emergency, the State Office Department of Emergency Services Management may direct priorities of property issues. A general ranking or index number obtained from the Department of Planning and Budget will be used as a factor to determine the relative needs and resources of the cities and counties. To determine relative needs and resources of the nonprofit health and education institutions, the State Agency will seek aid from bodies such as the Council of Independent Colleges in Virginia, the Virginia Hospital and Healthcare Association, and the Arc of Virginia Association for Retarded Children. Key individuals such as purchasing officials, and local administrators of eligible donees will be consulted.

C. Application. In general, the need, resources, and utilization abilities, determination will apply to major items and special categories of equipment and material. Examples may be: vehicles, construction equipment, materials handling equipment, machine tools, generators, ADP equipment, complicated scientific equipment, vessels, and aircraft.

D. Requests by donees. Authorized representatives of donee institutions are invited to submit a listing of all needed items in the categories, but not limited to, as provided in paragraph subsection C of this section. Virginia Agency agency screeners will be guided in their search and selection of property according to the known want lists.

Authorized donee representatives may also submit to the State Agency requests for specific identified items located anywhere in the United States. Donee representatives may meet with agency screeners at federal installations to inspect specific items to determine if suitable for their needs. Property selected and approved for donation may be picked up directly by the donee if so requested.

E. Property Assignments assignments to Donees donees. Assignments of equipment as it becomes available will be made by the State Agency as provided in subsections B and C of this section.

The State Agency will submit applications to GSA federal General Services Administration for specific identified property requested by donees and arrange for direct pickup by the donee from the holding agency when so requested and/or or practicable. Direct pickup may also be arranged, when economical, for needed items but not specifically identified.

The majority of miscellaneous items, including many major items, will be screened and selected by Virginia agency screeners at federal installations for application and shipment to the Federal Property State Agency warehouse-distribution centers. Major items as described in subsection C of this section will be offered to donees conforming to subsection B of this section.

Miscellaneous items, not including major items, will be available at the State Agency distribution center on a supermarket plan, first come first-come, first served first-served basis. Major items located at the center, offered to donees according to requests but not picked up, will be available to any eligible donee on the first come first-come, first served first-served basis. Appointments to visit the distribution center are not required and authorized representatives may make such visits to inspect and select property on any State state work day.

1VAC30-120-90. Eligibility.

A. General.

1. Public Agencies agencies. Surplus personal property may be donated through the State Agency to any public agency in the Commonwealth of Virginia, or political subdivision thereof, including any unit of local government or economic development district; or any department, agency, instrumentality thereof, including instrumentalities created by compact or other agreement between states or political subdivisions, multijurisdictional substate districts established by or pursuant to state law, or any Indian tribe, band, group, pueblo, or community located on a state reservation. Surplus property acquired must be used by the public agency to carry out or to promote for the residents of a given political area one or more public purposes such as conservation, economic development, education, parks and recreation, public health, public safety, and emergency services.

2. Nonprofit Educational educational or Public Health Institutions public health institutions. Surplus personal property may also be donated to nonprofit educational or health institutions as determined under Section § 501 of the Internal Revenue Code of 1954 1986 such as: medical institutions, hospitals, clinics, health centers, nursing homes, schools, colleges, universities, schools for the mentally retarded and physically handicapped, child care centers, educational radio and television stations, museums, libraries, and programs for Older Americans as described in FPMR 101-44.200 FMR 102-37.380(c). Surplus property acquired must be used by the eligible nonprofit educational or public health institutions or organizations for the primary functions for which the activity receives donable property and not for a nonrelated or commercial purpose.

B. Determination of Eligibility eligibility. The Federal Property State Agency is responsible for the determination that an applicant is eligible as a public agency or a nonprofit educational or public health institution or organization to participate in the program and receive donations of surplus personal property. Approvals shall be granted only when an applicant meets the provisions and criteria for approval as stated in the Law 40 USC § 549 and FPMR 101-44.207 FMR 102-37.385. The eligibility status of each eligible entity is updated every three years after the initial approval. Reference is made to subsection D of this section. Eligibility files for skilled nursing homes,; intermediate care facilities,; alcohol and drug abuse centers,; programs for older individuals; and other programs that are certified, approved and licensed annually, must be updated every year.

