The Public Finance Accountability Act establishes new funding criteria and grant management requirements for state agencies in New Mexico. It mandates that grantees must complete an annual audit and address any identified material weaknesses or deficiencies in their financial practices. The Department of Finance and Administration is tasked with setting these criteria, which include ensuring that grantees have adequate accounting methods and are compliant with financial reporting requirements. Additionally, the Act outlines the responsibilities of state agencies in managing grants, including the approval of sales, leases, and licenses of capital assets acquired with appropriations.

Furthermore, the Act requires the Department of Finance and Administration to develop procedures and templates for grant agreements, monitor compliance with the established criteria, and conduct field audits of capital outlay projects. The provisions of this Act will take effect on July 1, 2025.