Problematic Expense Guide - A to Z

• Parties - The payment or reimbursement for party expenses including meals, food, decorations and gifts is generally a prohibited use of University funds.
  
  
  • Examples
    • Holiday parties
    • Birthday parties for employees, students or any other individual
    • Graduation parties for employees or student employees
    • Meals and refreshments for social purposes
    • Celebrations that do not qualify as University business under UNM Policy
      
      
  • The Reason this is Unallowable – In general, party expenses are personal in nature, and therefore payment of these expenses does not constitute a valid business expense for the University.  The payment of these expenses 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 constitute a violation of New Mexico Attorney General Opinion 97-02 and would likely constitute 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:
    • With prior approval by Human Resources, University units are allowed to have an annual Staff Recognition award event, which can include a provided business meal. It is allowable to schedule those events on or near a holiday.  For more information, visit UNM Human Resources Staff Recognition Program guidelines.
    • Meals, food and refreshments are allowed for 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 Meals.
    • 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.