State Equipment Lease Purchase Program

THE STATE OF KANSAS EQUIPMENT LEASE PURCHASE PROGRAM

The Master Lease Purchase Program (MLPP) 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. 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.

Financing Terms: Please contact MLPP Staff for current rates.

General Procedures for using the Master Lease Programs for agencies that are exempt from Purchasing Procedures:

Vendor payments are made directly from the Program for Regents institutions and other agencies that are exempt from Purchasing Procedures.  Agencies that are not exempt, pay vendors directly and are reimbursed by the Program (see second procedure). 

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. 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.

1. A purchase order approved by the Director of Purchases or an agency purchase order approved by an authorized Agency representative must be received by the Master Lease Purchase Program to initiate the equipment financing process.

   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.

   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.

2. 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.

3. The agency signs and returns the agency agreement.

4. 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.

5. 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 SMART the following business day.

6. 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.

7. Repayments are made through SMART Interfunds. All interfund vouchers will be initiated by the Program staff per the payment statement.

General Procedures for using the Master Lease Programs for agencies that are not exempt from Purchasing Procedures:

Agency will create a Requisition in SMART and pay the vendor from agency funds.  The Agency will then be reimbursed from the Program for the amount they wish to finance.

1. Agency communicates financing needs to Program staff.
2. 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 that provides for the state agency participation in the Program. The equipment identification certificate provides for specific agreement concerning each equipment financing.
3. Agency initiates requisition in SMART for equipment purchase and uses the Account 299999, MLPP Clearing.
4. The requisition is budget checked, but there is no budgetary impact.
5. The requisition is sourced to a PO and budget checked, but there is no budgetary impact.
6. The PO is sourced to a voucher and budget checked, but there is no budgetary impact.
7. Agency returns signed ID Cert and copy of invoice to Program staff.
8. Agency is reimbursed by SMART Interfund. Agency again uses Account 299999 for Interfund deposit.
9. After financing, the agency receives a payment statement showing repayment amounts and due dates. Monthly, quarterly, semi-annual, or annual repayments may be established.
10. Repayments from the Agency to the Program are made through SMART Interfunds. 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.

For additional Information, please contact: 

Email: Pat Higgins
Phone: (785) 296-2145