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System Procedures
Chapter 5 - Administration
Click here for a PDF copy of this procedure.

Procedure 5.14.1 Computer Sales, Leasing and Support

for Board Policy 5.14

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Part 1. Authority.

Board Policy 7.1, Authority, delegates to the chancellor authority to develop procedures to implement this policy.

Minn. Stat. Section 136F.59, Technical Equipment - Computer Sales and Support, authorizes colleges and universities to sell computers and related products to state college and university staff and students to advance their instructional and research abilities. A private vendor must be contracted with for service, maintenance, and support of computers and related products sold by the college or university. This procedure does not apply to sales by contractors of the college or university, such as bookstore management firms.

Part 2. Guidelines

Pricing policy for computer sales, leasing, service, maintenance and support shall include at a minimum all direct costs; allocation of indirect costs is recommended. In addition, lease pricing must recover depreciation based on the reasonable expected life of purchased equipment, less any expected proceeds from sale of the used equipment.

Procurement practices must comply with all applicable laws. All equipment purchased to be held for resale must be recorded in an inventory of goods held for resale. Such equipment shall not be recorded in the college or university fixed asset inventory records.

Leases shall be supported by a written, signed lease agreement with the lessee. Lease agreements must be approved by the Office of General Counsel or the Attorney General's Office.

Computer sales, leasing and support activities must follow the procedures for auxiliary enterprise activities, including accounting and reporting requirements in System Procedure 7.3.2, Auxiliary Operations. It is recommended that budgeting and planning for lease activities include a reserve to cover estimated equipment losses and sales activities.

Part 3. Compliance

Colleges and universities are responsible for ensuring the programmatic and fiscal soundness of their computer sales and leasing programs.

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Approved: January 18, 2002

Related Documents:

Board Policy 7.1, Finance and Administrative Authority of the Board, Chancellor and Presidents Board Policy 5.14, Procurement and Contracts Procedure 7.3.2, Auxiliary Operations to view any of the following related statutes, go to the Revisor's Web site (http://www.revisor.leg.state.mn.us/). You can conduct a search from this site by typing in the statute number. Minnesota Statute 136F.581, Purchases and Contracts Minnesota Statute 136F.582, Customized Training; Local Contract Authority Minnesota Statute 136F.59, Technical Equipment; Computer Sales and Support, Cooperation with Office of Technology Minnesota Statute 168.012, Vehicles Exempt from License Fees Minnesota Statute 471.345, Uniform Municipal Contract Law Minnesota Statute 471.346, Publicly Owned and Leased Vehicles Identified

Date & Subject of Revisions:

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