Ep. 2 - Grants & Goods: What You Need to Know About Supplies & Inventory

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.Connect with Us:Instagram: @markandayconsultingLinkedIn: @markandayconsultingEnjoyed 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