The New Mexico Acequia Association (NMAA) is committed to supporting acequias in securing Capital Outlay funds and other vital financial resources for infrastructure projects. As we head into the upcoming Legislative Session, NMAA is offering specialized assistance to help acequias navigate the application process and ensure compliance with state requirements. Based on funding allocated by the legislature the Office of the State Auditor (OSA) has released a first come first serve application to apply for financial assistance to come into full compliance with the OSA. Acequias not in compliance are not eligible to receive state infrastructure funding.
On December 4, 2024, NMAA hosted a workshop focused on the assistance available from the Office of the State Auditor for acequias applying for Capital Outlay and other state funding. Whether you’re new to the process or need a refresher, this workshop covered essential information on how to meet the compliance standards and deadlines set by the OSA.
Workshop Recording Now Available
If you were unable to attend the live session or want to revisit the key takeaways, you can watch the full workshop recording here:
[CLICK HERE TO VIEW THE ZOOM RECORDED WORKSHOP]
Understanding the State Auditor’s Tiered Reporting System
For acequias to qualify for state funding—including Capital Outlay—compliance with the Office of the State Auditor’s Tiered Reporting System is mandatory.
Key Compliance Points:
- State Funding Requirements: If your acequia receives state funds, including Capital Outlay, you must be in full compliance with the OSA’s reporting standards. The Department of Finance and Administration (DFA) will verify this compliance before approving the issuance of bonds that fund Capital Outlay Awards. Similarly, the Interstate Stream Commission (ISC) will check for compliance when considering eligibility for the Acequia and Community Ditch Infrastructure Fund (ACDIF).
- Tiered Reporting System: Acequias must be certified in the OSA’s Tiered Reporting System annually. If your acequia spends 50% or more of your Capital Outlay or other state funding, you will be required to be at Tier 3 or higher, which includes the need for an Agreed-Upon Procedures (AUP) report.
Additionally, for acequias who need an AUP, it’s essential to ensure that all relevant financial documents and records are properly saved and organized. This includes contracts, copies of checks, and monthly financial reports.
Let’s get ready for a successful Legislative Session and beyond, ensuring that our acequias remain well-supported and in compliance with all state requirements!
A Reminder About Compliance:
Urgency of Compliance: It’s crucial for acequias who need help with AUPs/ “audits” to submit the OSA Assistance application before the holidays, as there is a limited pool of funds available—only $500,000 is allocated, and it is being distributed rapidly.
Application notes:
It’s important to remember that the OSA Agency Number is not the same as the DFA Entity Code. If you do not know your OSA Agency number they will provide it for you.
Procurement:
If you are awarded the OSA Financial Assistance they will assign an auditor to you, your acequia will not complete a procurement process. If you need the AUP completed in a timely manner, the acequia may need to pay for the AUP independently, and go through the OSA Connect portal for contracting. Furthermore, when you need an AUP that OSA is not funding, only Independent Public Accountants (IPAs) from the OSA-approved list may be used for your financial reviews.
If you need assistance or have questions about the Tiered Reporting System, AUPs, or any other financial compliance matters, NMAA is here to help. Don’t hesitate to reach out for guidance as we work together to ensure your acequia’s eligibility for crucial state funding.
Important Links and Resources
Here are some important links to assist you in navigating the state reporting and financial assistance processes:
- OSA Financial Compliance Memo
- Office of the State Auditor (OSA) Homepage
- Financial Assistance Information from OSA
- OSA Tiered System Reporting Information
- OSA Connect – To Complete Tier Reports
What’s Next? Upcoming Workshops
In early 2025, NMAA will offer additional workshops with a focus on the following topics:
- How to Spend Your Capital Outlay Funds (for acequias that have received Capital Outlay)
- How to Apply for the Acequia and Community Ditch Infrastructure Fund (ACDIF) (with deadlines in March and May)
Stay tuned for dates and times. These workshops will continue to provide acequias with the tools and knowledge they need to successfully apply for funding and manage their infrastructure projects.
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