Problematic Expense Guide - A to Z
- Fiscal Agent Arrangements, Allowing use of UNM Accounting systems and/or Personnel – Allowing other organizations or individuals to use University accounting systems or University personnel for their accounting needs is prohibited. This includes matters such as disbursing third party payments and/or maintaining accounting ledgers and transactions within the University accounting ledgers.
- The Reason this is Unallowable – University resources such as UNM accounting systems and UNM personnel are funded by the University with Public Funds that must be used in a manner that directly benefits the University, not outside organizations or individuals. Additionally, there is an actual cost to using University accounting systems, including the cost of processing and mailing payments or bank fees related to issuing wire transfers or inter-bank payments. There is an even greater cost to the University to have our personnel used for these functions, and the paid time or University employees is required to be used in manner that directly benefits the University, not outside individuals or organizations. University accounting services are not free of charge and cannot be legally given away or volunteered to others outside the University. Furthermore, if the funds of other non-affiliated organizations are commingled in University bank accounts or University accounting ledgers with UNM funds, that activity would be erroneously included in the University Financial statements, causing misstatement. Allowing another organization or individual to use University accounting systems and University personnel to conduct non-University business would 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).
- Allowable Exceptions:
- On extremely rare occasions, an outside organization can enter into a Fiscal Agency agreement with the University which would allow the outside organization to use University accounting & payment systems and University personnel in exchange for an agreed upon fee. Such agreements are extremely rare and can only be authorized by the Executive Vice President of Finance and Administration, and only when there is a direct benefit to the University (i.e usually for legally separate organizations created by the University, such as our Non-Profit Component units or Public Private Partnerships).
- The Reason this is Unallowable – University resources such as UNM accounting systems and UNM personnel are funded by the University with Public Funds that must be used in a manner that directly benefits the University, not outside organizations or individuals. Additionally, there is an actual cost to using University accounting systems, including the cost of processing and mailing payments or bank fees related to issuing wire transfers or inter-bank payments. There is an even greater cost to the University to have our personnel used for these functions, and the paid time or University employees is required to be used in manner that directly benefits the University, not outside individuals or organizations. University accounting services are not free of charge and cannot be legally given away or volunteered to others outside the University. Furthermore, if the funds of other non-affiliated organizations are commingled in University bank accounts or University accounting ledgers with UNM funds, that activity would be erroneously included in the University Financial statements, causing misstatement. Allowing another organization or individual to use University accounting systems and University personnel to conduct non-University business would 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).
