Problematic Expense Guide - A to Z

 

 In the listing below you will find:

  • The Most Common Unallowable Expenses that affect UNM Departments
  • An Explanation as to why these Expenses are Prohibited
  • Possible Allowable Alternatives and Exceptions

 

 This listing is ALPHABETICAL by topic – A to Z. 

You can also use CTRL-F to search within this web page.

Still have questions?  Contact the appropriate Financial Services Accounting Office.  

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PROBLEMATIC EXPENSE GUIDE - A TO Z

 

 

  • Athletic, Entertainment & Leisure Events – The payment for admission to Athletic Events, Entertainment Events and Leisure Venues for UNM employees, even in conjunction with a retreat or team building activity, is an unallowable use of University funds.
    • Examples – Tickets and/or suite rental to sporting events, golf greens fees, pickleball court rental, bowling, concerts, performing arts, museums, gaming venues, 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 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 also most 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).
    • Allowable Exceptions
      • It is allowable for UNM Athletics employees to attend sporting events in order to conduct the ordinary business of UNM Athletics.
    • 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. 

 

  • Bereavement Gifts – The payment or reimbursement for bereavement gifts to faculty, staff, students, their families or other individuals is a prohibited use of University funds.
    • Examples
      • Flowers & Floral arrangements
      • Gift baskets & comfort packages
      • Memorial keepsakes, Photos, Plaques
      • Food/meals
    • The Reason this is Unallowable – Bereavement gifts are personal in nature and therefore the payment does not constitute a valid business expense for the University. The payment of these types of expenses would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000, 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:
      • While State Law generally prohibits giving gifts paid with University funds, the University can legally purchase and give away low cost “Promotional Items” such as T-Shirts and Coffee mugs that bear a UNM logo or messaging in accordance University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 7:  Promotional Items.
      • 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. 

 

  • Birthday Parties - The payment or reimbursement for Birthday party expenses including meals, food, decorations and gifts is a prohibited use of University funds.
    • The Reason this is Unallowable - Birthday party expenses are personal in nature, and therefore the payment of these expenses does not constitute a valid business expense for the University.  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.  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:
      • 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. 

 

  • Bonuses  for Employees – The payment of bonuses to UNM employees is a prohibited use of University funds, except in extremely rare cases where bonus provisions are specifically included in an employee’s official UNM Human Resources employment contract.
    • The Reason this is Unallowable– The New Mexico State Constitution Extra Compensation Clause (Article IV, Section 27 of the NM Constitution) prohibits New Mexico government employees (including UNM employees) from receiving discretionary or performance-based bonuses. Additionally, such payments would also violate the New Mexico Anti-Donation Law and would most 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:

 

  • Bottled Water & Other Refreshments for Employee Breaks – The purchase or reimbursement of refreshments for employee breaks such as bottled water, coffee, snacks and related items are considered personal items and are prohibited uses of University funds.
    • The Reason this is Unallowable – These items are personal in nature, so this would not constitute a valid University business expense.  University employees are expected to provide their own personal meals and refreshments while working. In general, the payment for bottled water and other related personal refreshment expenses for employees would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 5.3:  Coffee Break and Refreshment Supplies.  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).
    • Allowable Exception – Refreshment expenses for units that routinely host members of the public is allowable. However, the coffee, beverages and refreshments, etc, should not be consumed by University employees unless in conjunction with official guests of the University at meetings where University business is being conducted, as per University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 5.3:  Coffee Break and Refreshment Supplies. 
    • 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. 

 

 

  • Business Entity Creation  or Operation Expenses – Payments related to the creation or operation of a legal business entity, such as an LLC, Non-Profit, Corporation, Public Private Partnership, etc, are prohibited uses of University funds unless authorized by the UNM Board of Regents and in conjunction with University Counsel.

 

  • Cell Phone Expense  Reimbursement – The direct reimbursement to employees for University business use of their personal cell phones, related equipment, supplies or service is prohibited, although the University does instead offer a Cell Phone Allowance Program for employees paid through UNM Payroll which is intended to cover these costs.   
    • The Reason this is Unallowable – While reimbursing University employees for the business use of their personal cell phones isn’t a direct violation of law or policy, there can be taxable implications for employees without proper documentation.  In addition, it is also cumbersome to process 12 monthly reimbursements per year per employee.  As an alternative to direct reimbursement of these expenses, the University instead offers a much more user-friendly Cell Phone Allowance Program which pays recipients an automatic monthly allowance on their UNM paycheck through Payroll.  The documentation for the allowance substantiates the business need for the payment in order to exempt the employee from income tax.    
    • Possible Allowable Alternatives - Try this Instead:

 

  • Charitable Contributions – Payments made as contributions/donations where no value or lesser value consideration is received in return, whether made to charitable organizations or any other organization or individual are a prohibited use of University funds.
    • The Reason this is Unallowable – All University funds are required to be spent in a way that directly benefits the University.  Additionally, University funds cannot legally be given away to any organization or any individual, even if it appears to align with our mission.  Contributions made with University funds would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions.  In addition, contributions made with University funds 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).
    • Allowable Exception – Funds raised by Chartered Student Organizations through their own fundraising efforts, such as bake sales, etc, are not considered University funds and can be donated in accordance with that student groups wishes.
    • Possible Allowable Alternatives - Try this Instead:
      • An arrangement such as a Sponsorship in which the University receives equal or more legal consideration that directly benefits the University in exchange for our funds is allowable. Ex – Receiving advertising or booth rental at an event at an equal or higher value to our contribution payment.
      • There is an extremely narrow Poverty exemption to the New Mexico Anti-Donation law, but such expenses would only be allowed if first reviewed and vetted by the Office of University Counsel.

 

  • Coffee Break and Refreshment Supplies – The purchase or reimbursement of refreshments for employee breaks such as coffee, bottled water, snacks and related items are considered personal items and are prohibited uses of University funds.

