Today, State Auditor Hector Balderas announced that his office has designated the Bernalillo County Treasurer’s Office for a special audit to address troubling risks to County funds in connection with the Treasurer’s investment transactions. The special audit designation comes after Balderas’ auditors identified significant risks related to the Treasurer’s investment practices and the “tone at the top” control environment created by the Treasurer’s Office’s management. Balderas’ auditors are currently conducting audit work for the County’s fiscal year 2013 financial audit, but the special audit will require auditors to look more extensively at the Treasurer’s Office’s investment transactions over a number of fiscal years.
“The results of our current audit work demonstrate the need for additional review,” Balderas remarked. “A special audit is necessary to protect the County’s funds and restore financial accountability to the County Treasurer’s Office,” Balderas said.
The special audit will be performed by an independent audit firm approved by the State Auditor. Balderas further stated that the special audit will make recommendations to improve the County Treasurer’s internal controls and management related to the County’s investment transactions. He also stated that he will refer all audit findings to government oversight agencies, including the Securities Division of the Regulation and Licensing Department.