The Santa Fe Governing Body convened on September 11, 2025, to discuss several critical issues, primarily focusing on the approval of the revised internal audit plan for fiscal year 2026. The meeting highlighted concerns regarding the management of grants and cash balances, which have been flagged in previous audits.

Deputy City Manager Andrea Phillips presented the revised internal audit plan, which proposed a budget of $150,000, down from an initially anticipated $190,000. The plan aims to address areas such as human resources recruitment, risk management, and procurement practices. Phillips emphasized the need to streamline procurement processes to enhance efficiency while maintaining internal controls.

However, Councilor Michael Garcia expressed significant reservations about the decision to defer audits on grants management and cash management, both of which have been identified as areas of concern in past audits. Garcia pointed out that multiple findings related to these issues remain unresolved, raising doubts about the city's confidence in its current management practices. He argued that without thorough internal audits, the city risks repeating past mistakes.

City Manager and other officials defended the decision, asserting that previous evaluations have already addressed many of the concerns raised in audits. They argued that investing in new audits for these areas would be unnecessary and that resources should instead focus on improving procurement and recruitment processes.

The discussion also touched on the ongoing fiscal year 2025 audit, with Director Oster reporting that the city is on track to meet the December 15 deadline for submission. She noted that the audit process is progressing well, despite delays at the federal level affecting compliance requirements.

The meeting concluded with a call for further consideration of the revised audit plan, with officials open to adjustments based on the governing body's feedback. The outcome of this meeting underscores the ongoing challenges Santa Fe faces in managing its financial practices and ensuring compliance with audit findings.