Guidelines for Leases and Maintenance Agreements
REQUIREMENTS FOR LEASES AND MAINTENANCE PURCHASE ORDERS
1) PROPER SIGNATURE
All new leases must be signed by the Purchasing & Contracting Office (Department Heads, Deans etc., are not authorized to sign Lease Agreements). Once the department has made a decision to lease equipment, the Lease Agreement should be forwarded with a Requisition to the Purchasing Office for authorized signature and processing.
(REMINDER: Any commitment exceeding $25,000 in an FY is subject to bid procedures.)
2) PROPER FILING
Due to state of Ohio requirements, a copy of all leases must be on file in the Division of Finance. Therefore, unless you believe you have previously sent a copy of your lease agreement to the Division of Finance, you must attach a copy to any Requisition for a new lease, or for continuation of an existing lease. Any lease Requisition that does not have an attached copy of the agreement, or that does not note that a previous copy was sent to the Division of Finance, will be returned to the department to attach the agreement copy prior to processing.
3) RENEWAL OF EXISTING LEASES
Send a Requisition to the Purchasing Office to extend your lease into the new FY. A new Purchase Order number will be assigned, but the old Purchase Order number will be listed in the body of the PO for reference, to allow required tracking. The Oracle Purchase Order number that was used for FY 07 should therefore be in the body of the Requisition for FY 08. This procedure will allow for the uniform tracking of Leases that is now required.
NOTE: The PCard or Direct Payment (DP) process may not be used for leases.
4) INFORMATION THAT IS REQUIRED ON THE REQUISITION TO PROCESS A LEASE PURCHASE ORDER
| * | Item description |
| * | Make |
| * | Model Number |
| * | Serial Number |
| * | Number of Payments to be covered and length of term |
| * | For existing Lease, the Oracle Purchase Order Number from previous FY |
| * | Attached Lease Agreement (or if you believe a copy was previously sent to Purchasing, make a note of this). |
All Requisitions must coincide with the FY (July 1 thru June 30). If the lease starts in mid-year, the encumbrance requested should not cross the FY (Example: If the lease begins August 15, 2005, the encumbrance will be for 10 1/2 months, Aug 15, 2005 thru Jun 30, 2006. Then, assuming it is needed, the Requisition for following year should cover the full 12 months Jul 1, 2006 - Jun 30, 2007).
5) EXAMPLE REQUISITION BODY
Description: Annual Lease Agreement
for the period of July 1, 2006 to June 30, 2007
for the following equipment: Widget Maker
Make: Ace - Model: WG43-X5 - S/N: 2567453
This covers payments number 13 through 24 of a 36 month Lease.
FY 06 Oracle P.O. Number: OU1234
Lease Agreement copy sent with last year's Req.
Pricing: 12 months at $240 = $2,880
6) MAINTENANCE AGREEMENTS AND LEASES THAT INCLUDE MAINTENANCE AGREEMENTS
(e.g., COPIER OR FAX MACHINE)
Requisitions for Leases that include Maintenance, or are for Maintenance agreements alone, should also include the make, model, serial number and covered number of payments as specified above. IMPORTANT: The first line of your Requisition should include lease/maintenance charges ONLY. A separate line should be established to include estimated copy overages, or any other type of overages. For copy overages, this should also include the number of copies allowed and the cost per copy of the overage. (Example: 12,000 copy allowance, overage billed at .009 per copy).
Please refer questions on this topic to
Rusty Thomas at 593-1968, thomasr@ohio.edu
