HOUSE BILL 237

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Don Tripp

AN ACT

RELATING TO PUBLIC FINANCES; PROVIDING FOR INDEPENDENT AUDITS BY PUBLIC HOUSING AUTHORITIES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. Section 12-6-3 NMSA 1978 (being Laws 1969, Chapter 68, Section 3, as amended) is amended to read:

     "12-6-3. ANNUAL AND SPECIAL AUDITS.--

          A. The financial affairs of every agency shall be thoroughly examined and audited each year by the state auditor, personnel of [his] the state auditor's office designated by [him] the state auditor or [by] independent auditors approved by [him] the state auditor. The comprehensive annual financial report for the state shall be thoroughly examined and audited each year by the state auditor, personnel of [his] the state auditor's office designated by [him] the state auditor or [by] independent auditors approved by [him] the state auditor. The audits shall be conducted in accordance with generally accepted auditing standards and rules issued by the state auditor.

          B. In addition to the annual audit, the state auditor may cause the financial affairs and transactions of an agency to be audited in whole or in part.

          C. Annual financial and compliance audits of agencies under the oversight of the financial control division of the department of finance and administration shall be completed and submitted by an agency and independent auditor to the state auditor no later than sixty days after the state auditor receives notification from the financial control division to the effect that an agency's books and records are ready and available for audit.

          D. In order to comply with United States department of housing and urban development requirements, the financial affairs of a public housing authority other than a regional housing authority, at the public housing authority's discretion, may be audited separately from the audit of its local primary government entity. If a separate audit is made, the public housing authority audit need not be integrated into the local primary government entity audit and need not be conducted by the same auditor who audits the financial affairs of the local primary government entity."

     Section 2. Section 12-6-4 NMSA 1978 (being Laws 1969, Chapter 68, Section 4) is amended to read:

     "12-6-4. AUDITING COSTS.--The reasonable cost of all audits shall be borne by the agency audited, except that:

          A. a public housing authority other than a regional housing authority shall not bear the cost of an audit conducted solely at the request of its local primary government entity; and

          B. the administrative office of the courts shall bear the cost of auditing the magistrate courts. A metropolitan court shall be treated as a single agency for the purpose of audit and shall be audited as a unit, and the cost of the audit shall be paid from the appropriation to the metropolitan court. The district courts of all counties within a judicial district shall be treated as a single agency for the purpose of audit and shall be audited as a unit, and the cost of the audit shall be paid from the appropriation to each judicial district. The court clerk trust account and the state treasurer account of each county's district court shall be included within the scope of the judicial district audit."

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