2006-108-RES-DSHS Document NO. 2007-020428, Regional and Local Medical Services

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nonexpendable personal property (equipment) inventory and submit an annual cumulative report to the Contract Oversight and Support Section, Mail Code 1910, 1100 W. 49th St., Austin, Texas 78756, no later than October 15th of each year. Contractor shall administer a program of maintenance, repair, and protection of assets under this Contract so as to assure their full availability and usefulness. In the event Contractor is indemnified, reimbursed, or otherwise compensated for any loss of, destruction of, or damage to the assets provided under this Contract, it shall use the proceeds to repair or replace said assets. Section 12.25 Bankruptcy. In the event of bankruptcy, Contractor shall sever Department property, equipment, and supplies in possession of Contractor from the bankruptcy, and title shall revert to Department. Section 12.26 Title to Property. At the conclusion of the contractual relationship between the Department and the Contractor, for any reason, title to any remaining equipment and supplies purchased from funds under this Contract reverts to Department. Title may be transferred to any other party designated by Department. The Department may, at its option and to the extent allowed by law, transfer the reversionary interest to such property to Contractor. Section 12.27 Property Acquisitions. Department funds may not be used to purchase buildings or real property. Any costs related to the initial acquisition of the buildings or real property is not allowable. Section 12.28 Disposition of Property. Except when federal statutory requirements supersede, Contractor shall follow the procedures in the American Hospital Association's "Estimated Useful Lives of Depreciable Assets" in disposing, at any time during or after the Contract tenn, of equipment or controlled assets purchased with the Department funds. If, prior to the end of the useful life, any item of equipment is no longer needed to perfonn services under this Contract, or becomes inoperable, Contractor shall request disposition approval and instructions in writing from the Contract Oversight and Support Section, Mail Code 1910, 1100 W. 49th St., Austin, Texas 78756. After an item reaches the end of its useful life, Contractor must ensure that disposition of any equipment is in accordance with Generally Accepted Accounting Principles, and any applicable federal guidance. Section 12.29 Closeout of Equipment. Contractor shall submit to the Division Contract Management Unit assigned to the Contract, an inventory of property purchased with Department funds at closeout and request disposition instructions for such property. All property purchased with Department funds shall be secured by the Contractor at the time of closeout and shall be returned to the Department as required by the Department's disposition instructions or at the request of the Department at the Contractor's expense. Section 12.30 Assets as Collateral Prohibited. Contractors on a cost reimbursement payment method shall not encumber property purchased with Department funds without prior written approval from the Department. ARTICLE XIII GENERAL TERMS. Section 13.01 Assignment. Contractor will not transfer, assign, or sell its interest, in whole EF29-12425 General Provisions (Core Subrecipient 2007) Rev. 07/20/2006 Page 22