2002-03 EXPENSES FOR LEASED COPIERS (MULITYEAR LEASE/PURCHASE AGREEMENTS ONLY)

Read procedures in this circular and submit Change of Funding form to the Budget Department by due date, if applicable.*

Attachment 1 - Change of Funding for Leased Copier

Attachment 1 - Change of Funding for Leased Copier

Brief Explanation:

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.

Timely payments to vendors for lease/purchase contracts for copiers are imperative in order to maintain reliable and uninterrupted service. These are multiyear contracts, typically for a term of five years, which include maintenance. You must prepare an Electronic Forms Routing and Approval (EFRA) requisition for service calls if you own your copier and do not have a current maintenance agreement in place.

Lease/Purchase of New Copier, Year One

1. Calculate estimate of lease payments due July 1, 2002 - June 30, 2003, including sales tax
   of 7.75 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 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 7, 2002.* 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 one line item and the maintenance portion as a second line item. In the "Notes" or "Comments" section of the EFRA form, please indicate, "This request is for a copier lease contract."
   *June 7, 2002, deadline date only applies to school sites that will not be in session during summer, but who expect to have contracts that will commence during the summer.
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 in the same budget charge numbers used in 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 those that the contract is expensed for fiscal year 2002-03, 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 7, 2002, if applicable.*

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, Accounts Payable Unit at (619)
725-7756.

*June 7, 2002, deadline date only applies to school sites that will not be in session during summer, but who expect to have contracts that will commence during the summer.