 

  • Conferences & Training Not Related to an Employee’s Job Duties – The payment or reimbursement for training not related to an employee’s job duties is a prohibited use of University funds.
    • Examples:
      • Payment for an Office Administrator to attend an HVAC maintenance course.
      • Payment or reimbursement for an Administrative Assistant to attend a Photography conference.
    • The Reason this is Unallowable – Every University dollar spent must directly benefit the University. The expectation of investing University funds into training opportunities for our employees is that the University will directly benefit from that investment.  Paying for employee conferences and other training opportunities that will not provide a direct benefit to the University do not constitute a valid University business expense and most likely constitute personal benefit paid with public funds.  Such expenses would therefore violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exception
    • 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. 

 

  • Conflicts of Interest – The purchase, reimbursement or contracting for goods and/or services in a transaction in which a UNM employee has a conflict of interest due to a direct or indirect financial interest in the transaction is a prohibited use of University funds.
    • Examples
      • The Purchase of goods and/or services by the University from an individual who is currently employed by the University.
      • The Purchase of goods and/or services by the University from an individual who was employed by the University within the past 12 months.
      • The Purchase of goods and/or services by the University from a member of an employee’s immediate family (includes employee’s spouse, domestic partner, brother, sister, parent, child or in-law)
      • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee has an ownership interest (other than as owner of less than one percent (1%) of the stock of a publicly traded corporation).
      • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee is a partner, officer, director, trustee or paid consultant to the business entity.
      • The Purchase of goods and/or services by the University from an organization in which the employee or an immediate family member of the employee has a right to receive royalties from the business entity.
    • The Reason this is Unallowable– Employees of the University are required to maintain the highest standards of business ethics in transactions with the University, with State, Federal, and local governments, and with the public. Employees are expected to perform their duties faithfully and efficiently and never to give rise to suspicion of improper conflict with interests of the University.  In general, a transaction with a conflict of interest in the examples above would violate State Law, specifically the New Mexico Governmental Conduct Act.  Such transactions would also violate University Administrative  Policy 3720:  Employee Code of Conduct and Conflicts of Interest, Section 1:  General.  Many of these transactions would also violate other University Administrative policies, such as Policy 4320:  Purchasing Goods off Campus, Section 1.2:  Conflicts of Interest, and Policy 4325:  Purchasing Services from Independent Contractors, Section 3: Conflict of Interest. 
    • Possible Allowable Alternatives - Try this Instead:
      • For transactions involving current employees, contact Human Resources regarding the Extra Compensation Program.
      • Contact the University Chief Procurement Officer to request a written waiver/exception which can be allowable under the New Mexico Governmental Conduct Act in some situations.
      • 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. 

 

  • Contributions - Payments made as contributions/donations where no value or lesser value consideration is received in return, whether to charitable organizations or any other organization or individual are a prohibited use of University funds.
    • The Reason this is Unallowable – All University funds are required to be spent in a way that directly benefits the University.  Additionally, University funds cannot legally be given away to any organization or any individual, even if it appears to align with our mission.  Contributions made with University funds would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions.  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).
    • Allowable Exception – Funds raised by Chartered Student Organizations through their own fundraising efforts, such as bake sales, etc, are not considered University funds and can be donated in accordance with that student groups wishes.
    • Possible Allowable Alternatives - Try this Instead:
      • An arrangement such as a Sponsorship in which the University receives equal or more legal consideration that directly benefits the University in exchange for our funds is allowable. Ex – Receiving advertising, booth rental at events at an equal value or higher to our contribution payment.
      • There is an extremely narrow Poverty exemption to the New Mexico Anti-Donation law, but such expenses would only be allowed if first reviewed and vetted by the Office of University Counsel.

 

  • Debt, Forgiveness of Debt owed to the University – The forgiveness of a debt owed to the University is prohibited.
    • Examples
      • Debt owed by students for tuition and fees
      • Customer debt owed to the University as Accounts Receivable balances through the ordinary course of business.  
    • The Reason this is Unallowable – With the University existing as a public entity and a component of the State of New Mexico government, every dollar owed to the University is a dollar owed to the New Mexico Taxpayers. University employees do not have the authority to forgive a debt owed to the taxpayers.  Forgiveness of such debt likely constitutes a violation of the New Mexico Anti-Donation Law.

 

  • Decorations – The payment or reimbursement for holiday and similar decorations for University offices, buildings and home offices is a prohibited use of University funds, except when otherwise allowed in UNM Policy.

 

  • De minimis or Immaterial Unallowable Expenses – Any payment or reimbursement that violates a Law or UNM Policy is a prohibited use of University funds, regardless of dollar amount.
    • The Reason this is Unallowable – Under State Law, all violations of Law or instances of non-compliance with policies and regulations of any dollar amount are required to be reported as audit findings by our auditors in accordance with New Mexico statutes NMAC 2.2.2.10 F (6) & NMSA 12-6-5 1978. Under State law, the concepts of “de minimis” and “immateriality” do not apply when there is a misuse of Public Funds.  According to the Office of the New Mexico State Auditor, any misuse of New Mexico Public funds is an extremely serious matter and is required to be reported as an audit finding, even when dollar amounts are relatively small.  In addition, unallowable expenses of any amount would 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. 

 

  • Donations – Payments made as donations or contributions where no value or lesser value consideration is received in return, whether made to charitable organizations or any other organization or individual are prohibited uses of University funds.
    • The Reason this is Unallowable – All University funds are required to be spent in a way that directly benefits the University.  Additionally, University funds cannot legally be given away to any organization or any individual, even if it appears to align with our mission.  Donations made with University funds would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions. 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).
    • Allowable Exception – Funds raised by Chartered Student Organizations through their own fundraising efforts, such as bake sales, etc, are not considered University funds and can be donated in accordance with that student groups wishes.
    • Possible Allowable Alternatives - Try this Instead:
      • An arrangement such as a Sponsorship in which the University receives equal or more legal consideration that directly benefits the University in exchange for our funds is allowable. Ex – Receiving advertising, booth rental at events at an equal value or higher to our contribution payment.
      • There is an extremely narrow Poverty exemption to the New Mexico Anti-Donation law, but such expenses would only be allowed if first reviewed and vetted by the Office of University Counsel.

