502-01 Operating Leases

Year-end information regarding operating leases is to be provided to the Office of Business Affairs by the dates specified in the Year End Close Instructions so OSU can comply with their responsibilities to the OUS Controller’s Division per OUS Fiscal Policy Manual 05.281 Accounting for Leases.

502-02 Capital Leases

A lease/purchase or capital lease has at least one of the following characteristics:

• Ownership of the property passes to OSU at the end of the lease;
• The lease contains a lease/purchase option;
• The lease lasts for 75 percent or more of the useful life of the equipment;
• The total of all lease payments (excluding insurance and maintenance costs) is greater than or equal to 90 percent of the fair market value of the equipment. 

Year-end information regarding capital leases is to be provided to the Office of Business Affairs by PaCS within the dates specified in the Year End Close Instructions so OSU can comply with their responsibilities to the OUS Controller’s Division per OUS Fiscal Policy Manual 05.281 Accounting for Leases.

All Lease/Purchase agreements must be processed by the PaCS University Contract Officer.  For further information on equipment leasing/purchase see PRO 204: Lease-Purchase in the Property Management Manual.