Section 100. Compliance and utilization

A. Donated items subject to compliance and utilization reviews on terms and conditions (1VAC30-120-60):

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

2. Items that require special handling conditions or use limitations as imposed by federal General Services Administration (GSA) per 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 $3,000 or more or a passenger motor vehicle;

4. Items with a unit acquisition cost of less than $3,000 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.

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 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 officials, the local FBI, and the 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 or 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:

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 that had not been placed into use by the donee within one year for the purposes for which acquired or used by the donees for those purposes for 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. The State Agency may suspend donations of property to a donee for noncompliance cases or nonpayment of service charges.

Historical Notes

Derived from VR330-04-03 §X, eff. September 20, 1984; amended, Volume 29, Issue 17, eff. May 22, 2013.

Statutory Authority

§ 2.2-1123 of the Code of Virginia.