A dispute over irregularities in expense reimbursements for the former executive director of the Regional Coalition of LANL Communities (RCLC) has attracted the attention of the New Mexico attorney general.
“We can confirm the Office of the Attorney General has received a public referral and this matter is under review,” David Carl, spokesman for New Mexico Attorney General Hector Balderas, said by email Tuesday. “All complaints received by the Office of the Attorney General are fully reviewed and appropriate action is taken, but we remain deeply concerned about any misuse of public funds by officials.”
The referral came from a group called Northern New Mexicans Protecting Land, Water and Rights, Carl said. The spokesman did not immediately reply to a follow-up email on whether any criminal charges could result.
The group has asked the attorney general to determine whether RCLC breached the state’s Fraud Against Taxpayers Act. “In reviewing the below audits, it is without a doubt that violations of state and possibly Federal laws were committed,” and possibly a coverup and criminal acts, according to the “NNMProtects” complaint to the attorney general.
The attorney general has authority to issue subpoenas, so his office can fully investigate the situation, David Neal, vice president of the Northern New Mexico environmental advocacy group said by phone Thursday.
The Regional Coalition of LANL Communities was created by the state in late 2011 to promote the interests of local communities around the Energy Department’s Los Alamos National Laboratory. Much of its funding comes from Los Alamos County and DOE.
The organization in February chose not to renew the executive director contract for Andrea Romero Consulting after questions were raised about $2,600 in expenses reimbursed for travel, meals, alcoholic beverages, and tickets to a baseball game in Washington, D.C. The expenses were incurred as part of outreach efforts with government officials and other LANL stakeholders.
Since leaving RCLC, Romero won a primary in June to become the Democratic Party’s nominee to represent District 46 in the New Mexico Legislature. One of the write-in opponents she is facing in the November election is Heather Nordquist, a former officer with Northern New Mexicans Protecting Land, Water and Rights.
Romero has used her Twitter account to respond to critics in the expense account controversy.
“The Regional Coalition adopted its Travel Policy in 2012, well before I arrived in 2015,” she said in a statement this month. “During my orientation, I was trained to handle reimbursements just as they had been handled since 2012–which was for the Executive Director to pay in advance for meetings, travel, and other Regional Coalition expenses, and then submit a reimbursement request to Los Alamos County. This is exactly what I did.”
Romero acknowledged it was a mistake to seek reimbursement for baseball tickets and alcohol. She said she refunded those costs “months ago,” and that all expenses were approved by either Los Alamos County or RCLC Treasurer Henry Roybal.
Both the state auditor’s office and a law firm retained by Los Alamos County have concluded there is no evidence Romero or any RCLC board member knowingly violated reimbursement standards, she added.
Two Reports Find Plenty of Problems with RCLC, Romero Expenses
An Aug. 7 report from the New Mexico State Auditor’s Office faults both Romero and the RCLC board for not complying with state standards on reimbursement of expenses.
The auditor’s office in January received a letter from a member of the public alleging misuse of public funds by the RCLC.
“The Executive Director [Romero] was not authorized to bill for or be reimbursed for any meal expense for third parties, including Board Members, entertainment expenses or expense for alcohol,” according to the Aug. 7 report. “Additionally, it would be inappropriate for the RCLC to have reimbursed the Executive Director for any meals that may have been provided to DOE employees in violation of federal rules.”
The auditor said the RCLC’s reimbursement of Andrea Romero Consulting (ARC) for more than $2,600 for alcoholic drinks, personal expenses, and entertainment fees violated its own travel policy and state law. While the RCLC did not concur with all auditor findings, it said in the report it has taken steps to remedy the situation.
In late July, Eric Vasquez, of the firm CPLC New Mexico, was named the new RCLC chief.
Another report, also critical of the RCLC Board and Romero, was issued Aug. 8 by the Adams+Crow Law Firm of Albuquerque. It was prepared at the request of Los Alamos County, one of the members to the LANL coalition.
The law firm said the RCLC board reimbursed Romero, a contractor, for items such as alcoholic drinks and entertainment that a state employee would not have been allowed to claim. The report added RCLC reimbursement processes need to be overhauled, and Los Alamos County’s ill-defined role as “fiscal agent” for the group should be clarified. Over time the county has assumed an increasing fiduciary duty for RCLC as a matter of practice, the report noted.
“The ambiguous role of the County was found to have contributed to uncertainty or “confusion” by County officials and employees, as well as RCLC members and ARC,” allowing impermissible expenditures and reimbursements to occur.” This situation should have been remedied earlier, the law firm said.
The current RCLC travel policy is in violation of two state laws governing per diems and mileage costs, the law firm said.
Between its founding and December 2017, the RCLC has received $765,000 from the county, $272,000 from the Department of Energy, and $166,000 from other RCLC members, according to the report.
Auditor Questions if RCLC is Lobbying
Meanwhile, State Auditor Wayne Johnson’s office has questioned whether RCLC is improperly engaged in lobbying.
The non-governmental organization to promote communities around LANL has been funded in part by a five-year grant from DOE, totaling $500,000, which stretches into June 2020. The grant’s rules explicitly prohibit lobbying, but the RCLC “appears to be engaged in prohibited lobbying activities,” according to the report.
By accepting the DOE grant, RCLC agreed none of the money, appropriated by Congress, would be used to influence a member of Congress to vote in a certain way or take a particular policy position, the report said. In addition, RCLC has described itself as being involved in state lobbying.
A Feb. 22 letter from Romero provides a summary of state and federal efforts, “which appear to be lobbying,” the auditor said. The list ranged from work on legislative issues before the New Mexico Legislature to discussions with DOE’s National Nuclear Security Administration, as well as the U.S. House Armed Services Committee, to ensure LANL funding is protected.
Failure to comply with the DOE grant restrictions could cause “claw back” of much of the funding, the auditor’s report said.
The Regional Coalition disagreed. “Only a minority fraction of RCLC’s activities and expenditures relate to advocacy,” the group said in comments included in the report. The coalition said it has ample funds outside of the DOE grant to cover such costs.
The RCLC board agreed it should follow all grant lobbying restrictions. The organization has hired a third party to provide “a segregated special revenue fund” for DOE grant money. The group’s new executive director has been told by the board to make a clear distinction between work done under the DOE grant and other tasks.
“The recent controversies surrounding the RCLC have been difficult for those involved, but I believe they have been an excellent learning experience and it is good that these issues have been brought to light,” Vasquez said by email.
