The bill amends the Audit Act to enhance auditing processes and requirements for state and local public bodies in New Mexico. Key changes include the introduction of new definitions for "agency" and "local public body," expanding the scope of entities subject to audits. The bill specifies that the financial affairs of every agency must be audited annually by the state auditor or designated personnel, and it mandates that local public bodies undergo audits based on their cash and investment assets, annual revenue, or federal expenditures. Notably, it establishes new thresholds for local public bodies, with different reporting requirements based on their financial activity, including a new exemption for those with annual revenues under $100,000.

Additionally, the bill creates an "audit fund" to support the state auditor's activities, detailing how funds will be administered and disbursed. It also includes an appropriation of $50,000 from the general fund for the purchase of software to facilitate statewide federal audits. The legislation aims to ensure compliance with auditing standards and improve financial accountability across various governmental entities.

Statutes affected:
introduced version: 12-6-2, 12-6-3, 12-6-5, 12-6-13