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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 the state auditor's office designated by

the state auditor or independent auditors approved by 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 the state auditor's office

designated by the state auditor or independent auditors

approved by 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

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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 that is

determined to be a component unit in accordance with generally

accepted accounting principles, other than a housing

department of a local government or 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 shall be included in 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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