The University leases facilities and equipment as required by normal operations with the intention to support the mission of instruction, research and public service.
December, 1986
revisedOctober, 2019
June, 2020
Responsible OfficeComptroller
Comptroller
The Office of the Treasurer is responsible for classifying leases of equipment in the year of their origination as either operating or capital leases in accordance with the applicable financial accounting pronouncements.
Facilities and Real Estate Services (FRES) is responsible for classifying facility leases in the year of their origination as either operating or capital leases in accordance with the applicable financial accounting pronouncements.
FRES is responsible for the relationship with outside landlords acting as agent in the rental of third-party property and the payment of related rental expense
All leases or letters of agreement for rental of leased property must be executed by the Vice President of FRES.
The Office of the Comptroller is responsible for ensuring proper accounting for all leases during the life of the lease in accordance with the applicable financial accounting pronouncements.
*Effective July 1, 2019, the incremental borrowing rate used to discount the University’s leases will be sourced from the “High Quality Market (HQM) Corporate Bond Yield Curve” published monthly by the US Treasury.