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THE STATE OF KANSAS EQUIPMENT LEASE PURCHASE PROGRAM
The Master Lease Purchase Program is available to State agencies for the lease purchase
of equipment at low, tax exempt interest rates, generally at a much lower cost than vendor
or third party financing. The Program is administered through the Department of Administration.
The Program began in 1985 with the issuance of Certificates of Participation and has
evolved to the current Program that utilizes a line of credit to provide low interest,
lease purchase financing of equipment. To date, $152 million in equipment has been financed
or refinanced. Communication systems, medical equipment, laboratory equipment, vehicles,
copiers, computers, software, and printers are a few examples of the types of equipment
the Program has financed.
2 - 6 Year Term Financing:
The Department of Administration entered into a contract with Capital One Public Funding effective April 15, 2009. Two, three, four, five and six-year
financing terms are available. Average Program interest rates for quarter ending September 30, 2009 are:
2 YR. 3.99% 3 YR. 4.04%
4 YR. 4.36% 5 YR. 4.72%
6 YR. 5.00%
General Procedures for using the Master Lease Programs:
The current Agreement allows requests for disbursement of funds to be made twice
each month. This provision allows vendors to be paid twice each month. Vendor
payments are made directly from the Program. Generally, all requests for vendor
payments received by the Program by the 6th, will be included in the request for
disbursement processed for and received on the 15th of the month, and requests
for vendor payments received by the 21st will be included in the request for disbursement
processed for and received on the last day of the month. We encourage state agencies
to forward requests for vendor payments throughout the month to accommodate established
processing cutoff dates.
- A purchase order signed by the Director of Purchases or an agency purchase order signed
by an authorized Agency representative must be received by the Master Lease Purchase Program
to initiate the equipment financing process. This document is reviewed to verify that
the purchase follows State of Kansas purchasing policies and is within the equipment financing
guidelines.
If the order is handled through the Division of Purchases, the Agency informs Purchasing
that the equipment will be financed by the Master Lease Purchase Program. Purchasing will
send copies of the completed purchase order to the Program. If the equipment is ordered
by the Agency, the agency purchase order should indicate the contract number or other
appropriate purchasing authorization.
If a vehicle is being financed, the agency must submit a copy of the approved Vehicle
Purchase Request Form with the documents sent to the Program.
Financing terms of 2 years through 6 years are available. The financing term should not
exceed the useful life of the equipment. The financing rates change semi-monthly based
on an established financial index. The rate in effect at the time a piece of equipment
is financed will remain fixed for the remainder of its financing term.
- The agency is sent initial Program documents that include an agency agreement (if one
has not previously been signed) and an equipment identification certificate. The agency
agreement is the document which provides for the state agency participation in the
Program. The equipment identification certificate provides for specific agreement
concerning each equipment financing.
- The agency signs and returns the agency agreement.
- After the equipment is received, the agency completes the information on the equipment
identification certificate and returns it to the Program along with an approved invoice
for payment to the vendor.
- The vendor is paid through the Program. Funds are disbursed from the finance provider
on the 15th of each month (or following business day if the 15th falls on a weekend) and
the last day of the month (or previous business day if the last day falls on a weekend),
and payment vouchers are processed through the State accounting system the following business
day.
- After payment to the vendor, the agency receives a payment statement showing repayment
amounts and due dates. Monthly, quarterly, semi-annual, or annual repayments may be established.
- Repayments are made through the SOKI³ system. All interfund vouchers will be initiated
by the Program staff per the payment statement.
- The Program staff monitors agency repayments and is responsible for semi-annual payments
to the line of credit provider.
Questions concerning the Master Lease Purchase Program should be directed to Doris Patterson or Roger Basinger at:
Department of Administration
Division of Accounts and Reports
900 SW Jackson, Room 351S
Landon State Office Building
Topeka, Kansas 66612-1248
Telephone: 785-296-2605
FAX: 785-296-6841
E-Mail: Doris.Patterson@da.ks.gov
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