The Office of the State Auditor's Risk Assessment Report of the Public Regulation Commission

8/3/2019 The Office of the State Auditor's Risk Assessment Report of the Public Regulation Commission

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STATE OF NEW MEXICO

OFFICE OF THE STATE AUDITOR

RISK ASSESSMENT REPORT

NEW MEXICO PUBLIC REGULATION COMMISSION

Hector H. Balderas

State Auditor

October 12, 2011


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OSA PRC Risk Assessment 2

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY....3II. BACKGROUND .5

A. Context and Procedural History. .5

III. RISK ANALYSIS OF WRIGHT EXPRESS GAS CARD PURCHASES.8A. Summary of Exhibits...8B. OSA Procedures and Results...8C. Agency-wide Analysis Required.12

IV. RISK ASSESSMENT OF PER DIEM AND MILEAGE...13A. OSA Procedures and Results..13B. Agency-wide Analysis Required.15

V. REFERRAL OF THE RISK ASSESSMENT REPORT...16VI. EXHIBITS. .17

A. 2011 Monthly Calendar of Commissioner Blocks Gas Card Usage.18B. Vehicle Gas Cards Used..2 4C. Questionable Gas Card Transactions25


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I. EXECUTIVE SUMMARY

On September 20, 2011, the Special Counsel for the House Rules ImpeachmentInvestigation Subcommittee (Subcommittee), Robert J. Gorence, requested the assistance of theOffice of the State Auditor (OSA) in providing the Subcommittee copies of documents the OSAreceived from the Public Regulation Commission (PRC) related to the potential misappropriationof state resources by the now former Commissioner Jerome J. Block. On September 21, 2011,the OSA provided certain documents in response to Mr. Gorences request, and notified him thatthe OSA planned to provide the Subcommittee with an official analysis of documents andinformation related to the allegations against Commissioner Block. The OSA also informed Mr.Gorence that the State Auditor hoped an analysis conducted by OSA auditors would assist theSubcommittee with its mission. Accordingly, this Risk Assessment Report was originally

prepared as a courtesy to the Subcommittee. The assessments contained in this report are notpart of a formal audit engagement of the PRC. Therefore, the OSA is not required to release thisreport pursuant to Section 12-6-5 NMSA 1978. The report focuses solely on the transactionsinvolving Commissioner Block and not the PRC as whole which will be addressed in a specialexamination conducted by independent public accountants (IPA) under the OSAsdirection. However, given the risks identified by the report related to gas and travel charges, andthe concern that others may have assisted or illegally profited from Commissioner Blocksactions, the OSA will refer this report to the Attorney General (AGO), the Tax FraudInvestigations Division of the Taxation and Revenue Department (TRD Tax and Fraud), thePRC, the Legislative Finance Committee (LFC) and the Department of Finance andAdministration (DFA).

As part of the risk assessment, the OSA requested and reviewed the Wright Express(WEX) Gas Card Usage Reports for Commissioner Block from the beginning of his term inoffice, January 1, 2009, through July 31, 2011. The time period under review was based on thebeginning of Commissioner Blocks term through August 2, 2011, the date the PRC notified theOSA of potential fraudulent use of state-issued gas cards by Commissioner Block. Upon initialreview of WEX gas card reports, the OSA noted a high percentage of questionable and frequentgas charges; however, the lack of records (vehicle logs, etc.) made it more difficult to pinpointinappropriate use. Therefore, the OSA analyzed the reasonableness of the charges. Based onOSAs review of the WEX Gas Card Usage Report for Commissioner Block, the OSA identified193 of the total 288 gas card charges as questionable gas charges. The 193 questionable gas card

charges, for a total 2,463 gallons at a net cost of $8,189, are fully detailed in EXHIBIT C in thisRisk Assessment Report. During our review we also noted Commissioner Blocks pin numberwas used in making gas card charges on 18 different WEX gas cards. Of those 18 cards, 17 wereassigned to vehicles designated for use by specific PRC divisions or employees. The true extentof this risk needs to be further tested agency-wide. The OSA also requested and reviewed theofficial records of the PRC meeting minutes in order to compare Commissioner Blocks physicalattendance to gas card charges made with his pin number. Based on OSAs review, there appearto be a number of instances in which the gas card pin number assigned to Commissioner Block


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was used while he was documented as being physically present at a PRC meeting. There was nosupport or justification contained within the documentation provided by the PRC to explain theirregularities.

Also, as part of its risk assessment, the OSA requested and reviewed the PRCs general

ledger detail of all per diem and mileage reimbursement disbursements requests forCommissioner Block from January 1, 2009 through July 31, 2011. Based on the general ledgerdetail, Commissioner Blocks travel amounted to $11,737.27 during less than a two and a halfyear time period (February 2009 to June 2011). The analysis of travel and per diem reveals anumber of instances in which the PRC reimbursed Commissioner Block even though he failed toprovide itemized receipts. In two instances, Commissioner Block circumvented procurementprocedures related to air travel. We also noted occurrences in which Commissioner Blocks pinnumber was used for a gas card purchase at a location different than that of the location of traveland during the same date and time. Additionally, there remains an outstanding travel advance of$1,003.96 awaiting receipts from Commissioner Block to support the travel paid in advance.The PRC indicated that Commissioner Block had not provided receipts or reimbursed the PRC at

the time of his resignation.

On September 28, 2011, Commissioner Block pleaded guilty to numerous felonies,including fraudulent use of a state credit card, and agreed to resign from the PRC.Commissioner Block formally submitted his resignation on October 7, 2011. However, based onthe results of OSAs Risk Assessment Report, the responses received from the PRC to theOSAs inquiries, reports from other sources and certain reports made to the OSA on its FraudHotline, the OSA has determined that risks exist in the PRC that require further analysis and testwork. Those risks also include the PRCs lack of policies related to use of state vehicles forcommuting purposes and the failure to keep records regarding the business and personal use ofvehicles by PRC commissioners, which is required for federal tax fringe benefit purposes. Dueto these concerning risks, the State Auditor determined that a special audit should be conductedpursuant to Section 12-6-3(C) NMSA 1978. OSA auditors designed the objectives of the specialaudit engagement to test certain risk areas related to travel, per diem, vehicle and gas charges dueto serious concerns over the misappropriation and inadequate protection of public resources.The full results and risks identified by this Risk Assessment Report are explained below.


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II. BACKGROUND

A. Context and Procedural History

On August 2, 2011, the Acting Administrative Services Division (ASD) Director/Chief

Financial Officer (CFO) of the PRC notified the OSA of instances of potential fraudulent use ofstate-issued gas cards by the now former PRC Commissioner Jerome J. Block. The Acting ASDDirector/CFO provided the notification pursuant to Section 12-6-6 NMSA 1978, which requiresthat government agencies immediately report to the State Auditor any violation of a criminalstatute in connection with financial affairs. The OSA requested additional information anddocuments from the PRC on August 8, 2011 and August 10, 2011. The PRC provided a timelyresponse to the OSAs requests on August 18, 2011.

Based on OSAs auditors review and analysis of information and documentationreceived from the PRC, information reported to the OSA by other sources, information reportedon the OSAs Fraud Hotline, and a risk review performed by OSA auditors, the State Auditor

determined that a special audit should be conducted pursuant to Section 12-6-3(C) NMSA 1978.That section provides that the State Auditor may cause the financial affairs and transactions ofan agency to be audited in whole or in part. OSA audit staff also met with the PRCs IPA for itsfiscal year 2011 financial audit in order to discuss and coordinate the planned test work. OSAauditors designed the objectives of the special audit engagement to test certain risk areas relatedto travel, per diem, vehicle and gas charges due to serious concerns over the misappropriationand inadequate protection of public resources.

