SANTA FE, NM – Today, State Auditor Tim Keller released a special audit of Dora Consolidated Schools, a school district in a small town south of Portales. The Office of the State Auditor (OSA) initiated the audit after it received several complaints from concerned citizens. The OSA reviewed procurement, asset acquisition and disposition, and compliance with statutes and regulations over multiple years. The audit resulted in thirteen findings including probable violations of the State Procurement Code, Anti-Donation Clause, Public Money Act, and Governmental Conduct Act.
"While the school district has an excellent academic record, some financial procedures unfortunately were not graded as high," stated State Auditor Tim Keller. "Being a small school district doesn't mean standard financial regulations don't apply. Our audit found significant areas of concern and we urge the school's top leadership to focus on cleaning up its procurement and financial procedures. We have a deep respect for our rural communities and were concerned by reported fears of retaliation against employees who cooperated with the audit. Transparency is key to good government and our office will continue to hold leaders accountable regardless of where they live."
The audit reviewed the district's finances from June 2013 through December 2016 and found:
- Probable violations of the State Procurement Code, Anti-Donation Clause, Public Money Act, and Governmental Conduct Act;
- The School did not maintain adequate documentation to support a variety of financial transactions; and,
- The School entered into over $41,000 in related party contracts, did not follow procurement rules for $62,000 in purchases and may have been deprived of a portion of $34,000 in recycling revenue.
The audit was referred to the Ninth Judicial District Attorney's Office for further investigation pursuant to OSA's obligations under state law. The full report is available here: https://www.saonm.org/audit_reports/detail/11055