New Mexico earns clean audit on $33.5 billion in state funds for FY2025
SANTA FE — New Mexico passed an independent audit of its fiscal year 2025 finances with no significant findings, confirming that the state accurately and transparently accounted for $33.53 billion in public funds—and delivered the results among the earliest in state history.
The Department of Finance and Administration’s Financial Control Division leads production of the state’s Annual Comprehensive Financial Report (ACFR), which covers 130 agencies and component units. The FY25 audit reflects a $1.32 billion or 4% increase over the previous fiscal year.
“New Mexicans deserve to know their tax dollars are managed with discipline and accountability, and we’re delivering on that, while building a track record that positions New Mexico as a leader in governmental financial reporting,” said DFA Secretary Wayne Propst. “This audit is proof that years of focused work are paying off.”
The state also resolved all prior-year material weaknesses and major audit findings, marking a significant milestone in strengthening internal controls and financial oversight.
“Earning a clean audit with over 130 agencies is no small feat, and it reflects the discipline and coordination of teams across state government who take financial accountability seriously,” said State Controller Mark Melhoff.
Earlier this year, Moody’s Ratings upgraded the state’s issuer bond rating to Aa1 from Aa2, placing New Mexico among the top-tier rated states in the country. Moody’s cited New Mexico’s disciplined fiscal management and well-established governance practices, noting that the state has reduced its reliance on volatile oil and gas revenues while growing permanent fund balances that now generate substantial and reliable investment income.
The clean audit and bond rating upgrade together signal that New Mexico is on a strong trajectory for financial transparency and accountability.