Problematic Expense Guide - A to Z
- Bonuses for Employees – The payment of bonuses to UNM employees is a prohibited use of University funds, except in extremely rare cases where bonus provisions are specifically included in an employee’s official UNM Human Resources employment contract.
- The Reason this is Unallowable– The New Mexico State Constitution Extra Compensation Clause (Article IV, Section 27 of the NM Constitution) prohibits New Mexico government employees (including UNM employees) from receiving discretionary or performance-based bonuses. Additionally, such payments would also violate the New Mexico Anti-Donation Law and would most 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:
- UNM Human Resources Extra Compensation Program
- UNM Human Resources Staff Recognition Awards
- UNM Human Resources Retention Offer Program
- 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– The New Mexico State Constitution Extra Compensation Clause (Article IV, Section 27 of the NM Constitution) prohibits New Mexico government employees (including UNM employees) from receiving discretionary or performance-based bonuses. Additionally, such payments would also violate the New Mexico Anti-Donation Law and would most 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).
