Problematic Expense Guide - A to Z

• Personal Benefit – The payment or reimbursement for any type of personal benefit paid with University Funds, other than for salary and benefits to which employees are entitled under University Policy is a prohibited use of University funds.
  
  
  • Examples
    Gifts
    Parties
    Fines & Penalties
    Personal Identification items
    Replacement of stolen personal items
    Employee entertainment expenses
    Massages for employees
    Child Care expenses for an employee's child to enable the employee to work or travel for University business
      
  • The Reason this is Unallowable – University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 1: General, requires all expenses paid by the University to have a public purpose and a direct benefit to the University. The payment of personal benefit with University funds 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).
    
    
    • 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.