IS-1410 Equipment Inventory Adjustment

Introduction

Any department can request an adjustment of property by completing either an Equipment Transfer form, Equipment Disposal form, or Equipment Missing, Lost, or Stolen form and routing it to the appropriate dean/supervisor for signature. All property is transferred, moved, sold, auctioned, donated, traded in, or recycled into CNM inventory through the Property Control Office.  

1. Disposition of Tangible Personal Property

(Resale Value Less Than $5,000; Initial Cost Less Than $5,000)

Initiator

1.1 Donations.  If a department is requesting to donate equipment, complete an Equipment Disposal Form and include the name, address, and contact person for the organization identified to receive the donation.  The Property Control Office will verify that the organization is qualified to receive a donation in accordance with NMSA 1978, § 13-6-1, as amended. The donation of tangible personal property to any CNM employee is strictly prohibited.  

1.2 Disposal of Equipment. If multiple non-capitalized equipment items will be disposed of, consolidate the list of items and attach it to a single Equipment Disposal Form.  The list should include all the required information as stated on the Equipment Disposal Form.  

1.3 Trading in Equipment. If equipment will be traded in, the initiating department is responsible for submitting a Purchase Requisition (“PR”) to Purchasing for the new equipment.  Attach a copy of the Equipment Disposal Form with the PR.  The appropriate dean or supervisor will then review and approve the PR, sign the Equipment Disposal Form, and route to the Property Control Office for processing. 

1.3.1 If the equipment will be traded in, hold the Equipment Disposal Form until a Purchase Order is processed for the new equipment. The initiating department is responsible for submitting a requisition to Purchasing. 

Dean/Supervisor

1.4 Review and sign the Equipment Disposal Form and route to the Property Control Office for processing. 

Property Control

1.5 Make the necessary adjustments in Workday to indicate a change in the inventory status. Contact the initiator if any problems are noted on the form or backup documentation. Sign the document, upload the form and backup documentation into Workday, and e-mail a copy of the form and any backup documentation to the appropriate asset coordinator. 

1.6 If the item to be disposed of is either a motor vehicle or digital equipment with storage capabilities, see the additional requirements set forth in Section 4 or Section 5 herein.  Contact the person who initiated the equipment inventory adjustment if any problems are noted on the form or on backup documentation. 

1.6.1 If the equipment will be sent to auction or sold through a sealed bid, proceed with the pick-up of the equipment with assistance from the Shipping & Receiving Department. 

1.6.2 If the equipment will be donated, prepare a CNM Donation Letter. 

2. Disposition of Real Property or Tangible Personal Property

(Resale Value Greater Than $5,000; Initial Cost $5,000 or More)

2.1 Follow steps 1.1 through 1.5 as set forth in Section 1 above.  

2.1.1 Capitalized equipment requires a separate individual Equipment Disposal Form for each item. 

2.2 Property Control submits the Equipment Disposal Form, along with any attached documents, to the Capital Outlay Committee for consideration.  Submissions to the Capital Outlay Committee should be coordinated through the Associate Vice President of Budget, Finance & Planning. 

2.3 Upon approval of the proposed disposition by the Capital Outlay Committee, Property Control sends the proposed disposition to New Mexico Higher Education Department for approval via e-mail and, at the same time, sends notification of the proposed disposition to the Office of the State Auditor.    

2.4 If the item to be disposed of is either a motor vehicle or digital equipment with storage capabilities, see the additional requirements set forth in Section 4 or Section 5 herein.    

2.5 Equipment cannot be disposed of until after a 30-day period has expired following submission of the request for approval to the Higher Education Department and notification to the State Auditor’s Office.  Disposition of real property may require review by additional oversight agencies, adding longer approval times.  

2.6 A list of capitalized equipment trade-ins will be submitted to the fixed assets accountant at the end of the fiscal year for reconciliation purposes. (Note: Because of NMSA 1978, § 13-1-156 requirements, this is rare.) 

3. Disposition of Tangible Personal Property

(Resale Value Less Than $5,000; Initial Cost $5,000 or More)

3.1 Follow the steps outlined in Section 2.1 and 2.2 above.  

3.2 Upon approval of the proposed disposition by the Capital Outlay Committee, Property Control sends notification letters to the Office of the State Auditor and the Higher Education Department.      

3.3 Equipment cannot be disposed of until after the 30-day period has expired following notification to the State Auditor’s Office and the Higher Education Department. Disposition of real property may require review by additional oversight agencies, adding longer approval times.  

