JANUARY 24, 2024

SANTA FE, January 19, 2024 – The City of Santa Fe’s Fiscal Year 2022 (FY22) Audit is now available to the public. This is the second annual financial audit that the City has completed in the last six months. 

Highlights from the Audit: 

•  The Independent Auditor’s report on the FY22 financial statements expresses an unmodified opinion. This is the best opinion type, and it means that the auditor concluded that the financial statements are presented fairly, in all material respects, in accordance with generally accepted accounting principles.
• The FY22 audit report identified 17 findings, an overall decrease of 5 from the FY21 audit report which identified 22 findings.
• 10 of the findings from the FY21 audit were resolved in the FY22 audit, demonstrating the progress that the City is making to improve internal controls over financial information and implement improvements to business processes.
• The Independent Auditor’s report on compliance for each major federal program and on internal control over compliance expresses an unmodified opinion. This is the best opinion type, and it is a major improvement from FY21. An unmodified opinion means that the auditors concluded that the City complied, in all material respects, with Federal grant requirements.

Mayor Alan Webber said, “This is a very positive audit and shows real, substantial progress for our City. It’s a clean audit. We’re proud of the improvement in our grants, the findings we resolved, and the real overall progress we’re making. Two audits down, one to go.”

Emily K. Oster, Finance Director for the City of Santa Fe, said, "The dedicated and professional staff of the City have been working diligently to get caught up on audits. These efforts show in the results of the Fiscal Year 2022 audit. I am especially proud of the improvements in our compliance with federal grant requirements. This audit report shows substantial progress towards achieving our goal of timely and accurate financial reporting."

John Blair, Santa Fe City Manager said, “Two completed annual financial audits in under six months is amazing! I couldn’t be more proud of our Finance Department and everyone on Team Santa Fe who’s fixed the longstanding issues the City’s faced with completing timely financial audits.”

The City worked with its Independent Public Accountant, Carr Riggs & Ingram CPAs, to submit the FY22 external financial statement and compliance audit to the New Mexico Office of the State Auditor (OSA) on Thursday, December 7, 2023. The FY22 audit covers the time period beginning July 1, 2021, and ending June 30, 2022. Carr Riggs & Ingram CPAs will present the FY22 audit report to the Audit Committee on Thursday January 25, 2024, to the Finance Committee Monday, January 29, 2024, and to the Governing Body at the next regular meeting on Wednesday, January 31, 2024.

The City is actively working with its auditors and accounting consulting team on completing the FY23 audit. The Finance Director’s goal is to submit the FY23 audit to the State Auditor’s Office by May 15, 2024.

Findings Summary:

Of the 22 findings identified in the FY21 audit, 10 (45%) were resolved in the FY22 audit. The FY22 audit report identified 17 findings, 12 were repeated from FY21 with modifications, and five are new.

Breakdown of the 17 findings in FY22:

•  There are four material weaknesses in financial reporting. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis.
•  There is one significant deficiency in financial reporting. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control, that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
•  There are two material weaknesses related to federal grant requirements.
•  There is one significant deficiency related to federal grant requirements.
•  There are four other matters that are required to be reported by the State Audit Act (Section 12-6-5 NMSA 1978).
•  There are five other noncompliance that are required to be reported by the State Audit Act (Section 12-6-5 NMSA 1978).

Additional City Actions:

• The City has taken action to fill key positions, improve business practices, update critical software, and get caught up on financial reporting.
•  In the past 17 months the City has hired a Finance Director, Grants Manager, Purchasing Officer, Controller, and Accounting Officer. These key staff members bring substantial experience and knowledge of governmental accounting, financial reporting, and auditing.
•  The Munis ERP system was successfully upgraded in January 2023. The new version of the system provides additional functionality needed to improve business practices through modernization and automation.
•  The City is actively working with its auditors and accounting consulting team on completing the FY23 audit.
• The Finance Director’s goal is to submit the FY23 audit to the State Auditor’s Office by May 15, 2024. 

Click here for a link to the report on the OSA website.