 

  • Driver’s License, Passports or other ID Card – The payment or reimbursement for personal identification items such as Driver’s licenses, Passports and LoboCards, including initial applications, renewals and replacements is a  prohibited use of University funds.
    • The Reason this is Unallowable – These items are personal in nature and are owned by the employee for future benefit, not owned by the University.  Therefore, the payment for these items would constitute personal benefit which would violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exception – If an employee requires a different type of LoboCard (or Health Sciences Center identification badge) due to a change in technology such as a change from keys to proximity cards, then University Funds may be used to cover the cost of the LoboCard or Health Sciences Center Identification Badge in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 6:  Personal Benefit.     
    • 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. 

 

 

 

  • Entertainment for UNM Employees - The payment or reimbursement for personal entertainment expenses for UNM employees, whether in conjunction with a unit retreat/team building activity or otherwise, is an unallowable use of University funds.
    • Examples:
      • Electronic Game venues
      • Bowling
      • Laser Tag
      • Golf games
      • Museums
      • Sporting events – Tickets and/or suite rental
      • Concerts & Performing Arts
      • Pickleball venues
    • 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 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 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).
    • Allowable Exceptions:
    • 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. 

 

  • Expenses Related to Events Held in an Employee’s Residence – While there is no University Policy that prohibits employees from holding University events in their home and using University funds to pay for the expenses of the actual event, certain expenses pertaining to the residence itself and other personal property at the residence are prohibited uses of University Funds.
    • Examples -
      • Household cleaning of private residence before or after the event
      • Repairs & Maintenance of private residences
      • Repair or replacement of damaged or stolen items –
    • The Reason this is Unallowable – Some University employees graciously open their home to University or departmental events, often to save on the cost of a venue rental. While this is not prohibited, it is discouraged by the UNM department of Risk Services due to potential liability issues.  Additionally, the University is prohibited from paying or reimbursing expenses related to cleaning or repair & maintenance of a private residence or compensating individuals for items that were damaged or stolen at an event held in their private residence.  The payment of these 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 most 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:
      • Instead of holding a University event in your home, consider instead hosting it at a venue like a hotel, a private room at a restaurant or the UNM Student Union Building. All expenses related to cleanup before/after the event and damage to property would be allowable expenses for an event held at a business venue.
      • 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. 

 

  • Expenses With No Clear Benefit to the University, or No Relation to an Employee’s Job Duties - The payment or reimbursement for expenses with no clear, direct benefit to the University or to a University employee’s job duties, is a prohibited use of University funds.  
    • Examples:
      • Meals/Food/Refreshments at gatherings where no University business is conducted.
      • Personal Entertainment expenses for University employees (Sporting events, performing arts, entertainment & leisure venues, gaming venues, museums, etc).
      • Travel/Training/Conferences that do not directly benefit an employee in relation to their job duties – ex. Payment for an Administrative Assistant to attend a Photography conference, or payment for an Office Administrator to attend an HVAC maintenance course.
      • Payment of expenses to attend a protest, rally, funeral/memorial service, religious or political event, etc.
      • Expenses related to personal days while on business travel
      • Unnecessary Travel that is not required to conduct University business – ex Costs associated with travel to a distant, quiet location for professional writing that could have been done on campus (Renting a lakeside cabin).
    • The Reason this is Unallowable – Payment for expenses that do not provide a clear, direct benefit to the University, but instead may confer primary benefit to employees or other individuals or organizations would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 6:  Personal Benefit.  Personal entertainment expenses for University employees would generally violate New Mexico Attorney General Opinion 97-02.  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. 

 

  • Family Members & Friends, Expenses for – The payment or reimbursement for expenses related to the family & friends of University employees participating in University business and events is, in general, a prohibited use of University funds.
    • Examples -
      • Meals provided for a University employee’s spouse, family member or other companion at a University business meal or recruiting meal.
      • Any cost to the University for additional travel expenses related specifically to an employee’s spouse, family member or other companion while the employee is traveling on official University business.
      • Any cost associated with family and other companions of University employees participating in events such as Training sessions, University Team building events and Unit Retreats.
    • The Reason this is Unallowable – In general, Family and Friends of University employees have no direct connection to actual University business. Therefore, the payment of expenses for family and companions of University employees is personal in nature, and would therefore generally violate the New Mexico Anti-Donation Law and 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).
    • Exceptions –

 

  • Fines – The payment or reimbursement of personal fines and other penalties incurred by an employee or other individual in violation of public law or policy is a prohibited use of University funds.
    • Examples – Parking tickets, traffic fines or speeding tickets incurred while conducting University business.
    • The Reason this is Unallowable – Fines and penalties related to personal violations of public law or policy such as speeding tickets & parking tickets are avoidable and preventable. Like all citizens, UNM employees are required to abide by all laws while conducting University work.  The payment of personally incurred fines and penalties would violate the New Mexico Anti-Donation Law and 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. 

 

  • Fiscal Agent Arrangements, Allowing use of UNM Accounting systems and/or Personnel – Allowing other organizations or individuals to use University accounting systems or University personnel for their accounting needs is prohibited.  This includes matters such as disbursing third party payments and/or maintaining accounting ledgers and transactions within the University accounting ledgers.
    • The Reason this is Unallowable – University resources such as University accounting systems and University personnel are funded by the University with Public Funds that must be used in a manner that directly benefits UNM, not outside organizations or individuals.  Additionally, there is an actual cost to using University accounting systems, including the cost of processing and mailing payments or bank fees related to issuing wire transfers or inter-bank payments.  These services are not free of charge and cannot be legally given away or volunteered to others outside the University.  Furthermore, if the funds of other non-affiliated organizations are commingled with University funds, that activity would be erroneously included in the University Financial statements, causing misstatement.  Allowing another organization or individual to use University accounting systems and University personnel to conduct non-University business would violate the New Mexico Anti-Donation Law and 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).
    •   Allowable Exceptions:
      • On extremely rare occasions, an outside organization can enter into a Fiscal Agency agreement with the University which would allow the outside organization to use University accounting & payment systems and University personnel in exchange for an agreed upon fee. Such agreements are extremely rare and can only be authorized by the Executive Vice President of Finance and Administration, and only when there is a direct benefit to the University (i.e usually for legally separate organizations created by the University, such as our Non-Profit Component units or Public Private Partnerships).

