AUDIT CHANGES

SB 145 restructures New Mexico's audit requirements for state agencies and local public bodies (like counties, school districts, and water districts). It revises revenue thresholds that determine reporting obligations: local bodies with annual revenue under $100,000 are exempt from most financial reporting, while those between $100,000-$500,000 must submit tailored reports focused on their specific activities. The bill also mandates that state agencies conduct annual federal single audits starting in 2028, aligning with federal standards. These changes aim to reduce administrative burden for smaller entities while maintaining oversight for larger ones. The bill updates audit definitions, reporting rules, and the audit fund appropriation.