N.M. Admin. Code § 2.20.1.7

Current through Register Vol. 36, No. 1, January 14, 2025

Section 2.20.1.7 - DEFINITIONS

A."Agency" means any governmental entity as defined in Section 13-6-2 NMSA 1978. This definition includes:

(1) any department, institution, board, bureau, court, commission, district or committee of the government of the state;

(2) district courts, magistrate courts, district attorneys;

(3) charitable institutions for which appropriations are made by the legislature;

(4) every political subdivision of the state, created under general or special act which receives or expends public money from whatever source derived, including but not limited to counties, county institutions, boards, bureaus or commissions, municipalities; drainage, conservancy, irrigation or other special districts;

(5) every office or officer of any of these organizations.

B."Betterment" means a replacement or major renovation of an existing asset or unit of an existing asset by an improved or superior asset or unit, the effect of which is to improve the efficiency of the primary asset or lengthen the remaining service life.

C."Classification system" means the methods and designations used for identifying fixed assets. This should reflect the object code that was used to acquire the asset and its intended use. Section 2.20.1.9 nmac of this rule specifies the classifications to be used.

D."Component" means a separately identifiable part of an asset that is more meaningfully defined as an aggregate assembly.

E."Depreciation" means the method applied to allocating the cost of a fixed asset over the duration of its useful life.

F."Official or governing authority" means the person of highest authority within an agency.

G."Fixed asset" means any property or equipment that has an initial value to an agency, whether in cash or trade value, of more than five thousand dollars (five thousand dollars ($5,000)). It is not acquired for subsequent sale or consumption but for utilization in the course of an agency's normal operations in producing and distributing goods or rendering services. The asset is expected to be used or held beyond the fiscal year in which it was acquired without being consumed by its use. Fixed assets include those assets constructed by agency personnel. This five thousand dollars ($5,000) threshold for capitalization is a statutory (Section 12-6-10 NMSA 1978) minimum and does not preclude agencies from controlling assets of lesser value through their fixed asset systems when such control is desirable or appropriate.

H."Fixed asset coordinator" means the individual within an agency or a section of an agency who is responsible for controlling and accounting for the fixed assets in the custody and use of the agency or section.

I."General fixed assets" means those assets acquired by governmental funds, and not accounted for directly in the real accounts of such funds.

J."General fixed asset account group" means those accounts used to record and track fixed assets acquired by "governmental funds." These "funds" include the general fund, the special revenue fund, and the capital project fund. Assets are recorded in these accounts, along with any betterments, impairments or depreciation. Assets are carried in this account group to recognize that they are not a component of fund balance available for appropriation.

K."Object code" means the expenditure accounting code that indicates the category of benefits for which the money was spent.

L."Physical inventory" means the process of verifying that fixed assets owned by the agency are present in their assigned custody and location, and evaluating their condition.

M."Proprietary funds" means those funds used to account for the provision of services by a government entity to other government entities or to the public. The financial objective of such funds is to recover through user charges the full cost (including depreciation) of operations.

N."Tag" means any label or marking that is permanently affixed to a fixed asset, including indelible ink or dyes, numbers physically stamped into the fixed asset, adhesive labels or barcodes, and metal tags.

N.M. Admin. Code § 2.20.1.7

09-30-99; Recompiled 10/01/01, Adopted by New Mexico Register, Volume XXX, Issue 24, December 31, 2019, eff. 12/31/2019