State officials fear $100M discrepancy could impact credit rating

[TexasTowelie]

Members of the Legislative Finance Committee are awaiting a report from Gov. Susana Martinez’s administration on whether the state has set aside enough money in case officials can’t reconcile a gap between the amount of expenditures recorded on New Mexico’s books and what’s in the state’s bank account.

The state’s inability to balance its checkbook, which the Martinez administration blames on a flawed accounting system instituted by the prior administration, has caused concern in some quarters that it could eventually have an impact on New Mexico’s credit rating, which can affect the cost to borrow money.

State Auditor Tim Keller remains “deeply troubled by a slow pace of progress in addressing material weaknesses,” says an Aug. 11 letter from Keller to Tom Clifford, secretary of the state Department of Finance and Administration.

In a statement releasing his audit of the state’s annual finance report, Keller said, “The report notes that the state is unable to account for an estimated $100 million, but that the actual loss amount could actually be substantially greater.”

Read more: http://www.santafenewmexican.com/news/local_news/state-officials-fear-m-discrepancy-could-impact-credit-rating/article_34e8090b-c634-5273-80b7-bd87e7b71921.html