The city of Hobbs says it has cooperated with the state auditor's office and is working to implement policy changes to ensure the confidence of citizens and the state agency.
The city said in a statement issued Wednesday that it self-reported the majority of the issues outlined by the auditor's office following an investigation into allegations about possible violations of the city's ethics code.
The city also says it has submitted a corrective action plan to the state to improve transparency and accountability for government spending.
Officials say proposed changes to the procurement policy include a requirement that all elected officials and employees disclose financial interests as it directly relates to the city of Hobbs.
The annual disclosures would be reviewed by the city manager as well as finance and legal staff to determine if any conflicts exist.
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An investigation by state auditors has found that some elected officials in the southeastern New Mexico city of Hobbs did not adhere to their own code of ethics.
The Office of the State Auditor released the findings of its investigation Wednesday. The inquiry was spurred by complaints filed after the office had sent a letter to the city last October that highlighted opportunities for improving governance related to its procurement practices.
"This was a failure of multiple elected officials to follow their own ethics ordinance," State Auditor Tim Keller said in a statement. "These rules help ensure decisions are being made in the best interests of the public, not to advance personal interests."
Keller said the city should take action to restore taxpayers' confidence. His office suggested training with respect to procurement practices and compliance with disclosure requirements.
Mayor Sam Cobb, who is among the officials identified by the auditors, did not immediately return a message seeking comment.
The investigation found that public officials weren't filing required financial disclosures or recusing themselves from official business when personal interests were involved.
The rules call for officials to file annual disclosures that include a listing of business interests. The city has no records of any disclosures for the last several years.
Auditors also say the city violated its procurement code by purchasing more than $40,000 of goods and services from vendors owned by two city commissioners.
In one case, investigators said a family business in which the mayor has a stake holds a home loan for City Manager J.J. Murphy. They said the mayor participated in employment matters involving Murphy while also serving as the vice president and board member of the business holding the loan.
Nothing in the commission's meeting minutes related to the discussion and approval of Murphy's compensation or other terms of employment indicated that the mayor disclosed the business interest with Murphy, according to the investigation.
In a letter to city officials, auditors suggested that any outstanding undisclosed conflicts of interest should be discussed in open meetings and voted on in accordance with the city's ethics code.
They also recommended that the city commission review its past disclosure practices.
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