Leasing ICT Equipment

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Leasing ICT Equipment

• Circulation SLTS website only
  SLTS/8035/06
• v. 1.0
• April 2006

CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Overview

• Process summary
• Calculating costs
• Leasing model
• Questions

CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Process Summary

• A leasing exercise is undertaken by SLTS on
  behalf
• of schools at the start of each academic term,
  i.e.
• September (Autumn term)
• January (Spring term)
• May (Summer term)
• A briefing document is circulated to all schools
  to
• initiate the exercise.

CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Process Summary

I. School Requirements Schools return a
pro-forma (contained within the briefing
document) where they specify what equipment they
require for inclusion in that terms exercise.
This information is provided to Corporate
Finance to help quantify a potential lease
draw-down figure. (currently only PCs and
laptops are available for leasing)
CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Process Summary

• II. Procurement
• Once equipment requirements have been received
• from schools, they are collated and a collective
• procurement exercise is undertaken.
• Delivery Installation
• A delivery and installation schedule is organised
  by
• SLTS in conjunction with the supplier and
  individual
• schools.

CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Process Summary

IV. Annual Rentals Corporate Finance will have
paid the original invoices for the equipment
prior to ownership being transferred to a
finance company upon arrangement of the lease
agreement Schools will be re-charged for the
annual rentals once per financial year (for each
of the 3 years of the lease agreement).
CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Process Summary

V. End of lease Equipment is returned to the
finance company at the end of the lease
period. SLTS will facilitate this on behalf of
schools, however, any costs directly
attributable would need to be borne collectively
by the schools involved. It is important to
highlight the return of equipment is in line
with the terms and conditions of the lease
agreement
CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Calculating Costs

• A Leasing Calculator is
• available to schools to
• forecast likely costs for
• leasing equipment
• based on
• various scenarios
• - Year group sizes and ratios
• - Whole school calculation
• - Number of computers calculation

CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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Leasing Model Example

School PC stock 30 PCs
Year 1 10 PCs
Year 2 10 PCs
Year 3 10 PCs
END OF CYCLE
Year 4 10 PCs
Annual Rental 1,344
Annual Rental 1,344 1,344 ---------- 2,688
Annual Rental 1,344 1,344 1,344 ---------- 4,
032
Annual Rental 1,344 1,344 1,344 ---------- 4,
032
CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE
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QUESTIONS
CITY AND COUNTY OF SWANSEA DINAS A SIR ABERTAWE