 

  • Food/Meals for virtual meeting attendees - The payment or reimbursement for food or meals for virtual meeting participants (i.e on Zoom, Teams) is a prohibited use of University funds.
    • The Reason this is Unallowable– University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 5.1:  Business Meetings, allows food for in-person group meetings only.  Providing meals for an employee or student attending a virtual meeting from their own home or alternate location would 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. 

 

  • Food/Meals/Refreshments at Gatherings where no University Business is conducted - The payment or reimbursement for food, meals or other refreshments where no University business is conducted is a prohibited use of University funds.

 

  • Funeral/Memorial Expenses – The payment or reimbursement of expenses related to holding or attending a funeral, memorial or other similar event including travel to or from the event is a prohibited use of University funds, even if the decedent was once affiliated with the University.
    • The Reason this is Unallowable – These expenses are personal in nature and therefore not valid business expenses for the University. Payment of these expenses would most likely violate the New Mexico Anti-Donation Law and 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. 

 

  • Gaming Venues/Gaming Entertainment for Employees - The payment or reimbursement for personal entertainment expenses for UNM employees, whether in conjunction with a unit retreat/team building activity or otherwise, is an unallowable use of University funds.
    • Examples:
      • Electronic Game venues
      • Bowling
      • Laser Tag
      • Golf games
      • Pickleball venues
    • 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 considered personal in nature and 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 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).
    • Allowable Exceptions:
    • 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. 

 

  • Gift Cards, Reimbursement for – The reimbursement for an out-of-pocket purchase of gift cards to an employee, student or any other individual is a prohibited use of University funds.
    • The Reason this is Unallowable – A reimbursement for the purchase of gift cards essentially allows an individual to hold and spend a cash equivalent of “off-ledger” Public funds, circumventing the University’s internal controls and accounting systems. All UNM funds are Public funds which are highly regulated by New Mexico government spending laws, transparency “Sunshine” laws, polices and audits.  Correspondingly, the purchase of gift cards is highly restricted and controlled by the University, and only allowed in limited circumstances such as incentive payments to research study participants or incentives for other events.  The reimbursement for an out-of-pocket purchase of gift cards is specifically prohibited by University Administrative Policy 2480:  Incentives for Program Participants, Section 2:  Allowable Incentives. 
    • Possible Allowable Alternatives - Try this Instead:
      • For Research or other incentives, gift cards can be purchased either with a PCard exception or directly through the UNM Accounts Payable department. Accounts Payable has several options available. 

 

  • Gifts - The payment or reimbursement for gifts to faculty, staff, students, their families or other individuals or organizations is a prohibited use of University Funds, unless authorized by other University Policies.
    • Examples –
      • Gifts for Congratulatory, Farewell, Sympathy, Bereavement, Thank You purposes, etc
      • Gifts to University business partners
      • Gift cards or other gifts to University employees who served on a hiring committee or other group.
      • Flowers & Floral arrangements
      • Gift Baskets & Comfort Packages
      • Memorial Keepsakes.
      • Meals/Food
      • Tickets to concerts & sporting events
    • The Reason this is Unallowable – In general, the payment for gifts would violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exceptions – University funds may be used to purchase recognition gifts (not including cash) for service awards and retirement, provided the items are not lavish or extravagant and are of de minimis value. See UNM HR Staff Recognition Awards Program for guidelines. 
    • Possible Allowable Alternatives - Try this Instead:
      • While State Law generally prohibits giving gifts paid with University funds, the University can legally purchase and give away low cost “Promotional Items” such as T-Shirts and Coffee mugs that bear a UNM logo or messaging when in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 7:  Promotional Items.
      • 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. 

 

  • Gross Receipts Tax on the Purchase of Goods – The payment or reimbursement of New Mexico Gross Receipts tax for the purchase of tangible personal property (goods) is a prohibited use of University funds, unless the goods are being used and consumed/installed within a construction project. [Please note that UNM is not exempt from New Mexico Gross Receipts tax on the purchase of services, or on sales tax from any other State, so those are allowable expenses.] 
    • The Reason this is Unallowable – The University is exempt from New Mexico Gross Receipts tax on the purchase of tangible personal property (goods) in accordance with State Statute 7-9-54. Therefore, the payment of New Mexico Gross Receipts tax on the purchase of goods would constitute an unnecessary waste of University funds 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).  In addition, the payment or reimbursement of New Mexico Gross Receipts tax would violate University Administrative Policy 4320:  Purchasing Goods Off Campus, Section 1.1:  Gross Receipts Tax, and Section 5:  Reimbursement for Purchases.
    • Possible Allowable Alternatives - Try this Instead:
      • Before making a purchase of goods, contact the UNM Accounts Payable department and request that they issue and provide a Non-Tax Transactional Certificate (NTTC) for the vendor. If you present the NTTC to the vendor, you will not be charged New Mexico Gross Receipts tax on the purchase of goods. 
      • If a purchase has already taken place, contact the UNM Accounts Payable department and request that they issue and provide a Non-Tax Transactional Certificate (NTTC) for the vendor. Present the NTTC to the vendor and request that they refund the tax that was charged. 

 

 

  • Home Cleanup/Repair Related to Hosting University Events in an Employee’s Residence – While there is no University Policy that prohibits employees from holding University events in their home and using University funds to pay for the expenses of the actual event, certain expenses pertaining to the residence itself and other personal property at the residence are prohibited uses of University Funds.
    • Examples -
      • Household cleaning of private residence before or after the event
      • Repairs & Maintenance of private residences
      • Repair or replacement of damaged or stolen items –
    • The Reason this is Unallowable – Some University employees graciously open their home to University or departmental events, often to save on the cost of a venue rental. While this is not prohibited, it is discouraged by the UNM department of Risk Services due to potential liability issues.  Additionally, the University is prohibited from paying or reimbursing expenses related to cleaning or repair & maintenance of a private residence or compensating individuals for items that were damaged or stolen at an event held in their private residence.  The payment of these 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 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:
      • Instead of holding a University event in your home, consider instead hosting it at a venue like a hotel, a private room at a restaurant or the UNM Student Union Building. All expenses related to cleanup before/after the event and damage to property would be allowable expenses for an event held at a business venue.
      • 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. 

