Guidelines for Leases and Maintenance Agreements

1. Guidelines for Leases and Maintenance Agreements Procure to Pay Services Updated 2/2/2012

2. Table of Contents (Page 1 of X) • Requirements for Leases and Maintenance Purchase Orders • Proper Filing • Renewal of Existing Leases • Checklist for Lease Requisitions • Maintenance Agreements and Leases that Include Maintenance Agreements • Any Questions?

3. Requirements for Leases and Maintenance Purchase Orders • Proper Signature • All new leases must be signed by Procurement Services (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 Procurement Services for authorized signature and processing. • REMINDER: Any commitment exceeding $25,000 in an fiscal year is subject to bid requirements.

4. Proper Filing • The State of Ohio requires that a copy of all leases must be on file in the Division of Finance. • Therefore, unless we have a copy of your lease is in our files, 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 Procurement Services, will be returned to the department to attach the agreement copy prior to processing.

5. Renewal of Existing Leases • Send a Requisition to Procurement Services to extend your lease into the new fiscal year. • A new purchase order number will be assigned, and the old Purchase Order number will be listed in the body of the new purchase order for reference. • The purchase order number that was used for the previous fiscal year should therefore be in the body of the requisition for the new fiscal year. • This procedure will allow for the uniform tracking of Leases that is now required. • NOTE: You are not permitted to use a Purchasing Card and Direct Payment for leases.

6. Checklist for Lease Requisitions • Item description • Make • Model Number • Serial Number • Number of Payments to be covered and length of term • For existing Lease, the prior fiscal year purchase order number • Attached Lease Agreement (unless a copy of the agreement is in the files of Procurement Services) • All Requisitions must coincide with the university’s fiscal year (July 1 through June 30). If the lease starts in mid-year, the encumbrance requested should not cross the next fiscal year (i.e. If a lease begins August 15, 2011, the encumbrance will be for 10 1/2 months, Aug 15, 2011 through June 30, 2012. Then, assuming it is needed, the Requisition for following fiscal year should cover a full 12 month period July 1 through June 30.

7. Maintenance Agreements and Leases that Include Maintenance Agreements • 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 overages. For copy overages.

8. Any Questions? Please contact us by sending an email to: financecustomercare@ohio.edu or you can call 740.597.OHIO (6446).