SOUTHERN NEW MEXICO
State auditor expresses 'grave concern' over Doña Ana County probe
Special audit details issues, mistrust across county operations
LAS CRUCES — State Auditor Joseph Maestas presented a special audit report to Doña Ana County commissioners Tuesday, expressing “grave concern” over systemic failures in governance and management in the seat of New Mexico’s second most populous county.
The 355-page audit report, on the Office of the State Auditor’s website Monday, was presented during a commissioners’ meeting that ran all day long.
The list of findings was long, reflecting the breathtaking scope of a probe “covering virtually every aspect of County operations, including governance, financial management, procurement, human resources, legal compliance, and public safety functions” from 2021 to 2025.
“The county is not broken; they just need to get to work,” Maestas said in an interview following the presentation. He argued that the county needed a fundamental change of its organizational culture, beyond addressing the audit findings.
Maestas ordered the audit last year after county commissioners and Sheriff Kim Stewart separately requested one amid long-running disputes over her authority over personnel decisions involving deputies and staff.
Stewart even threatened to cease commissioning deputies due to what she characterized as overreach and interference by county HR, specifically over her desire to strip commissions from two officers in her command. The squabble prompted a lawsuit by the county, which was later dropped. Stewart has since commissioned cadets.
That conflict was addressed in one of the audit findings, citing the county for a lack of procedures that might have addressed the conflict without litigation. Audrey Jaramillo, the founder of Jaramillo Accounting Group, said that Stewart was right to assert her authority to make decisions about law enforcement commissions with county HR properly in a “supporting role.”
The findings were not limited to the county’s dispute with the sheriff. Commission Chairman Manny Sanchez remarked that it was the most comprehensive deep dive into county operations he could remember. The audit encompassed organizational culture across county departments, including instances where elected officers’ authority came into conflict with bureaucratic leadership.
It also uncovered potential violations of New Mexico’s sunshine laws, procurement laws and the Governmental Conduct Act. Maestas reminded the commissioners that the findings and the county’s promised corrective actions would be examined in regular annual financial audits until the issues were resolved.
The audit report revealed that in 2022, the county became aware of apparent misappropriation of county jail inmates’ money, but did not report it to the state auditor as required. In its response, the county attributed the issue to a communications failure and promised to update its procedures.
Auditors also tracked funds derived from the county’s 40-year lease with Memorial Medical Center for the hospital’s use of public land.
The analysis found that proceeds were recorded in the county’s general fund; but, as they are required to be used for health-related programs or projects, the report says they should have been accounted for via a special revenue fund to prove the money was used appropriately.
In the same finding, auditors said the county had not accounted for its investment in the Camino Real Regional Utility Authority, a joint entity with the city of Sunland Park that is in the process of being dissolved, with the city assuming responsibility for water and sewer services in city limits and the county for its territory.
The audit flagged a longstanding issue in the county assessor’s office, where a special fund designated for property valuation procedures has been used for the office’s personnel and operational costs since 2008.
County Assessor Eugenia Montoya Ortega raised the issue herself earlier in the meeting when commissioners considered a preliminary budget, saying she needed a general fund appropriation so that the valuation fund, which raises approximately $1.5 million annually, could be used for its legal purpose.
The findings also included compliance failures with New Mexico’s public records law, conflict-of-interest disclosures, internal controls over financial reporting, payments and bank changes and numerous financial reporting concerns.
The audit report recommended that the county establish an inspector general position as a central conduit for allegations of misconduct. New Mexico’s two largest cities, saʴýҳ and Las Cruces, both have inspectors general. In its response, the county committed to bringing the recommendation to commissioners at a work session.
County employees who participated anonymously in a survey reported low confidence in the county’s transparency, accountability or their ability to report concerns without retaliation.
Maestas told the Journal the county would be well advised “to address employee morale – whatever it’s going to take to reestablish trust and confidence in the personnel system. … They may need some outside help, maybe a professional firm to facilitate some leadership retreats.”
Stewart responded to the report from the podium, evoking her own history as a whistleblower from within the county ranks. Stewart was a formal internal investigator who sued the county, claiming in a 2015 trial that she had been terminated for investigating racial discrimination within county law enforcement. She was awarded a $1.6 million judgment.
“Many things that were found in this audit existed in 2008,” she told the commissioners. “Your culture never changed. That’s the hardest thing. … My lawsuit wasn’t to make me wealthy. My lawsuit was to make change.”
The audit report landed a week ahead of primary elections for the offices of sheriff and assessor. Stewart is near the end of her second four-year term and barred from running again.
Montoya Ortega is seeking the Democratic nomination for a second term with two challengers, including former County Commissioner Shannon Reynolds.
Although the office of County Clerk is not up for election this year, the incumbent, Amanda López Askin, is running for secretary of state in a Democratic primary contest with Santa Fe County Clerk Katharine Clark.
County Manager Scott Andrews, who arrived at the county in 2024, said the full report would be made available on the county’s website for public consumption and stressed that many corrective actions were already in process.
Maestas emphasized that the road ahead would be long.
“This is a lot,” he said. “I can’t emphasize enough how much works is required to really turn this county around.”
Algernon ’A is the Journal’s southern New Mexico correspondent. He can be reached at adammassa@abqjournal.com.