 

  • Home office expenses – The purchase or reimbursement for personal expenses or personal furnishings for employees working from home is a prohibited use of University funds.
    • Examples –
      • Utility charges
      • Internet charges
      • Mortgage or Rent charges
      • Home Insurance
      • Repairs & Maintenance
      • Furniture such as desks, chairs, lamps, credenzas, etc
    • The Reason this is Unallowable – University employees working from home are expected to provide an appropriate working space to conduct University business. The payment of these types of home office expenses with University funds would violate the New Mexico Anti-Donation Law and 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).

 

  • 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 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 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. 

 

  • ID Cards – The payment or reimbursement for personal identification items such as Driver’s licenses, Passports and LoboCards, including initial applications, renewals and replacements is a prohibited use of University funds.
    • The Reason this is Unallowable – These items are personal in nature and are owned by the employee for future benefit, not owned by the University.  Therefore, the payment for these items would constitute personal benefit which would violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exception – If an employee requires a different type of LoboCard (or Health Sciences Center identification badge) due to a change in technology such as a change from keys to proximity cards, then University Funds may be used to cover the cost of the LoboCard or Health Sciences Center Identification Badge in accordance with University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 6:  Personal Benefit.     
    • 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. 

 

  • Insurance Policies – The payment or reimbursement of insurance coverage by UNM Departments is a prohibited use of University Funds.

 

  • Lavish/Extravagant Expenses – The payment or reimbursement for lavish, extravagant or luxury expenses where more reasonable options are available that meet our needs is a prohibited use of University funds. In addition, it is also prohibited to use University funds in a careless manner, or in a manner that provides little or no benefit to the University.
    • Examples:
      • Gourmet or High-end dining at a cost per person that is not consistent with UNM Policy.
      • Excessive meal tips (ex 35-40%)
      • $300 headphones for online business meetings
      • $6,000 sofas
      • Luxury Travel, such as higher than economy airline tickets when economy seats are available, high-end or resort lodging when more reasonable options are available, luxury automobile rentals when not necessary to conduct University business.
    • The Reason this is Unallowable – All University funds regardless of source are Public Funds belonging to the taxpayers of New Mexico. Wasteful spending is one of the most common misuses of New Mexico Public Funds and often results in major scandals and reputational damage to New Mexico Governmental entities through negative media coverage.  Such unwanted, negative media attention usually results in Special Audits by the Office of the New Mexico State Auditor, the Office of the New Mexico Attorney General, and the UNM Internal Audit department.  Consequently, wasteful spending is also one of the most common audit findings found in audits of New Mexico Governmental entities like the University.  University expenses must be reasonable in the eyes of a prudent person in order to be allowable.  While this doesn’t mean we are required to purchase poor quality goods and services, we are, however, prohibited from purchasing unnecessarily luxurious or extravagant goods and services.  Using University funds to pay for unnecessarily high-priced goods or services where more reasonably priced options are available and meet our needs would constitute a waste of University resources under State law and will result in audit findings.  Under New Mexico State Auditor statutes, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W). 
    • Allowable Exceptions:
      • Luxury travel may be allowed when no other economical options are available (must be documented in the Business Purpose of the transaction) – ex. only high-end airline seats, hotel rooms were available, at the time of booking, etc.
    • 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. 

 

  • Legal Expenses & Legal Settlements – The retention, contracting, payment and reimbursement of outside attorneys for legal services by UNM departments is a prohibited use of University funds, unless authorized by the Office of University Counsel.

 

 

  • Massages – The payment or reimbursement for UNM employees to get personal massages, whether on-site, in a spa/health club or any location is a prohibited use of University funds.
    • The Reason this is Unallowable – According to guidance we have received from the Office of the New Mexico State Auditor, using University funds to pay for employee massages would constitute a violation of the New Mexico Anti-Donation Law, and possibly an ethics violation under the New Mexico State Ethics Commission. For these reasons, payment for personal massages would also violate the 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).
    • Allowable Exceptions – Massages could be allowable at a Campus-wide HR Benefits wellness event for all employees, or similar event.
    • 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. 

 

  • Meals/Food/Refreshments at Gatherings where no University Business is Conducted - The payment or reimbursement for meals, food or other refreshments where no University business is conducted is a prohibited use of University funds.

 

  • Meals/Food/Refreshments for virtual meeting attendees – The payment or reimbursement for meals for virtual meeting participants (i.e on Zoom, Teams) is a prohibited use of University funds.
    • The Reason this is Unallowable – University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 5.1:  Business Meetings allows food for in-person group meetings only.  Providing meals for an employee or student attending a virtual meeting from their own home or other location would 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. 

 

 

  • Memorial Expenses - The payment or reimbursement of expenses related to holding or attending a funeral, memorial or other similar event including travel to or from the event is a prohibited use of University funds, even if the decedent was once affiliated with the University.
    • The Reason this is Unallowable – These expenses are personal in nature and therefore not valid business expenses for the University. Payment of these expenses would most likely violate the New Mexico Anti-Donation Law and 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. 

 

  • Moving Expenses for Employees – The direct payment or reimbursement of moving expenses for employees and new hires is a prohibited use of University funds, although the University does instead offer a Relocation Allowance Program for new hires through Human Resources and Payroll.
    • The Reason this is Unallowable – The University does not directly reimburse employees or pay moving expenses for newly hired employees but does instead offer an alternate Relocation Allowances Program. Newly hired employees are entitled to receive a Relocation Allowance on their first paycheck if such a provision has been negotiated into their official UNM Human Resources offer letter/employment contract.      
    • Possible Allowable Alternatives - Try this Instead:

 

  • Painting of an Employee’s Office or Workspace  on the Albuquerque Campus - The payment or reimbursement for painting an employee’s office or workspace, or any repair and maintenance to University buildings and grounds on the Albuquerque Campus is a prohibited use of University funds, unless authorized in advance by the Facilities Maintenance (FM) department.

