Corrales council accepts FY2025 audit but auditor cites repeated weakness in year-end reporting

The Corrales Village Council voted to accept the village’s FY2025 audit after auditor Josh Trujillo of SJT Group presented the report and answered council questions about repeated findings.

"We did issue an unmodified or a clean opinion on the financial statements," Trujillo told the council, while also noting a material weakness related to the village’s financial close and reporting process that has recurred since 2021. He explained the adjustments arise largely from differences between the village’s budgetary (cash) accounting and GAAP accrual requirements — for example, gross receipts tax (GRT) paid in arrears and construction costs that must be accrued when incurred rather than when paid.

The auditor also reported a compliance finding: the village performed a physical inspection of only approximately 31% of capital assets in FY2025 when state audit rules require 100% of such assets to be physically observed and reconciled annually. Trujillo said that department heads have been assigned inventory responsibilities for the current year and that the village has implemented steps intended to correct that process going forward.

Councilors pressed the auditor on how the village can avoid additional repeat findings. Trujillo recommended implementing the same year-end reconciliation procedures the auditors use — for example, mapping checks received after year-end back to the period earned and maintaining a closing checklist — and engaging accounting support earlier in the year to make accrual adjustments in a timely manner.

After questions and discussion the council approved Resolution 26-14 to accept the audit by roll call. Councilors said they appreciated the auditor’s recommendations and expect staff to return with procedural changes to reduce future audit adjustments.