NM State Auditor Calls Sunland Park Audit Difficult

New Mexico State Auditor Hector Balderas told ABC-7 the special audit on Sunland Park is the most difficult audit he’s ever done.

Balderas attributed that to the lack of organization and, in some cases, a complete lack of financial records. He said the city’s finances have been in a poor state for years now.

With the recent controversy surrounding several criminal investigations and all the political instability in the city, Balderas said he’s hopeful the city can make a change for the better.

Balderas said the findings revealed by the investigation are troubling, especially those concerning the city’s utilities.

“We are investigating at this point the use or abuse of their water authority. We’re very concerned about that,” Balderas told ABC-7.

He said his office is looking into the possibility of certain residents receiving free or reduced rates on water.

“We’re very concerned that the citizens of Sunland receive fair value, and that they all be treated fairly and equally,” Balderas said.

He could not give too many specific details because the audit is still ongoing. Balderas also mentioned troubling findings in the city’s payroll, capital assets and reimbursement payments.

The results of this audit could set a precedent, not just in the state, but also across the country.

“The historical significance – we are taking this situation very seriously and making sure we’re very diligent because of the ramifications that could come about as a result of this report,” Balderas said.

Balderas said the first phase of the audit is almost complete. Then, he will make a formal recommendation to the governor that could result in the first ever state takeover of a community’s finances.

Balderas said he is also going to request a second audit to dig even deeper into every department of the city.