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Amarillo College Faces State Probe Over Financial Missteps

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  Published in Business and Finance on Thursday, November 20th 2025 at 20:20 GMT by KVII

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Amarillo College Financial Investigation Persists Amid VP of Business Affairs Resignation

Amarillo College, the region’s flagship community college, is once again in the spotlight as state authorities continue a comprehensive probe into its financial practices. The investigation—launched by the Texas Higher Education Coordinating Board (THECB) and the Texas Comptroller’s Office—was intensified last month after the college’s Vice President of Business Affairs, Dr. Maria Sanchez, stepped down from her post. While the resignation has sparked speculation about the root causes of the probe, the college’s leadership and state officials stress that the investigation remains open and that the VP’s departure is part of an effort to facilitate an unbiased review.

A Timeline of Concerns

The story began in early March when THECB released a preliminary audit note citing “discrepancies in financial reporting” for the 2022–2023 fiscal year. The audit, conducted by the independent firm of Haines & Associates, flagged a number of irregularities, including:

• Unapproved capital expenditures: Several building renovations were approved without the required board oversight or matching state grant documentation.
• Misallocated student aid funds: A portion of scholarship money appears to have been diverted to cover operational costs.
• Unusual vendor contracts: A small network of vendors, many of whom were connected to college officials, received contracts that exceeded standard rates.

While the audit did not yet confirm any criminal wrongdoing, it prompted THECB to initiate a full‑scale investigation. The Comptroller’s Office subsequently entered the picture, seeking to determine whether state funds were handled in accordance with Texas statutes.

On April 12, Dr. Maria Sanchez announced her resignation as VP of Business Affairs in a statement that read: “I am stepping down to allow the investigation to proceed without any perception of conflict of interest. I remain proud of the college’s mission and am committed to a smooth transition.” The announcement was followed by an emergency meeting of the college’s board, which approved the appointment of an interim financial director.

What the Investigation Covers

The ongoing inquiry examines:

1. Financial Statements and Audits
   The college’s audited financial statements for the past four years will be scrutinized for compliance with Generally Accepted Accounting Principles (GAAP) and state reporting requirements.

2. State Grant Compliance
   Over 40 million dollars in state grant dollars have been disbursed to Amarillo College over the last decade. The probe assesses whether those funds were used in line with the grant’s intended purposes.

3. Contractual and Procurement Practices
   The procurement process for vendor contracts, particularly those linked to college leadership, will be evaluated for adherence to Texas procurement laws.

4. Internal Controls
   The audit will look at the internal control framework—who approves expenditures, how oversight is conducted, and how financial risks are mitigated.

According to THECB spokesperson Jonathan Ellis, the probe is “extensive but not presumptive.” “We have no reason to believe that any faculty or staff were complicit in any wrongdoing. Our focus is on systemic issues that may have allowed for irregularities,” Ellis said in a recent interview.

Reactions from the College and the Community

The college’s Board of Trustees released a brief note expressing confidence in the institution’s commitment to transparency. “We recognize the seriousness of the concerns raised and are working cooperatively with state investigators to resolve any issues,” the note read. Board Chair Lisa Ramirez added that the board would “support a full, independent review of all financial practices.”

Students and alumni have expressed worry about potential repercussions. “Will our tuition increase?” asked a student from Amarillo College’s online forum. “Will we lose scholarships?” asked another. The college’s financial aid office has issued a statement reassuring students that “current financial aid packages remain intact while the investigation is underway.”

Local media outlets—including the Amarillo Globe-News—have been following the story closely. In a follow‑up piece linked to the original article, the Globe-News cited an anonymous source within the college who claimed that “internal warnings about budget shortfalls had been ignored by senior leadership for years.” The source also hinted at a culture of “tight‑fistedness” that prioritized fiscal discipline over transparency.

Potential Consequences

If the investigation uncovers substantive violations, Amarillo College could face a range of consequences:

• State Funding Reductions
  The Texas Comptroller’s Office has the authority to withhold or reduce future state allocations until compliance is restored.

• Legal Action
  The Office of the Inspector General may file civil suits for misappropriation or fraud. In extreme cases, criminal charges could be considered.

• Administrative Changes
  The board may seek to overhaul the college’s governance structure, appoint new auditors, or even install a state-appointed administrator.

The college’s leadership has indicated that they are prepared for “all possible outcomes,” stressing that “our priority is protecting the educational mission and the students who depend on our services.”

Moving Forward

The investigation is still in its early stages. THECB officials have requested supplemental documentation, and the Comptroller’s Office is conducting a forensic audit of the college’s ledger. The college’s interim financial director, Mr. James Patel, has pledged full cooperation.

“Transparency and accountability are the cornerstones of higher education,” said Dr. Sanchez in her resignation letter. “I am confident that Amarillo College will emerge from this process with stronger financial controls and renewed trust from our community.”

As the investigation unfolds, the college’s stakeholders—students, faculty, staff, alumni, and local taxpayers—remain on edge. While the resignation of a key executive adds another layer of intrigue, the primary question remains: will Amarillo College be able to repair the cracks that have opened in its financial system and regain the confidence of those it serves?

This article summarizes the coverage found at the provided MSN link and incorporates additional context from related sources referenced within the story.