Section IV

Fiscal Management

Fiscal Management

The CNM Governing Board delegates to the CNM President responsibility for general fiscal management of the College. The Board has adopted specific policies relative to fiscal management as required by state statute and as otherwise deemed appropriate. Any appropriate related procedures will be included in the Source – the procedures online manual at CNM.

Budget

The Board annually will conduct a public budget review and approve a budget for the College for the next fiscal year. The Board will approve all budget adjustment requests made to the New Mexico Higher Education Department.

Governing Board Agreements

CNM Foundation

The Governing Board and the CNM Foundation operates under a memorandum of agreement addressing their relationship, the Foundation's organization and function, and the management and distribution of gifts and donations. Reference: CNM Foundation Amended and Restated MOU.

CNM Ingenuity

The Governing Board and CNM Ingenuity operates under a memorandum of agreement addressing their relationship, Ingenuity’s organization and function, and the management and disbursement of gifts, donations, and other funds. Reference: CNM Ingenuity MOU.

Audits

The Board has adopted an Internal Audit Charter to provide guidelines relative to audits and evaluations of the College’s fiscal operation. Reference: Audit Committee Duties and Responsibilities included in Appendix.

Signature Authority, Check Signing, and Wire Transfer Authority

The Board authorizes the President to designate persons to sign checks and authorize wire transfers. The Board also authorizes the President to designate persons and/or College roles authorized to legally bind the College by signing financial documents and other agreements. Reference: Signature Authority Change. 

Investments

The Governing Board has adopted a policy providing guidelines for investment of College assets. Reference: CNM Investment Policy.

Endowment Funds

The Governing Board has adopted an oversight and investment policy for CNM endowment funds. Reference: CNM Endowment Funds.

Travel

The Board has adopted a policy outlining reimbursement and arrangements for College-related travel, including establishing maximum mileage and per diem rates consistent with state statute. Reference: Employee Handbook, 6.03 Payment for Travel and Travel Related Conferences.

Procurement

The Board has adopted a policy that follows state statute (The Procurement Code) in the procurement of services, tangible personal property, and construction. Reference: Procurement Policy. 

Representation and Entertainment Expenses

The Board has adopted a policy regarding use of appropriated funds and the College’s general activity account (GAA) for representation and entertainment expenses. Reference: GAA Governing Board Policy.

Debt Management

The Board has adopted a debt management policy to provide a framework to guide decisions regarding the use and management of College debt. Adherence to debt policies will help to ensure that the College maintains a sound debt position and that credit quality is protected. Reference: Debt Management Policy. 

Fund Balance Policy

The Board has adopted a fund balance policy that assures long term fiscal stability for the College. Reference: CNM Fund Balance Policy.

Adopted: 4/14/2015
Committee: Finance


Audit

External

The Board is obligated to undertake and oversee an annual audit conducted by an independent auditor. The Audit Committee recommends selection of the auditor to the Board. See details in the Appendix: Audit Committee Duties.

Internal

The Board is obligated to investigate concerns related to CNM fiscal, personnel and administrative management. The Audit committee recommends selection of the Internal Auditor to the Board. See details in the Appendix: Audit Committee Duties.

Committee: Audit


Electronic Transactions

The Board delegates to the President responsibility for developing procedures for CNM electronic transactions. Electronic transactions must comply with the provisions in accordance with the Uniform Electronic Transactions Act (NMSA 1978, §14-16-1 et seq.). 

Adopted: 3/10/2015
Committee: Finance


Inventory and Disposition of CNM Property

CNM will dispose of its real property and tangible personal property in accordance with state law (NMSA 1978, §§ 13-6-1 and 13-6-2). CNM’s Governing Board designates the Capital Outlay Committee to approve and oversee the disposition of property. Inventory will be conducted in accordance with state law. See NMSA 1978, § 12-6-10.

Physical Inventory of Movable Chattels

Cost greater than $5,000

CNM will, at the end of each fiscal year, conduct a physical inventory of movable chattels and equipment costing more than five thousand dollars ($5,000) (Capital Assets). The inventory will list the chattels and equipment and the date and cost of acquisition. Upon completion, the inventory will be certified by the Governing Board as to correctness.

Disposition of Obsolete, Worn-Out or Unusable Tangible Personal Property

Resale value less than $5,000; initial cost of $5,000 or more

CNM’s Capital Outlay Committee, through the authority granted by the Governing Board of CNM, may dispose of any item of tangible personal property, with an initial cost of $5,000 or more, that belongs to CNM and delete the item from CNM’s public inventory if an item a) has a resale value of $5,000 or less, b) is worn-out, unusable or obsolete, to the extent the item is no longer economical or safe for continued use by CNM.

A copy of the official finding and proposed disposition of the property sought to be disposed of will be made a permanent part of the official minutes of the Governing Board and maintained as a public record subject to New Mexico’s Inspection of Public Records Act.

