HOUSE CONSUMER AND PUBLIC AFFAIRS COMMITTEE SUBSTITUTE FOR

HOUSE BILL 345

51st legislature - STATE OF NEW MEXICO - first session, 2013

AN ACT

RELATING TO THE STATE AUDITOR; REQUIRING THE STATE AUDITOR TO SELECT AT LEAST TWENTY-FIVE CAPITAL OUTLAY PROJECTS THAT WERE FUNDED BY STATE FUNDS FOR SPECIAL AUDITS EACH YEAR; PROVIDING NOTIFICATION.

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

     SECTION 1. A new section of the Audit Act is enacted to read:

     "[NEW MATERIAL] STATE AUDITOR--CAPITAL OUTLAY PROJECTS--AUDITS--REPORTS.--

          A. Each fiscal year, the state auditor shall select at least twenty-five capital outlay projects funded by the state general fund, the severance tax bonding fund, general obligation bonds, special funds or other sources of state money for special audits that focus on the capital outlay funds expended. The state auditor may contract for the audits, which shall be conducted in accordance with generally accepted auditing standards and rules issued by the state auditor.

          B. The state auditor shall select the capital outlay projects using a risk-based approach, including the identification and assessment of financial, compliance and operational risks related to the state agency, the local government or other recipient, if applicable, and the capital outlay project. In selecting a capital outlay project for audit, the state auditor shall consider the following criteria:

                (1) a recipient is not otherwise reviewed pursuant to the Audit Act; and

                (2) at least fifty percent of the capital award has been expended.

          C. The state auditor shall notify applicable state agencies that have oversight of the capital outlay funds, the department of finance and administration and the legislative finance committee of the capital outlay projects selected for special audits. Once a special audit report of a capital outlay project is released and becomes public record, the state auditor shall provide the report to the state agency audited or other recipient, if applicable, the department of finance and administration and the legislative finance committee."

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