Reasonable Person Standard

The University is a public institution, and we are accountable as stewards of public funds. Every expenditure we make must add value to the institution and promote the core purpose, mission, and objectives of the University. This guide provides you with the basics of what should be considered before spending University funds.

Reasonable spending supports the University and our students through better use of resources, easier record keeping, and more accurate reporting. By following reasonable spending guidelines, you can streamline your approvals and reimbursements and lessen the chance of revisions or denials.

Every dollar that comes into the University is a state dollar. State dollars are considered public money, must be used for valid public purposes, and are subject to New Mexico expenditure statutes, laws, rates, and policies.

It is crucial we think of our spending from the public perspective. Every purchase we make is paid for by tuition, state and federal funding, or other sources like grants, gifts, and sales. Our students, taxpayers, and other supporters depend on us to use our resources wisely. Additionally, every transaction is an audit record, and these audiences have a right to scrutinize University expenditures.

Note: Inappropriate spending can be catastrophic for the University in terms of media coverage and can lead to the potential removal of state and grant funding. Furthermore, individuals can be held liable for the repayment of funds and may be subject to administrative or disciplinary actions. If an individual intentionally misuses University money, they can also be referred for criminal prosecution.