Problematic Expense Guide - A to Z

• Food/Meals/Refreshments at Gatherings where no University Business is conducted - The payment or reimbursement for food, meals or other refreshments where no University business is conducted is a prohibited use of University funds.
  
  
  • Examples
    • Holiday parties
    • Graduation party for an employee or student employee
    • Meals for social purposes
    • Celebrations not related to University business.
      
      
  • The Reason this is Unallowable – Meals and refreshments can only be provided at in-person events where some form of University business is conducted. Meals and refreshments must be integral to a University business meeting and not a matter of personal convenience.  Payment for meals without University business taking place would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 5.1:  Business Meetings.  This 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).
    
    
  • Possible Allowable Alternatives - Try this Instead:
    • Meals, food and refreshments are allowed for in-person gatherings of University employees where official University business is conducted when in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 5.1:  Business Meetings.
    • Meals, food and refreshments are allowed for Hospitality Events including outside parties where official University business is conducted when in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 5.2:  Hospitality Events That Include Outside Parties.
    • 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.