C. Eligibility Procedures procedures.

1. An agency, institution, or organization interested in receiving Federal federal surplus property must establish eligibility by requesting an eligibility application form, complete the requested information, and mail the entire application material to the State Agency.

2. The State Agency will review the application and notify the applicant of approval, disapproval, or the need of additional required information.

D. Information to be Included included in the Application application for Eligibility eligibility.

1. Legal name, address, telephone number;

2. Status of applicant:

a. Public Agency: to designate the type such as state agency, city, county, town, multijurisdictional authority, college, university, school, school systems, hospital, clinic, health center, Indian reservation, or aging center;

b. Nonprofit educational institution: to designate type such as college, university, kindergarten, elementary, high school, vocational, technical, special, mentally retarded or physically handicapped, rehabilitation, child care, aging, museum, and library;

c. Nonprofit health institutions: designate type such as medical institution, hospitals, clinics, health centers, skilled nursing homes.

3. Prepare a public or nonprofit agency application. If nonprofit, include as evidence, a copy of the tax exemption under Section § 501 of the Internal Revenue Code of 1954 1986.

4. Concise description of the applicants public program such as naming departments, services or activities, plants, facilities, and staff. If a nonprofit health or educational institution provide concise descriptions of the specific offerings, services, plants, facilities, and staff so State Agency can determine eligibility qualifications and definitions of eligible entities.

5. Evidence of approval, accreditation, or licensing. If such evidence is lacking, a letter of evaluation from appropriate program authority such as: county, city, state department, college or university, or school system, may be submitted in lieu of such evidence.

6. The Nondiscrimination Assurance, Exhibit 6 of 1VAC30-120-150, is executed by the donee authorized representative as a requirement for approval of the eligibility application, and prior to acquiring surplus property.

Assurance of Compliance with GSA Regulations under the nondiscrimination regulations issued under Title VI of the Civil Rights Act of 1964 (42 USC § 2000d through 2000d-4), Section 606 of Title VI of the Federal Property and Administrative Services Act of 1949, as amended 40 USC § 122), Section 504 of the Rehabilitation Act of 1973 (29 USC § 794), as amended, Title IX of the Education Amendments of 1972 20 USC §§ 1681 through 1688, as amended, and Section 303 of the Age Discrimination Act of 1975 (42 USC §§ 6101 through 6107).

7. Application to be signed by the administrative head or other responsible official of the applicant who has authority to act for the applicant in all matters pertaining to Federal federal surplus property including the eligibility application, acquisition of Federal federal surplus property, obligation of necessary funds, execute documents, certification to terms, conditions and restrictions, use, and disposal of the property.

8. Supplementary information may be requested as to relative needs, resources, and utilization abilities, to aid the State Agency in the fair and equitable distribution of available property.

9. When an eligibility approval is granted a donee, the administrative head or other responsible official, will be requested to designate a person to handle and be responsible for all affairs pertaining to federal surplus property. This person may authorize one or more additional persons who may select and sign for property for the eligible recipient. Signatures of all authorized persons will be on file in the State Agency.

E. Conditional Eligibility eligibility. In certain cases newly organized activities may not have commenced operations or completed construction of their facilities, or may not yet have been approved, accredited, or licensed as may be required to qualify as eligible donees. In other cases there may be no specific authority which can approve, accredit, or license the applicant as required for qualification. In these cases the State Agency may accept letters from public authorities, either local or State state, which the State Agency deems competent such as the a board of health or a board of education that the applicant otherwise meets the standards prescribed for approved, accredited, or licensed institutions and organizations. In the case of educational activities, letters from accredited or approved institutions that students from the applicant institution have been and are being accepted may be deemed sufficient by the State Agency.

1VAC30-120-100. Compliance and utilization.

