Problematic Expense Guide - A to Z

• Expenses for Family Members & Friends – The payment or reimbursement for expenses related to the family & friends of University employees participating in University business and events is, in general, a prohibited use of University funds.  It is also prohibited to use University funds to cover the personal childcare or adult care expenses for an employee's child, adult dependent, or any other individual.
  
  
  • Examples
    • Meals provided for a University employee’s spouse, family member or other companion at a University business meal or recruiting meal.
    • Any cost to the University for additional travel expenses related specifically to an employee’s spouse, family member or other companion while the employee is traveling on official University business.
    • Any cost associated with family and other companions of University employees participating in events such as Training sessions, University Team building events and Unit Retreats.
    • Child Care expenses paid for an employee’s child that are made to enable the employee to work or travel on official University business.
      
      
  • The Reason this is Unallowable – In general, Family and Friends of University employees have no direct connection to actual University business.  In addition, the payment of Child Care or Adult Care expenses for an employee’s child, adult dependent or any other individual to enable the employee to work or travel on University business is a personal expense of the employee.  The payment of expenses for family and companions of University employees is personal in nature, and would therefore generally 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 most likely 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).
    
    
  • Exceptions –
    • Hospitality events open to members of the public in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 5.2:  Hospitality Events That Include Outside Parties.
    • The payment for the expenses of high-ranking University employee spouses or family members is allowable when specifically included in their official Human Resources Employment contract (i.e. University President). Such payments generally constitute taxable income to the employee when they occur. 
    • 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.