Property Management Policy & Procedure Manual
Section 200: Equipment Acquisition
Effective: 07/01/1996
Revised: 11/12/2015

 

A lease is an agreement for the right to use property for a specific period of time at a specified cost.  Title remains with the lessor.  At no time does the lessee build equity in the property. All lease agreements must be approved by the OSU Procurement and Contract Services Office. The lease agreement should specify whether or not OSU is responsible for insuring the equipment.  OSU assumes no responsibility for leased or rented equipment unless a responsibility is specifically stated in the contract or written agreement. Only then does OSU insure the equipment against theft or damage. Property control, security, and administration of the equipment are the lessor’s responsibility.

Responsible Party Action
Department
  1. Draft a lease agreement and forward official document to the Procurement and Contract Services Office for approval and signature.
  2. Submit copy of approved lease agreement to Fixed Assets Property Management, Financial Accounting & Analysis (FA&A).
  3. If lease requires OSU to insure equipment and the asset will be held less than 90 days, a copy of the agreement should be forwarded to OSU Risk Management (item will be covered under supplemental insurance).

    If lease requires OSU to insure equipment and the asset will be held more than 90 days, the asset must be added to inventory.  A copy of the agreement should be forwarded to Fixed Assets Property Management along with a Fixed Asset Data Entry form.  See PRO-Ex3: Fixed Asset Data Entry (FADE) form.

  4. Lease payments are coded "equipment-rentals and leases" (see PRO-Ex10: Account Codes).
Fixed Assets Property Management
  1. Add leased equipment to the University asset records at its replacement value for tracking and insurance purposes. 
Department & Business Center
  1. When lease ends and equipment is returned, the Business Center and/or department will submit a Property Disposition Request (PDR) to remove the equipment from inventory.