Audit raises questions about distribution of millions in federal funds in Las Cruces

LAS CRUCES, New Mexico - Millions of federal dollars are up for grabs for Las Cruces non-profits.

But who will get the money? And has the process been fair?

“It seemed to us that the process was very likely to make mistakes," said Patrick DeSimio, a co-founder of Cruces Creatives. "We contacted the council about the deep flaws in the process."

The city of Las Cruces received almost $24.8 million dollars in money from the American Rescue Plan Act of 2021, according to the city. Of that money, $10.4 million is intended to for community and economic development initiatives. The city invited non-profits to apply for funding.

However, DeSimio said he was informed that his application was ineligible. He joined co-founder Lea Wise-Surguy in contacting the city to gain clarity around the approval process. In their review of the public documents surrounding the grant application, they say they were disheartened to find a lack of collaboration and consistency.

An internal auditor on Monday told Las Cruces city leaders that the approval process lacked consistency and transparency.

"The process followed to determine eligibility was not sufficiently designed or documented to support a clear, consistent and transparent eligibility determination," said Viola Perea, the city's auditor.

“The process is tainted," said Councilor Yvonne Garcia, who represents district six. "I don’t know how we can really get out of this.”

City councilors urged staffers to refine the approval process within the guidelines of the audit.

"It's not personal," said Natalie Green, the city's housing and neighborhood services manager who is leading the efforts to approve the grants. "It's not a reflection of the organization. It's not even a reflection of their project. Some of them have excellent projects that are not well-suited to federal funding."