Property Control System Manual (PCS)

Effective: 1/27/1993

Revised: 3/1/2005

PCS 212: Leased Equipment

Purpose

To identify responsibility for leased or rented equipment

Sources

Property Control

Financial Services

Policy

ASU assumes no responsibility for leased or rented equipment unless a responsibility is specifically stated in the contract or written agreement. Only then does ASU insure the equipment against theft or damage.

Note:

Replacement value cost must be included in the contract.

Property control, security, and administration of the equipment is the lessor’s responsibility.

Definition

Lease

An agreement for the right to use property for a specified period at a specified cost. Title remains with the lessor. At no time does the lessee build equity in the property.

Cross-References

For information on expenditure codes, see the Financial Services Policies and Procedures Manual—FIN 430–01, “Overall Expenditure Coding Structure.”

For a discussion of the economic soundness of leasing, see the Purchasing and Business Services Policies and Procedures Manual—PUR 602–01, “Lease vs. Buy Considerations.”

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