Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

MSC 0000 00
1 University of New Mexico
Albuquerque, NM 87131


UNM Property Management and Control (Policy 7710), states that inventoried property is defined, with one exception, by the following three criteria:

1) The cost is greater than $5,000

2) the property is moveable

3) the property has a useful life of more than one (1) year.

Inventoried property costing more than $5,000 is also defined as equipment and is capitalized on UNM's financial statements and is depreciated.


  • Computers are treated as inventoried property regardless of cost.  In most cases the cost of a computer is less than $5,000, in which case it is not capitalized and is not depreciated.  It must, however, be recorded in inventory and tagged as UNM property.  Questions regarding computers should be addressed to the office of Inventory Control at 277-7715.  There are also instructions and guidelines on the website at
  • Property loaned or leased to the University by outside organizations is recorded as a liability to the University and is not capitalized or depreciated.  It also must be recorded in inventory and tagged as Loaned Equipment.

University property includes all:

  • equipment purchased by University departments, regardless of the source of funds used to purchase the equipment;
  • U. S. Government-owned equipment used by University departments;
  • components and material used to make equipment, whether furnished to, acquired by, or fabricated by the University;
  • property donated to the University;
  • property loaned or leased to the University by outside organizations.

University property is in the custody of the department which purchased or is using the property. The department is responsible for the management and control of the property assigned to it. The dean, director, department head, or the principal investigator for government-sponsored projects, is responsible for:

  • initiating requests to acquire property or use restricted or government excess property;
  • the proper use, maintenance, and security of assigned property;
  • maintaining inventory records on all property in custody of the department; reporting any shortage, damage, loss, or theft of property; and
  • disposing of University property according to University policies, in accordance with Acquisition and Disposition of UNM Surplus Equipment (Policy 4610).