What are residual supplies?

Residual supplies are supplies that remain unused at the end of the grant period of performance. If there is a residual inventory of unused supplies exceeding $5,000 in total aggregate value upon termination or completion of the project or program and the supplies are not needed for any other Federal award, the non-Federal entity must retain the supplies for use on other activities or sell them, but in either case must compensate the Federal Government for its share. Therefore, applicants should make sure to request funds for supplies (including smoke alarms) that can be used, distributed, and/or installed during the grant period of performance. See 2 C.F.R Part 200 § 200.314(a) for additional information.