 

 

  • Passports - The payment or reimbursement for Passports or other personal identification items such as Driver’s licenses and LoboCards, including initial applications, renewals and replacements is a prohibited use of University funds.
    • The Reason this is Unallowable – These items are personal items and are owned by the employee for future benefit, not owned by the University.  Therefore, the payment for these items would constitute personal benefit which would violate the New Mexico Anti-Donation Law and 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. 

 

  • Penalties - The payment or reimbursement of penalties and personal fines incurred by an employee or other individual in violation of public law or policy is a prohibited use of University funds.
    • Examples – Parking tickets, traffic fines or speeding tickets incurred while conducting University business.
    • The Reason this is Unallowable – Penalties and fines related to personal violations of public law or policy such as speeding tickets & parking tickets are avoidable and preventable. Like all citizens, UNM employees are required to abide by all laws while conducting University work.  The payment of personally incurred fines and penalties would violate the New Mexico Anti-Donation Law and 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. 

 

  • Performing Arts – 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, Operas, Ballet performances, 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
    • 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. 

 

  • 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, Identification items, Replacement of stolen personal items, Employee entertainment expenses, Massages for employees.
    • The Reason this is Unallowable – All expenses paid by the University are required 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 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. 

 

  • Political Contributions - A payment or reimbursement that is made as a contribution to a political organization or political candidate is a prohibited use of University funds.
    • The Reason this is Unallowable – Existing as a neutral public entity, the University is prohibited from supporting partisan politics and political candidates. Political contributions made with University funds would violate the New Mexico Anti-Donation Law and corresponding University Administrative Policy 4000:  Allowable and Unallowable Expenditures, Section 9: Political and Charitable Contributions.  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).
    • Allowable Exception – Funds raised by Chartered Student Organizations through their own fundraising efforts, such as bake sales, etc, are not considered University funds and can be donated in accordance with that student groups wishes.

 

 

  • Recruiting Expenses after an Employment Offer Letter is Signed – The payment or reimbursement of recruiting expenses for a candidate for employment with the University that were incurred after the candidate has signed their official UNM Human Resources Offer Letter is a prohibited use of University funds.
    • Examples – Travel, recruiting & house-hunting expenses incurred in subsequent travel to campus, on a trip that begins after an official offer letter was signed. The most common examples include airfare, lodging, meals, rental car, etc.
    • The Reason this is Unallowable – Once a candidate for employment signs an official UNM Human Resources offer letter with the University, they are no longer being recruited by the University but are instead under contract to work for the University. Paying or reimbursing recruiting expenses (i.e. subsequent trips) incurred after the official offer letter is signed would violate University Administrative Policy 4040:  Employee Recruitment Expenses, Section 2:  Allowable Candidate Expenses for Reimbursement.
    • Possible Allowable Alternatives - Try this Instead:

 

  • Reimbursement for Services Paid to Vendors/Contractors – The reimbursement for services paid out-of-pocket to a vendor or contractor is a prohibited use of University funds.
    • The Reason this is Unallowable – The UNM Purchasing department allows employees to be reimbursed for purchases of goods up to $1,000, but not services. The reimbursement of services is not authorized due to more stringent compliance requirements and other conditions than on the purchase of goods.  With services, for example, there are additional tax considerations such as IRS Employee vs Contractor determination and required tax reporting on IRS forms 1099-NEC, 1099-MISC or 1042-S.  The purchase of services is also generally more complicated than the purchase of goods from a contract standpoint, as there can be contract provisions and/or conflict of interest issues which preclude the University from doing business with a vendor.  An employee who purchases services out-of-pocket from a vendor or contractor runs the risk of not being reimbursed due to an unallowable/unlawful cost or transaction. 
    • Possible Allowable Alternatives - Try this Instead:
      • Please follow standard UNM Procurement rules for purchases of services. Services from vendors or contractors should only be procured through requisition/Purchase Order or P-Card.  The University does not have a standard process to reimburse employees for the purchase of services.  Please contact the UNM Purchasing department with questions. 

 

 

  • Repair, Maintenance, Services & Supplies for Property Not Owned by the University – The payment or reimbursement for repairs, maintenance, supplies or services for property that is not owned by the University is a prohibited use of University funds.   
    • Examples:
      • Repair of a computer, laptop, tablet, cell phone or other device that is owned by an employee, even if it is used for University business at times.
      • Repair & Maintenance for an automobile that is owned by an employee, even if the automobile is used for University business at times.
      • Repair of a laptop owned by a student used for their academic pursuits.
      • Purchase of a cell phone case for an employee-owned cell phone, even if the phone is used for University business at times.
      • Work-related software purchased with University funds that is only installed on a privately-owned computer or device.
    • The Reason this is Unallowable – The Payment for repair, maintenance, service or supplies for property not owned by the University confers primary benefit to the individual property owner, not to the University.  Therefore, such payments are personal in nature and would violate the New Mexico Anti-Donation Law and 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:
      • For vehicle expenses, the University will reimburse mileage for the business use of a personal vehicle in accordance with University Administrative Policy 4030: Travel Expenses and Per Diem, Section 9.3: Personal Automobile. 
      • For Cell Phone expenses, try the UNM Cell Phone Allowance Program which is intended to cover the University business portion of all expenses related to a personally owned cell phone.
      • It is not recommended to use a personally owned computer to conduct University business. Use your work-issued computer 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. 

 

  • Repair & Maintenance to University Buildings, Grounds & Facilities on the Albuquerque Campus - The payment or reimbursement for construction, maintenance or repair of University facilities on the Albuquerque Campus is a prohibited use of University funds, unless authorized by either the UNM Facilities Maintenance (FM) department or the UNM Facilities Design, and Construction (FDC) department.
    • Examples – Any work that modifies campus buildings or grounds (such as replacing, modifying, relocating, removing, painting, walls, windows, shelving, flooring, penetration of corridors or ceilings, adding to or dividing existing space, any work on building utility systems.
    • The Reason this is Unallowable – The UNM Facilities Maintenance department and the Facilities, Design and Construction department have complete oversight responsibility over any and all repair and maintenance issues to the University buildings and grounds on the Albuquerque campus. Facilities Maintenance will generally provide these services for departments, or contract directly with vendors for these services then bill UNM departments directly for the cost.  The payment or reimbursement of such costs directly by a UNM department without obtaining advance approval through Facilities Maintenance or Facilities, Design and Construction would violate University Administrative Policy 5050:  Facilities Maintenance, Repair and Alteration, Section 1:  General.   

