End of Lease Procedures
At the end of the lease term leased equipment must be either returned to Alleasing Finance Pty Ltd (“The Lessor”) or another option selected as described below. The University is obliged to advise Alleasing Finance Pty Ltd of its preferred option 3 months prior to the lease end date and to comply with other requirements. This document is intended to assist custodians and managers to meet these obligations.
The end of lease process should be trouble free provided Managers, Supervisors and Custodians endeavour to understand the steps described in this document. For a high level summary of the end of lease procedure, please refer to the Expiring Contract Engagement Flowchart.
Any questions, issues or suggestions are welcomed, and should be forwarded to .
- Identification of the equipment for return
- Make a decision as to intentions
- Prepare equipment for return, and
- Package equipment for collection
These are covered below.
Alleasing will provide a list of expired assets & assets that are due to expire in 3 & 6 months directly through to the Associate Directors of Finance via email notification on a quarterly basis. Please refer the Expiring Leased Asset Calendar for specific dates. The notification sent to each ADF will only contain information on leased assets specific to their area of responsibility. To facilitate this, a list of responsibility centres & corresponding associate directors of finance has been provided to Alleasing where each leased asset will have an Associate Director of Finance, Responsibility centre & custodian against it.
The advice will comprise a list of the items identifying the following:-
- Associate Director of Finance, RC code, Custodian, Portfolio
- Sydney University Asset ID, Asset Tag, Alleasing Asset Master Code
- Serial Number
- Asset type
- Asset description
- Expiry date
Please refer to this sample Notification of Expiring Assets.
Management and custodians will need to locate and identify the listed equipment as soon as possible once the advice has been received. This task may require a search if the equipment has been moved without a corresponding update to the lease records held in PeopleSoft.
Where the original equipment cannot be located the following are the options available to the University:-
- A substitute item can be returned to the Lessor. This must be of equal of better specification.
- The assets can be purchased at the market value which was provided on the Notification of Expiring Assets Template.
Included with the list will be instructions for the steps described below.
The agreement with Alleasing Finance Pty Ltd is for written advice of intentions to be provided 3 months prior to the lease end date. Associate Directors of Finance will be provided with advanced notice 6 months prior to lease end, thereby providing 3 months in which to make and plan for the decision. Reminders will be issued on a monthly basis. Please refer the Expiring Leased Asset Calendar for specific dates.
The Associate Directors of Finance are expected to consolidate the decisions made by Finance managers & custodians & respond back to Alleasing of your intentions by the due date. Once made, the decision cannot be changed without negotiation with the lessor.
A decision is required for each asset from the options available, i.e.:-
- Return the equipment only
- Return and replace
- Extend the lease. A cost evaluation between extending and replacing must be considered noting the below but extension is generally not recommended
- Where the installation date of replacement equipment is uncertain, extend the lease in 3 month increments
- Where a beneficial product release is imminent from one of the University’s preferred vendors, extend the lease. For example, a processor or Operating System upgrade
- Where the lease end timing could mean teaching and research activities will be inconvenienced, extend the lease
- A comparison of lease costs for new equipment may also influence your decision
- It is not permitted that the lease be extended beyond a further 12 months
Lease extensions are available with the below available on IT Equipment rented over a 3 year period:
- 3 month extension at 75% original rental
- 6 to 9 month extension at 60% original rental
- 12 month extension at 50% original rental
Casual ongoing extension of equipment quarter to quarter is available at 75% standard rental.
Extension options for all other asset types are available upon request.
Where the notification of intention is not provided in a timely manner the rental schedule will automatically renew on a quarterly basis at 75% of the standard rental value.
The University may offer to buy from the lessor at current market value which was provided on the Notification of Expiring Assets Template. This is not a guaranteed option.
The following should be considered when making this decision:-
- This decision can be made on a group basis for all items that are expiring for a specific operating unit, or on an item by item basis.
- The decision will require approval in accordance with usual delegations of authority.
Where the decision is “replace and return” the replacement machines must be ordered in time for installation prior to the return date. This activity is critical. The rent free period in the first quarter of possession facilitates this. A Sample Timetable demonstrates a return and replace scenario.
The lessor will arrange for collection as described below. Equipment can be returned earlier that the expiry dates shown by contacting the Lessor to arrange charges may apply for collection outside of standard collection dates.
Prior to expiration of the Vendor Warranty it is strongly recommended that all equipment is checked for necessary repairs which can be undertaken under the warranty. To check on warranty expiration date contact the hardware vendor.
