Problematic Expense Guide - A to Z

• Honorarium Payments to Current and Former UNM employees – Honorarium payments to current UNM employees or former UNM employees who were employed by the University within the past 12 months, are a prohibited use of University Funds.
  
  
  • Examples - Payment in exchange for giving a speech or participating in a University event.
    
    
  • The Reason this is Unallowable – The State of New Mexico considers it a conflict of interest for the University to contract with an individual within 12 months of their employment with the University.  In general, current UNM employees cannot receive additional compensation for performing the broad duties under the course and scope of their employment. Such additional payments may constitute unlawful bonuses which would violate Article IV, Section 27 of the New Mexico Constitution, aka “The Extra Compensation Clause.”  Such payments to current employees would also specifically violate University Administrative Policy 2170:  Honorarium Payments, Section 1:  General.  The Payment on an honorarium to a former employee who was employed by the University within the past twelve months would specifically violate University Administrative Policy 3720:  Employee Code of Conduct and Conflicts of Interest, Section 6:  University Employees Within the Preceding Twelve (12) Months.  Honorarium payments to current UNM Employees and Former employees who were employed by the University within the past twelve months would also most likely violate the New Mexico Governmental Conduct Act. 
    
    
  • Possible Allowable Alternatives - Try this Instead: 
    • For current employees, contact Human Resources regarding the Extra Compensation Program.
    • Contact the University Chief Procurement Officer to request a written waiver/exception.
    • 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.