Bill > HB493

This bill establishes the Public Finance Accountability Act, which creates a comprehensive framework for managing and overseeing public grants in New Mexico. The legislation requires state agencies to follow strict funding criteria when providing capital outlay or special purpose appropriations to grantees, including ensuring that recipients have completed recent annual audits and have adequate accounting methods. Grantees must demonstrate financial accountability by either having a clean audit or developing a plan to address any material weaknesses in their financial reporting. The bill empowers the Department of Finance and Administration to establish grant management protocols, including requiring standardized grant agreement templates, conducting field audits of capital projects, and monitoring the disposition of capital assets. If a grantee fails to meet financial standards, the state agency may require a fiscal agent to manage the grant funds. The bill also includes a force majeure provision that allows temporary waivers of compliance requirements during extraordinary circumstances like natural disasters or pandemics, but only with strict documentation and alternative protective measures. The act will take effect on July 1, 2025, and aims to enhance transparency, accountability, and responsible management of public funds across state agencies and their grantees.

Budget and Finance, Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=493&year=25