BS5305 - Leased and Lease Purchased Equipment

1. Institutional Regulations
   1. All leased equipment shall be processed in accord with normal Purchasing procedures (i.e., requisition, purchase order) and payments for same made against appropriate INDEX and object code “6220” (rental of equipment).
   2. All lease-purchased equipment shall be processed in accord with normal Purchasing procedures and payments made against appropriate INDEX and object codes “7120” (lease-purchased equipment) and “6700” (interest).
2. Procedure
   1. The Vice President Business Services must sign all lease and lease-purchase agreements.
   2. The following applies to leased equipment.
      1. The Purchasing Department will prepare a Purchase Order based upon approved requisition for leased equipment.
      2. If the lease agreement stipulates that DMACC is responsible for insurance of the equipment, then the Purchasing Department will be responsible for notifying the Insurance Carriers
      3. The Purchasing Department shall maintain a current file of all leased equipment and contracts for equipment repair. Purchasing shall be responsible to communicate appropriate adjustments (i.e., contract terminations, buy-out option adjustments, etc.) to appropriate departments (i.e., Insurance, Inventory Control). Departments are to forward a copy of all such leases or contracts to Purchasing.
      4. Leased equipment will not be recorded by Inventory Control.
   3. The following applies to lease-purchased equipment:
      1. The Purchasing Department will prepare a Purchase Order based upon approved requisition for lease-purchased equipment.
      2. Inventory Control will add all lease-purchased equipment to DMACC inventory files.
   4. All leases shall contain a non-appropriation clause, dissolving DMACC’s obligation beyond the current year, if funds have not been appropriated.