An OSFAE audit can arrive without warning. Municipalities that prepare in advance drastically reduce the risk of findings and irregularity reports.
Types of audits OSFAE conducts
The Superior Audit Body of SLP (OSFAE) primarily conducts three types of review:
- Public Account audit: annual review of the financial statements filed
- Special audit: triggered by complaint, media scrutiny, or risk indicators
- Follow-up audit: verifies that prior findings have been resolved
The process: stages you need to know
A standard audit follows this flow:
- Official notification: the municipality receives an official notice with the scope of the audit and the period under review
- Field work: auditors visit the treasury to review files. Typical duration: 5 to 20 business days
- Preliminary findings report: list of findings the municipality must address within 20 business days
- Resolution: OSFAE evaluates the clarifications and issues the final report with resolved findings or financial charges
The 5 documents you must always have ready
Regardless of whether an audit is imminent, these documents must be organized and current:
- Bank reconciliations for every month of the fiscal year
- Project files with invoices, contracts, and completion records
- Payroll with attendance records and IMSS movements
- List of service contracts with their budget authorizations
- Municipal council minutes book for the fiscal year
How to respond to a findings report
The 20-business-day deadline is strict and rarely extended. The response must be in writing, with complete documentary support and legal arguments where applicable. Stating that the expenditure was correct is not enough — it must be proven with documents. Specialized legal advice in drafting the response can be the difference between resolving or paying.