Problematic Expense Guide - A to Z
- Vehicle Expenses for Privately Owned Vehicles – The payment or reimbursement for the maintenance and upkeep of a vehicle that is not owned by the University, even if used at times for University business, is a prohibited use of University funds.
- Examples
- Fuel
- Insurance
- Repairs and tune-ups
- Tires
- Car Wash
- License
- The Reason this is Unallowable – Similar to many businesses and other organizations, the University reimburses mileage for business use of a personally owned vehicle. This mileage reimbursement is intended to cover the University business portion of all costs associated with owning an automobile, including fuel, maintenance, repairs and insurance. In general, the payment for the repairs, maintenance and upkeep for a privately-owned would constitute a violation of the New Mexico Anti-Donation Law and is specifically prohibited by corresponding University Administrative Policies 4030: Travel Expenses and Per Diem, Section 9.3: Personal Automobile, and 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:
- Employees and students can be reimbursed for mileage when using their personal vehicles to conduct University business in accordance with University Administrative Policy 4030 Travel, Section 9.3: Personal Automobile.
- If a unit has funds available at the UNM Foundation, the Foundation could 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.
- Examples
