§ 6-3B-3 — Funding criteria

New Mexico § 6-3B-3

• Jurisdiction: New Mexico
• Ch. 6: Public Finances
• Art. 3B: Public Finance Accountability

Text

A. The department shall establish the following funding criteria for a grantee to be eligible for a capital outlay appropriation or other special purpose appropriation to political subdivisions of the state: (1) a grantee shall have completed an annual audit for one of the past two fiscal years, and the most recently completed annual audit shall be a public record pursuant to the Audit Act [12-6-1 through 12-6-15]; (2) if a grantee's most recently completed annual audit documents material weaknesses or significant deficiencies: (a) the grantee shall prepare an actionable plan to address the material weaknesses and significant deficiencies; (b) the state agency making the grant shall provide support to the grantee to prepare and implement the grantee's plan to adequately address the material weaknesses and significant deficiencies; or (c) if the grantee's prior year audit findings have repeated material weaknesses and significant deficiencies for more than two consecutive fiscal years from the fiscal year the grant is being considered, the state agency making the grant shall have determined that another appropriate entity is able and willing to act as fiscal agent for the grant; (3) if the grantee's most recently completed annual audit of public record is not from either of the two immediate past fiscal years, the state agency making the grant shall have determined that another appropriate entity is able and willing to act as fiscal agent for the grant; (4) in the case of a grantee that is not required to have annual audits conducted pursuant to the Audit Act: (a) the grantee shall have demonstrated to the satisfaction of the state agency making the grant that it has adequate accounting methods and procedures to manage and expend grant funds in accordance with applicable law and account for and safeguard grant funds and assets acquired by grant funds; (b) if necessary, the state agency shall have determined that it can impose and has the resources to implement special grant conditions that will adequately address any relevant deficiencies in the grantee's accounting methods and procedures; or (c) if necessary, the state agency may have determined that another appropriate entity is able and willing to act as fiscal agent for the grant; and (5) the grantee shall be in compliance with any financial reporting requirements, including those enumerated in the Audit Act, and shall have a budget for the current fiscal year approved by any applicable governing body or oversight agency. B. If a grantee is not in agreement with the department's or state agency's decision to require a fiscal agent for a grant, the grantee may file a written appeal with the department or state agency within one week of the department's or state agency's decision to require a fiscal agent; provided that once a written appeal is filed with the department or state agency, the chief financial officer of the department or state agency shall review and discuss the appeal with the grantee and then prepare a written set of findings upholding or overturning the original department or state agency decision to require the grantee to have a fiscal agent. C. The department shall require the funding criteria set forth in Subsection A of this section to be met prior to allowing a state agency to: (1) certify to the state board of finance for the issuance of severance tax or general obligation bonds for a project; or (2) make a grant to a grantee.

Legislative History

Laws 2025, ch. 154, § 3.