leases and Installment Sales of Equipment


Leases

Leases, including month-to-month leases and all other leases of
equipment regardless of the period of time, are subject to the review
and approval of the State Comptroller, unless the amount of the lease
is less than $3,500 per year or $291.66 per month.

Requests to lease equipment shall contain the information required by
the Comptroller as detailed in the Comptroller's "Checklist Requesting
Approval to Lease Equipment." [See Comptroller's Memorandum No. 7
(1990-91)] Upon receipt of approval from the State Comptroller's
office, the acquisition will be processed in accordance with
applicable acquisition procedures. In addition, requisitions for
leases and rentals in excess of $3,500, must be accompanied by a
statement indicating that the method is the most "economically prudent
and cost effective" method of acquisition (as opposed to outright
purchase).

The lease of equipment is subject to the normal bid requirements. All
leases shall contain a cancellation clause, availability of funds
clause and a stipulated lease period not to exceed 12 months. Leases
may contain a lease renewal option subject to the availability of
funds, if appropriate.

If the Requisition involves a copier, the purchaser should attach the
last six (6) months invoices showing copier usage rate based on the
invoices provided. If it is a new installation, not replacing another
copier, an estimate of the expected usage rate per month should be
attached.

All documents pertaining to lease or rental containing no provision
for purchase must contain a 30 day cancellation clause.

Installment Purchase

An installment purchase occurs when the University guarantees to buy
an item by paying a fixed payment, which may or may not involve
interest, over a specified period.

All requisitions for deferred payment contracts must be countersigned
by the Vice President responsible for the budget involved. Also, the
University Controller must provide a statement certifying that the
annualized amount of payment for the deferred payment purchase does
not exceed the current operating capital outlay appropriation.

Interest on deferred payment commodity contracts, is defined as a
commodity under 287.012(3), Florida Statutes and those contracts are
subject to the bid requirements if the interest exceeds $10,000. All
deferred payment commodity contracts are subject to the review and
approval of the Office of the State Comptroller. Deferred payment
commodity contracts meeting the following criteria require
justification to the State Comptroller, to demonstrate that the
acquisition is economically prudent:

The State Comptroller, under the authority granted in 287.064, Florida
Statutes, has established a Consolidated Equipment Financing Program
(CEFP) through which all agencies must finance equipment, unless
otherwise approved by the Office of the State Comptroller. Deferred
payment acquisitions with interest costs in excess of $10,000 and
approved for purchase by the State Comptroller, but exempted or
rejected for financing under the CEFP, must be bid and the bid
specifications and resulting contract must be approved by the State
Comptroller.

Requests to the State Comptroller for deferred payment commodity
contracts shall be accompanied by the Program Inter-agency Agreement,
Comptroller's Checklist, Justification for Approval of Contracts Less
Than $30,000 and/or financed more than five years (if applicable),
Certification of Operating and Capital Outlay and applicable approvals
(i.e., SUSITRPAC, Communications, etc.).

Upon receipt of approval by the State Comptroller's Office, the vendor
furnishing the equipment will be notified that financing has been
arranged. After receipt and acceptable installation of the equipment,
the department shall submit the executed Certificate of Acceptance and
Requisition Requesting Disbursement to the Purchasing Department for
transmittal to the Office of the State Comptroller.

Installment sale acquisitions denied for enrollment in the CEFP but
approved for financing, shall be bid and processed in accordance with
standard acquisition procedures. Bid specifications and subsequent
State of Florida Installment Purchase Agreement(s) shall be submitted
to the Office of the State Comptroller for approval. Upon receipt of
the approval, the Purchasing Department will process the order for
financing and notify the vendor supplying the equipment. After
receipt of the equipment and acceptable installation, the department
shall submit the Receipt Certificate to the Purchasing Department for
payment processing.
Home FSU F&A Comments
Created: 6/3/96 Updated: 6/4/96