A. Donated items Subject subject to Compliance compliance and Utilization Reviews utilization reviews on Terms terms and Conditions conditions (1VAC30-120-60):

1. Items with a unit acquisition cost of $3000 $3,000 or more and any passenger motor vehicle;

2. Items which that require special handling conditions or use limitations as imposed by GSA federal General Services Administration (GSA) per FPMR 101-44.108 FMR 102-37, Subpart E;

3. Statutory requirement that all items of donated property acquired by the donee be placed into use within one year of acquisition and thereafter used for 12 months, or 18 months if the acquisition cost was $3000 $3,000 or more or a passenger motor vehicle;

4. Items with a unit acquisition cost of less than $3000 $3,000 which that may be subject to stock piling as determined by the State Agency;

5. Any property where there is alleged fraud, theft, misuse, or non-authorized disposal.

B. Reviews.

1. The State Agency will conduct compliance and utilization reviews at least once during the period of use restriction for items as described in subdivisions A. 1 and 2 of this section.

2. The review may be accomplished by a questionnaire letter or by a visit to observe the property utilization. Staff members of the State Agency will visit donees to the extent of capabilities in time and costs. In addition to merely surveying compliance and utilization, visits will be constructive and helpful to the donees. Information will be offered on terms and restrictions; item utilization potential, procedures and special opportunities in acquiring property, and invitation for comments on program improvement.

3. Reports of the review will be a part of the donee item file. The mail questionnaire form will serve as a report. Persons making a review through visitations will also make an item report on utilization, condition, and transfer or disposal recommendation.

C. Compliance Actions actions.

1. When the utilization survey shows an item is in eligible use, the report will be so noted and no further action plan is required.

2. Deficiencies in utilization may include but are not limited to nonuse or misuse,; ineligible use such as loan, rental, or gift,; unauthorized cannibalization, disposal or sale,; failure to use property in the prescribed time frame,; fraud,; or theft.

3. When deficiencies are discovered, the State Agency will move to remedy the specific case. This will include action to place the item or items into use for the prescribed time frame, transfer to another donee or state agency, return to the State Agency, approve destruction, abandonment, cannibalization, or report to GSA for reutilization or sale.

4. The State Agency will initiate an appropriate investigation of any alleged fraud in the acquisition of donable property and the FBI Federal Bureau of Investigation (FBI) and GSA will be immediately notified of the allegations and the status of the investigation. The State Agency investigator will prepare a report of the circumstances and findings of the case and it shall be available to all authorized persons.

5. Alleged or reported thefts of surplus property in the custody of the State Agency will be immediately investigated and the details and circumstances reported to the local law enforcement law-enforcement officials, the local FBI, and the Regional regional GSA office.

6. The State Agency will initiate an appropriate investigation of all alleged misuse of donated property and notify GSA of the allegations immediately.

7. The State Agency will take necessary actions to investigate cases of alleged fraud, misuse, or theft and assist GSA or other responsible Federal federal or State state agencies in investigating such cases upon request.

8. The State Agency may enforce compliance action during the period of restriction by requiring payment from the donee under the following circumstances and terms listed below:

a. Recover the fair value of the property if it has been disposed of improperly.

b. Recover the fair rental value if the property was used in an unauthorized manner.

c. In enforcing compliance with the terms and conditions imposed on donated property, the State Agency shall coordinate with GSA prior to undertaking the sale of, or making demand for payment of the fair value or fair rental value of donated property subject to any special handling condition or use limitation imposed by GSA, or of donated property which that had not been placed into use by the donee within 1 one year for the purposes for which acquired or used by the donees for those purposes for 1 one year thereafter. Funds derived by the State Agency in the enforcement of compliance will be remitted to GSA involving a breach of restrictions imposed by GSA. The State Agency may retain the funds for the breach of restrictions imposed by the State Agency.

D. Suspension of Donations donations. The State Agency may suspend donations of property to a donee for noncompliance cases or nonpayment of service charges.

1VAC30-120-110. Consultation with advisory bodies and public and private groups.

A. General Policy policy. The State Agency will consult advisory bodies and public and private groups, as a matter of general policy as well as in special circumstances, to assist in determining fair and equitable distribution of property based on relative needs, resources, utilization abilities, stated needs, and emergency status of donees. Reference is made to See Fair and Equitable Distribution, 1VAC30-120-80.

