{"id":1713,"date":"2021-01-19T16:24:48","date_gmt":"2021-01-19T16:24:48","guid":{"rendered":"https:\/\/swefc.unm.edu\/iamf\/?page_id=1713"},"modified":"2026-03-24T20:49:12","modified_gmt":"2026-03-24T20:49:12","slug":"current-state-of-assets-what-constitutes-an-asset","status":"publish","type":"page","link":"https:\/\/swefc.unm.edu\/iamf\/current-state-of-assets-what-constitutes-an-asset\/","title":{"rendered":"Current State of Assets \/ What Constitutes an Asset?"},"content":{"rendered":"

[et_pb_section fb_built=”1″ custom_padding_last_edited=”on|tablet” _builder_version=”4.16″ _module_preset=”default” positioning=”none” horizontal_offset_tablet=”” horizontal_offset_phone=”” horizontal_offset_last_edited=”on|tablet” custom_margin=”0px||||false|false” custom_margin_tablet=”” custom_margin_phone=”” custom_margin_last_edited=”on|desktop” custom_padding=”0px|||0px|false|false” custom_padding_tablet=”|||25px|false|false” custom_padding_phone=”” da_disable_devices=”off|off|off” global_colors_info=”{}” custom_padding__hover_enabled=”on|desktop” custom_padding__hover=”0px|||0px|false|false” theme_builder_area=”post_content” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

What Constitutes an Asset?<\/span><\/h2>\n

<\/span><\/p>\n

While it might seem straightforward, it\u00a0<\/span><\/span>can be<\/span>\u00a0<\/span><\/span>complicated to answer the question<\/span>:\u00a0<\/span><\/span>what constitutes an asset? An asset is defined as something that has potential or actual value\u00a0<\/span><\/span>to<\/span>\u00a0<\/span>an organization. The system must decide how granular\u00a0<\/span><\/span>to<\/span>\u00a0<\/span>go with the definition of an asset<\/span>.\u00a0<\/span><\/span>Should a unit\u00a0<\/span><\/span>or\u00a0<\/span><\/span>a collection of parts be the\u00a0<\/span><\/span>asset<\/span>\u00a0<\/span>or should the individual components each be\u00a0<\/span><\/span>considered\u00a0<\/span><\/span>assets?<\/span><\/span>\u00a0<\/span><\/span>\u00a0<\/span><\/p>\n

[\/et_pb_text][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

Flip the images below to reveal more about the asset:\u00a0<\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_4,1_4,1_4,1_4″ admin_label=”Row” _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”1_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox _builder_version=”4.27.5″ _module_preset=”default” header_text_align=”center” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox_child image=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2026\/02\/Pump-image-e1770396336277.png” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″][\/dsm_flipbox_child][dsm_flipbox_child title=”Pump ” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” background_color=”#dbdbdb” background_enable_color=”on” text_orientation=”center” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″]<\/p>\n

Entire pump is the asset or, the pump, motor, and controls are individual assets<\/p>\n

[\/dsm_flipbox_child][\/dsm_flipbox][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox _builder_version=”4.27.5″ _module_preset=”default” header_text_align=”center” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox_child image=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2026\/02\/Pipe-Image-scaled-e1770401720818.jpg” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″][\/dsm_flipbox_child][dsm_flipbox_child title=”Pipe ” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” content_text_align=”center” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″]<\/p>\n

Entire length of pipe is an\u00a0<\/span><\/span>asset,<\/span>\u00a0<\/span>or\u00a0<\/span><\/span>a\u00a0<\/span><\/span>portion<\/span>\u00a0<\/span>of\u00a0<\/span><\/span>pipe is an asset<\/span>.<\/span>\u00a0<\/span>A\u00a0<\/span><\/span>portion<\/span>\u00a0<\/span>of a pipe could be a uniform length or common endpoints, such as valves and\u00a0<\/span><\/span>hydrants<\/span>.<\/span><\/p>\n

[\/dsm_flipbox_child][\/dsm_flipbox][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox_child image=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2026\/02\/Storage-image.png” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″][\/dsm_flipbox_child][dsm_flipbox_child title=”Water Storage” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” content_font_size=”12px” text_orientation=”center” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″]<\/p>\n

