SILVER CITY, N.M. – A recent investigation conducted by the New Mexico state auditor’s office has revealed significant breaches of fiduciary duty by high-ranking officials and regents at Western New Mexico University. The findings, released publicly on Tuesday, examine expenditures from July 2018 through June 2023, uncovering numerous instances of improper financial dealings and wasteful spending, amounting to over $363,000 that did not align with the university’s established policies.
Concerns regarding international travels undertaken by university President Joseph Shepard, the use of a university purchasing card by his wife, and expenditures on luxurious furniture prompted scrutiny from state legislators last year. In response, Shepard maintained that his financial requests had undergone thorough vetting by the regents and contended that he was knowledgeable about the relevant spending policies.
Despite the issues raised, the regents supported Shepard and chose not to halt international travel, ignoring a suggestion from the state Higher Education Department to conduct a cost-benefit analysis before proceeding with any trips.
In a letter addressed to university Board of Regents President Mary Hotvedt, State Auditor Joseph Maestas expressed grave concerns regarding the review’s findings, which pointed to a significant lack of adherence to university policies. Maestas emphasized the importance of robust governance, stating, “Without strong and committed leadership to reinforce the internal control system, the university remains at significant risk for fraud, waste, and abuse.” He remarked on the necessity of cultivating an environment centered on accountability and transparency that informs all employees of the significance of these controls.
In response to inquiries regarding Shepard’s comments on the report, the university released a statement from Hotvedt, indicating that the administration has been proactive in addressing the identified issues and that an independent audit is forthcoming. She mentioned updates to university policies and revisions to travel and procurement procedures, alongside staff training initiatives to foster compliance. An independent assessment is also underway to evaluate the benefits derived from the university’s international programs.
The university has refrained from disclosing whether any sanctions will be enforced in light of the policy violations. The auditor’s investigation scrutinized more than 400 travel and lodging instances, both domestic and international, which failed to conform to university regulations. Among these, several trips taken by Shepard were found to appear unrelated to university business, including events where his wife, former CIA officer Valerie Plame, was engaged as a guest speaker. Plame previously ran for New Mexico’s 3rd Congressional District during the 2020 Democratic primary but was unsuccessful.