4. Motor Vehicles

4. The original acquisition cost of the vehicle determines the disposition process. Follow the steps outlined in Section 3 above for capitalized vehicles.  For non-capitalized vehicles follow the steps outlined in Section 1.  

Parking and Fleet Services

4.1 Ownership of a vehicle title shall be held by Parking & Fleet Services.  To release CNM’s ownership of a vehicle, the vehicle title must be signed by the Director of Parking and Fleet Services or designee. 

4.2 Parking and Fleet Services must sign the Equipment Disposal Form for all vehicles.  

4.3.1 If a title is lost, the Director of Parking and Fleet Services or designee must contact the New Mexico Motor Vehicle Department, P.O. Box 1100S, St. Francis, Santa Fe, NM 87504. 

4.4 All CNM logos and graphics must be removed from the vehicle prior to disposal.  

4.5 Submit a list of dispositioned vehicles to Risk Management each year. 

Property Control 

4.6 If a vehicle is sold at auction or through a sealed bid process, a fixed asset accountant will credit the appropriate account when the sale is completed.  

4.7 Donated vehicles will be dispositioned per the terms of the agreement with the donor. In the absence of an agreement, CNM shall follow standard disposal process.  The vehicle may also be crushed if deemed non salvageable. and has no value.  See NMSA 1978, § 13-6-1(G), as amended.  

4.8 Vehicles that are loaned to CNM are disposed per the terms of the agreement with the manufacturer. 

5. Digital Equipment with Storage Capabilities

5.1 Computers, tablets, mobile phones, external hard drives, and any other digital equipment with storage capabilities shall be sanitized, erased or shredded prior to disposition.  

6. Missing, Lost, or Stolen Property

Initiator

6.1 If CNM property is suspected of being lost or stolen, notify Property Control and identify the property as either missing, lost or stolen. The asset coordinator shall contact the CNM Security Department to file a Security Incident Report. If the property is stolen off campus, a local police report is also required.   

6.2 Property may not be reported as stolen unless there is evidence of theft. 

6.3 The asset coordinator will obtain a copy of the Security Indent Report and local police report, if applicable. 

6.4 Complete the Equipment Missing, Lost, Stolen Form. Sign and submit for signature to the appropriate dean/supervisor. Include the Security Incident Report and, if available, the local police report.  

Dean/Supervisor

6.5 Review and sign the Equipment Missing, Lost, Stolen Form and route the form and security/police reports to Property Control for processing.

Property Control

6.6 Upon receiving the Equipment Missing, Lost, Stolen Form, and reports, make the necessary adjustment in Workday to indicate a change in the inventory status. Contact the initiator if any problems are noted on the form.     

6.7 Sign the document and upload the document and Security Incident Report into Workday. Send a copy of the form and Security Incident Report to the appropriate asset coordinator, their dean/supervisor, and the internal auditor via e-mail A detailed report listing missing, lost, or stolen equipment will be e-mailed to the State Auditor’s Office. 

7. Grant-Funded Equipment

All equipment purchased with grant funds shall be disposed of in accordance with the terms of the grant agreement. CNM’s Business Office may be contacted if there are questions regarding the disposition of grant-funded equipment. 

8. Definitions

Equipment — Capitalized

• The item’s cost is $5,000 or greater. 
• The capitalization threshold prior to June 17, 2005 was $1,000 or greater.  Older capital assets that were capitalized under previous lower capitalization thresholds were not removed from capital assets. 
• The item is non-expendable (if the article is damaged or its parts are lost or worn out, it is usually more feasible to repair rather than replace); 
• The item does not lose its identity through incorporation into a different, more complex unit; 
• The item is a set of items which individually have a unit cost below $5,000, but the aggregate exceeds $5,000; 
• All artwork, regardless of cost. 

Equipment — Non-Capitalized

• The item's cost is $1,000 or greater and less than $5,000; 
• The item retains its original shape or appearance; 
• The item is non-expendable (if the article is damaged or its parts are lost or worn out, it is usually more feasible to repair rather than replace); 
• The item does not lose its identity through incorporation into a different, more complex unit; 
• The item is a set of items which individually have a unit cost below $1,000, but the aggregate exceeds $1,000, such as a tap and die set or drill index; 
• All desktop computers, laptops, and tablets, regardless of cost. 

Forms

Support Materials