What is required if leasing equipment for more than 60 days?

When leasing equipment for more than 60 days, a written justification is required to ensure that the decision is properly documented and provides a clear rationale for the lease. This requirement is vital because it establishes accountability and transparency in the decision-making process, particularly for longer-term commitments.

Leasing equipment for an extended period generally signifies a significant financial commitment and could impact budgets and resources. Therefore, having a written justification allows for thorough analysis and consideration of alternatives. It also aligns with contractual obligations and regulatory requirements, which often necessitate proper documentation for transactions exceeding a specific threshold, such as 60 days.

While oral confirmation might be sufficient for short-term leases or less significant transactions, it lacks the permanence and clarity that written documentation provides. An equipment purchase agreement is unnecessary in this context, as the focus is on leasing rather than buying. Lastly, while approval from the financial department is important for fiscal oversight, the foundational requirement in this scenario is the provision of a written justification for the lease itself. This ensures that all decisions are backed by evidence and can be revisited for review or audit purposes.