Problematic Expense Guide - A to Z
- De minimis or Immaterial Unallowable Expenses – Any payment or reimbursement that violates a Law or UNM Policy is a prohibited use of University funds, regardless of dollar amount.
- The Reason this is Unallowable – Under State Law, all violations of Law or instances of non-compliance with policies and regulations of any dollar amount are required to be reported as audit findings by our auditors in accordance with New Mexico statutes NMAC 2.2.2.10 F (6) & NMSA 12-6-5 1978. Under State law, the concepts of “de minimis” and “immateriality” do not apply when there is any misuse of Public funds. According to the Office of the New Mexico State Auditor, any misuse of New Mexico Public funds is an extremely serious matter and is required to be reported as an audit finding, even when dollar amounts are relatively small. In addition, unallowable expenses of any amount would constitute unnecessary 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 – Under State Law, all violations of Law or instances of non-compliance with policies and regulations of any dollar amount are required to be reported as audit findings by our auditors in accordance with New Mexico statutes NMAC 2.2.2.10 F (6) & NMSA 12-6-5 1978. Under State law, the concepts of “de minimis” and “immateriality” do not apply when there is any misuse of Public funds. According to the Office of the New Mexico State Auditor, any misuse of New Mexico Public funds is an extremely serious matter and is required to be reported as an audit finding, even when dollar amounts are relatively small. In addition, unallowable expenses of any amount would constitute unnecessary 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).