The OSA and the PRC scheduled an entrance conference for September 13, 2011 at thePRC in order to discuss the special audits scope and fees. During this scheduled entranceconference at the PRC, PRC Chairman Patrick Lyons engaged in verbally abusive and physicallythreatening behavior which exhibited an explicit intent to intimidate OSA staff, obstruct theOSAs audit work and limit the scope of the special audit. As the stated basis for his hostileattacks, Chairman Lyons repeatedly cited the findings of the OSAs Special Audit of the StateLand Office (SLO), which the OSA released on December 20, 2010. Chairman Lyons explicitlystated that the PRC was not going to pay for the special audit and that OSA auditors would notbe allowed access to the PRC. He openly attacked the professional qualifications andcompetency ofthe OSAs audit staffand made derogatory and insulting comments to OSA staffpresent at the entrance conference. Chairman Lyons brought a bankers box filled with SLOdocuments to the entrance conference and, in one instance, engaged in physically threateningbehavior by picking up the box, leaning over the conference table and slamming the box downon the table directly in front of the OSAs Chief of Staff in an intimidating manner. He alsostated that he directed PRC staff to withhold information from the OSA about the potentialmisappropriation of state resources by Commissioner Block.

Chairman Lyons personal bias as a result of the SLO Special Audit, his abusive behaviortowards OSA staff, and his explicit statements evidencing his intent to limit the OSAs access torecords, caused the State Auditor great concern that OSA auditors would be able toindependently and safely carry out their duties. Government Auditing Standards (GAGAS orYellow Book) and AICPA professional standards set forth that an auditors independence may


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be impaired and the auditor may not have complete freedom to make an independent andobjective judgment, thereby adversely affecting the audit, if certain conditions exist. Inaccordance with GAGAS and AICPA standards, the State Auditor determined that ChairmanLyons behavior constituted external interference which would restrict OSA auditors work orinterfere with OSA auditors ability to form independent and objective opinions, findings and

conclusions. Therefore, on September 14, 2011, the State Auditor designated the PRC for anexamination of PRC transactions and controls related to travel, per diem, vehicle and gas chargesthat have occurred from January 1, 2009 through August 30, 2011. The State Auditor mandatedthat an IPA selected by the PRC and approved by the State Auditor to conduct the examination.

In his September 14, 2011 letter designating the PRC for the examination, the StateAuditor set forth the specific objectives of the examination to be performed by the IPA under theOSAs direction. Those objectives are as follows:

To determine if PRC complied with provisions of the New Mexico Administrative Code,Sections 1.5.3 through 1.5.4 NMAC, and other applicable state purchasing regulations

during the processing of per diem and mileage payments;

To determine if PRC has proper internal controls established and in place over traveltransactions and whether those controls are being followed;

To determine if PRC properly followed and monitored compliance with gas cardregulations;

To determine if PRC has adequate, complete documentation on file to substantiate andsupport all per diem and mileage payments and gas charges; and

To determine if PRC is complying with the commuting policy and relative state andfederal requirements related to commuting and fringe benefit allocation and notification.On September 6, 2011, Ben Lujan, Speaker of the New Mexico House of

Representatives, appointed certain House members to a House Rules Impeachment InvestigationSubcommittee that was tasked with the investigating the possibility of impeachingCommissioner Block. On September 20, 2011, the Special Counsel for the House RulesImpeachment Investigation Subcommittee, Robert J. Gorence, requested the assistance of theOSA in providing the Subcommittee copies of documents the OSA received from the PRCrelated to the potential misappropriation of state resources by Commissioner Block. OnSeptember 21, 2011, the OSA provided certain documents in response to Mr. Gorences request,

and notified him that the OSA planned to provide the Subcommittee with an official analysis ofdocuments and information related to the allegations against Commissioner Block. The OSAalso informed Mr. Gorence that the State Auditor hoped an analysis conducted by OSA auditorswould assist the Subcommittee with its mission. Accordingly, this Risk Assessment Report wasoriginally prepared as a courtesy to the Subcommittee. The assessments contained in this reportare not part of a formal audit engagement of the PRC. Therefore, the OSA is not required torelease this report pursuant to Section 12-6-5 NMSA 1978. The report focuses solely on the


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transactions involving Commissioner Block and not the PRC as whole which will be addressedin a special examination conducted by an IPA under the OSAs direction.

On September 28, 2011, Commissioner Block pleaded guilty to numerous felonies,including fraudulent use of a state credit card, and agreed to resign from the PRC.

Commissioner Block formally submitted his resignation on October 7, 2011.

On September 29, 2011, the OSA received the PRCs contract for Atkinson & Co., Ltd.to conduct the examination of PRC transactions and controls related to travel, per diem, vehicleand gas charges that have occurred from January 1, 2009 through August 30, 2011. The OSAapproved the contract on October 4, 2011, but as of the date of this report the contract is stillpending approval by the DFA.

This Risk Assessment Report was originally prepared for the Subcommittee. However,given the risks identified by the report related to gas and travel charges, and the concern thatothers may have assisted or illegally profited from Commissioner Blocks actions, the OSA will

refer this report to the AGO, the TRD Tax and Fraud, the PRC, the LFC and the DFA.


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III. RISK ASSESSMENT OF WRIGHT EXPRESS GAS CARD PURCHASESA. Summary of Exhibits

This Risk Assessment Report contains exhibits that illustrate the gas card purchases made

with Commissioner Blocks pin number, as explained in the section below which details theresults of the OSAs procedures. Those exhibits are as follows:

1) EXHIBIT A illustrates daily gas usage for the months of January through June in 2011,based on detail provided in the WEX Gas Usage Report submitted to the OSA by the PRC.Based on the WEX Gas Card Usage Report, charges cease after June 16, 2011; therefore,detail in the calendar exhibit is only presented up to June 16, 2011. Additionally, the PRCindicated Commissioner Blocks pin number was cancelled on June 16, 2011.

2) EXHIBIT B lists the 18 different WEX gas cards used with Commissioner Blocks pinnumber. The exhibit also indicates whether the vehicle was assigned to a department or a

PRC employee and the total number of instances a gas card charge was made withCommissioner Blocks pin number. This exhibit illustrates that 102 of the total 288 gas cardpurchases were made with 17 vehicle gas cards other than the one assigned to CommissionerBlock.

3) EXHIBIT C details the list of questionable gas card transactions based on the criteriadetailed in part 1(a) below. Details are contained in this exhibit that shows each questionablegas card charge that makes up the total $8,189.

B. OSA Procedures and Results

The OSA requested and reviewed the Wright Express (WEX) Gas Card Usage Reportsfor Commissioner Block from January 1, 2009, the beginning of his term in office, through July31, 2011. WEX, through a contract with the State of New Mexico, provides gas cards for theState of New Mexicos government vehicle fleet. The PRC provided the reports, which detailed288 gas card purchases, in hard copy and electronic format. The OSA also requested vehiclerecords for all vehicles Commissioner Block used from January 1, 2009 through July 31, 2011.The request for records included, but was not limited to, vehicle logs, receipts for gas andreceipts for all other purchases. In response to this request, the PRC stated the following: ThePRC does not retain vehicle records, logs, or gas receipts for any commissioners.

Each government vehicle is assigned an individual WEX gas card. A pin number isassigned to each individual driver authorized to use WEX gas cards, and the driver enters his orher pin number when using a WEX card to make purchases. The pin used in each gas purchasetransaction is identified in the WEX gas card report. Generally, the pin number is the last sixdigits of that individuals social security number. Commissioner Blocks pin number was thelast six digits of his social security number. Per our inquiry with the PRC, Commissioner Blocknever reported that his pin number had been compromised. WEX gas card reports are submittedto state agencies on a monthly basis. At that time, each agency should have a process in placethat requires a review of the gas card charges made.


