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State audit finds weaknesses in Lovington Municipal Schools procurement; board approves findings
Summary
A New Mexico special audit covering 2017–2024 identified systemic weaknesses in procurement, documentation and vendor oversight at Lovington Municipal Schools, flagged roughly $949,000 in questioned or unsupported costs, and prompted the district to cease work with the vendor in December 2024; the board voted to accept the report and continue corrective actions.
A special audit by the New Mexico Office of the State Auditor found sustained weaknesses in procurement, documentation and oversight at Lovington Municipal Schools and identified roughly $949,000 in questioned or insufficiently supported costs, the auditor told the school board on the district's public meeting.
State Auditor Joseph Mestasan told the board the audit focused on procurement and contracting, oversight of a long-term technology vendor relationship, documentation and internal controls across the period July 1, 2017 through Dec. 31, 2024. "When that happens, risk increases to the school district and to the appropriate use of public funds," Mestasan said, summarizing the findings.
The audit report categorized problems as systemic rather than isolated. Auditors identified about $949,000 in questioned or insufficiently supported costs, including more than $500,000 in travel-related expenses lacking adequate documentation and nearly $300,000 in labor charges without sufficient support. The audit also flagged gaps in tax compliance, missing receiving reports and fragmented records that limited independent verification of goods or services received.
Audrey Hadil, a presenter from the auditor's office, gave a detailed review of the engagement and its exhibits. She said the district paid the vendor about $6.1 million over the audit period, with roughly 25% of the total attributable to labor and approximately $2.2 million for supplies and materials. The auditors found the district did not have an overarching executed contract with the vendor and noted a pattern of task orders or after-the-fact purchase orders that increased the district's exposure.
"This review looked at several years of activity specifically from 2017 until the end of 2024," Mestasan said. "Public money must be handled with care, and the systems that protect it must work consistently, transparently, and without exception." He commended the district for halting work with the vendor in December 2024 and urged continued corrective work.
Auditors also recommended improvements including stronger procurement oversight, creation or use of an internal audit function, more robust receiving and asset-tagging records, consistent vendor registration and insurance documentation, and routine backup/restore testing for IT systems.
Superintendent remarks and a statement read by the board said the district self-reported the concern, immediately ceased work with the vendor pending investigation, and has begun implementing many corrective recommendations. On a motion and second, the board voted to approve the findings of the special audit.
The auditor directed attendees to detailed schedules and exhibits in the report for voucher-level detail. The board and audit team concluded the public portion of the meeting by thanking the auditors; the board then adopted the report and moved into follow-up steps to monitor corrective actions.
