More than 40 state agencies remain unaudited, in violation of state law that requires every governmental agency to perform annual audits, The Santa Fe New Mexican reports. There is no penalty for noncompliance.
State Auditor Hector Balderas pushed for a law that would have withheld funds from agencies that did not complete their annual audits. The bill failed, but State Rep. Lucky Varela, D-Santa Fe, told the New Mexican that he would again sponsor legislation to withhold state funds from governmental entities that do not complete their annual audits.
Currently, Balderas told The New Mexican, his only recourse is to “let them know that they basically were subjecting their agencies to potential waste, fraud and abuse, or potential takeover.”
The Attorney General’s office said that it can only investigate in cases that the audits have found fraud.