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For the time period covered for the OSAs scope of review, January 1, 2009 through July31, 2011, Commissioner Blocks pin number was entered to purchase gas using 18 different statevehicle WEX gas cards for a total of 288 purchases. Of the 18 WEX gas cards used, one cardwas designated for Commissioner Blocks assigned vehicle, a 2004 Dodge Durango (plate

number G59117). That card was used for 186 of the total 288 purchases. The remaining 102 gascard charges, which were made using Commissioner Blocks pin number, were made with 17other WEX gas cards that were assigned to 17 other PRC vehicles. See EXHIBIT B for thecomplete list of gas cards used, including whether the vehicle was assigned to a certain PRCdivision or employee, and the number of times the gas cards were used for each PRC vehiclefrom January 1, 2009 through July 31, 2011.

Based on our limited review of the WEX reports, a high percentage of questionable andfrequent gas charges exist; however, the lack of records (vehicle logs, etc.) makes it moredifficult to analyze reasonableness of the gas charges. It is important to note that Section 1.5.4.9NMAC provides that vehicle operators shall be used for only official business and only for items

listed in Section 1.5.4.12 NMAC. Section 1.5.4.12 NMAC provides that the State of NewMexico credit cards shall be used only for official business and only to furnish state-ownedvehicles with regular gasoline, unleaded gasoline, diesel fuel, lubrication, motor oil, car wash;and emergency purchases not exceeding $100.00 in total. In total, as included in EXHIBIT C,2,463 gallons for a total of $8,189 are identified as questionable transactions based on the criteriaspecified below.

In violation of both state and federal requirements, the PRC does not keep nor require anyof its Commissioners to keep documentation which would support the Commissioners vehicleuse and travel. Due to the lack of records, it is difficult to establish whether or not certain gascard transactions were made strictly for approved PRC business. Given this limitation, the OSAwas only able to identify questionable gas card transactions based on a review of the datacontained within the detail of the 288 gas card purchases listed in the WEX Gas Card UsageReport. We also compared the gas card purchases with Commissioner Blocks travel times,dates, locations and physical attendance at each of the 252 PRC meetings. Control deficiencies,questionable gas charges and inconsistences which we noted during our review are as follows:

1) Based on the OSAs review of the WEX Gas Card Usage Report for Commissioner Block,we have identified 193 of the total 288 gas card charges as questionable gas charges. The193 questionable gas card charges for a total 2,463 gallons at a net cost of $8,189 are fullydetailed in EXHIBIT C.

a. OSA used the following criteria for determining whether or not a gas card transactionwas questionable when analyzing the data provided in the WEX Gas Card Usage Reportfor Commissioner Block:

i. Allowed purchase per Section 1.5.4.12 NMAC Commissioner Blocks gas usagewould be not be allowed if it were for diesel gasoline, unleaded plus gas or superunleaded gas. None of the 18 vehicles to which gas cards was assigned required diesel


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gas. Additionally, unleaded plus and super unleaded gas are specifically unallowedpurchases under Section 1.5.4.12 NMAC.

ii. Multiple gas card purchases in the same day with different gas cards in differentlocations. Also, multiple gas card purchases in the same day with different gas cards

in different locations.

iii. Multiple gas card purchases in the same day that exceed the gas tank capacity for thevehicle to which the card was assigned.

iv. Gas card purchases while Commissioner Block was documented as physically presentin a different location other than the location where the purchase was made.

v. A pattern of gas card purchases which occurred in the same general vicinity to eachother and that exceed tank capacity.

2)

An example of questionable transactions is as follows:

a. On May 16th, 2011, Commissioner Blocks pin was used 5 times with two different cardsassigned to two different PRC vehicles. One card, number 0144, was used to purchasegas in Santa Fe at 11:20 A.M. and 11:25 A.M. that day for 15.57 and 9.74 gallons ofunleaded gas, respectively. The vehicle to which the card is assigned is identified by thePRC as a 2006 Ford 500. Fueleconomy.gov indicates this vehicle has a tank capacity of20 gallons. Minutes after the Ford 500 was filled up in Santa Fe, Blocks assignedvehicle card was used at an Espanola gas station at 11:46 A.M. for 8.061 gallons ofunleaded gas. Just a few hours later, two more gas purchases were made with Blocksassigned vehicle card in Espaola at 2:37 P.M. and 3:54 P.M. for 15.993 gallons ofunleaded gas and 45.86 gallons of super unleaded gas, respectively. The total cost of fuelthis day was $351.82. The OSA noted multiple occurrences similar to this example. SeeEXHIBIT C for all 193 questionable transactions.

3) The OSAs assessment also revealed that between January 1, 2009 and July 31, 2011, superunleaded or unleaded plus gas was purchased in 37 instances, for a total of $1,673.23.Commissioner Blocks pin number was also used to purchase $148.80 in diesel gasoline,which was a fuel type that was not required by any vehicles driven by Commissioner Block.According to the New Mexico Administrative Code, Sections 1.5.3.19(E) NMAC, if anauthorized driver (Commissioner Block) uses the fuel credit card to purchase an unauthorizeditem (unleaded plus and super unleaded fuel) or service, the state agency (PRC) shall collectthe cost of the unauthorized purchase from the authorized driver. It appears as thoughCommissioner Block has paid the PRC in March of 2011 for two diesel purchases made inFebruary of 2011.

4) OSA requested and reviewed the official records of the PRC meeting minutes during the timeperiod from January 6, 2009 through July 14, 2011 for the purpose of comparingCommissioner Blocks physical attendance to gas card charges made with his pin number.The OSA reviewed each of the 252 meeting minutes provided by the PRC in order to


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determine whether or not Commissioner Block was physically present at each meeting. Wecompared the attendance data with gas charges to determine if any of the gas charges tookplace while Commissioner Block was noted as being physically present at a PRC meeting.Based on the OSAs procedures and the results of those procedures, there appear to be anumber of instances in which the pin number assigned to Commissioner Block was used

while he was documented as being physically present at a PRC meeting. No support or justification contained within the documentation provided by the PRC explains theirregularities. We noted the following gas charges that took place while CommissionerBlock was listed as being physically present at a PRC Meeting:

a. Per the meeting minutes, a PRC meeting was held at the PERA building in Santa Fe, NewMexico on January 21, 2009 at 9:36 A.M. and adjourned at 1:25 P.M. The meetingminutes also indicate Commissioner Block seconded the motion to adjourn the meeting.The detail of gas charges using Commissioner Blocks pin includes a purchase with thegas card for vehicle G62117 at 11:07 A.M. in Santa Fe for 18.35 gallons of unleaded gas.

b.

