Problematic Expense Guide - A to Z

• Gifts - The payment or reimbursement for gifts to faculty, staff, students, their families or other individuals or organizations is a prohibited use of University Funds, unless authorized by other University Policies.
  
  
  • Examples
    • Gifts for Congratulatory, Farewell, Sympathy, Bereavement, Thank You purposes, etc
    • Gifts to University business partners
    • Gift cards or other gifts to University employees who served on a hiring committee or other group.
    • Flowers & Floral arrangements
    • Gift Baskets & Comfort Packages
    • Memorial Keepsakes.
    • Meals/Food
    • Tickets to concerts & sporting events
    • Gifts made in an attempt to solicit donations from potential donors, except as otherwise allowed in UNM Policy
      
      
  • The Reason this is Unallowable – In general, the payment for gifts would violate the New Mexico Anti-Donation Law and is specifically prohibited by 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 – University funds may be used to purchase recognition gifts (not including cash) for service awards and retirement in conjunction with a formal UNM Human Resources Staff Recognition Awards Program, provided the items are not lavish or extravagant and are of de minimis value. See UNM HR Staff Recognition Awards Program for guidelines. 
    
    
  • Possible Allowable Alternatives - Try this Instead:
    • While State Law generally prohibits giving gifts paid with University funds, the University can legally purchase and give away low cost “Promotional Items” such as T-Shirts and Coffee mugs that bear a UNM logo or messaging when in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 7:  Promotional Items.
    • 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.