Policy University Management FMPM 400 - FMPM 499 - Liabilities FMPM 470 Leases (Excluding Real Property)
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 | Chief Financial Officer |
Definitions (Related Glossary Terms)
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
Chief Financial Officer
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 Chief Financial Officer 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 Domain | University Management |
Policy Sub-domain | Finance |
Policy Custodian | Chief Financial Officer |
Approval Authority | Vice Chancellor |
Date for next Major Review | 08/2018 |
Revision History
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) |