Per the meeting minutes, a PRC meeting was held at the PERA building in Santa Fe, NewMexico on July 30, 2009 at 9:35 A.M. and adjourned at 11:30 A.M. The meetingminutes also indicate Commissioner Block moved to adjourn the meeting. The detail ofgas charges using Commissioner Blocks pin includes a purchase with the gas card forvehicle G62117 at 10:57 A.M. in Santa Fe for 19.45 gallons of unleaded gas.

c. Per the meeting minutes, a PRC meeting was held at the PERA building in Santa Fe, NewMexico on August 19, 2010 at 9:35 A.M. and adjourned at 12:00 P.M. The meetingminutes do not include any indication that Commissioner Block was not present for theduration of the meeting. The detail of gas charges using Commissioner Blocks pinincludes a purchase with the gas card for vehicle G62117 at 11:23 A.M. in Espaola for18.804 gallons of unleaded gas.

d. Per the meeting minutes, a PRC meeting was held at the PERA building in Santa Fe, NewMexico on March 10, 2011 at 9:30 A.M. and adjourned at 12:15 P.M. The meetingminutes do not include any indication that Commissioner Block was not present for theduration of the meeting. The detail of gas charges using Commissioner Blocks pinincludes a purchase with the gas card for vehicle G62117 at 11:23 A.M. in Espaola for18.804 gallons of unleaded gas.

e. Per the meeting minutes, a PRC meeting was held at the Clayton Civic Center in Clayton,New Mexico on June 9, 2011 at 10:30 A.M. and adjourned at 12:30 P.M. The meetingminutes also indicate Commissioner Block moved to adjourn the meeting. The detail ofgas charges using Commissioner Blocks pin includes four different purchases with thegas card for vehicle G59117. The purchases took place from 10:28 A.M. and 8:34 P.M.at the same gas station in Espaola for 41.316 gallons of unleaded gas and 15.569 ofunleaded plus gas for a grand total of $193.91. As noted below in the risk assessment ofCommissioner Blocks per diem and travel, the four gas card purchases were not for thesame vehicle listed as the vehicle driven by Commissioner Block on the ItemizedSchedule of Travel Expenses for travel to Clayton on June 8, 2011 and June 9, 2011.


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5) See EXHIBIT A for an illustration of daily gas usage for the months of January throughJune in 2011.

6) See EXHIBIT B for a listing of the vehicle gas cards used and number of instances.The PRC has not provided records to support the transactions made, such as gas receipts

or vehicle logs and has responded that The PRC does not retain vehicle records, logs, or gasreceipts for any commissioners. There is a possibility that there are records kept on the 17 othervehicles used that were not Commissioner Blocks assigned vehicle. The PRC is currentlychecking to see if there are records relating to Commissioner Blocks use of the other 17vehicles. That information was not provided to the OSA prior to completion of this RiskAssessment Report.

C. Agency-Wide Analysis Required

Based on the gas card usage explained above, the responses received from the PRC to theOSAs inquiries, and certain reports made to the OSA on its Fraud Hotline, the OSA hasdetermined that risks exist in the PRC that require further analysis and test work. Furthermore,the OSA requested the PRCs policies related to authorization to use a state vehicle forcommuting purposes pursuant to Section 1.5.3.20 NMAC. The PRC replied that it has nocurrent PRC policies regarding vehicle use by commissioners for commuting purposes. Notonly did this create difficulty in reviewing Commissioner Blocks gas usage, it also reveals asignificant risk that exists regarding the lack of records and controls over all Commissioners useof vehicles. In addition, upon OSAs request for federal tax fringe benefit allocation ornotification for Commissioners personal use ofstate-issued vehicles, the PRC responded that itdoes not calculate fringe benefit allocations for personal use of a state vehicle for anycommissioner. Therefore, this area requires additional test work since there appears to benoncompliance with federal tax regulations applicable to fringe benefit allocation. The StateAuditor has mandated that these risk concerns be addressed during a special examination by anIPA under OSA direction.


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IV. RISK ASSESSMENT OF PER DIEM AND MILEAGE

A. OSA Procedures and Results

The OSA requested and reviewed the PRCs general ledger detail of all per diem and

mileage reimbursement disbursement requests made by Commissioner Block from the beginningof his term in office, January 1, 2009, through July 31, 2011. Specifically, the OSA reviewed theItemized Schedule of Travel Expenses processed for and paid to Commissioner Block for thattime period. We requested and reviewed supporting documentation for per diem and mileagereimbursement disbursements made to Commissioner Block, including supporting receipts andsupporting documentation for the purpose of the trips and locations, dates and times. The OSAalso requested any non-travel related reimbursements from the PRC to Commissioner Block, butper the PRC there were no such transactions.

In response to the OSAs request, the PRC provided 247 pages of documentation relatedto travel advances and reimbursements made to Commissioner Block. The OSA also reviewed

each of the 247 pages of travel detail submitted by the PRC in order to compare the travel times,dates and locations to the gas card purchases. Based on the PRCs general ledger detail,Commissioner Blocks travel reimbursements amounted to $11,737.27 during less than a twoand a half year time period (February 2009 to June 2011).

Based on the OSAs procedures and the results of those procedures, there appears to be anumber of instances in which the PRC reimbursed Commissioner Block even though he failed toprovide itemized receipts. In two instances, Commissioner Block circumvented procurementprocedures related to air travel. We also noted occurrences in which Commissioner Blocks pinnumber was used for a gas card purchase at a location different than the location of travel duringthe same date and time. Additionally, Commissioner Block is yet to provide receipts in supportof a travel advance he received in the amount of $1,003.96. Per inquiry to the PRC,Commissioner Block had not provided receipts or reimbursed the PRC at the time of hisresignation. If the PRC is unable to obtain receipts from Commissioner Block to support thetravel, it will have a disbursement to Commissioner Block that is not supported by receipts orother acceptable documentation.

Control deficiencies and inconsistences noted during OSAs review are as follows:

1) OSA noted 13 instances in which Commissioner Block did not provide itemized receipts tosupport meal costs totaling $441.63. One example includes a receipt lacking itemization for$30.56 at a Microbrewery in Albuquerque. Another receipt simply reads guest receiptswith a hand-written total of $43.42, and there is no description which explains whatconstituted the charges. One hotel receipt indicates RMSERV in the amounts of $31.35and $32.34, and has no other detail of the charges. Yet, the PRC reimbursed CommissionerBlock for the amounts.

2) In a reimbursement related to a conference Commissioner Block attended in Ojai, California,the PRC reimbursed Commissioner Block for a Saturday night hotel room charge at apackage rate of $350 plus $45.50 in tax. It is unclear why Commissioner Block was


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charged the package rate, provided the conference literature indicates a room rate of $250is to be honored for the conference, which included the Saturday night stay in the dates listed.Furthermore, the conferences first session began on Sunday at 3:30 P.M. The remainder ofCommissioner Blocks stay for the conference was at the $250 rate.

3)

Per our discussion with the PRC Acting ASD Director/CFO, Commissioner Block frequentlyfailed to submit receipts within the required two week time period in which receipts were tobe submitted to support advance travel payments made to him. At the time of completion ofthis Risk Assessment Report, Commissioner Block had not yet submitted receipts thatsupport a travel disbursement advanced to him in the amount of $1,003.96 for travel in mid-July 2011. Per the PRC, it has made multiple requests to Commissioner Block to submit therequired receipts that support the advanced travel payment.

4) Based on the documents we reviewed, Commissioner Block was registered for a conferenceheld in Atlanta from November 13, 2010 through November 18, 2010. During this time, onNovember 14 and 15, 2011, gas purchases were made with Commissioner Blocks pin

number. On November 14, 2010 at 11:14 P.M., 10.76 gallons of unleaded gas was purchasedfor $30.12 at a Santa Fe gas station. On November 15, 2010 at 7:56 a.m., 12.25 gallons ofunleaded gas was purchased for a total of $32.58 at a Santo Domingo tribal gas station. Bothgas purchases were made with Commissioner Blocks pin number, and both took place whiledocuments indicate Commissioner Block was in attendance at the conference in Atlanta. In amemo contained in the documents submitted to the OSA by the PRC, it appears as thoughCommissioner Block had requested an affidavit of lost receipts for the entire trip. However,per our discussion with the PRC Acting ASD Director/CFO, the PRC denied CommissionerBlocks request for an affidavit of lost receipts for the entire trip. The PRC also subsequentlyrequested that Commissioner Block reimburse the PRC due to his failure to provide adequatereceipts for meals and lodging for the conference in which Commissioner Block was paid inadvance. In August 2011, Commissioner Block paid the PRC $570.35.

a. After the OSAs review of the documentation originally submitted by the PRC to ouroffice, the PRC supplied us with more information and documentation regarding thisconference trip. The documentation indicated Commissioner Block changed his outgoingflight for the conference from November 13, 2010 to November 15, 2010, incurring atotal rebooking fee of $907.70, which was in addition to the original $302.90 for theinitial flight. The changes to the scheduled travel cost three times the originallyscheduled flight. In addition, Commissioner Block circumvented purchasing controls bycontacting the travel agent directly and requesting two changes to his flight schedule andincurring costs. These changes were not done in accordance with PRCs purchasingpolicies.

