Problematic Expense Guide - A to Z

• Business Entity Creation  or Operation Expenses – Payments related to the creation or operation of a legal business entity, such as an LLC, Non-Profit, Corporation, Public Private Partnership, etc, are prohibited uses of University funds unless specifically authorized in advance by the UNM Board of Regents and in conjunction with the Office of University Counsel.
  
  
  • The Reason this is Unallowable – According to guidance from the Office of University Counsel, only the UNM Board of Regents can authorize the creation of a subsidiary business entity for the University.  Additionally, using University funds to pay business creation or operating expenses for an entity that was not created by the Board of Regents would not constitute valid University business, and would therefore violate the New Mexico Anti-Donation law. In addition, payments for unauthorized business entities may also violate Regent’s Policy Manual Section 7.8:  Signature Authority for Contracts, as well as Regent’s Policy Manual Section 2.16:  Legal Services for the University.