Sunday, December 3, 2017

Dear Ms. Pino:

I am in receipt of your letter dated December 1, 2017. During the period of the
review of Athletics finances, the University cooperated fully with the examination
conducted by Office of the State Auditor (OSA). It is important to note that the
OSA and UNM staff reviewed more than 36,000 transactions, overall
encompassing some $76 million. Hundreds of thousands of other transactions
were provide to the OSA for background information. While the audit identified
areas needing structural and reporting improvement, I am pleased that no fraud or
crime was detected. The few transactions cited largely involve areas where
corrective actions are already underway.

In the process of conducting business for UNM, the states flagship university,
which serves over 28,000 thousand students statewide and is basically the size of
a small city, there are always and will always be issues of many different natures
and severity that need to be reviewed.

The AGs letter assumes that the matter for which Judge Black was contracted is
related to the financial issues previously addressed by the State Auditor. It is not. It
is a separate inquiry dealing with different issues. As we have publicly stated on
numerous occasions, allegations raised by members of our community always
deserve an initial inquiry. We use those initial reviews to determine whether any
additional exploration might be necessary. In this instance, Judge Bruce Black was
contracted to conduct that preliminary inquiry.

As we publicly stated two weeks ago, upon the conclusion of Judge Black's
review, the university is continuing to evaluate processes, procedures, and the
overall culture of the Athletics Department, and the broader UNM campus, to
ensure best business, management, and human relations practices. We also
previously stated the initial review has prompted us to look at a few discrete
matters. We regret the need for investigations, but believe it is UNMs
responsibility to investigate allegations that might affect our community. This
process is still ongoing, and we have been as forthcoming with details as we can
be, without compromising the integrity of the process and ensuring those who are
being asked to participate that they can be candid and cooperative. Until then,
please be assured that evaluating our overall culture and improving it for all
members of the UNM community is our priority.

The University of New Mexico Scholes Hall, Room 144 1 University of New Mexico Albuquerque, NM 87131 Phone 505.277.2626 www.unm.edu
 I stand by the decisions I have made with the support of our Board of Regents who
received a full briefing from Judge Black and have been informed through the
appropriate channels throughout the entire process. Our course of action has been
in the best interest of our students and the University as a whole, and we are
proceeding in a manner that will best serve the incoming president. My office will
be in touch to coordinate a meeting. Knowing the Attorney Generals investigation
is still open, I welcome further discussion with the regarding any concerns that his
office may have and providing any information they may need.

Sincerely,

Chaouki Abdallah
Interim President

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The University of New Mexico Scholes Hall, Room 144 1 University of New Mexico Albuquerque, NM 87131 Phone 505.277.2626 www.unm.edu