5) In an instance of travel to Clayton, Commissioner Block received $103 for per diem for anovernight stay for the night of June 8, 2011. He left at 2:00 P.M. that day and returned at7:00 P.M. on June 9, 2011. The vehicle documented as driven on the per diem form is a2009 Ford Escape, plate number 1466SG. However, on June 8 and June 9, 2011 (same timeas Commissioner Blocks travel to Clayton), five gas charges were made usingCommissioner Blocks pin numberin Espaola for plate number G59117. The charges total


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66.70 gallons for a total cost of $239.37. Not only are there gas charges in Espaola whenCommissioner Block is documented as present in Clayton, but the charges in Espaolabefore, after, and during the trip are not for the same vehicle listed on the per diem formsubmitted by Commissioner Block.

B. Agency-Wide Analysis Required

The OSAs risk assessment reveals risks related to the PRCs failure to require itemizedreceipts when reimbursing the Commissioner for per diem payments. Our risk assessment alsoidentified risks related to receipts that support advance travel payments not being provided in atimely manner, and revealed concerns over Commissioners being able to circumvent purchasingcontrols. Additional testwork and analysis is required at the agency-wide level to determine theextent of the risks. The State Auditor has mandated that these risk concerns be addressed duringa special examination by an IPA under OSA direction.


16/29


V. REFERRAL OF THE RISK ASSESSMENT REPORT

This Risk Assessment Report was originally prepared for the House Rules ImpeachmentInvestigation Subcommittee. However, given the risks identified by the report related to gas andtravel charges, and the concern that others may have assisted or illegally profited from

Commissioner Blocks actions, the OSA will refer this report to the following entities:

1) New Mexico Attorney General;2) Tax Fraud Investigations Division of the Taxation and Revenue Department;3) Public Regulation Commission;4) Legislative Finance Committee;5) Department of Finance and Administration;6) Atkinson & Co., Ltd., the independent audit firm that is conducting the PRCs

fiscal year 2011 financial audit and the special examination mandated by the StateAuditor; and

7) House Rules Impeachment Investigation Subcommittee.


17/29


VI. EXHIBITS


18/29


EXHIBIT AIllustration of Daily Gas Card Use for June 2011

Purchases are detailed in summary for each day a purchase was made. The purpose of thecalendar presentation is to illustrate the overall questionable nature of the gas card purchases.

June 2011MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

From the 1st through the 16th of June, 45

gas card purchases were made, totals

follow:

Total gallons purchased = 584Total Net Cost = $1,986.23

1

19.335 gallons

unleaded

$67.17 net cost

2

21.184 gallons

unleaded

$72.05 net cost

3

28.995 gallons

unleaded, 17.319

unleaded plus

$162.08 net cost

4

14.209 gallons

unleaded, 10.575

unleaded plus

$85.93 net cost

5

No purchases

6

25.815 gallons

unleaded

$87.25 net cost

7

74.516 gallons

unleaded, 17.303

unleaded plus

$311.49 net cost

8

9.9 gallons

unleaded $33.23

net cost

9

41.316 gallons

unleaded, 15.569

unleaded plus

$193.91 net cost

10

58.735 gallons

unleaded

$201.90 net cost

11

42.512 gallons

unleaded

$141.86 net cost

12

27.374 gallons

unleaded, 13.055

unleaded plus

$136.41 net cost

13

26.999 gallons

unleaded

$92.52 net cost

14

11.213 gallons

unleaded, 18.268

unleaded plus

$101.77 net cost

15

73.251 gallons

unleaded

$242.96 net cost

16

8.635 gallons

unleaded, 7.924

unleaded plus

$55.70 net cost

17

No purchase

activity after this

date.

18 19

20 21 22 23 24 25 26


19/29


EXHIBIT A (cont.)Illustration of Daily Gas Card Use for May 2011


May 2011MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

60 different transactions took place in the month of May 2011totals are as follows:

Total gallons purchased in May 2011 = 837.884 Total Net Cost in May 2011 = $3,004.451

10.979 gallons

unleaded

$40.03 net cost

2

8.918 gallons

unleaded plus

$33.68 net cost

3

65.921 gallons

unleaded

$241.58 net cost

4

12.43 gallons

unleaded, 13.802gallons unleaded plus

98.10 net cost

513.491 gallons super

unleaded,11.666gallons unleaded

$95.80 net cost

6

30.416 gallons

unleaded, 10.748gallons unleaded plus

$151.28 net cost

7

5.537 gallons

unleaded plus

$20.69 net cost

8

17.607 gallons

unleaded

$63.67 net cost

925.701 gallons

unleaded

$92.94 net cost

1033.821 gallons

unleaded

$123.82 net cost

11No purchases

1211.668 gallons

unleaded

$42.89 net cost

1331.317 gallons

unleaded

$116.06 net cost

1421.973 gallons

unleaded, 17.157unleaded plus

$145.64 net cost

15No purchases

16

49.319 gallons

unleaded, 45.86super unleaded

$351.82 net cost

17

No purchases

18

No purchases

19

46.671 gallons


$196.41 net cost

20

No purchases

21

26.499 gallons


$150.10 net cost

22

30.193 gallons

unleaded

$105.55 net cost

23

28.01 gallons

unleaded

$95.08 net cost

24

12.924 gallons


$88.33 net cost

25

18.77 gallons

unleaded

$63.75 net cost

26

19.824 gallons

unleaded

$67.72 net cost

27

43.755 gallons

unleaded

$150.57 net cost

28

4.129 gallons


$67.94 net cost

29

21.956 gallons

unleaded

$75.00 net cost

30 Memorial Day

58.389 gallonsunleaded, 11.495unleaded plus

$240.47 net cost

31

24.466 gallonsunleaded

$85.53 net cost


20/29


EXHIBIT A (cont.)Illustration of Daily Gas Card Use for April 2011


A ril 2011MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

37 different gas card purchases took place in the month of April 2011 totalsare as follows:

Total gallons purchased in April 2011 = 376.68Total Net Cost in April 2011 = $1,335.17

