GASB 87 New Lease Questionnaire - UGA as Lessor

This questionnaire is designed to gather information about lease type activities which could fall under the scope of GASB 87.


Important: This questionnaire is required to be completed by each University of Georgia department that enters into a contract with an outside firm to lease a UGA owned asset. These contracts should be sent to the UGA Real Estate Office for approval.


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GUIDANCE AND SCOPE

GASB 87 Guidance (definitions & info): Click here

GASB 87 Scope (specific examples): Click here

GASB 87 UGA as Lessor Quick Reference Guide: Click here

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CALCULATOR AND AMORTIZATION SCHEDULE

Present Value Calculator: Click here

UGA Lessor Amortization Schedule: Click here


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ADDITIONAL REFERENCE INFORMATION

DOAS Surplus Division: Click here

Disposition of Sale Policy: Click here

Create a Chartfield 1 code: Click here

Chartfield 1 Name Rules: Click here

Contact Information

Phone

Lease Type

Select the lease type from the dropdown list below, or if the lease type is not listed, please describe the type of asset being leased. (Note: If key entering, please press the "enter" key after adding your text.)

Select or enter value
Caret IconCaret symbol

Chartstring

Please enter the applicable chartfields below.

Do you have additional chartstrings to add?*

Lease Information (UGA as Lessor)

Is this a sale to an outside (non-UGA) customer?*

If the sale is to an outside customer, no further information is needed. Please note that if this is a sale to an outside customer, approval of sale will need to be obtained from DOAS Surplus Division (link on this form). See Disposition of Sale policy (link on this form).


Next steps: Please contact UGA's Asset Management team at property@uga.edu. They will handle receipt of funds and advise on next steps in working with DOAS. All funds would be collected at one time and no lease contract should be entered into without direct approval from DOAS. If applicable, Asset Management will advise you to send them DOAS approval so that they have it on file. Please submit the form to end the questionnaire. You will receive an automated email with your responses for your internal records.

Is this lease excluded from GASB 87?*

If you are unsure, please see the GASB 87 scope document (linked on this form)

If the lease is excluded from GASB 87, please enter the asset description in the box below. No further information is needed.


Next steps: Record a revenue as payments are received from entity. Use Rent Revenue account code 451100. Please describe the asset in the box below and submit the form. A copy of your responses will be emailed to you. Please save this internally for audit request support.

Per the contract, does the Lessee (outside customer) have a cancelable right to use the asset? Can outside customer stop the lease at any time without UGA input?*

If you're not sure, please see the GASB 87 Guidance document (linked on this form). The definition for "cancelable right to use" is on page 5. Normally, UGA lease contracts are written with “non-cancelable rights”, so this would be an uncommon situation.

If yes, the lease does not meet GASB 87 criteria. No further information is needed when the lease is determined to provide the outside customer with cancelable rights.


Next steps: Record a revenue as payments are received from entity. Use Rent Revenue account code 451100. Please submit the form. A copy of your responses will be emailed to you. Please save this internally for audit request support.

Will this lease extend greater than 12 months, including any renewal periods?*
At the beginning of the lease, is it likely that the outside customer will exercise the option(s) to renew?*

Note: There is a high probability that renewals will be accepted under UGA’s policy

If the lease does not extend beyond 12 months (including renewal periods, no further information is needed.


Next steps: Book a Rent Revenue in account code 451100 as payments are collected from the outside vendor. Please submit the form. A copy of your responses will be emailed to you. Please save this internally for audit request support.

Does the Present Value of Future Minimum Lease Payments (PVFMLP) exceed the Asset Capitalization Threshold (CAP) for the item being leased?*

The Present Value Calculator (linked on this form) is available for your reference.

•    Equipment > $5,000 = CAP

•    Buildings > $100,000 = CAP

Please upload your completed present value calculation and amortization schedule here. Both templates are linked on this form.

Drag and drop files here or

If the PVFMLP is less than the capitalization threshold, no further information is needed.


Next steps: Create a Chartfield1 code (instructions linked here) that begins with “INS” and record the Rent Revenue to account 451100. See Charfield1 Naming Rules (linked here). Save this document and submit the Chartfield1 Request.

Does the outside vendor have the right to control the asset by determining the nature and use of the asset as specified by the contract?*

If the outside vendor will not have the right to control the asset, no further information is needed. The lease does not meet GASB 87 criteria and Rent Revenue account code 451100 should be recorded as payments are collected from the outside vendor.


Next steps: Please submit the form. A copy of your responses will be emailed to you. Please save this internally for audit request support.

If the outside vendor will have the right to control the asset, please take the steps below.


Next steps: Create a Chartfield1 code (instructions linked here) that begins with “G87” and record the Rent Revenue in 451500 – Lease Rent. See Charfield1 Naming Rules (linked here). Please submit the form. A copy of your responses will be emailed to you. Please save this internally for audit request support.

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