PROCEDURE SOURCE:
Purchasing & Material Management
PROCEDURE NO: 115
PAGE NO.: 1 OF 2
SUPERCEDES: 0
TITLE: Lease/Purchase Agreements
SUBMITTED BY: Thomas K. Dove
REVISED DATE: October 07, 2011
APPROVED BY: Claire P. Wurmfeld
I.
PURPOSE
The purpose of this procedure is to clarify how the University obtains equipment that is supplied by
a manufacturer, and financed by a financial institution, for a lease/purchase agreement.
II.
SCOPE
This Procedure applies to all University Departments/Colleges.
III.
PROCEDURE
Equipment lease/purchases are handled differently that outright purchases. The Buyer’s role in the
lease/procurement process is to ensure that there is competitive bidding for the equipment and the
lease/purchase agreements, and all related purchasing guidelines are followed.
After departmental review of the equipment and lease/purchase agreement quotes, the
department must notify the Buyer with instructions to proceed. The department will have to
determine whether lease/purchase or outright purchase is the most economical and practical
option. Documentation supporting the cost analysis should be kept on file in the department.
The document procedure is as follows:
1. The purchase requisition and appropriate back-up must be provided to the Buyer.
2. The purchase requisition for leased/purchased equipment must include a description of the
item, quantity, and the appropriate number of monthly payments for the current fiscal year.
3. The Buyer will assemble the lease/purchase agreement and appropriate documents for
signature. The signatory authority on all lease/purchase agreements is the Chief Financial
Officer.