1

22.51 gallons

unleaded

$75.88 net cost

2

No purchases

3

10.821 gallons

unleaded plus

$38.05 net cost

4

8.443 gallons

unleaded

$28.67 net cost

5

17.914 gallons

unleaded, 0.404

super unleaded

$63.40 net cost

6

No purchases

7

8.252 gallons

unleaded

$28.52 net cost

8

24.259 gallons

unleaded

$84.57 net cost

9

9.615 gallons

unleaded

$33.52 net cost

10

No purchases

11

21.646 gallons

unleaded

$76.11 net cost

12

No purchases

13

6.729 gallons

unleaded

$23.93 net cost

14

8.026 gallons

unleaded, 11.666

gallons unleaded plus

15

10.713 gallons

unleaded

$38.10 net cost

16

14.79 gallons

unleaded

$52.59 net cost

17

No purchases

18

8.114 gallons

unleaded

$28.86 net cost

19

10.714 gallons

unleaded

$38.10 net cost

20

16.08 gallons

unleaded

$57.35 net cost

21

18.543 gallons

unleaded, 12.321

unleaded plus

$111.98 net cost

22 Good Friday

10.529 gallons

unleaded

$38.07 net cost

23

No purchases

24 Easter

No purchases

25

33.753 gallons

unleaded

$120.70 net cost

26

No purchases

27

44.725 gallons

unleaded

$159.39 net cost

28

27.748 gallons

unleaded

$98.99 net cost

29

18.365 gallons

unleaded

$66.96 net cost

30

No purchases


21/29


EXHIBIT A (cont.)Illustration of Daily Gas Card Use for March 2011


March 2010MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

1

10.666 gallons

unleaded

$33.24 net cost

2

No purchases

3

No purchases

4

No purchases

5

No purchases

6

No purchases

6.176 gallons

uper unleaded

57.04 net cost

8

No purchases

9

No purchases

10

8.628 gallons

unleaded

$28.61 net cost

11

5.79 gallons

unleaded

$18.97 net cost

12

10.726 gallons

super unleaded

$38.04 net cost

13

No purchases

4

.673 gallons

unleaded

28.41 net cost

15

No purchases

16

11.267 gallons

unleaded

$36.52net cost

17

No purchases

18

11.569 gallons

unleaded

$37.90net cost

19

No purchases

20

No purchases

21

0.118 gallons

unleaded

33.15net cost

22

No purchases

23

No purchases

24

8.68 gallons

unleaded

$28.45 net cost

25

No purchases

26

2.802 gallons


$33.71 net cost

27

7.165 gallons

unleaded

$23.69 net cost

28

No purchases

29

11.427 gallons

unleaded

$38.01 net cost

30

10.259 gallons


$91.14 net cost

31

No purchases

18 different gas card purchases took place in the month ofMarch 2011totals are as follows:

Total gallons purchased in March 2011 = 157.421Total Net Cost in March 2011 = $526.88


22/29


EXHIBIT A (cont.)Illustration of Daily Gas Card Use for February 2011


Februar 2011MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

1

No purchases

2

No purchases

3

No purchases

4

No purchases

5

14.825 gallons

super unleaded

$46.20 net cost

6

28.058 gallons

unleaded, 18.263gallons diesel

$141.18 net cost

0.434 gallons

unleaded

29.80 net cost

8

No purchases

9

9.884 gallons

unleaded

$28.23 net cost

10

No purchases

11

9.871 gallons

unleaded

$28.19 net cost

12

No purchases

13

12.907 gallons

unleaded

$37.64 net cost

4

.874 gallons

unleaded

28.20 net cost

15

No purchases

16

No purchases

17

15.572 gallons

unleaded, 12.015super unleaded

$82.12 net cost

18

21.877 gallons

super unleaded

$68.06 net cost

19

No purchases

20

No purchases

21 Presidents Day

2.926 gallons

unleaded

38.72 net cost

22

No purchases

23

No purchases

24

15.404 gallons

unleaded, 22.609gallons super

unleaded$122.52

25

No purchases

26

23.74 gallons diesel

$88.24 net cost

27

15.264 gallons

unleaded

$47.57 net cost

28

No purchases

19 different gas card purchases took place in the month of February 2011totals are as follows:

Total gallons purchased in February 2011 = 253.523 Total Net Cost in February 2011 = $786.67


23/29


EXHIBIT A (cont.)Illustration of Daily Gas Card Use for January 2011


January 2011MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY

4 different gas card purchases took place in the month of January 2011 totals are as follows:

Total gallons purchased in January 2011 = 71.821 Total Net Cost in January 2011 =$200.51

1

No purchases

2

No purchases

3

No purchases

4

13.797 gallons

unleaded

$37.48 net cost

5

No purchases

6

No purchases

7

No purchases

8

No purchases

9

No purchases

10

No purchases

11

No purchases

12

39.162 gallons

unleaded

$110.29 net cost

13

No purchases

14

18.862 gallons

unleaded

$52.74 net cost

15

No purchases

16

No purchases

17

Martin L. King

HOLIDAY

18

No purchases

19

No purchases

20

No purchases

21

No purchases

22

No purchases

23

No purchases

24

No purchases

25

No purchases

26

No purchases

27

No purchases

28

No purchases

29

No purchases

30

No purchases

31

No purchases


24/29


EXHIBIT BVehicle Gas Cards Used

Jerome Block Jr Wex Gas Card Usage Report

Jan 1, 2009 to July 31, 2011

Employee or Division

Vehicle Card Assigned Description of Vehicle Card Number

Vehicle Card

Department Customer Vehicle ID

1 assigned to PRC employee 04 DODGE DURANGO-CHAR.GRAY 0112 - 1 5000 209040Total times used 10

2 assigned to PRC employee 04 DODGE DURANGO-GRAY 0111 - 2 5000 209041

Total times used 4

3 assigned to PRC employee 04 DODGE DURANGO 4X4 SUV-WH 0126 - 1 3400 221340

Total times used 1

4 Not provided Not provided 0083 - 1 3100

Total times used 3

5 PSB-CHECK OUT VEH. 08 FORD EXP, 4X4-WH 0165 - 1 5000 000906SG

Total times used 1

6 CRD CK. OUT VEH. 08 HONDA HYBRID-SILVER 0170 - 1 UNASSIGNED 000995SG

Total times used

1

7 ASD-CK OUT VEH. 08 HONDA HYBRID-SILVER 0169 - 1 UNASSIGNED 000996SG

Total times used 1

8 ASD COS 08 HONDA HYBRID-SILVER 0167 - 1 UNASSIGNED 000998SG

Total times used 4

9 assigned to PRC employee 08 DODGE CALIBER-KHAKI 0171 - 1 131000 001004SG

Total times used 1

10 TSD APPLICATIONS 08 DODGE CALIBER-KHAKI 0172 - 1 TRANS 001005SG

Total times used 1

11 assigned to PRC employee 01 FORD CROWN VIC-BLK 0059 - 1 5000 2FAFP71W31X159539

Total times used 8

12 COMM. BLOCK 04 DODGE DURANGO-TAN 0187 - 1 TRANS G59117

Total times used 186

13 FFTA CK. OUT 06 FORD FIVE HUNDRED-RED 0144 - 1 3500 G61442

Total times used 10

14 assigned to PRC employee 05 FORD EXP, 4X4, WHITE 0138 - 2 5000 G62117

Total times used 18

15 INSURANCE - CHECK OUT. 08 FORD ESCAPE, 4X4, 4 DOOR-BLK 0163 - 1 3000 G70714

Total times used 1

16 assigned to PRC employee 09 FORD ESCAPE-WH 0183 - 1 SFMO G77609

Total times used 33

17 assigned to PRC employee 09 FORD ESCAPE-WH 0189 - 1 TRANS KC85019

Total times used 2

18 Not provided Not provided 0100 - 1 3300 TEMP 7

Total times used 3

288 Total purchases

102 with other vehicles than Block's assigned vehicle


25/29


EXHIBIT CQuestionable Gas Card Transactions (page 1 of 5)

Jerome Block Jr Wex Gas Card Usage Report

Jan 1, 2009 to July 31, 2011

Card Number Vehicle Card Dep Customer Vehicle ID Transaction Date Transaction Time Merchant Merchant Name Merchant City Product Units Net Cost (=)

