Comptroller's Office
 Policies and Procedures Manual

Effective: 01/01/2000
Revised: 03/09/2012 

CMP 430-16: Rentals/Leases


Purpose

To list and define the rentals/leases object and sub-object expenditure codes


Source

Advantage accounting system

Discussion

Continued payments for rentals and leases (operating leases) do not create a transfer of title to NAU, unlike lease/purchase agreements, which provide for transferring the title to NAU upon completion of a predetermined number of payments.

A copy of Federal Form 1099 is sent to all providers of rental services annually when expenditures total $600 or more, or if royalty fees/copyright payments total $10 or more, except for providers that are colleges or universities, corporations, or university departments. The sub-object codes provide information that is used by the university to generate Federal Form 1099.


Codes

Sub-object Code Name Code Number Definition
Object Sub-
object
Rentals-Buildings/Office/Classrooms
7360
10
Payments made to rent or lease structures, such as mobile office buildings or commercial office space for  These payments do not include expenditures for lease/purchase agreements.
Computer Leases 7365 10 Payments made to rent computers and related peripheral equipment. These payments do not include expenditures for lease/purchase agreements.
Rentals-Radio Broadcasting 7360 65 Rental of equipment for broadcasting of athletic events
Copier/Duplicating Equipment 7360 90 Payments made to rent copier/duplicating equipment. These payments do not include expenditures for lease/purchase agreements.


Definition


Rentals/Leases
Payments for the use of tangible and intangible property made to the owner at predetermined intervals or at the time of use.


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