The whole tower or tank is an asset, or the shell, inlet\/outlet pipes, vents, drain<\/span>, etc. are individual assets.<\/span>\u00a0<\/span>When considering storage assets, be sure to consider which pieces of the storage vessel are critical to compliance and what may cost more due to\u00a0<\/span><\/span>additional<\/span>\u00a0<\/span>safety requirements needed for replacement.<\/span><\/span>\u00a0<\/span><\/p>\n

[\/dsm_flipbox_child][\/dsm_flipbox][\/et_pb_column][et_pb_column type=”1_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][dsm_flipbox_child image=”https:\/\/swefc.unm.edu\/iamf\/wp-content\/uploads\/2026\/02\/Infiltration-Planter-e1770396498825.jpg” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″][\/dsm_flipbox_child][dsm_flipbox_child title=”Infiltration Planter ” button_url_new_window=”1″ _builder_version=”4.27.5″ _module_preset=”default” header_level=”h4″ header_font_size=”18px” text_orientation=”center” global_colors_info=”{}” theme_builder_area=”post_content” parent_header_level=”h4″]<\/p>\n

Entire structure including plants is an\u00a0<\/span><\/span>asset<\/span>\u00a0<\/span>or each plant is an asset, underdrain is an asset, walls are an asset, soil is an asset, etc.<\/span><\/span>\u00a0<\/span><\/p>\n

[\/dsm_flipbox_child][\/dsm_flipbox][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_blurb _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][\/et_pb_blurb][et_pb_accordion _builder_version=”4.27.5″ _module_preset=”default” toggle_level=”h4″ global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_accordion_item title=”What is an infiltration planter?” open=”on” _builder_version=”4.27.5″ _module_preset=”default” body_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

An infiltration planter is<\/span>\u00a0<\/span><\/span>a green asset designed to capture stormwater<\/span>\u00a0<\/span>and infiltrate it directly into the ground. Oftentimes, infiltration planters are made with bricks<\/span>\u00a0<\/span>or concrete and do not have a base.<\/span>\u00a0<\/span>They work by slowing down stormwater runoff, most often from impervious surfaces, to allow pollutants to naturally filter before<\/span>\u00a0<\/span>absorbing into the ground soil.\u00a0<\/span><\/span>Learn more about Infiltration Planters\u00a0<\/span><\/span><\/span>here<\/span><\/span><\/a>.<\/span><\/span>\u00a0<\/span><\/p>\n

[\/et_pb_accordion_item][\/et_pb_accordion][et_pb_text _builder_version=”4.27.5″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

Each system must decide\u00a0how to define their\u00a0assets\u00a0and how best to classify them.\u00a0Finding a balance between too little and too much information can be challenging. You\u00a0should not include everything in the asset inventory. That could result in many\u00a0inconsequential items that\u00a0do not need\u00a0in depth tracking.\u00a0\u00a0Conversely, you should not\u00a0oversimplify\u00a0your assets. Not including critical assets and\u00a0components\u00a0will\u00a0limit the\u00a0cost and\u00a0maintenance\u00a0data\u00a0needed\u00a0to efficiently manage the system. It is possible to revise the definition of an asset over time, but\u00a0the\u00a0ideal\u00a0option is to thoroughly consider the question at the beginning,\u00a0so revision is not necessary.<\/span>\u00a0<\/span><\/p>\n

When\u00a0identifying\u00a0what to include and what not to include in the inventory, carefully consider\u00a0and document the\u00a0criteria\u00a0used to\u00a0determine\u00a0if\u00a0something is an asset or not. If necessary,\u00a0the selection approach can be\u00a0modified\u00a0over time, but be sure to document the changes, adjust\u00a0previous\u00a0assets based on new definitions, and update processes for\u00a0adding\u00a0an asset\u00a0to your inventory.<\/span>\u00a0<\/span><\/p>\n

Click on each\u00a0option below to see examples of how your system can define what constitutes an asset. Feel free to use these as they are or adapt them for your utility.<\/span><\/p>\n

