Problematic Expense Guide - A to Z

• Conflicts of Interest – The purchase, reimbursement or contracting for goods and/or services in a transaction in which a UNM employee has a conflict of interest due to a direct or indirect financial interest in the transaction is a prohibited use of University funds.
  
  
  • Examples
    • The Purchase of goods and/or services by the University from an individual who is currently employed by the University.
    • The Purchase of goods and/or services by the University from an individual who was employed by the University within the past 12 months.
    • The Purchase of goods and/or services by the University from a member of an employee’s immediate family (includes employee’s spouse, domestic partner, brother, sister, parent, child or in-law).
    • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee has an ownership interest (other than as owner of less than one percent (1%) of the stock of a publicly traded corporation).
    • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee is a partner, officer, director, trustee or paid consultant to the business entity.
    • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee has a right to receive royalties from the business entity.
      
      
  • The Reason this is Unallowable – Employees of the University are required to maintain the highest standards of business ethics in transactions with the University, with State, Federal, and local governments, and with the public. Employees are expected to perform their duties faithfully and efficiently and never to give rise to suspicion of improper conflict with interests of the University.  In general, a transaction with a conflict of interest in the examples above would violate State Law, specifically the New Mexico Governmental Conduct Act.  Such transactions would also violate University Administrative  Policy 3720:  Employee Code of Conduct and Conflicts of Interest, Section 1:  General.  Many of these transactions would also violate other University Administrative policies, such as Policy 4320:  Purchasing Goods off Campus, Section 1.2:  Conflicts of Interest, and Policy 4325:  Purchasing Services from Independent Contractors, Section 3: Conflict of Interest. 
    
    
  • Possible Allowable Alternatives - Try this Instead:
    • For transactions involving current employees, contact Human Resources regarding the Extra Compensation Program.
    • Contact the University Chief Procurement Officer to request a written waiver/exception which can be allowable under the New Mexico Governmental Conduct Act in some situations.
    • 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.