A budget is plan for how a land grant-merced will spend and receive income over the period of a year. Budgets require land grants-mercedes to categorize their income by funding source and expenses by type. State law (§ 6-6-2 NMSA, 1978) requires the submittal of an annual budget to the Department of Finance and Administration Local Government Division (DFA-LGD) by all political subdivisions of the State, including land grants-mercedes, that have annual revenues of $10,000.00 or greater. Budgets must be completed on the required forms and adopted by resolution (forms and a sample resolution can be accessed by using tabs on the left). Also land grant-mercedes submitting budgets are required to submit quarterly budget reports throughout the year.
Although land grants-mercedes with annual revenues of less than $10,000 are not required to submit a budget to DFA-LGD, it is a good idea to keep budget that follows DFA-LGD requirements as practice in the event revenues are ever above the limit or a land grant-merced receives money from the State. If a land grant-merced is awarded state money such as legislative capital outlay or a grant from a state agency they will most likely be required to submit a budget to DFA-LGD prior to receiving the funds. Preparation and utilization of an annual budget is a sound financial management practice.
Land grants-mercedes with annual revenues of less than $10,000 must pass a resolution and fill out a form certifying their annual revenues are less than $10,000. The land grant-merced must then submit a copy of the resolution and certification form to both DFA-LGD Budget and Finance Bureau and to the Office of the State Auditor. The required revenue certification form and a sample revenue certification resolution can be accessed by uses the tabs on the left.
For more information about budgeting including a guide for completing a budget, sample forms and helpful links please use the tabs on the left of this page.
Also you may contact the Department of Finance and Administration Local Government Division Budget and Finance Bureau to answer questions or receive assistance in preparing an operating budget for a land grant-merced.
