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Equipment Leases

Directive Statement

All lease payments made on behalf of the University of Florida must be encumbered and processed as encumbered payments.   Recurring payments should not be made until majority of the service has been received.

For installment payments:

  1. For monthly installments, payments should not be made until the 24th of the month
  2. For quarterly installments, payments should not be made prior to the 24th of the second month of the quarter

Reason for Directive

To ensure funds are appropriately encumbered and payments are made in a timely manner.

Who must comply?

All UF departments.

Definitions

Encumbrance

An encumbrance represents a commitment, which generally results from the issuance of a purchase order for which goods or services being purchased have not yet been received.  Since the goods or services being purchased have not been received, they are not considered a liability and therefore, no legal obligation to pay exists.  Encumbrances are deducted from budget balances.  This is done as a budgetary control and should not be construed as an actual expenditure.

Last Reviewed

05/01/2020: reviewed content

Contacts

Disbursements: (352) 392-1241

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