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Friday, June 26, 2009
$292K Embezzled From Tiny District
By Charles D. Brunt
Journal Staff Writer
A state audit has uncovered a nearly $300,000 embezzlement from the tiny Jemez Mountain School District and points to the district's recently fired business manager as the likely culprit.
State Auditor Hector Balderas said an ongoing special audit, triggered earlier this month when district Superintendent Adan Delgado discovered unspecified financial discrepancies, could reveal an even bigger loss to the rural, 375-student district.
"Based on the procedures we performed, it appears that (district business manager) Kathy Borrego embezzled $292,300.06 out of these bank accounts," between July 1, 2008, and May 31, 2009, Balderas said in a letter to Delgado earlier this week.
Borrego has not been charged with any crime. The case is being investigated by the Rio Arriba County Sheriff's Department.
Because the preliminary state audit examined only two of the school district's 11 financial accounts, Balderas said the total amount embezzled is likely to increase.
In a phone interview Thursday, Balderas said he has his best auditor, Steve Archibeque, conducting the audit.
"We're worried about a couple of things," Balderas said. "One is the size of the possible embezzlement — the size of the loss that the district might suffer. That's definitely something we haven't seen very often. And two, we have to go back at least 10 years to ensure that we've identified what the total liability is for the district."
Balderas said Borrego either cashed or deposited into her personal account about 45 checks meant for the school district.
Borrego began working as the school district's business manager in April 1999 and was terminated June 18.
"We've only tested one year, and we're extremely worried that this pattern may have existed for additional years," Balderas said. "But before we can give the district a clean bill of health, we want to make sure that we've tested every single fiscal year since the (business manager) was employed."
Balderas said he expects to have the special audit completed within the next 10 days.
Phone messages left for Delgado and school board Chairman Randy Cordova were not returned Thursday.
The school district, based in the village of Gallina in Rio Arriba County, includes Gallina Elementary, Coronado Middle and High School, Coyote Elementary and Lybrook Elementary.
In his letter to Delgado, Balderas said his office has contacted 1st Judicial District Attorney Angela Pacheco about the apparent embezzlement and will work with other law enforcement and education agencies as needed.
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