Part III - UNM Finance: Practical Applications

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Standard Accounting Resource Manual (SARM)

MSC 0000 00
1 University of New Mexico
Albuquerque, NM 87131

About Contracts and Grants

Contracts are legal agreements entered into by UNM and one or more party to provide a good or service in exchange for money.  The Contract will spell out what UNM is to provide, when it is to be provided, and other pertinent information.

Grants are awards of money to be used for a specific purpose.  Grant money is not a loan or a gift.

At UNM, both Contracts and Grants are tracked in the Contract and Grant Accounting Office (CGAO).  The Pre-Award office is responsible for assisting principle investigators (PIs) and their departments in the proposal stage of a contract or grant. 

Once the award notification is sent to the CGAO, an index is set up in Banner and all expenditures must be recorded in Banner.  These funds are restricted funds.  There are specific ways in which these funds may be spent, and the purchases made with these funds must further the scope of work of the contract or grant award.