All items received at installation and financed through the lease must be returned. If possible, original CDs should be included. Do not return manuals and other publications.
The components need not be the originals but must of equivalent or better quality. For example, a 15" LCD monitor or a CRT monitor cannot be substituted for a 17" LCD Monitor. A 2.8 MHz Pentium 4 cannot be substituted for a 3.2 MHz machine. A custom built desktop can be substituted for a Dell supplied machine, if agreed to with the lessor (subject to confirmation that manufacturer of custom built desktop is of suitable standard).
All components must work:-
- the machine must be bootable to the BIOS level
- mouse and keyboard work
- notebook batteries must be capable of holding a charge (and must be charged).
The area will be invoiced by the lessor for the replacement of any non-working components and any damage beyond normal wear and tear.
The agreement declares that "fair wear and tear does not include physical loss, damage or destruction, screen burn or flat batteries necessary for normal working order.”
Ensure the software OS license sticker is still attached to the unit.
The equipment must be prepared for return by:-
Removing all University related files and data. You may choose to use one of the methods described below:-
- Erase hard disks prior to return (preferred action). Where the machine has files which may contain sensitive information it is strongly recommended that the hard disk be completely erased using a comprehensive erasure tool. For more information contact the ICT Helpdesk on x16000.
Ensure all required files and data have been transferred first, as this facility erases the hard disk completely and recovery of the data is then not possible by any means. This facility requires the software to be written to CD. A CD is available at no cost from
- Rely on the removal process provided by the Lessor where you are certain the computer contains no sensitive files. The Lessor has undertaken to erase all data from the hard disks of returned computers. This is done through an outsourcing arrangement the lessor has in place, and that company has provided oral assurance that their erasing process can be relied upon. For computers with no sensitive files this arrangement will be adequate.
Removing all University specific labels, for example, the ICT Helpdesk sticker.
Note that the Lessor will invoice the University for damaged, missing or non-working equipment other than normal wear and tear. This will be charged to the last known account code for that item of equipment.
It is recommended that an inspection process be used to verify the suitability for return and to document to condition of the machine. A Lease End Inspection Checklist is provided for this purpose.
The equipment must be prepared for transport to the lessor’s premises. The equipment is then matched against the original specifications and for damage beyond normal wear and tear.
The Lessor has advised that returning equipment should be packaged for return and recommendations for this are provided below.
The lessor’s logistics provider has advised that equipment need not be packed at all provided that it has been collected and sorted ready for transport. They will carefully pack on pick-up to avoid damage in-transit.
If possible, packing the equipment is preferred to minimise the potential for damage. Equipment does not need to be packaged in boxes, although this is strongly recommended if boxes are available to minimise damage whilst in transit. Some areas may have re-useable boxes in which replacement machines have been supplied. Smaller items such as notebook computers should always be packaged in boxes.
If boxing is not possible the machines need a minimal level of protection by placing in plastic bags, bubble wrap, plastic wrap, and recycled cartons or similar. This is recommended to minimise damage whilst in-transit and resultant disputes.
Refer to Packaging Recommendations for detailed suggestions.
All components of each "bundle" must be packaged together. That is the system unit, monitor, laptop & docking station, with the exception of all keyboards & mouse devices which can be packed in a separate box.
Ensure that each item is clearly marked with the serial number which matches the listed item. This is especially important of the item is not the original but a substitute.
Collections are currently scheduled four times a year in:-
- Late March
- Late June
- Late September
- Mid December
Please refer the Expiring Leased Asset Calendar for more specific dates on expected pick up periods.
It is the responsibility of the Department/School to ensure that all leased equipment due for collection is transported to their allocated pick up point on time and at the Departments/Schools own cost.
A Collection Manifest listing leased asset collections will be signed by:-
- University's Department/School representative when dropped off at allocated pick up point
- Lessor’s Carrier when picking up from University premises for transport to Lessor’s premises.
The courier will always sign for the number and type of assets being collected and will have a Collection Manifest pre-populated with this information based on intention advice received from the University.
University’s department/School representative will be provided a copy of the signed collection manifest.
The collected goods will then be tested by the collections agent at their premises & a manifest containing the specific assets collected including serial number will be provided to Alleasing. Alleasing are to then reconcile this information with the notification of intentions provided by each Associate Director of Finance & update their records accordingly. Should there be any discrepancies between the returned goods & the expected goods, the relevant Associate Director is to be informed in order to find a resolution.