SANTA FE, NM - The Office of the State Auditor (OSA) released the most recent financial audits for the Department of Finance and Administration (DFA) and the State General Fund. The reports, completed by REDW LLC and covering fiscal year 2015, reflect significant progress in accounting for the state's cash balances. Since the implementation of the SHARE accounting system in 2007, there have been substantial uncertainties regarding the amounts recorded in the state's general ledger and the balances in bank accounts.
"New Mexicans deserve a state government that can balance its checkbook and accurately account for taxpayer dollars," stated State Auditor Tim Keller. "We appreciate the steps that are being taken to move our state closer to meeting this basic tenet of good government and we will continue to push for improved accounting practices."
In fiscal year 2014, unreconciled statewide cash balances led DFA to recommend that the state reserve a $100 million contingency for potential losses and resulted in a "disclaimer of opinion" for the State General Fund, meaning the auditor determined that the financial statements were unreliable and may have material misstatements.
Since that time, the Legislature has continued to provide recommendations and oversight regarding the matter; the OSA has pressed for transparency, accountability and a reliable reconciliation process; and DFA has begun to address the issue by performing the necessary reconciliations, which has substantially narrowed the uncertainties.
Highlights of the fiscal year 2015 DFA and State General Fund audit reports include:
- Audit opinion: The latest audit opinion for the State General Fund has improved to "unmodified," meaning that financial statements are now presented fairly in all material respects.
- Reserve funds: During fiscal year 2015, DFA was able to reduce the uncertainty regarding unreconciled balances to a $4.1 million discrepancy.
- Ongoing issues: The transactional activity that occurred during the period beginning July 2007 through January 2013 has not been reconciled, and reconciliation may not be possible, due to incomplete data. In addition, the DFA and State General Fund audits include unresolved findings that still need to be addressed.
The full audits are available here (State General Fund) and here (DFA).