 

  • Retreats: Personal Entertainment Expenses - The payment or reimbursement for personal entertainment expenses for UNM employees, whether in conjunction with a unit retreat/team building activity or otherwise, is an unallowable use of University funds. 
    • Examples:
      • Electronic Game venues
      • Bowling
      • Laser Tag
      • Golf games
      • Museums
      • Sporting events – Tickets and/or suite rental
      • Concerts & Performing Arts
      • Pickleball venues
    • 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 would therefore 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 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:
      • Please review our Retreat & Team Building Guidelines for more information on allowable & unallowable expenses related to these activities.
      • 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. 

 

 

  • Stolen Personal Items – The payment or reimbursement to an employee, student, individual or organization to replace stolen personal property is a prohibited use of University funds.
    • The Reason this is Unallowable - The payment or reimbursement to replace stolen personal property is personal in nature and would therefore constitute a violation of the New Mexico Anti-Donation Law and 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 you feel the University was negligent, contact the UNM Risk Services department regarding filing a Tort Claim with the State of New Mexico.
      • 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. 

 

  • Student Academic Expense – The payment or reimbursement of student academic expenses is a prohibited use of University funds, unless authorized by University policies such as the Tuition Remission program or other University published policy (such as teaching, research and graduate assistantships).
    • Examples
      • Tuition for University credit courses
      • Books & school supplies
      • Other University fees
      • Dissertation expenses including related travel.
    • The Reason this is Unallowable – In general, UNM students are responsible for all the costs related to their personal academic pursuits. The UNM Financial Aid Office has options available to assist our students with those costs.  Outside of the Financial Aid process, the direct payment or reimbursement of such costs by the University for a student would constitute a violation of the New Mexico Anti-Donation Law and 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:
      • Tuition Remission benefit program for UNM Employees
      • Direct the student to the UNM Financial Aid Office.
      • In many cases, it is allowable to instead pay these expenses by awarding a scholarship directly to the student through the Scholarship Workflow process.
      • In some cases, the payment of tuition for college courses at another institution for a UNM employee may directly benefit the University as a job training expense, similar to sending an employee to training at a conference. In this case, the amount paid for Tuition and fees may be taxable to the employee. 
      • 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. 

 

  • Supplies, Repairs, Maintenance & Services for Equipment/Property Not Owned by the University – The payment or reimbursement for repairs, maintenance, supplies or services for equipment or property not owned by the University is a prohibited use of University funds.   
    • Examples:
      • Repair of a computer/laptop/tablet, etc, or cell phone that is owned by an employee, even if used for University business at times.
      • Repair & Maintenance expenses for an automobile that is owned by an employee, even if used for University business at times.
      • Repair of a laptop owned by a student used for their academic pursuits.
      • Cell Phone Case for an employee-owned cell phone, even if used for University business at times.
      • Business software purchased with University funds that is only installed on a privately-owned computer or device.
    • The Reason this is Unallowable – The payment for repair, maintenance, service or supplies for equipment/property not owned by the University confers primary benefit to the individual property owner, not to the University.  Therefore, such payments are personal in nature and would violate the New Mexico Anti-Donation Law and 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:
      • For vehicle expenses, the University will reimburse mileage for the business use of a personal vehicle in accordance with University Administrative Policy 4030: Travel Expenses and Per Diem, Section 9.3: Personal Automobile. 
      • For Cell Phone expenses, try the UNM Cell Phone Allowance Program which is intended to cover the University business portion of all expenses related to a personally owned cell phone.  
      • It is not recommended to use a personally owned computer to conduct University business. Use your work-issued computer 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. 

 

  • Sympathy Gifts - The payment or reimbursement for sympathy gifts to faculty, staff, students, their families or other individuals is a prohibited use of University Funds.
    • Examples
      • Flowers & Floral arrangements
      • Gift baskets & comfort packages
      • Memorial keepsakes, Photos, Plaques
      • Food/meals
    • The Reason this is Unallowable – Sympathy gifts are personal in nature and therefore the payment does not constitute a valid business expense for the University.  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.  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:
      • While State Law generally prohibits giving gifts paid with University funds, the University can legally purchase and give away low cost “Promotional Items” such as T-Shirts and Coffee mugs that bear a UNM logo or messaging in accordance University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 7:  Promotional Items.
      • 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. 

 

  • Team Building Events: Personal Entertainment Expenses – The payment or reimbursement for personal entertainment expenses for UNM employees, whether in conjunction with a unit retreat/team building activity or otherwise, is an unallowable use of University funds. 
    • Examples:
      • Electronic Game venues
      • Bowling
      • Laser Tag
      • Golf games
      • Museums
      • Sporting events – Tickets and/or suite rental
      • Concerts & Performing Arts
      • Pickleball venues
    • 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 would therefore 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 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:
      • Please review our Retreat & Team Building Guidelines for more information on allowable & unallowable expenses related to these activities.
      • 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. 

 

  • Thank You Gifts - The payment or reimbursement for thank you gifts to faculty, staff, students, their families or other outside individuals or organizations is a prohibited use of University funds, unless authorized by other University Policies.
    • Examples –
      • Gift cards or other gifts to University employees who served on a hiring committee or other group.
      • Gifts such as food or sports/concert tickets to a University business partner.
      • Gift Baskets
      • Flowers & Floral Arrangements
    • The Reason this is Unallowable – The payment of these expenses is personal in nature and would therefore violate the New Mexico Anti-Donation Law and 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).
    • Exceptions – University funds may be used to purchase recognition gifts (not including cash) for employee service awards and retirement when in accordance with the UNM Human Resources Staff Recognition program, provided the items are not lavish or extravagant and are of de minimis value. See University Administrative Policy 3235:  Staff Recognition Programs for guidelines. 
    • Possible Allowable Alternatives - Try this Instead:
      • While State Law generally prohibits giving gifts paid with University funds, the University can legally purchase and give away low cost “Promotional Items” such as T-Shirts and Coffee mugs that bear a UNM logo or messaging in accordance University Administrative Policy 4000: Allowable and Unallowable Expenditures, Section 7:  Promotional Items.
      • 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. 

