Rental fees may be included as authorized transportation expenses (eligible for state aid) if the following conditions are met: If you have any questions regarding school bus rentals, contact the Minnesota Department of Education`s School Transportation Specialist by emailing the School Transportation Coordinator. If the lease agreement results in ownership of the school bus (installment purchase) at the end of the lease agreement, the lease payment is not considered authorized and must be recorded in La Dimension Finance 733, Unauthorized, and Object Dimension 535, Capital Leases. Rental fees must be identified by the 370 dimension of the object, rentals and rentals. If the rented school bus is used for many categories of transportation services, the rental fee must be apportegorized among all the different categories of transportation services, in accordance with Minnesota Statutes, Section 123B.92. For example, when a rented school bus is used to transport students with disabilities to and from school (Dimension 723 Financial) and take students on excursions (Dimension 733 Financial), the cost of the lease must be allocated across all funding dimensions based on the number of miles incurred for each category of transportation services. Recent changes in transportation funding have forced school districts to explore other ways to replace older school buses. Some school districts have started supporting school buses. The school bus must be used for a category of transport approved for the financing of transport. For example, expenditure recorded in financial dimensions 720 and 726 (non-regular and non-public expenditure) is used to calculate non-public financing of transport. The expenditure entered in the financial dimension 723 (disabled) is used to calculate the financing of special school transport. During the lease agreement, the dealer or manufacturer must appear on the certificate of ownership as owner. The school district cannot be listed on the Certificate of Title because it indicates ownership.
The lease entered into by the borough does not lead to the ownership of the school bus at the end of the lease. The school bus must be returned to the leasing company or concessionaire. (The district may purchase the school bus from the rental company or dealer if the purchase was not part of the lease agreement. For more information, see the next paragraph). If, at the end of the lease, the school district decides to purchase the school bus from the leasing company or concessionaire, the district must pay the market value of the school bus. the purchase of the school bus would be covered by the financial dimension 302 if it were purchased on the Total Operating Capital account; Financial Dimension 733 or Financial Dimension 000 when purchased from public funds. Districts should use the object dimension 548, Pupil Transportation Vehicles. . . .