B. Implementation. The State Agency will be in contact with advisory bodies and groups such as Departments of the State Government, the Virginia Municipal League, the Virginia Association of Counties, the Virginia Foundation for Independent Colleges, the Association of Virginia Colleges, the Virginia Hospital and Healthcare Association, the Catholic Diocese Department of Schools, purchasing groups, and political subdivision administrators. Contacts will be person-to-person such as telephone, visits, or correspondence; attendance at meetings and conferences, and general distribution of information with flyers. Expressions of need, and general and specific requirements, will be solicited from the above groups on behalf of all eligible public and private agencies. When expressions of need and interest are received, GSA federal General Services Administration will be advised of such requirements, including requirements for specific items of property.

1VAC30-120-120. Audit.

A. State Agency. At the close of each month a Profit and Loss Statement and Balance Sheet is prepared. Expenditures, receipts, and cash balances are verified each month with the State Comptroller by D.G.S. the Department of General Services, Bureau of Fiscal Services.

B. Internal Audit audit. Personnel of the Department of General Services will conduct an internal audit of State Agency operations and financial affairs. It will be made every two years and, when practicable, will be on the external audit off year.

C. External Audit audit. The State Auditor of Public Accounts will audit the State Agency at least every two years. The audit will include a review of the conformance of the State Agency with the provisions of the State Plan of Operation and the requirements of 41 CFR 101-44 FMR 102-37.345 through 102-37.355. The State Agency will submit a copy of the audit report to the GSA federal General Services Administration (GSA) regional office and will report all corrective actions taken with respect to any exceptions or violations indicated in the audit report. The State Auditor of Public Accounts operates under the authority of the Legislative Branch legislative branch of Government government. The State Agency operates under the Executive Branch executive branch of Government government, Secretary of Administration and Finance, Department of General Services, Division of Purchases and Supply. Refer to Exhibit 7 of 1VAC30-120-150, Organization of the Virginia State Government.

D. Additional Audits and Reviews.

1. GSA representatives may visit the State Agency to coordinate program activities and review the State Agency operations.

2. GSA may, for appropriate reasons, conduct its own audit of the State Agency following due notice to the Governor of the Commonwealth of the reasons for such audit.

3. All records of the State Agency, including financial, will be available for inspection by GSA, GAO General Accounting Office, or other authorized federal activities.

1VAC30-120-130. Cooperative agreements.

A. The State Agency will enter into or review, or revise cooperative agreements with GSA federal General Services Administration (GSA) or other federal agencies pursuant to the provisions Virginia Code § 2.1-445.1 of § 2.2-1123 of the Code of Virginia, Section 203(n) of the Federal Property and Administrative Services Act of 1949, as amended, and FPMR 101-44.206 FMR 102-37.325. The agreements may include but not limited to:

1. Use of donable property by the State Agency;

2. Overseas property;

3. Use of Federal federal facilities and services; and

4. Inter-State Inter-state.

B. Cooperative agreements entered into between GSA and the State Agency may be terminated by either party upon 60 days written notice to the other party. Termination of an agreement between a federal agency designated by GSA and a state agency, and interstate cooperative distribution agreements, shall be mutually agreed to by the parties.

C. The State Agency may enter into such other cooperative agreements with eligible agencies in the State as may be deemed necessary or advisable.

1VAC30-120-140. Liquidation.

The State Agency will submit a liquidation plan to GSA federal General Services Administration prior to the actual termination of State Agency activities in accordance with the specific requirements of FPMR 101-44.202(c)(14) FMR 102-37.365 through 102-37.370. The plan will include:

1. Reasons for the liquidation;

2. A schedule for liquidating the agency and the estimated date of termination;

3. Method of disposing of surplus property on hand, consistent with the provisions of FPMR § 101-44.205 FMR 102-37, Subpart D;

4. Method of disposing of the agency's physical and financial assets; and

5. Retention of all available books and records of the State Agency for a two-year period following liquidation.

1VAC30-120-160. Records.

All official records of the State Agency will be retained for more than 3 three years, except:

1. Records involving property subject to restrictions for more than 2 two years will be kept for 1 one year beyond the specific period of restriction.

2. Records involving property in compliance status at the end of the period of restriction will be kept for at least 1 one year after the case is closed.

VA.R. Doc. No. R13-1622; Filed March 14, 2013, 4:44 p.m.