[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.16″ _module_preset=”default” width=”100%” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_accordion _builder_version=”4.27.5″ _module_preset=”default” body_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_accordion_item title=”Monetary limit ” open=”on” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

A system might decide that any asset with a value less than\u00a0a specific dollar amount (perhaps\u00a0$500\u00a0for a small system, $3,000 to $5,000 for a medium system and $5,000 to $10,000 for a large system)\u00a0<\/span>will\u00a0not be included in the inventory. These items can be managed as \u201csupplies\u201d or\u00a0maintenance management\u00a0items.\u00a0 The\u00a0dollar\u00a0value\u00a0should be selected by the system\u00a0to ensure neither too few nor too many assets are included in the inventory.<\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Work Order or Maintenance” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

It is recommended\u00a0that any asset that\u00a0can have a work order written on it\u00a0be included\u00a0in the inventory.\u00a0 If the item\u00a0would just be replaced,\u00a0without a work order, it is more than likely a\u00a0supply or maintenance managed item, not an asset.\u00a0Items that are maintained by others also fit this definition and should be included.\u00a0<\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Segments of Assets (very large assets) ” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

Very large assets need to be divided into smaller segments to better manage them.\u00a0 A forest, a stream, wastewater collection piping, or water distribution piping are all examples of assets that may need to be segmented.\u00a0 The system must decide how best to segment the asset into smaller pieces. Some potential options are by GPS coordinates, by valve to valve or manhole to manhole, by physical landmarks, or by set lengths.<\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Replacement\/Restoration frequency” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

A system might decide to\u00a0exclude items that\u00a0have very\u00a0short\u00a0useful\u00a0lives. Because\u00a0the vast majority of\u00a0assets are very long lived\u00a0in water, wastewater, and stormwater, those with very short lives (say 2 years or less) may not be worth managing\u00a0as an asset\u00a0and thus should be excluded. Each system can decide what\u00a0time frame\u00a0constitutes a \u201cshort\u00a0lived asset.\u201d\u00a0<\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Numerous Assets in a Category ” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

If the system has lots of assets of a single type, such as meters, valves, hydrants, manholes, trees or inlets, these assets can add up collectively to a considerable amount of money even if each of these assets individually does not amount to the threshold dollar level set by the system to define an asset. In this case, these assets should be included in the inventory.<\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Impacts System’s Ability to Meet Level of Service” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

A system<\/span><\/span>\u00a0should include all assets that impact its ability to meet the Level of Service.\u00a0 Some of these assets may not be owned by the system<\/span><\/span>.\u00a0\u00a0<\/span><\/span>Those assets may not be managed in the same ways as owned assets, but the system needs to have an awareness of those assets<\/span><\/span>\u00a0and the ability to influence decisions made about those assets.<\/span><\/span>\u00a0A system may want to review\u00a0<\/span><\/span>the strategic plan, the source water protection\u00a0<\/span><\/span>plan,\u00a0<\/span><\/span>the\u00a0<\/span><\/span>stormwater BMP plan, or other guiding documents for the system to\u00a0<\/span><\/span>help identify these assets.<\/span><\/span><\/p>\n

[\/et_pb_accordion_item][et_pb_accordion_item title=”Criticality” _builder_version=”4.27.5″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content” open=”off”]<\/p>\n

Assets may be included in the inventory even if they do not meet the threshold dollar value of an asset if they are highly critical to the system and their failure would cause a major disruption to the system.\u00a0 In these cases, it is important to have careful management of the item to ensure sustainable operation. \u00a0\u00a0<\/p>\n

[\/et_pb_accordion_item][\/et_pb_accordion][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.27.6″ _module_preset=”default” width=”100%” link_option_url_new_window=”on” hover_enabled=”0″ global_colors_info=”{}” theme_builder_area=”post_content” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}” theme_builder_area=”post_content”][et_pb_text _builder_version=”4.27.6″ _module_preset=”default” text_font_size=”16px” global_colors_info=”{}” theme_builder_area=”post_content”]<\/p>\n

While the best-case scenario is to have all\u00a0integral\u00a0assets in the inventory, that goal\u00a0can be challenging to achieve.\u00a0<\/span>\u00a0<\/span><\/p>\n