Specifications include, but are not limited to: OSA wants to explore the potential advantages or disadvantages of incorporating a singular state ACFR audit and changing requirements for state agencies’ annual financial and compliance audits. OSA wants to ensure a timely ACFR and without compromising accuracy, transparency, compliance with state and federal law, access to federal and other funding, or our statutory duty and responsibility. The purpose of this study is to identify: 1. How many states in the U.S. currently conduct a singular audit? 2. What are the norms for states across the country—with particular focus on states neighboring New Mexico; states with similar statutory frameworks as New Mexico; states with comparable revenues, expenditures and resources—as far as annual audits or periodic audits of agencies and singular audits? 3. What does a survey of states reveal to be pros and cons/advantages and disadvantages of various approaches, particularly with regard to moving to a singular state audit? a. Are there advantages/disadvantages with regard to bond ratings? b. Have there been increases/decreases in fraud or wasteful spending in states with nonannual audits, with particular focus on small entities/agencies/municipalities that are most likely to move to non-annual audits? c. Identify any other cost savings/benefits/increased costs/issues identified with various approaches to multiannual audits/singular state audits in neighboring states. 4. What are the projected cost savings/increased costs or benefits/disadvantages for New Mexico to adopt various approaches: a. A singular state audit incorporating continued annual audits of all agencies/local public bodies? b. A singular state audit incorporating staggered audits of all agencies/local public bodies? c. An approach combining the current ACFR production with staggered audits of all agencies/local public bodies? d. Continuing “business as usual” for all audits and the ACFR? 5. The results and recommendations of this study shall be presented in an in-depth, tabulated report with detailed descriptions of current conditions as opposed to a singular audit approach or other recommendations. This tabulated report will be made publicly available and entitled “Study of New Mexico State Agency Financial Audit Reforms”. The report must include, at a minimum: a. Executive Summary; b. Compendium of current financial reporting framework within the State of New Mexico and similar states; c. Detail analysis of the suggested and any additional recommended alternatives to the current financial reporting framework; and d. Description of advantages and disadvantages of the alternatives in Item C listed above.
