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Division Director

Christina Smith

Assistant Directors

Rick Sweet

Rachael Lieblick


Accounting and Auditing
200 East Gaines Street
Tallahassee, FL 32399-0318

(850) 413-5510
design placeholder only
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.