 

  • Theft of Personal Items – The payment or reimbursement to an employee, student, individual or organization to replace personal property that was stolen is a prohibited use of University funds.
    • The Reason this is Unallowable - The payment or reimbursement to replace stolen personal property is personal in nature and would therefore constitute a violation of the New Mexico Anti-Donation Law and 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 you feel the University was negligent, contact the UNM Risk Services department regarding filing a Tort Claim with the State of New Mexico.
      • 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. 

 

  • Training Not related to an Employee’s job duties - The payment or reimbursement for training not related to an employee’s job duties is a prohibited use of University funds.
    • Examples:
      • Payment for an Office Administrator to attend an HVAC maintenance course.
      • Payment or reimbursement for an Administrative Assistant to attend a Photography conference.
    • The Reason this is Unallowable – Every University dollar spent must directly benefit the University. The expectation of investing University funds into training opportunities for our employees is that the University will directly benefit from that investment.  Paying for employee conferences and other training opportunities that will not provide a direct benefit to the University do not constitute a valid University business expense and may constitute personal benefit paid with public funds.  Such expenses would most likely violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exceptions
    • Possible Allowable Alternatives - Try this Instead:
      • 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. 

 

  • Tuition and related costs – The payment or reimbursement of student academic expenses is a prohibited use of University funds, unless authorized by University policies such as the Tuition Remission Program or other University published policy (such as teaching, research, graduate assistantships).
    • Examples
      • Tuition and fees 
      • Books & school supplies
      • Dissertation expenses including related travel
    • The Reason this is Unallowable – In general, UNM students are responsible for all the costs related to their personal academic pursuits. The UNM Financial Aid Office has options available to students to assist with those costs.  Outside of the Financial Aid process, the direct payment or reimbursement of such costs by the University for a student would constitute a violation of the New Mexico Anti-Donation Law and 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:
      • Tuition Remission benefit program for UNM Employees
      • Direct the student to the UNM Financial Aid Office.
      • In many cases, it is allowable to instead pay these expenses by awarding a scholarship directly to the student through the Scholarship Workflow process.
      • In some cases, the payment of tuition for college courses at another institution for a UNM employee may directly benefit the University as a job training expense, similar to sending an employee to training at a conference. In this case, the amount paid for Tuition and fees may be taxable to the employee. 
      • 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. 

 

  • 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
      • Licenses
    • 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 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. 

 

  • Wasteful Spending - The payment or reimbursement for lavish, extravagant or luxury expenses where more reasonable options are available that meet our needs is a prohibited use of University funds. In addition, it is also prohibited to use University funds in a careless manner, or in a manner that provides little or no benefit to the University.
    • Examples:
      • Gourmet or High-end dining at a cost per person that is not consistent with UNM Policy.
      • Excessive meal tips (ex 35-40%)
      • $300 headphones for online business meetings
      • $6,000 sofas
      • Luxury Travel, such as higher than economy airline tickets when economy seats are available, high-end or resort lodging when more reasonable options are available, luxury automobile rentals when not necessary to conduct University business.
      • Expenses related to Employee’s family & friends participating in University events and business travel, unless otherwise allowed in UNM Policy or UNM employment contract.
      • Expenses that unnecessarily duplicate existing University expenses, such as duplication of insurance coverage.
    • The Reason this is Unallowable – All University funds regardless of source are Public funds belonging to the taxpayers of New Mexico. Wasteful spending is one of the most common misuses of New Mexico Public funds, and often results in major scandals and reputational damage to New Mexico Governmental entities through negative media coverage.  Such unwanted, negative media attention usually results in Special Audits by the Office of the New Mexico State Auditor, and, at times, the Office of the New Mexico Attorney General and the UNM Internal Audit department. Consequently, wasteful spending is also one of the most common audit findings found in audits of New Mexico Governmental entities like the University.  University expenses must be reasonable in the eyes of a prudent person to be allowable.  While this doesn’t mean we are required to purchase poor quality goods and services, we are prohibited from purchasing unnecessarily luxurious or extravagant goods and services, or receiving little or no benefit from the funds we spend.  Using University funds to pay for unnecessarily high-priced goods or services where more reasonably priced options are available and meet our needs would constitute a waste of University resources under State law and will result in audit findings.  Under New Mexico State Auditor statutes, waste is defined as “…the act of using or expending resources carelessly, extravagantly, or to no purpose."(NMAC 2.2.2.7(W). 
    • Allowable Exceptions:
      • Luxury travel may be allowed when no other economical options are available (must be documented in the Business Purpose of the transaction) – ex. only high-end airline seats, hotel rooms were available, at the time of booking, etc.
    • 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. 

 

  • Work Clothes – The purchase or reimbursement for work clothes for employees, or the cleaning, alteration or repair of personal clothing is generally a prohibited use of University Funds.
    • The Reason this is Unallowable – In general, University employees are expected to provide for their own clothing while working. The payment for personal clothing for University employees, or the cleaning, alteration or repair of personal clothing would generally violate the New Mexico Anti-Donation Law and 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).
    • Allowable Exceptions;
      • Work Clothing that is authorized in a UNM Human Resources employment contract or Union Contract.
      • Work uniform required for identification purposes, ex UNM uniforms for FM Maintenance workers
      • Specialty apparel that is required for the performance of a job – ex uncommon clothing needed for conducting lab/field research or repair/maintenance of UNM facilities.
    • 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. 

 

 

 


Contact Us

Hours:
8:00am - 12:00pm  & 1:00pm - 4:30pm
Tuesday - Thursday In-Office
(Monday & Friday Remote)

Address:
University of New Mexico
John & June Perovich Business Center
1700 Lomas NE, Suite 3400
Albuquerque, NM 87131

Phone: (505) 277-2018
Email:  gacal@unm.edu
Mail Stop: MSC01 1260