August 2, 1995
COMPTROLLER'S MEMORANDUM NO. 04 (1995-96)
SUBJECT: EQUIPMENT LEASES
In accordance with the provisions of
Section 287.063(2), Florida Statutes, the policy of the Comptroller's
Office regarding equipment leases has been to require agencies
to obtain approval before issuance of a purchase order when the
annual cost is $3,500 or more. This memorandum supersedes all
previously issued Comptroller Memorandums addressing leasing of
equipment.
For equipment leases entered into or
that have a lease period beginning on or after August 1, 1995,
the prior approval of the Comptroller's
office will be required only for those equipment leases that have
an annual cost anticipated to exceed the purchasing Category Two
threshold (currently $11,000) established in Section 287.017,
F.S. If the monthly lease cost for equipment is greater than
one-twelfth of the Category Two threshold (currently $916.66),
but the annual cost will be less than the Category Two threshold,
each voucher submitted for payment should include documentation
indicating that the annual cost will not exceed the Category Two
threshold. These vouchers should be submitted directly to the
Bureau of Auditing.
Regardless of the annual cost of the
lease or the acquisition method, it shall be the responsibility
of the procuring agency to evaluate and maintain documentation
to support that a lease is economically prudent and cost-effective.
The Comptroller intends to periodically review the agencies' internal operating procedures and supporting documentation for
compliance and reserves the right to adjust the exemption threshold,
on an agency by agency basis, depending on the findings.
Agencies with special needs for leasing
equipment, such as short term needs for surveying, monitoring
and research connected with wildlife studies or preservation are
exempt from the requirement to obtain prior approval. These are
examples only, and you should use your professional judgment in
the use or need for other equipment of a unique nature. A certification
supporting the decision to lease, from the agency head or designee,
must be attached to the voucher submitted for payment.
In computing the total lease costs for
determination as to whether the annual lease costs exceeds the
Category Two thresholds, maintenance and other periodic costs
to be incurred by the lessee for the equipment must be added to
the lease (rental) payments. Equipment is defined as a functional
unit and not as an individual component. For example, an agency
may not acquire, by lease, equipment costing less than Category
Two threshold annually, avoiding Comptroller approval, and then
add other components to the equipment which increases the total
annual cost above the threshold.
Requests for the Comptroller's
approval to lease equipment above the Category Two threshold should
be addressed to:
| Office of the Comptroller |
| Bureau of Special Programs (44-10-16) |
| Room 1001, The Capitol |
| Tallahassee, Florida 32399-0350 |
These requests should be submitted with
the Checklist for Requesting Comptroller's Approval to Lease Equipment
(Rev. 7/95). A copy of this checklist is attached and should
be reproduced as needed by each agency.
The new thresholds and procedures described
above do not apply to copiers acquired under state term contract
No. 600-380-94. We are currently reviewing with the Division
of Purchasing the cost effectiveness of the lease terms and prices
of the copiers on that contract. We will disseminate additional
information regarding the lease of copiers at a later date. Until
such time, copier leases above $3,500 per year must have our prior
approval.
Please direct all inquiries about equipment leases to the Bureau of Accounting at 410-9951, Suncom 210-9951.
THIS MEMORANDUM INCLUDED AN ATTACHMENT WHICH CANNOT BE TRANSMITTED. IF YOU WOULD LIKE TO OBTAIN THIS DOCUMENT, PLEASE CALL THE BUREAU OF SPECIAL PROGRAMS AT 488-1951.
