Fixed Assets Policy


            Scope. Western New Mexico University’s (“WNMU’s”) Fixed Assets Policy for the management and control of capital equipment owned by, or in the custody of WNMU, its branch campuses and off-campus centers.





A.     Procurement of equipment and property should be in accordance with WNMU’s Procurement and Reimbursement Policy Statement.  To properly identify and tag each individual piece of equipment over $1,000 the Voucher and Purchase Order must itemize each piece of equipment and price them separately as well as clearly identify the Responsible Department/Person and Location of each item.


B.     Equipment purchased on Purchase Orders through the Purchasing Agent will be assigned an origination tag number at the time the Accounts Payable Department creates a internal system generated invoice.  This records description, date of acquisition, purchase order, vendor, FOPAL and cost in the fixed asset module and automatically capitalizes the equipment in the General Ledger.  A representative from the Office of Business Affairs generates a permanent inventory tag from the origination tag and records the manufacturer, model, serial number, and asset type.  The permanent tag is then attached to the equipment.


C.     Equipment that is purchased as an improvement or accessory to enhance or extend the useful life of an inventoried piece of equipment is recorded as a “Component of” or “Attached to” the primary piece of equipment in the Fixed Asset Module.  This then increases the cost of the item and the capitalization amount in the General Ledger.


D.     Equipment that is received as a gift or donation with a cost of over $1,000 will be added to the inventory list and assigned a permanent tag number.  The Responsible Department/Person will notify the Office of Business Affairs with a list of the equipment as well as a description of the equipment or property donated, the donor, location and value.


E.      Equipment acquired through a construction contract will be reported to the Office of Business Affairs.  The equipment should be listed and priced so permanent tag numbers may be assigned and attached to all equipment over $1,000.





Equipment acquired through Purchase Orders and Payment of Invoices is recorded in the Office of Business Affairs.  The following rules apply:


1.      Purchase cost if over $1,000.


2.      Any applicable freight charges are capitalized as part of the acquisition cost of the equipment.


3.      Installation and assembly costs will be added to the cost of the equipment.


4.      Any cash discount should be deducted from the value of the equipment.


5.      The value of the equipment is not reduced by a trade-in.


6.      Handling and storage costs are not included in the value of the equipment.


7.      Throughout the life of the property the cost of the item does not change.


8.      Maintenance contracts or extended warranties?





Items that have been identified as inventoriable equipment will have an inventory tag number attached and recorded when the invoice is paid.  As long as an item is in the control of the university the identification will never change regardless of a change in department/ownership or location.


It is the responsibility of the Office of Business Affairs to record and maintain inventory records, and applies inventory tags to the equipment.   This function may be delegated to the department claiming ownership when appropriate.  The numbered inventory tag will be affixed to the item unless by its nature this is not practical or possible, as in the case of software.   If the equipment is an accessory, or attached to another piece of equipment and necessary for the operation of that item it will be recorded as such on the fixed asset record for the original piece of equipment.  The inventory tag is affixed to the item near the equipment identification and serial number.  Indelible ink or etching may be used directly on the equipment if deemed necessary.


If the inventory tag is removed, obliterated or defaced the equipment shall be marked again with the original tag number.


If component parts of a system have a individual value of over $1,000 each item will have an inventory number assigned and will be tagged as such.  If some or all of the component parts of a system have a value of less then $1,000, but combined equals more then $1,000 and are all necessary for the normal operation of the equipment they will be considered one unit.


Identification and marking of equipment less then $1,000 will only occur when a request is issued to the Office of Business Affairs by the department accountable for the equipment.  The responsible department should provide purchasing information so the person responsible for recording the equipment will have the necessary information to establish inventory records properly.





Each department has the primary responsibility for the care and maintenance of any equipment that they are accountable for.  The location for each item should be noted and movement recorded.  If a piece of equipment changes department or building location a Inventory Transfer/Disposal Form must be filled out and signed by the transferring and the receiving department.   Copy 1 is sent to the Office of Business Affairs, copy 2 goes to the originating department and copy 3 stays with the receiving department.  All equipment should be kept in such a manner that it can easily be located for inventory purposes.


The responsible department shall make sure adequate security is in place for equipment in their possession.  Areas containing equipment should be locked when not in use and after business hours with special precautions in place for high cost portable equipment.




The Office of Business Affairs will annually distribute to each department a detailed listing of assets assigned to their department.   Each department must verify that each asset is still physically located in their area and that it is still functional.  Any correction should be noted on the listing provided and returned to the Business Office by the due date noted at the time of distribution.




Personal use of property owned and in the custody of the University, by staff and faculty is not permitted.





University owned vehicles will be registered by the Purchasing Agent at the time of possession.   When received back from the Motor Vehicle Department, the original registration is kept on file in the Office of Business Affairs, a copy of the registration and the license plate are then forwarded to the Motor Pool to be placed in/on the vehicle.  The vehicle may be operated in the mean time on the temporary license furnished by the vendor.


The property tag number assigned to the vehicle shall be the license plate number.  In the case of damage or loss to the plate a replacement will be obtained by the Purchasing Agent.