State Auditor launches investigation into WNMU over former president's payout
Jan 16, 2025
SILVER CITY, N.M. (KRQE) – Western New Mexico University is facing even more scrutiny over a nearly $2 million payout to its outgoing president. It comes weeks after the State Attorney General announced an investigation. Now, the State Auditor is looking into the deal as well.
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In November, the State Auditor uncovered more than $360,000 in improper spending by the former university board and president, prompting the president to step down. Now the Auditor is looking into the deal he got when he resigned.
"I've never seen anything like this in terms of an egregious lack of adherence to policies and procedures," said Joseph Maestas, NM State Auditor.
New Mexico's State Auditor Joseph Maestas said he was appalled by the actions of some Western New Mexico University leaders. An initial audit by Maestas' office back in November uncovered thousands in inappropriate spending by the University's former President Joseph Shepard, on travel and furniture. On Thursday, they announced they're launching another audit.
"There's been a lot of developments that have occurred even since we completed our initial investigation into the travel and procurement violations of the university's policies and procedures and as many of you know it totaled to over $360,000," said Joseph Maestas, NM State Auditor.
Since their initial investigation, the president resigned, followed by the board amid outcry over their decision to give Shepard a $1.9 million severance payment.
"Since there's a lack of leadership in the president's office and in the board, we felt the need to step in and designate the university. That way we can have direct oversight of that special audit," said Auditor Maestas.
Last month, the Attorney General's Office announced its investigation into that payout.
"But we understand the actions being taken by the Attorney General, which are legal in nature, but ours are financial in nature. In investigating the payout, the circumstances surrounding the payout, and whether or not any policies and procedures and even laws have been broken," said Auditor Maestas.
Auditor Maestas said while the two investigations are separate, their special audit could also potentially benefit the AG's investigation. "I'm also sending a message out there to not just the higher education institutions but other public entities that they really need to assess their policies and procedures, and they need to make sure that they adhere to them to the letter," said Auditor Maestas.
The special audit also takes over an audit that the university was originally supposed to conduct itself, into potential fraud, waste, and abuse under the previous leadership. The State Auditor says they're hoping to complete the special audit by the end of spring. However, they said the information won't be immediately available to the public.
The State Auditor's office said insider tips are their number one source for uncovering fraud. They encourage the public to report tips to their website.