No. 142       Finance Division

Timely payments to copier vendors for lease/purchase contracts are imperative in order to maintain reliable and uninterrupted service. These are multiyear contracts, typically for a term of five years, which include maintenance. These procedures DO NOT apply to sites or departments who own their machines and who purchase annual maintenance services. This circular is addressing leased copiers only.

1. Calculate estimate of lease payments due July 1, 2001 - June 30, 2002, including sales tax of 7.50 percent.
    
2. Calculate estimated maintenance charges according to the terms outlined in the contract. There are normally two components which are to be added together: a monthly minimum charge twelve months per year and a "click" charge for the number of copies used. Estimate the usage portion (click charge) based upon the number of copies used in the previous fiscal year. Questions regarding these estimates should be addressed to Yvonne Roper in the Purchasing Services Unit at (858) 496-8053.
    
3. Prepare an Electronic Forms Routing and Approval (EFRA) requisition for the combined amounts, have the department manager or site administrator sign and submit it to the Budget Department no later than June 8, 2001. You may list multiple budget charge numbers on one EFRA requisition. Remember, there are different object codes for lease or purchase versus maintenance; correct object codes must be used to reflect the appropriate amount and type of expense. You will need to enter the lease portion as a one line item and the maintenance portion as a second line item.
   
   Note: In the "Notes" or "Comments" section of the EFRA form, please indicate "This request is for a copier lease contract."

4. If estimates received from vendors by the Purchasing Services Unit differ from those submitted by departments and sites, adjustments will be made by the buyer at the time the contract is written. Departments and sites will receive copies of their contracts after they are approved by the Board of Education.

Lease/Purchase Agreements, Years Two through Five

The Accounts Payable Unit will re-encumber the amount of funds necessary to cover the terms of the contract using the same budget charge numbers as the previous fiscal year. No action on the part of the site or department is necessary.

If you wish to change the budget charge numbers to which the contract is expensed for fiscal year 2001-02, please complete the attached form and submit it to your budget analyst in the Budget Department, Eugene Brucker Education Center, Room 3209, no later than June 8, 2001.

Any questions or problems regarding service for copiers should be directed to the appropriate vendor. All other issues regarding exchange of equipment, establishment or termination of a contract, etc., must be directed to Yvonne Roper in the Purchasing Services Unit at (858) 496-8053.

Questions regarding this procedure may be directed to Sandy Davis, of the Accounts Payable Unit at (619) 725-7756.