Audit slams Española Public Schools’ finances

SANTA FE, N.M. (AP) — An audit has found a financial takeover of the Española Public School District by state officials in 2016 led to a series of mistakes costing millions of dollars.

The Albuquerque Journal reports the district’s annual audit for fiscal year 2019, performed by Las Cruces-based firm Fierro and Fierro, found 17 instances of noncompliance in Española Public Schools’ finances.

Those findings range from from uncashed checks worth more than $140,000 to school accounts not matching New Mexico Public Education Department cash reports.

In one finding alone, auditors found 12 deficiencies in the district’s accounting processes.

A bond fund was overspent by more than $700,000. Future payroll costs were not figured into the cash balance. A failure to submit required IRS forms could lead to $1.2 million in fines.

Throughout the 152-page report, auditors repeatedly cite PED’s contracted business managers as the cause behind many of the findings.

PED returned financial control to the district last July.

Española Superintendent Fred Trujillo said PED is not responsible for all of the findings.

PED spokeswoman Nancy Martira wrote Wednesday the department was still reviewing the findings, but they will reach out to district officials about the issues.