Jemez Mountains Electric Cooperative, Inc., Forensic Audit Findings Presented
ESPAÑOLA, N.M., September 9, 2022 – The Dawson Forensic Group from Lubbock, Texas, presented the findings of its forensic audit to the Board of Trustees of Jemez Mountains Electric Cooperative, Inc., Thursday, August 25. The report was organized into the two tracks of the audit scope:
Forensic Investigation
- Solar projects, Cuba and Alcalde
- Former executives, process for separation-from-service payments
Internal control consultation
- New building construction process and accounting
- Capital credits allocations, retirements, overall accounting
- Credit card usage and accounting process
- Policy / bylaw review
Forensic investigation
The Dawson report spelled out the objective of the allegation of fraud investigation is to determine if there is evidence that could support a legal case of fraud in its 11-page report.
With the allegation of improper separation from service payments, after review of disbursements and supporting documentation, the reports states that payments were proper, properly supported and authorized with no evidence of activity supporting a presentable case of fraud.
With the allegation of improprieties associated with solar projects, the report noted that the ability to present a case of fraud depends on the ability to get a subpoena to obtain business and financial records of those said to be involved. The investigation noted no evidence of fraud sufficient to support a request for a subpoena.
The investigators consider both matters closed.
Internal Control Consultation
The internal controls document – a 36-page executive summary with more than 100 additional pages of sample forms and procedures – focused on improvements to current policies and procedures with an eye to bringing JMEC current with best practices. In specific matters, such as the new building construction and accounting, the investigation found that, “… the process and documentation in support of the (construction contracting) processes are considered to be some of the best we have encountered.”
Also, that the rumored $1 million board room table did not exist (JMEC cut its old board table in half and reassembled it in the new building) and the similarly rumored $30,000 bronze dedication plaque installed in the foyer cost $12,500 for its casting and installation.
Recommendations around capital credits allocation, credit card usage and policy/bylaw processes were extensive in that they speak to what to add and what to do in addition for best practice disciplines as well as education, training and implementation.
The full audit:
Dawson Forensic Investigation Report (PDF)
Dawson Forensic Report_Internal Control Process Consultation Report(PDF)
Dawson Forensic Report Internal Control Process Consultation Report Summary(PDF)