Unexplained delays for state-ordered audit of Hispanic Cultural Foundation
Already more than two months overdue, a state-ordered independent audit of the National Hispanic Cultural Center (NHCC)’s private fundraising foundation has yet to be approved for public release.
Albuquerque accounting firm Moss Adams gave a “working draft” of the audit report to the Department of Cultural Affairs early last week, Deputy Secretary Doug Svetnicka said Tuesday. It is now undergoing internal review, he said.
“The draft, unfinished audit report is with (Cultural Affairs) Sec. (Veronica) Gonzales,” Svetnicka said. “I believe that she has shared it with the Gov.’s office.”
State Auditor Hector Balderas — who must sign off on the report before its public release – has not yet been provided a copy, State Auditor’s Office Chief of Staff Evan Blackstone said.
Gonzales ordered the “full and independent” audit after learning the NHCC Foundation had misused an undetermined amount of more than $812,000 in taxpayer money intended for the completion of a mural of New Mexico history at the Torreón Building in Albuquerque.
In April, state officials said the independent audit would be completed by mid- to late May.
Then the due date was changed, without explanation, to early June.
Then late June.
Then July.
Now it is expected sometime in August.
The report remains “a work in progress,” Svetnicka said.
Reviews of draft audit reports are “a common phase in the auditing process, part of the working process,” Svetnicka said, affording auditors an “opportunity for clarification.”
Asked shortly before this story went to press Tuesday morning if state officials had made — or will make — any changes to the audit report, Svetnicka replied, “I don’t think so, but I’ll ask Sec. Gonzales.”
Gonzales tasked Moss Adams with determining how the NHCC Foundation spent $812,500 in taxpayer money that state lawmakers had appropriated for the mural’s completion in 2007 and 2008.
The mural exhibit still lacks visitor seating and lighting, ventilation and climate controls, and needs floor and roof work, NHCC Foundation President Clara Apodaca has acknowledged.
But Foundation and state records indicate the Foundation used state fresco money to pay part of Apodaca’s and others’ salaries and lobbying expenses, Veritas NM first reported in April.
Officials from Moss Adams and the NHCC Foundation have not responded to phone and e-mail requests for comment.
Apodaca is a former first lady of New Mexico. She spent 18 years in Washington, D.C. as a political consultant.
The NHCC Foundation’s misuse of state fresco funds and violations of the state lobbying law were first reported by Veritas New Mexico.
It will be interesting to see what “findings” are made by the Moss Adams auditors, if any. Since this is not a forensic audit we shouldn’t expect the level of detail or examination that the public should have regarding this matter. As with all audits of this nature, auditors will merely do sampling and will develop their “findings”, send them to Cultural Affiars for review and revision, then release the final audit under the auspices of the State Auditor (Hector Balderas).
Don’t expect much from wannabe U.S. senate candidate, Democrat, Hector Balderas. Balderas knew about this situation at the NHCC foundation before Senator Bingaman announced his retirement and sat on his hands, doing nothing to examine the serious problems at the NHCC Foundation. Now that he’s a candidate expect even less from him. It would be interesting to see what NHCC Foundation board members, if any, or if Clara Apodoca have donated to his U.S. senate campaign. Any conflicts of interest there?
So what happens to the Foundation and more importantly, the NHCC?
The Foundation has failed at its mission of raising funds in support of the Center. They haven’t provided any support in the last two years and the Center hasn’t been able to do any programming or marketing on their own.
Now the Foundation is potentially hundreds of thousands of dollars in debt and, in theory, is fundraising for the NHCC. But obviously, any money they raise will go to pay off their debt. If I had $25K to give to a charity and I loved the Hispanic Cultural Center, why would I even consider giving that money to them via the Foundation to pay off the Foundation’s debt?
It seems like this situation is just guaranteed to keep the NHCC in an underfunded (or non-funded) state for years.
Can the Foundation declare bankruptcy and be dissolved? It seems like that would be the most advantageous option for the Center!
Foundation hubris rules in those high-spanic circles. They would rather drag the center to new lows than do what is right: replace Clara Apodaca and it’s froundation board members who allowed her to get to into this situation of debt by deceit.
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