0187 - 1 TRANS G59117 6/16/2011 2:43:41 PM CHEVRON CHEVRON 0302023 ESPANOLA UN+EADED PLUS 7.924 $27.07

0187 - 1 TRANS G59117 6/16/2011 2:51:10 PM CHEVRON CHEVRON 0302023 ESPANOLA UNLEADED 8.635 $28.63

16.559 $55.70

0187 - 1 TRANS G59117 6/15/2011 11:42:09 AM CONOCO OHKAY EXPRESS MART ESPANOLA UNLEADED 14.208 $47.40


0187 - 1 TRANS G59117 6/15/2011 12:54:51 PM CONOCO OHKAY EXPRESS MART ESPANOLA UNLEADED 22.176 $73.98

0172 - 1 TRANS 001005SG 6/15/2011 10:59:15 AM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 23.474 $76.90

73.251 $242.96

0187 - 1 TRANS G59117 6/14/2011 3:17:28 PM CONOCO OHKAY EXPRESS MART ESPANOLA UN+EADED PLUS 4.41 $15.24


0187 - 1 TRANS G59117 6/14/2011 5:25:23 PM CHEVRON CHEVRON 0208520 HERNANDEZ UNLEADED 11.213 $38.64

29.481 $101.77



26.999 $92.52



40.429 $136.41


0112 - 1 5000 209040 6/11/2011 10:06:00 AM SHELL SO CERRILLOS SI SANTA FE UNLEADED 15.3 $50.770112 - 1 5000 209040 6/11/2011 9:54:00 AM SHELL SO CERRILLOS SI SANTA FE UNLEADED 13.15 $43.61

42.512 $141.86





0112 - 1 5000 209040 6/10/2011 1:43:01 PM PHILL 66 ALLSUPS 345 SANTA FE UNLEADED 4.429 $14.51

0112 - 1 5000 209040 6/10/2011 8:36:12 AM PHILL 66 ALLSUPS 345 SANTA FE UNLEADED 5.845 $19.15

58.735 $201.90





56.885 $193.91






0112 - 1 5000 209040 6/7/2011 4:07:36 PM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 5.015 $16.63


91.819 $311.49



0112 - 1 5000 209040 6/6/2011 7:46:00 PM SHELL ST MIKES SS SANTA FE UNLEADED 8.95 $30.21

0112 - 1 5000 209040 6/6/2011 8:52:19 AM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 7.141 $23.82

25.815 $87.25



0112 - 1 5000 209040 6/4/2011 7:56:40 PM CHEVRON CHEVRON 0304515 SANTA FE UNLEADED 4.451 $15.21

24.784 $85.93



0187 - 1 TRANS G59117 6/3/2011 5:21:33 PM CONOCO OHKAY EXPRESS MART ESPANOLA UN+EADED PLUS 17.319 $61.2446.314 $162.08

0112 - 1 5000 209040 6/2/2011 12:42:00 PM UNBRANDED QUICK FUEL ALBUQUERQUE UNLEADED 12.938 $43.55


21.184 $72.05


0112 - 1 5000 209040 6/1/2011 5:31:32 PM CONOCO QUIK STOP #11 SANTA FE UNLEADED 5.593 $19.67

19.335 $67.17


26/29


EXHIBIT C (cont.)Questionable Gas Card Transactions (page 2 of 5)


0187 - 1 TRANS G59117 5/31/2011 4:20:22 PM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 24.466 $85.53



0144 - 1 3500 G61442 5/30/2011 6:23:53 PM PHILL 66 QUIK STOP #5 SANTA FE UNLEADED 6.131 $21.31


69.884 $240.47


0187 - 1 TRANS G59117 5/28/2011 11:06:59 AM PHILL 66 OHKAY TRAVEL CENTER SAN JUAN PUEBLO UN+EADED PLUS 15.108 $53.43

0144 - 1 3500 G61442 5/28/2011 7:02:26 PM GIANT GIANT #6046 SANTA FE UNLEADED 4.129 $14.51

19.237 $67.94



0144 - 1 3500 G61442 5/27/2011 12:16:00 PM SHELL ST MIKES SS SANTA FE UNLEADED 16.52 $57.44

43.755 $150.57



19.824 $67.72

0144 - 1 3500 G61442 5/25/2011 6:55:37 PM PHILL 66 ALLSUPS 345 SANTA FE UNLEADED 18.77 $63.75



25.067 $88.33

Card Number Vehicle Card Dep Customer Vehicle ID Transaction Date Transaction Time Merchant Merchant Name Merchant City Product Units Net C ost (=)


0144 - 1 3500 G61442 5/23/2011 11:20:00 AM PHILL 66 SDTBE SANTO DOMINGO PUEB UNLEADED 14.343 $47.57

28.01 $95.08



30.193 $105.5 5



0187 - 1 TRANS G59117 5/21/2011 3:39:12 PM PHILL 66 RHOC KICKS 66 ESPANOLA UN+EADED PLUS 15.711 $57.12

42.21 $150.10






56.176 $196.4 1

TRANS G59117 5/16/2011 11:46:05 AM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 8.016 $28.98


0144 - 1 3500 G61442 5/16/2011 11:20:00 AM SHELL ST MIKES SS SANTA FE UNLEADED 15.57 $56.30

0144 - 1 3500 G61442 5/16/2011 11:25:00 AM SHELL ST MIKES SS SANTA FE UNLEADED 9.74 $35.26

0187 - 1 TRANS G59117 5/16/2011 3:54:44 PM CONOCO OHKAY EXPRESS MART ESPANOLA SUPER UNLEADED 45.86 $174.09

95.179 $351.8 2


27/29





0144 - 1 3500 G61442 5/14/2011 8:07:00 PM UNBRANDED TRIPLE S GROCERY ESPANOLA UNLEADED 9.012 $32.86


39.13 $145.64

0187 - 1 TRANS G59117 5/13/2011 10:32:53 AM CONOCO OHKAY EXPRESS MART ESPANOLA UNLEADED 7.807 $28.700187 - 1 TRANS G59117 5/13/2011 6:11:18 PM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 15.397 $57.21


31.317 $116.06




0144 - 1 3500 G61442 5/10/2011 4:05:00 PM UNBRANDED NAMBE FALLS TRAVEL C SANTA FE UNLEADED 7.307 $26.35

33.821 $123.82



0144 - 1 3500 G61442 5/8/2011 12:02:12 PM UNBRANDED HOWDY'S# 15 LAS CRUCES UNLEADED 10.063 $36.39

17.607 $63.67



0187 - 1 TRANS G59117 5/6/2011 1:47:56 PM CONOCO OHKAY EXPRESS MART ESPANOLA UNLEADED 22.376 $80.920187 - 1 TRANS G59117 5/6/2011 11:43:11 AM CONOCO OHKAY EXPRESS MART ESPANOLA UN+EADED PLUS 10.748 $40.80

41.164 $151.28




25.157 $95.80



26.237 $98.10




0083 - 1 3100 5/3/2011 3:57:23 PM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 24.87 $90.68

65. 921 $241.58





18.365 $66.96


0083 - 1 3100 4/28/2011 3:45:09 PM PHILL 66 CERRILLOS SS SV SANTA FE UNLEADED 22.471 $79.91

27.748 $98.99



0083 - 1 3100 4/27/2011 9:04:54 AM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 13.651 $48.27

44. 725 $159.39


28/29






33.753 $120.70


0187 - 1 TRANS G59117 4/21/2011 12:17:02 PM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 13.229 $47.570187 - 1 TRANS G59117 4/21/2011 5:00:59 PM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 5.314 $19.11


