State Auditor Hector Balderas says he's stepping up expectations for audits scheduled this fall for Santa Fe County and the city of Santa Fe in light of recent concerns about public-works projects and local contractors.

One difference between the two entities, however, is that Balderas is directing the county to make its audit more thorough while city officials approached him seeking assistance on getting the most detailed audit possible.

"I'm directing both individual auditors to expand the scope of their services and do much more testing in their audits, particularly in the areas of procurement," said Balderas, noting that the way governments gather bids and buy goods and services is one of the areas at highest risk for manipulation, favoritism and excessive billing, which ultimately costs taxpayers unnecessarily.

County officials have released the name of one company — Advantage Asphalt — whose actions are being scrutinized as part of an ongoing Sheriff's Office investigation involving suspected fraud and theft in the county Public Works Department. James Lujan, the former director of the department, was fired last month by County Manager Roman Abeyta, who resigned Monday, saying the paving scandal was just one of many issues that pushed him to the point where he had ceased to enjoy his job.

Balderas said the county is obligated by state law to inform the auditor of suspicions of wrongdoing with public money, but he found out about the problems in the newspaper.

"I am very concerned at the allegations that public resources may have been misused," he said in an interview Wednesday. "What we are also looking for is a corrective action plan that will quantify any loss to the taxpayers. Has the county really wrapped its head around the extent of that potential cost?"

The State Auditor's Office is authorized to oversee annual audits of states, counties and other public entities, such as school districts. Balderas said he sent a letter to county officials two weeks ago asking for an update on any investigation or allegations so his office could begin audit planning. He has not yet received an answer.

Although the city uses the same contractor for millions of dollars worth of public projects, City Manager Robert Romero has defended the inspection and procurement processes at City Hall.

Nevertheless, City Councilor Patti Bushee publicly demanded at Monday's Finance Committee meeting that Romero contact the state auditor for help. Balderas commended the city official for voluntarily getting more interested in audits. He said he hopes all officials realize they have a high degree of responsibility to aggressively protect the public interest. His office has final approval on contracts with auditors that cities and counties choose from a list.

He said he will make sure the scope of work on each contract is deeper this year. The entity for whom the audit is conducted will be responsible for the added cost, he said. The auditor said any suspected crimes uncovered in audits are relayed to the state attorney general for investigation.

Contact Julie Ann Grimm at 986-3017 or jgrimm@sfnewmexican.com.