Problematic Expense Guide - A to Z

• Performing Arts Events as Employee Entertainment – The payment or reimbursement of admission to Performing Arts events/entertainment events or expenses related to hosting a performance for the purpose of entertaining UNM employees, even in conjunction with a retreat or team building activity, is generally an unallowable use of University funds.
  
  
  • Examples
    • Musicals
    • Plays/Theater
    • Operas
    • Ballet
    • Symphonies
    • Concerts
    • Flamenco Performances, etc.
      
      
  • The Reason this is Unallowable – According to guidance we have received from the Office of the New Mexico State Auditor, the payment of these expenses is personal in nature and does not constitute valid University business. The payment of these types of expenses would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 6:  Personal Benefit.  This would also constitute a violation of New Mexico Attorney General Opinion 97-02 and would 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).
    
    
  • Allowable Exception
    • It is allowable for UNM Public Events/Popejoy Hall employees to attend Performing arts events in their ordinary course of business.
    • Entertainment expenses for outside hire candidates for University employment could be allowed as recruiting expenses when in accordance with University Administrative Policy 4040: Employee Recruiting Expenses, Section 3:  Allowable Department Recruitment Expenses. 
      
      
  • Possible Allowable Alternatives - Try this Instead:
    • 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.