By Nicole Maxwell, NM Political Report
Western New Mexico University has drawn scrutiny from the Office of the State Auditor and now the New Mexico Department of Justice due to allegations of waste, fraud and abuse concerning the university and its recently bought-out president, Joseph Shepard.
“The decision to offer Joseph Shepard a $1.9 million-dollar golden parachute is extremely concerning in light of the State Auditor’s comprehensive report documenting excessive travel and personal expenditures during his tenure as President of Western New Mexico University,” Attorney General Raúl Torrez said in a press release. “While we await a final determination by the Ethics Commission into the conduct set forth in the Auditor’s report, the New Mexico Department of Justice will be conducting a separate inquiry into this process and will specifically examine whether the Board of Regents has satisfied its fiduciary duty to the university and the taxpayers of New Mexico.”
Shepard will no longer be WNMU president on Jan. 15, 2025.
Shepard will remain at the university as a full professor with the WNMU School of Business while assuming the title of president emeritus, according to a WNMU press release.
“Shepard noted that media coverage of the university, centered on its handling of financial matters, has proved a distraction from the significant accomplishments WNMU has achieved under his 13-year leadership,” the press release states. “His decision to step away from the presidency, he said, was in the best interest of the university’s students and faculty, who could proceed to focus on academic excellence without distraction.”
Shepherd served as WNMU’s president for more than 13 years.
The State Auditor’s Office issued a letter of concern in November that alleges the university wasted funds due to not adhering to its rules regarding travel, per diem and procurement between July 1, 2018 and June 30, 2023.
The alleged misspent funds include:
- $214,261.91 covering 402 instances of domestic and international travel and lodging for university staff and leadership. The spending was found to be noncompliant with university policies and rules.
- $149,264.08 covering 91 instances of procurement using university credit cards, including high-end custom furnishings for the president’s official residence. The spending was also found to be noncompliant with university policies and rules.
- Providing expense accounts and purchasing cards to a non-university employee.
“Effective governance is crucial in setting the tone at the top, embracing accountability and transparency, and ensuring that all employees understand the importance of these controls and adhere to them diligently,” State Auditor Joseph Maestas said in a news release. “Without strong and committed leadership to reinforce the internal control system, the university remains at significant risk for fraud, waste, and abuse.”
State Auditor Joseph Maestas emphasized the importance of these measures,
“Effective governance and robust internal controls are essential to prevent waste and abuse of public funds,” Maestas said. “WNMU’s commitment to improving its financial oversight is a critical step in safeguarding taxpayer dollars and maintaining public trust.”