Adopted: 11/10/2015
Committee: Capital Outlay Committee


Investment Policy

Legal Restrictions

The College will invest funds in conformity with federal and state laws and regulations, including Internal Revenue Services (IRS) regulations pertaining to tax exempt bonds, bond resolutions and indentures, and other pertinent legal restrictions. These laws and regulations include but are not limited to NMSA 1978, § 6-8-1 et seq. and § 6-10-1 et seq., NMSA 1978; Uniform Prudent Investor Act, NMSA 1978, § 45-7-601 et seq.; Uniform Prudent Management of Institutional Funds Act, NMSA 1978 § 46-9A-1 through § 46-9A-10 NMSA 1978; and Internal Revenue Code on Arbitrage, 26 USC § 148.

Investment Responsibility and Control

The Governing Board delegates the authority to invest the College funds to the Vice President for Finance and Operations or designee who shall ensure that investment guidelines are developed and kept on file in the Business Office. Therefore, the Vice President for Finance and Operations or designee is designated as the College's Investment Officer and is authorized to deposit, withdraw, invest, transfer or manage in any other manner the funds of the College.

Reporting and Governing Board Review.

The Investment Officer or designee shall prepare monthly reports of investment activity and investment balances for review and approval by the Vice President of Finance and Operations. Quarterly reports summarizing the activity and balances for the fiscal year shall be prepared as of September 30, December 31, March 31 and June 30 each year and presented to the Governing Board at its first meeting after which the reports are available.

The Board shall review this investment policy, as necessary, but at a minimum every three years. Any changes to the investment guidelines shall be presented to the Finance Committee of the Board as an informational item.

Adopted: 11/8/2016
Revised: 07/13/2021
Committee: Finance

Endowment Funds

The Governing Board delegates the authority to invest the endowment funds to the Vice President for Finance and Operations or designee who shall ensure that investment guidelines are developed and kept on file in the Business Office. Therefore, the Vice President for Finance and Operations or designee is designated as the College's Investment Officer and is authorized to deposit, withdraw, invest, transfer or manage in any other manner the funds of the College.

Legal Restrictions

The College will invest funds in conformity with federal and state laws and regulations, and other pertinent legal restrictions. These laws and regulations include but are not limited to NMSA 1978, § 6-8-1 et seq. and § 6-10-1 et seq., NMSA 1978; Uniform Prudent Investor Act, NMSA 1978, § 45-7-601 et seq.; Uniform Prudent Management of Institutional Funds Act, NMSA 1978 § 46-9A-1 through § 46-9A-10 NMSA 1978 and NMSA 1978, § 21-1-38 et seq.

Reporting and Governing Board Review

The Investment Officer or designee shall prepare monthly reports of investment activity and investment balances for review and approval by the Vice President of Finance and Operations. Quarterly reports summarizing the activity and balances for the fiscal year shall be prepared as of September 30, December 31, March 31 and June 30 each year and presented to the Governing Board at its first meeting after which the reports are available.

The Board shall review this policy, as necessary, but at a minimum every three years. Any changes to the investment guidelines shall be presented to the Finance Committee of the Board as an informational item.

Adopted: 11/8/2016
Revised: 07/13/2021
Committee: Finance


Master Plan & Capital Outlay Projects

As part of the annual CNM Master Plan process, the Governing Board approves the acquisition and disposition of real property and other capital outlay projects that have an estimated project cost exceeding $100,000 (including gross receipts tax) and that fall under the following categories:

1. Any sale or purchase of real property. An independent appraisal of the property will be obtained. 

2. Any project which results in the additional square footage, whether from construction or long-term lease of a new facility or building addition, or purchase of portable buildings 

3. Any proposal to issue bonds. 

4. Any alterations, site improvements, new building construction or building renovation 

5. Any demolition of real property. 

6. Any informational technology project based on total estimated costs exceeding $100,000 including gross receipts tax.

The Governing Board annually approves the update to the five-year Master Plan project list provided by administration. Any project not included in the annual Master Plan, with an estimated project costs exceeding $100,000 including gross receipts tax project list will be presented to the full Board for project approval as an out-of-cycle master plan project.

Adopted: 2/6/2016
Committee: Capital Outlay/Finance


Procurement

Section 13-1-97-C NMSA1978 requires all procurement for local public bodies to be performed by a central purchasing office designated by the governing authority of the local public body. Section 13-1-95.2 NMSA1978 requires effective January 1 of each year every time a chief procurement office is hired, the local public body will provide to the state purchasing agent the name of the local public body’s chief procurement officer and information identifying the local public body’s central purchasing office. Section 13-1-30 NMSA 1978 requires that except as otherwise provided in the Procurement Code (Sections 13-1-28 through 13-1-199 NMSA 1978) that code will apply to every expenditure by state agencies and local public bodies for the procurement of items of tangible personal property, services and construction.

The CNM Director of Purchasing and Materials Management will serve as the CNM Chief Procurement Officer as required by Section 13-1-95.2 NMSA1978 and the CNM Purchasing Office will be designated as the central purchasing office for all procurement as required by Section 13.1-95-C NMSA1978.

The CNM Procurement Office maintains policies and procedures for the procurement of items of tangible personal property, services, and construction that comply with the Procurement Code (Sections 13-1-28 through 13-1-199 NMSA1978).

Adopted: 7/12/2015
Committee: Finance