Purchasing
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Long-Term Lease Equipment Procedures

  • Department

Determines need for equipment with desire to purchase over time.

Complete & sign the Master Lease Application and return to Purchasing.

If equipment cost is $40,000 or more, attach equipment specifications for bidding purposes.

  • Controller

Review master lease application for Program/Project Grant verification, approve, and return to Purchasing.

  • Purchasing

Issues bid or confirms purchase to be on an established contract; share results with department.

Confirms that equipment is on biennial budget if $200,000 or more.

Fax master lease applicaton and equipment list and prices from low bidder or contract vendor to Lease vendor.

  •  Lease Vendor

Confirms agreement with Purchasing and allows University to add this equipment list to the master lease. Quotes interest rate, terms and payment schedule.  Annual payments are required to be made on all leases.

  • Purchasing

Notify department of interest rate and terms and if acceptable, Purchasing will send a letter to the selected vendor authorizing them to ship the equipment, and invoice the Lease vendor.

  • Department

Notifies Purchasing by emailing the Purchasing Service Account that equipment has been received as ordered and is in good condition.

  • Risk Management

Fax Certificate of Insurance to Purchasing at 852-7160.

  • Purchasing

Sends Certificate of Insurance to Lease vendor.

  • Lease Vendor

Funds purchase and sends the following documentation to Purchasing:

     Equipment payment schedule
     IRS 8038G form
     UCC Financing Statement
     Certificate of Acceptance

  • Controller

Review and confirm interest rate and payback schedule; signs IRS 8038G form and forwards to Purchasing.

Book asset (199997) and lease payable (2232XX) to invested in plant.

Coordinates with Accounts Payable to create a recurring payment process within PeopleSoft to pay the principal and interest as detailed on the lease payment schedule. Payment funding source, as outlined on the lease application, will automatically be charged. Note also that the insurance premiums to cover the financed equipment will be billed directly to the department's program or project/grant.

  • Purchasing

Sends 8038G to Lease vendor for filing with IRS.

  • Controller

Creates a mechanical entry corresponding to the "Interest on Capital Asset Debt-Leases" (590110) account that will (charge) reduce the principal balance outstanding (2232XX) and credits (456510) "Interest on Capital Asset Deb Lease-Revenue.

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