New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 2 - AUDITS OF GOVERNMENTAL ENTITIES › Part 3 - BUDGET CERTIFICATION OF LOCAL PUBLIC BODIES › Section 2.2.3.8 - UNTIMELY ANNUAL AUDITS AND BUDGET CERTIFICATION

Current through Register Vol. 35, No. 13, July 16, 2024
A. Pursuant to Section
				6-6-2
				NMSA 1978, budgets shall be submitted by the local public body to the local
				government division. Receipt of the most current audit(s) that were required to
				be conducted and submitted for review per the New Mexico state auditor's
				required report due dates for the previous fiscal year(s) shall be confirmed by
				the local government division. The local government division, by letter to the
				local public body, shall inform the governing body of the local public body and
				other state public officers, elected and appointed, of the need for corrective
				action, in accordance with Subsection E of 2.2.3.8 NMAC by the local public
				body when previous fiscal year audit(s) have not been submitted. During the
				corrective action process, the local government division may grant conditional
				budget certification to the local public body.
B. The local government division shall
				identify and report to state public officers a list of local public bodies that
				have failed to contract with an independent public auditor for its annual
				audit. The identification shall include reasons why the local public body has
				failed to obtain an audit contract. The identification shall also report on
				whether or not a line item of the amount in the preliminary and final executed
				budgets has been included for the cost of the annual audit of the local public
				body.
C. When the cause of the
				delay is due to the independent public auditor's inability to complete the
				audit, the local public body will communicate this in writing to the local
				government division and to the state auditor.
D. When the cause of the delay is due to the
				inability of the local public body to make progress payments on the contract
				between the local public body and the independent public auditor, the local
				public body shall communicate this by letter to the local government division
				and to the state auditor. The local public body shall explain why progress
				payments have not been made, when they will be made and whether a shortage of
				funds exists.
E. Any necessary
				corrective action shall begin with a meeting and continue with follow up
				meetings if needed, between officials of the local public body and
				representatives of the local government division and the state auditor's office
				to consider any extenuating circumstances. The meeting(s) shall address the
				extenuating circumstances, including but not limited to, the documented
				reason(s) why the required annual audit has not been conducted or completed. A
				plan for corrective actions shall be developed and agreed to in writing by
				officials of the local public body, the local government division and the state
				auditor's office, and signed by all the parties. The local public body will
				report monthly to the local government division and to the state auditor's
				office on the progress of the corrective action plan, until the required annual
				audit is completed and the local public body receives budget certification or
				conditional budget certification if there are other issues or deficits in the
				budget which may necessitate conditional budget certification.
F. The local public body shall communicate in
				writing to the local government division and to the state auditor when it has
				completed its required audit(s) and the local government division shall certify
				the local public body's interim and final budgets upon confirmation by the
				state auditor's office that the required audit has been submitted to the state
				auditor's office for review and publication, unless there are other issues or
				deficits in the budget which may necessitate conditional budget
				certification.