The City of Grants has received two awards from the State of New Mexico, one for the Best Overall Audit in the state and the other for Most Improved Audit.
These award marks a pivotal moment for the city, reflecting a journey of overcoming past financial challenges while setting a strong foundation for the future.
During a recent conversation with Mayor Erik Garcia and City Manager Andrew Valencia, both leaders expressed their satisfaction and pride in the city's progress. The leaders noted that the city's improved audit is a reflection of Grants' commitment to maintaining transparency and efficiency in its financial dealings.
“2017 marked the beginning of our major audit findings, primarily related to fixed assets,” Valencia said. “The audit process exposed areas needing improvement, particularly in asset management and procurement. Over the years, we have addressed these issues by stabilizing our finance department and implementing stringent checks and balances.”
The officials explained that having a good audit is not just about meeting regulatory requirements; it also impacts the city's ability to secure funding for future projects.
Potential incoming businesses and state agencies look at audit reports to gauge a city's financial health. A clean audit report can lead to more investment and funding opportunities, which in turn can spur development and improvements within the city.
Valencia illustrated this point with an example: “If you have audit hits and your audits are not doing well, they're going to say, 'I don't think you can manage that kind of money.' So, they're not going to give you that money.” He stressed that clean audits build trust with state and federal agencies, making it easier to secure grants and funding for large projects.
In the 2023 audit, the city has successfully moved from having multiple significant audit findings to just one finding.
This reduction, Valencia explained, has been achieved through meticulous efforts to ensure that assets are properly accounted for and that procurement processes are tightened beyond state requirements.
“Since the particularly last year and a half, with stabilizing the finance department, getting people in that are familiar with procurement and being more particular on how stuff is purchased and how it is being turned into the fixed asset part of it, it's been great,” Valencia said. He emphasized that the city's focus each year is to remove any audit hits, making necessary adjustments to procurement practices and
Courtesy Photo financial reporting.
The leadership of Finance Director Victor Villalobos, along with the expertise of Gloria Pargas, who was brought back to assist in cleaning up financial discrepancies, has been pivotal. “Gloria has been instrumental in understanding and rectifying our budget issues,” Valencia said. “Her familiarity with Grants has made a significant impact.”
The city's focus on building a competent team has been a cornerstone of its success. Garcia said, “Building a team that understands our financial system from top to bottom was essential. Without it, gaps were inevitable.”
Real-World Implications
The improved audit report is not just a feather in the city's cap; it carries realworld implications.
Valencia said a clean audit enhances the city's reputation, making it more attractive to businesses and increasing the likelihood of receiving state and federal funding for projects.
“Having a good audit is crucial for the city's growth,” Valencia said. “It signals to businesses and the state that we are capable of managing funds responsibly, which is vital for securing grants and funding for future projects.”
The city's ability to manage its finances positively effectively also impacts its capacity to undertake large-scale projects, such as the proposed biopark. Mayor Garcia recently had the ability to discuss his dream project with Governor Michelle Lujan Grisham, the two spoke about securing support for this significant community development initiative.
Just last year, the Village of Milan received the same award, earlier this year, they announced a large economic development undertaking – a Maverik gas station will soon break ground and move into the village.
“We're all moving forward together,” Garcia said. “The success of one community reflects positively on others in the region, and we're proud to lead by example.” Looking Ahead
As the City of Grants continues on this trajectory, the focus remains on further improving financial stability and transparency. The administration aims for future audits to have zero findings, ensuring the city's fiscal health and continued growth.
“We're on the right path, and the community can feel it,” Garcia said. “Projects are happening, and improvements are visible. Our commitment to transparency and responsible financial management is stronger than ever.'
Concluding, and with Manager Valencia nodding his head in approval with a smile on his face, Mayor Garcia assured citizens, “The public should know that with their money, we are doing the best and probably 110 percent better than we were four or five years ago.”