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IS-1410 Equipment Inventory Adjustment

Administration

Release Date: 6/18/98
Revision 1: 8/3/01
Revision 2: 5/3/06
Revision 3:  8/9/07
Revision 4: 3/8/16

1. Disposition of Tangible Personal Property

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

Any department or area can request an adjustment of property by completing a Transfer/Disposal/Missing Document 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. 

Initiator

1.1 Donations.  If requesting to donate equipment, attach a page to the Equipment Inventory Adjustment document with the name address, and contact person for the recommended organization.  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. 

1.2 Disposal of Equipment. If several equipment items will be disposed of, attach a list of items to one Equipment Inventory Adjustment form.  The list should include the CNM tag number, description, and serial number.  Disposal should take place using one of the methods set forth in Section 8.05(B) of the Governing Board Handbook. 

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 Inventory Adjustment form for the trade-in to the PR.  The appropriate dean or supervisor will then review the PR, sign it, and route the Equipment Inventory Adjustment form to the Property Control Office for processing.

1.3.1 If the equipment will be traded in, hold the Equipment Inventory Adjustment 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 Inventory Adjustment form and route to the Property Control Office for processing.

Property Control

1.5 Make the necessary adjustments in Banner 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, scan the form and backup documentation into OnBase document imaging, and e-mail a copy of the form and any backup documentation to the appropriate inventory custodian.

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. 

2.2 Property Control submits the Equipment Inventory Adjustment form, along with any attached documents, to the Capital Outlay Committee for consideration.  Submissions to the Capital Outlay Committee should be coordinated through the Executive Assistant to the Governing Board.

2.3 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.

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.

4. Motor Vehicles

4.1 The book value of a motor vehicle is not to be considered.  The resale value of the motor vehicle, which may be different from the book value, controls the disposition process. 

4.2 Obtain titles for motor vehicles from Parking and Fleet Services.  The Parking and Fleet Services Manager or Fleet Maintenance Supervisor must sign the vehicle title to release CNM’s ownership of the vehicle. 

4.2.1 If a title is lost, the Parking and Fleet Services Manager or Fleet Maintenance Supervisor must contact the New Mexico Motor Vehicle Division, Taxation and Revenue Department, P.O. Box 1028, Santa Fe, NM 87504.

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

4.4 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. 

4.5 If the vehicle was a donation to CNM from the manufacturer, the terms of the donation may require that CNM dispose of the vehicle by crushing.  The vehicle may also be crushed if the vehicle is scrap and has no value.  See NMSA 1978, § 13-6-1(G), as amended. 

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 prior to disposition. 

5.2 Sanitizing erases or overwrites all stored information and must occur by:

  • Shredding the storage device.
  • Purchasing and using a commercial degaussing product to erase magnetic disks;
  • Overwriting stored data a minimum of five times; or
  • Reformatting the drives (F-disking). 

6. Missing, Lost or Stolen Property

Initiator

6.1 If CNM property is suspected of being lost or stolen, notify Property Control by reporting the property as either missing, lost or stolen. If the property is being reported as stolen, contact the Security Department to file a Security Incident Report. In addition to the Security Incident Report, a police report is also required for stolen property.   

6.2 Fill out the Missing/Lost/Stolen section of the Equipment Inventory Adjustment form. Sign the form and route to the appropriate dean/supervisor for signature.

Dean/Supervisor

6.3 Review and sign the document and route the document to Property Control for processing.

Property Control

6.4 The Security Department will send a Security Incident Report to Property Control via e-mail. Once the report and Equipment Inventory Adjustment form are received, make the necessary adjustment in Banner to indicate a change in the inventory status. Contact the initiator if any problems are noted on the form.    

6.5 Sign the document and scan the document and Security Incident Report into OnBase document imaging. Send a copy of the form and Security Incident Report to the appropriate inventory custodian and the internal auditor via e-mail.  Copies of the Equipment Inventory Adjustment form and incident report must also 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 per NMAC 2.2.2.10 V.
  • 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;
  • Software, if its cost is $5,000 or greater;
  • 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, tablets, and cell phones, regardless of cost.

Forms

Support Materials