Problematic Expense Guide - A to Z
- Birthday Parties - The payment or reimbursement for Birthday party expenses including meals, food, decorations and gifts is a prohibited use of University funds.
- The Reason this is Unallowable - Birthday party expenses are personal in nature, and therefore the payment of these expenses does not constitute a valid business expense for the University. The payment of these types of expenses would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 6: Personal Benefit. In addition, these expenses would also constitute a violation of New Mexico Attorney General Opinion 97-02 and would likely constitute wasteful spending under State law. In New Mexico State Auditor statues, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W).
- Possible Allowable Alternatives - Try this Instead:
- If a unit has funds available at the UNM Foundation, the Foundation may be able to pay for these expenses directly. With the UNM Foundation existing as a legally separate Non-Profit entity and not a governmental entity like the University, New Mexico government spending restrictions do not apply to funds that are disbursed directly by the Foundation.
- The Reason this is Unallowable - Birthday party expenses are personal in nature, and therefore the payment of these expenses does not constitute a valid business expense for the University. The payment of these types of expenses would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 6: Personal Benefit. In addition, these expenses would also constitute a violation of New Mexico Attorney General Opinion 97-02 and would likely constitute wasteful spending under State law. In New Mexico State Auditor statues, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W).
