Capital Outlay, Financial Reporting, and Audits

posted in: News | 0

Below is some important information for acequias regarding a number of topics:

Infrastructure Capital Improvement Plans: The deadline to complete an ICIP is on September 30, 2013. The ICIP is a useful tool in preparing and planning to request funding for an acequia construction project. The State Legislature and various state agencies are strongly encouraging local governments to submit an ICIP if your acequia plans to request Capital Outlay funding during the 2014 legislative session. NMAA is available to help prepare an ICIP for your acequia and we recommend the following:

  •  Contact NMAA for assistance in obtaining a username and password for the DFA website used to enter the ICIP information.
  •  Hold a public meeting of your Commission or membership to come to an agreement about the needs on your acequia.
  •  Write a description of your project and get a cost estimate. You can get advice on this from your local NRCS office, the Interstate Stream Commission, or a private engineer or contractor.
  •  Set up a consultation with NMAA staff to begin preparing your ICIP. NMAA staff are available throughout the month of September for 2 hour consultations in our office in Santa Fe.
  •  Hold a public meeting of your Commission to approve a resolution adopting the ICIP before September 30, 2013.

Capital Outlay: If your acequia is planning to submit a request for Capital Outlay during the 2014 legislative session, first complete your ICIP. It is also important to communicate with your Senators and Representatives to let them know you will be submitting a funding request. After your ICIP is completed, you will need to complete a Capital Outlay Request Form. NMAA staff can assist you with this form.


Audit Rule: To receive Capital Outlay, any local government, including acequias, must be in compliance with the Audit Rule according to the Executive Order by Governor Susana Martinez. Although this has always been a state law, it is now being enforced by the state.   The Office of the State Auditor has a tiered system of reporting.   While most acequias will only require submission of a letter to the State Auditor, others over a certain spending level will be required to do a financial report or audit.    

DFA Budget and Reporting Requirements: Similar to the Audit Rule, state law requires that local governments meet budget and reporting requirements. This has not been enforced in the past but the state is now making DFA compliance a condition of acquiring Capital Outlay.


To assist acequias in meeting the Audit Rule and DFA requirements, NMAA is hosting a workshop on Financial Reporting and Audits Workshop on September 19th, 2013 (click here for flyer). The purpose of the workshop is to inform acequias about these requirements. Representatives from three different agencies will give brief presentations and will be available to answer questions.  Please let us know whether you plan to attend this workshop by calling the NMAA office at 505-995-9644.