 "Equipment" means tangible, non-expendable property acquired with federal assistance funds, that has a useful life of more than one year, and an acquisition cost of $5,000 or more per unit (though, consistent with a recipient's own equipment policy, lower cost limits may be established).Basically, this section requires that, as per A-102 Common Rule and OMB Circular A-110 regulations, equipment must be used in the federal program it was bought for, or—when appropriate—other federal programs.Additionally, the recipient must keep equipment records, perform a physical equipment inventory at least once every two years, and implement an appropriate internal control system to safeguard and maintain the equipment.