New Mexico Administrative Code
Title 2 - PUBLIC FINANCE
Chapter 20 - ACCOUNTING BY GOVERNMENTAL ENTITIES
Part 1 - ACCOUNTING AND CONTROL OF FIXED ASSETS OF STATE GOVERNMENT, ACCOUNTING FOR ACQUISITIONS AND ESTABLISHING CONTROLS
Section 2.20.1.15 - FIXED ASSET CONTROLS
Universal Citation: 2 NM Admin Code 2.20.1.15
Current through Register Vol. 35, No. 18, September 24, 2024
A. Each agency shall establish controls over its fixed assets for the primary purposes of safeguarding them and establishing accountability for their custody and use. Such controls will apply to:
(1) Authorization
to acquire fixed assets: Controls on the acquisition of fixed assets shall
include procedures for requesting their purchase, and a requirement for
approval to purchase by a representative of agency management who can determine
that the requested purchase is consistent with the business objectives of the
agency and is economically reasonable.
(2) Receiving procedures: The delivery of
goods or services should be accepted by an individual who can attest to such
delivery and has no access to accounting system records.
(3) Tagging the assets and components: Newly
received fixed assets shall be tagged at the time they are received. At the
time that a request to purchase a fixed asset is approved, the purchase order
shall be returned to the requester along with a tag or tags to identify the
asset(s).
(4) Assigned location: A
basic control over fixed assets is information about their physical location.
Agencies shall record the original assigned location of fixed assets. When a
fixed asset is reassigned, the new location and fixed asset coordinator should
be updated in the fixed asset system records.
(5) Fund and organizational unit that
originally purchased the asset: Fixed assets must be associated with the fund
and governmental entity that purchased them for the purpose of accurately
reporting financial performance. If an asset is transferred the fixed asset and
accounting records should be updated.
(6) Individual(s) responsible for tracking
their use and location: Agencies shall assign specific individuals within their
organizational units to be responsible for tracking the fixed assets in their
units.
B. All fixed assets shall be marked with tags. Each tag shall identify the agency owning the asset followed by a unique sequential fixed asset number so that each item may be positively identified. An agency may establish blocks of numbers for its sub-units to improve controls and avoid duplication of numbers.
Disclaimer: These regulations may not be the most recent version. New Mexico may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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