YOU’RE WATCHING KOAT ACTION SEVEN NEWS. THE NEW MEXICO STATE AUDITOR MET WITH COUNTY OFFICIALS TODAY REGARDING THAT STATE AUDIT THAT FOUND WIDESPREAD MISMANAGEMENT OF DISASTER RELIEF FUNDS. JOHN RUPOLO JOINS US LIVE NOW IN STUDIO. YEAH. DARLENE, THAT AUDIT FOUND THE COUNTY MISHANDLED OVER $3 MILLION IN INTEREST EARNED FROM A $41 MILLION LOAN INTENDED FOR WILDFIRE AND FLOOD RELIEF. THE MONEY WAS EARMARKED FOR ROADWAY IMPROVEMENTS. NOW STATE AUDITOR JOSEPH MAESTAS PRESENTED HIS FINDINGS TO MORA COUNTY COMMISSIONERS THIS MORNING. I ASKED WHO SAID THE $3 MILLION WAS USED FOR PURPOSES OTHER THAN ROADWORK PROJECT, INCLUDING BUYING EQUIPMENT AND $168,000 IN REPAIRS ON A PRIVATELY OWNED THEATER. OTHER MONEY WAS SPENT ON OPERATIONAL EXPENSES, BUT WAS NOT PROPERLY DOCUMENTED. MIKE ESTES ALSO SAID ANOTHER PROBLEM WAS THE HIGH TURNOVER RATE OF COUNTY FINANCE DIRECTORS AND COUNTY MANAGERS, WHICH LED TO POLICIES NOT BEING FOLLOWED. ESTES SAYS THERE WAS MISMANAGEMENT ACROSS THE BOARD. FURTHER REVEALS FUNDAMENTAL GOVERNANCE FAILURES THAT RESULTED IN INCONSISTENT DECISION MAKING. BLURRED LINES OF AUTHORITY AND UNDERMINED ACCOUNTABILITY. THESE FAILURES INCLUDED PERSISTENT TURNOVER IN MANAGEMENT, UNQUALIFIED INDIVIDUALS WITHIN THE FINANCE DEPARTMENT, KEY MEMBERS OF MANAGEMENT WITHOUT KNOWLEDGE OF EXISTING WRITTEN POLICIES AND PROCEDURES. NOW, AS PART OF THAT AUDIT, NO MISSING OR STOLEN MONEY WAS IDENTIFIED. THE STATE AUDITOR’S OFFICE WILL CONTINUE TO MONITOR THINGS THERE. IN MORA COUNTY. THE AUDITOR’S OFFICE ALSO MADE A REFERRAL TO THE NEW MEXICO DAJ FOR POSSIBLE FURTHER INVESTIGATIONS. WE’LL HEAR FROM MORA COUNTY COMMISSIONERS
State Auditor visits Mora County about mismanaged disaster relief funds
State audit alleges $3 million was not properly tracked or recorded
New Mexico State Auditor Joseph Maestas addressed Mora County commissioners Tuesday about a state audit released last month that revealed the mismanagement of $3 million in disaster relief funds. The audit highlighted that the county was not specific about how the money was spent, recording it under operational expenses, other contractual services, and road funds. “These funds were not properly restricted, tracked, or accounted for, and in some cases were spent on purposes unrelated to their lawful content,” Maestas said. The state reported that $168,000 of the funds were spent on repairs to a privately owned theater. “But the audit clearly shows the responsibilities were not met, resulting in weak or nonexistent controls, inadequate documentation, and unlawful expenditures,” Maestas said. Although no missing or stolen money was identified, the audit outlined other issues, including a high turnover rate of Mora County officials, such as finance directors and county managers. The state warned that a lack of oversight could lead to a loss of future funding. Interim County Manager Desmarie Romero responded to the audit, saying, “Our finance team, it’s not the past team. We’re wanting to obviously move forward and make Mora County better.”The funds were earmarked for roadway improvements, but according to the state, much of that work has yet to begin. “It’s a learning experience for me,” Mora County Commission Chairman George Trujillo said.
New Mexico State Auditor Joseph Maestas addressed Mora County commissioners Tuesday about a state audit released last month that revealed the mismanagement of $3 million in disaster relief funds.
The audit highlighted that the county was not specific about how the money was spent, recording it under operational expenses, other contractual services, and road funds.
“These funds were not properly restricted, tracked, or accounted for, and in some cases were spent on purposes unrelated to their lawful content,” Maestas said.
The state reported that $168,000 of the funds were spent on repairs to a privately owned theater.
“But the audit clearly shows the responsibilities were not met, resulting in weak or nonexistent controls, inadequate documentation, and unlawful expenditures,” Maestas said.
Although no missing or stolen money was identified, the audit outlined other issues, including a high turnover rate of Mora County officials, such as finance directors and county managers. The state warned that a lack of oversight could lead to a loss of future funding.
Interim County Manager Desmarie Romero responded to the audit, saying, “Our finance team, it’s not the past team. We’re wanting to obviously move forward and make Mora County better.”
The funds were earmarked for roadway improvements, but according to the state, much of that work has yet to begin.
“It’s a learning experience for me,” Mora County Commission Chairman George Trujillo said.
