Douglas Slade
DS/MAS
DS/8563 01603 2225514 September 2001 01603 222505
douglas.slade.edu@norfolk.gov.uk
To: Headteachers
All Schools
Dear Headteacher
COMPUTER LEASING
Further to my letter of 18 May, an agreement has been reached with Research Machines Plc and GE Capital Equipment Finance Ltd that subject to certain conditions, computer equipment purchased from the former and financed by the latter will be deemed to be an operating and not a finance lease. As a result, such arrangements are permitted under Norfolk's scheme for Fair Funding.
This arrangement therefore provides an additional option to schools wishing to acquire computer equipment over and above those that already exist, namely outright purchase or use of the Capital Expenditure Loan Scheme offered by Education Financial and ICT Services.
Although this new agreement has been reached, any proposal being considered by a school must still be referred to me prior to signature in order that I can ensure the prescribed conditions agreed with GE Capital Equipment Finance Ltd have been adhered to.
All other leases for computers must be presumed to be finance leases and therefore not permitted.
Another reason for referral is to ensure the proposal offers Best Value to the school, as leasing is an expensive option. If the school really cannot afford to meet the cost of acquisitions from a single year's budget and the only option is to spread the cost over a number of years, past experience has shown that the Capital Expenditure Loan Scheme is significantly cheaper than commercial leasing. If you would like more information on this please contact Glen Reynolds on 01603 222809, or by email at
glen.reynolds.edu@norfolk.gov.uk.Yours sincerely
Douglas Slade
Chief Education Accountant