FMPM 470 Leases (Excluding Real Property)

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Intent

To set out the requirements regarding compliance and approvals for leasing.

Scope

Function

Responsibility of

Approval to enter a lease arrangement

Refer to the Financial Delegations Register

Compliance with a lease agreement

Lease Custodian

Maintenance of a lease register

Director, Financial and Business Services

Definitions (Related Glossary Terms)

Lease

Lease Custodian

Real Property

Policy

Requirements

  • As a "Statutory Body - other than Local Government", the University is bound by the requirements of Leasing in the Queensland Public Sector - Policy Guidelines released by Queensland Treasury.   Accordingly the following policy guidelines apply:

    • Queensland Treasury Corporation (QTC) must be invited to quote or tender on all University leasing applications;

    • the most cost effective financing option for the acquisition must be adopted;

    • where any operating lease has a total net present value of base lease rental payments in excess of $2 million then approval must be sought from the Treasurer under the State Borrowing Program;

    • where a "master" lease facility is in place, under which individual leases may be entered into by the University from time to time within a specified limit, and the limit exceeds $2 million then approval must be sought from the Treasurer under the State Borrowing Program; and

    • a finance lease is considered to be a borrowing.  If the lease is a finance lease then approval to enter into the lease must be sought under the State Borrowing Program from Treasury.   In addition, FMPM 430: Policy - Borrowing requires the approval of Finance Committee and Council prior to negotiating borrowing arrangements.

  • The approval to lease, must be granted by one of the following officers:

    • Deputy Director, Services and Resources

    • Director, Financial and Business Services

  • The University will not enter into a leasing arrangement where the aggregate purchase cost of items is less than two hundred thousand dollars ($200,000).  This is referred to as the minimum leasing limit.

  • The responsibility for ensuring that the University remains in compliance with the terms of the lease agreement resides with the Lease Custodian.

  • The Director, Financial and Business Services is responsible for maintaining a register of leases, detailing:

    • the description of property covered by the lease;

    • the lessor's details including name and address;

    • the lease contract number;

    • the commencement and expiry dates of the lease;

    • the lease payment amounts;

    • a notation as to whether it is an operating or finance lease for accounting   purposes; and

    • a reference as to where a copy of the lease agreement is filed.

Related documents and legislation

Financial and Performance Management Standard 2009 (s25)

Statutory Bodies Financial Arrangements Act 1982 (s32, 33, 34 & 35)

Australian Accounting Standard (AASB) 117 Leases

Leasing in the Queensland Public Sector – Policy Guidelines 

For enquiries in relation to this FMPM Policy please contact farp.finance@jcu.edu.au

Administration

NOTE: Printed copies of this policy are uncontrolled, and currency can only be assured at the time of printing.

Approval Details

Policy Sponsor

Deputy Vice Chancellor, Services and Resources

Approval Authority

Finance Committee

Date for next review

08/2016

Revision History

NOTE: A minor amendment will not result in a change of the next major review date.

Approval date - the date the approval authority approved the establishment, minor or major amendment or disestablishment

Implementation Date - the date the policy was published in the Policy Library and is the date the policy takes effect

Version

Approval date

Implementation date

Details

Author

17-01

19/01/2017

27/01/2017

Titles amended to reflect current organisation structure and current delegation practice.Quality Standards and Policy Officer

15-01

09/09/2015

10/09/2015

Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework

Quality Standards and Policy Unit

12-01

11/2012

20/11/2012

Finance Committee (13/11/12)

 

11-01

18/08/2011

18/08/2011

Finance Committee (06/11)

There are no other related documents.