In this episode, Jasmine dives into a detail that often gets overlooked at the end of a federal grant: what to do with leftover supplies. If your organization has a closet full of unused materials at closeout, this one’s for you. Learn what counts as a “supply” under 2 CFR, how new federal thresholds might affect your next audit, and the steps you need to take to stay compliant.

What You'll Learn:

• The updated federal threshold for supply value—from $5,000 to $10,000 as of October 1, 2024.

• What qualifies as a “supply” versus “equipment” under 2 CFR.

• When you need to repay the federal government for unused supplies.

• How to calculate what’s owed based on your grant’s funding percentage.

• Allowable deductions for selling or handling costs.

• Best practices for documenting internal re-use of leftover items.

• A compliance reminder for subrecipients on using supplies in fee-based services.

  
  

Key Takeaways:

• Supplies left over at closeout aren’t just yours to keep—you may owe the federal government if the total value exceeds the applicable threshold.

• Always check your grant's start date and terms to determine which threshold applies.

• Selling the supplies? You can deduct up to $1,000 in reasonable handling costs.

• Clear documentation and communication with your program officer are key.

• Don’t undercut market rates if using federally funded supplies for services—that’s a compliance risk.

  
  

Pro Tip: Even if your leftover supplies don’t exceed the threshold, documenting how they’re reassigned or disposed of is a best practice that could save you headaches during audits.

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• Enjoyed the episode? Leave a review and share with your grants team!

  
  

Quote to Remember: "Strong grant management isn’t just about winning grants—it’s about closing them the right way." — Jasmine Markanday