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Los Ranchos accepts clean FY2025 audit, auditor flags strong cash position
Summary
Trustees unanimously accepted an unmodified FY2025 audit that found the village in a strong cash position; auditor and trustees discussed how reliance on gross receipts tax and lack of utilities could affect future capital choices.
The Village of Los Ranchos de Albuquerque trustees voted April 21 to accept an unmodified audit for the fiscal year ended June 30, 2025, after a presentation by Southwest Accounting Solutions. Auditor Jeff Mamrow told trustees the village received the “unmodified” opinion auditors want and that the general fund showed roughly $6.05 million in revenue against $3.7 million in expenses for the year, producing an approximate $2.5 million excess of revenue over expenditures.
During the presentation Mamrow said the village’s cash balance exceeds its liabilities and noted that the absence of enterprise utilities reduces typical municipal cash‑flow pressure. He cautioned that some nonmajor funds showed small negative balances — about $8,000 for certain special revenue funds and roughly $70,000 in a capital projects fund — and that relying on one primary revenue source could constrain the village if future large projects or recurring expenditures outpace sustainable revenues. He also explained certain pension amounts appear on statements because of GASB‑68 reporting rules.
Trustees probed timing‑of‑cash concerns and whether the village could support significant new infrastructure without undermining future budgets. Mamrow said that cash‑flow problems for municipalities most often emerge when utilities or large, recurring capital obligations are introduced; in Los Ranchos’ case, he recommended caution about borrowing for major projects without detailed project‑level revenue and expense forecasting. Mayor Lawrence Rael and trustees discussed that GRT volatility — including recent state legislative proposals that would have removed GRT from certain items — makes it important to limit reliance on one funding stream and to preserve reserves.
The board then moved and approved Resolution 2026‑04‑01 accepting the audit by roll call vote. The auditor’s report will be posted on the village website and the audit documents are available in the meeting packet. The trustees did not take action on any additional financial recommendations at the meeting but requested continued reporting on fund balances and project‑level budgets.
The next procedural step for the village is to incorporate the audit acceptance into its public records and to use the audit findings as a reference point for the May budget process and upcoming ICIP submission.
