PCS 212: Leased Equipment

To identify responsibility for leased or rented equipment

Property Control

Financial Services

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.

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

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.

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.”