Council approves audit services contracts as city moves to catch up on filings

The Ruidoso Downs City Council approved a fixed‑fee contract with Patillo, Brown & Hill LLP to complete the city's overdue audits and help bring financial reporting up to state standards.

The contract before the council — described at the meeting as covering the fiscal year 2024 engagement at $32,288 including gross receipts tax — was introduced by staff and explained by the vendor representative, Chris Garner. "That is our projection based off of what we've reviewed your prior audits... It is a fixed fee price," Garner said, adding that the firm must follow government auditing standards and state rules that expand testing requirements.

Council members asked which fiscal years were affected and whether earlier audits remained under review by the state. Staff replied that earlier fiscal years (noted in the meeting as 2022–23) are under review by the state auditor and that the 2023–24 engagement before the council would proceed once the contract was approved.

Supporters of approving the contract said the fixed fee and the vendor's plan could accelerate the city's catch‑up work. After a motion, roll call votes were taken with recorded "aye" responses and the motion passed.

The council recorded that part of the difference between fiscal years will be handled via a reserve transfer to address a remaining balance related to prior audit work. Staff noted the contract is intended to allow the city to start work quickly and, if issues are found, to respond to state audit commentary as required.

The council also discussed timing and consequences: Garner warned that compressed schedules could lead to repeated findings if the city has no time to respond to identified issues, but he said the firm would begin work promptly once contracted.

The immediate next step is for staff to finalize the contract paperwork and begin vendor onboarding so sampling and audit work can start.