Western University officials facing possible ethics probe over ‘wasteful’ spending of $360,000

Danielle Prokop, Source New Mexico

This article was originally published by Source New Mexico.

A review that found “wasteful spending and improper use of” more than $360,000 in public funds by the head of Western New Mexico University has now caught the attention of state ethics officials. 

New Mexico State Auditor Joseph Maestas sent the findings of his office’s investigation this week to the State Ethics Commission. The commission, an independent agency that oversees campaign finance, lobbying, government spending and conduct, automatically generated a letter Wednesday, saying it would take a closer look. 

And that’s likely all the commission will say, at least for a while. Ethics probes are made public once a settlement or a civil case in state court is filed.

Informal complaint reviews are not public, said Amelia Bierle, the spokesperson for the commission. 

“All complaints, reports, files, records – all of that is confidential,” Bierle said in a phone interview. “We aren’t able to say anything more than that was an auto-generated letter sent out upon receipt of the referral.”

The information submitted by the auditor’s office would be subject to further review as part of an informal complaint, and could include public records requests, interviews with witnesses or additional questions, the commission stated. 

Western New Mexico University President Joseph Shepard and his wife, former CIA agent and one-time Congressional candidate, Valerie Plame, were subjects of a December Searchlight New Mexico story that showed the couple had spent tens of thousands in public money on international trips, wine, flowers and high-end furniture over five years.

In response to a request for comment, Western New Mexico University’s communications office sent out a written statement from governing Board President Mary Hotvedt.

Hotvedt writes that the auditor raises “serious concerns that have been addressed by Western New Mexico University leadership.”

In the statement, she lists that the governing board has reviewed cost disparities and updated policies to align with state regulations, initiated an independent cost-benefit analysis of international initiatives and engaged third-party auditor for an ongoing special audit.

Additional emailed questions to Hotvedt went unreturned Thursday. 

State agencies took notice in January, issuing letters stating the trips violated guidelines and, in the state auditor’s case, announcing a further look into the school’s books. 

Western New Mexico’s governing board has backed Shepard in public meetings, and in July gave him a bonus for “exceeding expectations” at his performance evaluation. That same month the board also adopted to its travel policy and approved a new policy to allow reimbursement to the university president’s spouse or domestic partner for travel.

The Santa Fe New Mexican reported that Shepard collects an annual salary of $365,000 with contract options of $50,000 bonuses for good performance. 

Earlier this week, Maestas released a letter of concern to the university’s governing board, finding that between 2018 and 2023, there were several instances of wasteful spending including:. 

• Almost $215,000 over 402 instances of noncompliant domestic and international travel.
• Nearly $150,000 spent in 91 total transactions on a university credit card.
• Providing an expense account and university credit card to a non-university employee, in this case Plame, the president’s wife.

The use of the university credit card to purchase luxury furniture violated university policies that limit and require approval if items cost $1,000 or higher. The auditor’s office found the spending violated university policy and the President’s employment contract.

“Further, University management and Board failed to uphold their fiduciary responsibilities, by neglecting to adhere to the corresponding elements as established in the University’s policies, procedures, and rules regarding travel, per diem, and procurement,” the auditor’s letter said.

The letter said the office was “encouraged” that the university’s governing board updated its policies in July and commissioned an external audit. 

In an interview with Source NM, Maestas said the next steps are up to investigative agencies, such as the State Ethics Commission.

“We are not an enforcement agency,” he said. “We have a duty to inform and notify.”

Maestas cautioned that he expected a “microscope” is going to be focused on Western New Mexico University leadership. 

“I think the biggest change needed is to truly lead by example and establish that tone at the top,” he said. “Emphasize the importance of adhering to these internal controls, policies and procedures because if they’re not adhered to, it opens the door for fraud, waste and abuse.”

Danielle Prokop covers the environment and local government in Southern New Mexico for Source NM.