Aug. 10—CliftonLarsonAllen, the Albuquerque accounting firm that earlier this year resigned from its contract with the city of Santa Fe following three consecutive tardy audits, is poised to return for limited work.
The company in April announced its intent to end its time as Santa Fe's audit firm, citing issues with the city's financial record-keeping. The move was followed by comments from State Auditor Brian Colón, who voiced an intent to have his office "intervene" in the city's audit process.
But city officials, in meetings with the state Auditor's Office and the Department of Finance and Administration, were informed the firm would be willing to return if the city completed a series of requests meant to make the its audit process smoother.
City Council Finance Committee Chairwoman Carol Romero-Wirth said the meetings have led to a proposed contract with CliftonLarsonAllen to return to work with the city. The firm would handle audit prep work, accounting and consulting for the fiscal year 2022 audit as the city works to complete its 2021 audit.
The City Council on Wednesday is expected to vote on a one-year contract with CliftonLarsonAllen worth up to about $3 million, with the potential to extend the contract an additional three years.
"They are not being hired to do the audit because they stepped away from that," Romero-Wirth said. "They are coming back to work with us to do the audit prep. That is mostly because we do not have the in-house staff for it."
Interim Assistant Finance Director Ricky Bejarano said the city is close to signing a deal with a new audit firm for the 2021, 2022 and 2023 audits. That firm likely will have to work in conjunction with CliftonLarsonAllen for the 2022 audit.
"Basically, I am in the process of trying to get it inked," Bejarano said.
CliftonLarsonAllen Managing Principal Georgie Ortiz did not respond to a request for comment.
Bejarano, who is scheduled to provide an update on the 2021 audit process at Wednesday's meeting, said he hopes to have an audit plan submitted to the state Auditor's Office "soon."
The city has delivered audits long after deadlines for the past three years — most recently handing over the fiscal year 2020 audit in October 2021, more than 10 months late.
Its audit for 2021 was due to the state Dec. 15.
After missing the 2021 deadline, the city outlined a plan that included an intention to submit a trial balance for the 2021 fiscal year to external auditors by March 31, with a target date of June 22 to submit financial statements.