New Mexico State Auditor Hector Balderas today announced that his office has designated the New Mexico Finance Authority (NMFA) for a special audit after uncovering the existence of a fraudulent audit report of NMFA’s annual financial statements.  According to the State Auditor’s Public Information Officer, Antonio Corrales, Balderas’ office had put the NMFA on its “at risk” watch list on May 23 for failing to comply with legal requirements for annual audits.  NMFA contacted the State Auditor to ask why they had been put on the list.  An as yet unidentified NMFA official stated they believed they had submitted the audit for the 2011 fiscal year and it had been approved by the State Auditor.  But the audit in the files of the NMFA had never been submitted to the State Auditor, and it was forged to appear as though it had been prepared by the Albuquerque office of Clifton Gunderson, a national accounting firm.

According to Corrales, another as yet unidentified NMFA was claiming internally that Balderas’ office had received and approved the audit.  Corrales said an investigation is underway to identify that employee.

Balderas stated in a press release, “I’m extremely concerned that a report was fraudulently created in order to misrepresent the Authority’s financial condition to agencies, investors, and the public.”  Balderas says his office has notified law enforcement and is working closely with NMFA officials and independent auditors in preparation of the special audit.

Balderas’ press release is linked here.