30.864 $111.98

0187 - 1 TRANS G59117 4/20/2011 11:10:53 AM PHILL 66 RHOC KICKS 66 ESPANOLA UNLEADED 3.984 $14.33



16.08 $57.35






10.713 $38.10


0187 - 1 TRANS G59117 4/14/2011 12:48:32 PM CONOCO OHKAY EXPRESS MART ESPANOLA UN+EADED PLUS 11.666 $42.8919.692 $71.43





21.646 $76.11




24.259 $84.57





18.318 $63.40

0187 - 1 TRANS G59117 4/4/2011 8:20:33 AM PHILL 66 OHKAY TRAVEL CENTER SAN JUAN PUEBLO UNLEADED 8.443 $28.67




22.51 $75.88

0187 - 1 TRANS G59117 3/30/2011 4:50:45 PM CONOCO OHKAY RV PARK ESPANOLA UNLEADED 10.259 $34.12


26.806 $91.14




0187 - 1 TRANS G59117 3/26/2011 7:03:11 PM CHEVRON CHEVRON 0208520 HERNANDEZ UN+EADED PLUS 6.928 $24.22

9.73 $33.71


0165 - 1 5000 000906SG 3/16/2011 8:11:00 PM DIAMOND CAMEL ROCK VALERO SANTA FE UNLEADED 5.55 $17.57

11.267 $36.52

0187 - 1 TRANS G59117 3/12/2011 11:04:24 AM PHILL 66 BIG ROCK ESPANOLA SUPER UNLEADED 10.726 $38.04


29/29




0187 - 1 TRANS G59117 3/7/2011 4:09:37 PM PHILL 66 BIG ROCK ESPANOLA SUPER UNLEADED 16.176 $57.04

0187 - 1 TRANS G59117 3/7/2011 4:11:48 PM PHILL 66 BIG ROCK ESPANOLA NONFUEL 0 (34.74)

16.176 $22.30

0111 - 2 5000 209041 2/26/2011 1:00:00 PM SHELL ESPANOLA SHELL ESPANOLA DSLDIESEL 23.74 $88.24


0167 - 1 UNASSIGNED 000998SG 2/24/2011 4:17:33 PM CONOCO GIANT 6861 SANTA FE UNLEADED 15.404 $48.00

38.013 $122.52


0187 - 1 TRANS G59117 2/18/2011 9:15:13 PM PHILL 66 ALLSUPS 346 SANTA FE SUPER UNLEADED 12.854 $39.67

21.877 $68.06


0111 - 2 5000 209041 2/17/2011 6:44:00 PM DIAMOND CAMEL ROCK VALERO SANTA FE UNLEADED 15.572 $44.32

27.587 $82.12


0187 - 1 TRANS G59117 2/13/2011 10:21:56 AM PHILL 66 POJOAQUE KICKS SANTA FE UNLEADED 12.907 $37.64




0187 - 1 TRANS G59117 2/6/2011 12:46:00 PM UNBRANDED SANTA CRUZ COUNTRY S SANTA CRUZ UNLEADED 3.649 $10.42

0187 - 1 TRANS G59117 2/6/2011 1:12:31 PM PHILL 66 POJOAQUE KICKS SANTA FE UNLEADED 24.409 $70.20

0187 - 1 TRANS G59117 2/6/2011 3:23:04 PM UNBRANDED RHOC EXPRESS ARROYO ESPANOLA DSLDIESEL 18.263 $60.56

46.321 $141.18

0187 - 1 TRANS G59117 2/5/2011 8:10:58 PM CONOCO QUIK STOP #12 ESPANOLA SUPER UNLEADED 14.825 $46.20

0187 - 1 TRANS G59117 1/14/2011 1:04:09 PM CONOCO QUIK STOP #11 SANTA FE UNLEADED 18.862 $52.74

0187 - 1 TRANS G59117 1/12/2011 11:55:25 AM PHILL 66 QUIK STOP #5 SANTA FE UNLEADED 24.991 $70.38

0187 - 1 TRANS G59117 1/12/2011 11:56:15 AM PHILL 66 QUIK STOP #5 SANTA FE UNLEADED 14.171 $39.91

39.162 $110.29

0187 - 1 TRANS G59117 11/15/2010 7:56:23 AM PHILL 66 PUEBLO GAS 2 SANTO DOMINGO PUEB UNLEADED 12.252 $30.34

0187 - 1 TRANS G59117 11/14/2010 11:14:06 PM CONOCO GIANT 6861 SANTA FE UNLEADED 10.76 $28.15

0187 - 1 TRANS G59117 10/25/2010 8:26:21 AM PHILL 66 ALLSUPS 344 SANTA FE SUPER UNLEADED 11 $29.99

0187 - 1 TRANS G59117 10/22/2010 3:49:31 PM PHILL 66 ALLSUPS 336 SANTA FE UNLEADED 23.03 $58.18

0187 - 1 TRANS G59117 10/22/2010 6:52:00 PM UNBRANDED SANTA CRUZ COUNTRY S SANTA CRUZ UNLEADED 14.951 $38.51

37.981 $96.69

0187 - 1 TRANS G59117 8/19/2010 11:23:06 AM UNBRANDED RHOC EXPRESS ARROYO ESPANOLA UNLEADED 18.804 $46.56

0187 - 1 TRANS G59117 8/6/2010 1:04:25 PM PHILL 66 CIRCLEK6298 ASM ALB ALBUQUERQUE UNLEADED 10.634 $27.39

0059 - 1 5000 2FAFP71W31X159539 8/6/2010 3:13:00 PM UNBRANDED SANTA CRUZ COUNTRY S SANTA CRUZ UNLEADED 11.913 $30.69

22.547 $58.08

0187 - 1 TRANS G59117 8/5/2010 8:15:28 AM PHILL 66 TKJ INC D B A BURGER SANTA FE UNLEADED 13.084 $33.58

0059 - 1 5000 2FAFP71W31X159539 8/2/2010 4:26:16 PM PHILL 66 TKJ INC D B A BURGER SANTA FE UN+EADED PLUS 8.223 $21.93

0189 - 1 TRANS KC85019 7/28/2010 4:28:00 PM DIAMOND CAMEL ROCK VALERO SANTA FE UNLEADED 7.532 $19.10

0189 - 1 TRANS KC85019 7/28/2010 3:36:00 PM SHELL AIRPORT SHELL SANTA FE UNLEADED 12.61 $32.36

20.142 $51.46

0059 - 1 5000 2FAFP71W31X159539 7/24/2010 7:30:37 PM CONOCO QUIK STOP #12 ESPANOLA UN+EADED PLUS 17.201 $47.06

0059 - 1 5000 2FAFP71W31X159539 7/22/2010 7:46:00 PM C HEVRON CHEVRON 0302023 ESPANOLA SUPER UNLEADED 9.69 $25.840059 - 1 5000 2FAFP71W31X159539 7/22/2010 9:33:46 PM CHEVRON CHEVRON 0302023 ESPANOLA UNLEADED 6.977 $17.20

0059 - 1 5000 2FAFP71W31X159539 7/22/2010 11:36:02 PM CHEVRON CHEVRON 0309236 SANTA FE UNLEADED 15.55 $39.59

32.217 $82.63

0183 - 1 SFMO G77609 2/1/2010 11:56:00 AM UNBRANDED M & M STORES INC ALBUQUERQUE UNLEADED 14.706 $36.12

0126 - 1 3400 221340 2/1/2010 11:07:16 AM PHILL 66 SDTBE SANTO DOMINGO PUEB UNLEADED 22.216 $50.56

36.922 $86.68

0138 - 2 5000 G62117 7/30/2009 10:57:00 AM SHELL ALLSUP PETROLEUM INC SANTA FE UNLEADED 19.45 $45.84

0138 - 2 5000 G62117 1/21/2009 11:07:00 AM SHELL ALLSUP PETROLEUM INC SANTA FE UNLEADED 18.35 $28.74

Total Questionable Gas Card Purchases 2,462.78 $8,189.01

Documents

The Office of the State Auditor's Risk Assessment Report of the Public Regulation Commission