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Lovington finance staff report FY27 submission, audit delays and staffing strain
Summary
City finance staff told the commission the FY27 budget was submitted to the state before the June 1 deadline but described a backlog of accounting problems, a delayed FY25 audit and payroll staffing shortages that complicate closing the books and completing the audit.
The Lovington City Commission on June 8 heard a detailed finance briefing that confirmed the fiscal year 2027 budget was filed with the New Mexico Department of Finance and Administration before the June 1 deadline and outlined internal accounting challenges the city is addressing.
"The fiscal year 27 budget was submitted to the New Mexico Department of Finance and Administration before the June 1st deadline," the finance officer reported. He described a conservative revenue approach and said some balances will only be finalized after June 30. He added that while the city holds about $29 million across accounts, much of that is restricted for specific uses and not freely available.
The larger concern raised to the commission was the delayed audit: the FY25 audit has not been submitted to the state auditor's office. The finance officer said auditors sent a list of outstanding items but that staff time constraints, payroll clerk turnover and extensive ledger cleanups have slowed progress. He said the city is weighing options including training existing staff versus contracting a CPA firm but cautioned that contracting could be costly and require constant oversight.
Why it matters: Commissioners voiced concern about the audit delay and asked for a work plan. The finance presentation said errors in water billing, payroll processing and account coding required month‑by‑month reconstructions of charges and allocations. "Garbage in is garbage out," the finance officer said, describing the care being taken to avoid issuing an unreliable audit.
Next steps: Staff suggested patience while current employees catch up and proposed a workshop or special session to explore solutions; commissioners also discussed contracting with external accountants but expressed concern about budget impacts. The commission did not take further voteable action on auditing options at the meeting.
