State Auditor Hector Balderas says New Mexico State University violated a state statute by failing to inform his office of alleged misuse of funds and equipment by employees of the facilities department.
In a letter sent Friday to NMSU President Michael Martin, Balderas wrote that he learned of the probe through the media even though the state’s administrative code and a statute require that state agencies immediately notify the auditor’s office of “any possible criminal statute violation in connection with its financial affairs.”
According to Balderas, notification to his office must include the estimated dollar amount involved and a description of the violation that includes the names of those involved and the action taken or planned. That’s so the auditor can determine whether a special audit is warranted, the letter states.
“NMSU’s failure to notify me regarding these alleged improprieties is noncompliance with both the regulation and statute cited above,” Balderas wrote in the letter. “The NMSU audit report for the fiscal year ending June 30, 2007 must include an audit finding regarding this noncompliance.”
Balderas instructed Martin to provide him with information about the probe as soon as it is available, and wrote that, in the future, “NMSU should inform me in writing immediately upon discovery of any possible criminal violation at the university.”
Investigators from the university police, sheriff’s department and FBI have worked with auditors to scrutinize hundreds of thousands of dollars in expenditures and have narrowed their investigation to focus on allegations that a few employees used university equipment, funds and resources for a number of construction projects at their homes.
When the investigation began several weeks ago, five employees were placed on leave. At least one has returned to work, and another has been given notice that he will be fired.
Because the investigation is ongoing, the university has refused to reveal publicly much of the information Balderas says state law requires it disclose to him. The auditor’s office says NMSU’s response to Balderas won’t be public because it’s part of an ongoing investigation.