RENTS AND LEASES TCCs (451 - 456)

The rents and leases category is utilized for rental or lease expenses of land, buildings, or equipment incurred by the University where a contract exists with an external party.

Land Rental - (TCC 451) - Should be used for making rental or lease payments for the use of land. Under this arrangement, the University does not own the land, either during, or at the end of the contract's term. For purchase of land see TCC 701 (Land purchases and Site preparation). Subject to 1099 reporting.

Building Rental - (TCC 452) - Should be used for making rental or lease payments for use of building space. Under this arrangement the University does not own the building, either during, or at end of the contract's term. For purchase or construction of a building see TCC 702 (Improvements). TCC 545 (Banquets and Meetings) should be used for conference and meeting room rentals. Subject to 1099 reporting.

Equipment Rental - (TCC 453) - Should be used for making rental or lease payments for the use of equipment. Under this arrangement, the University does not own the equipment, either during, or at the end of the contract's term. Also, this equipment would not be recorded on the University's equipment records or given a University tag number. An example is cylinder rental.

Exception - In Unrestricted Appropriated funds (fund range 3000 -3999), this TCC may be used to acquire equipment on a lease/installment contract. Under this arrangement, the University would have title and the item would be recorded on the equipment records.

This TCC does not include the rent or lease of data processing equipment (see TCC 441), computer software (see 442), Films (TCC 518), office equipment (TCC 462), or aircraft (TCC 454). Subject to 1099 reporting.

Aircraft Leases - (TCC 454) - Should be used for making rental or lease payments for the use of an aircraft. Under this arrangement, the University does not own the equipment, either during, or at the end of the contract's term. Also, this equipment would not be recorded on the University's equipment records or given a University tag number. Subject to 1099 reporting.

Capital Lease Installments - (TCC 455) - Should be used for making payments that liquidate capital leases payable. Under capital leases, the University owns the equipment and this equipment should be recorded on the University's equipment records and given a University tag number.


Capital Leases - IT Equipment - (TCC 456) - Should be used for making payments that liquidate capital lease payable when the equipment acquired is used for information technology. This TCC was established 11/23/99 and will be used to track information technology expenditures for NDSU's information technology plan. Under capital leases, the University owns the equipment and this equipment should be recorded on the University's equipment records and given a University tag number.

    
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