Veracruz, Chiapas, and Hidalgo Lead in Auditing Irregularities: A Detailed Look at the Federalized Spending Audits in Mexico

Introduction

The Auditoría Superior de la Federación (ASF) has released the second installment of its fiscalization results for the 2024 Cuenta Pública. The report highlights significant irregularities in the management of federalized resources across Mexican states. Veracruz, Chiapas, and Hidalgo are identified as the top three entities with the highest number of observations due to irregularities.

Key Findings

• Highest Observations: Veracruz leads with 1,115.3 million pesos, followed by Chiapas (678.5 million pesos) and Hidalgo (603.8 million pesos).
• Total Amount Under Scrutiny: These three states account for 52% of the total 4,607.6 million pesos that need justification across all federal entities.
• Common Irregularities: The most frequent issues include lack of proper documentation, unauthorized payments, and unjustified remunerations.
• Federalized Spending in 2024: The total federalized spending reached 2.55 trillion pesos, representing 27.7% of the federal government’s total expenditure.
• Audit Coverage: The ASF covered 94.4% of the total funds and programs under audit, with 81.6% specifically allocated to federalized spending.

Observations Breakdown

The 4,607.6 million pesos in observations are primarily concentrated in:

• Health Audits (34.5%): State governments must justify 1,591.2 million pesos related to health programs.
• Fondo de Aportaciones para el Fortalecimiento de las Entidades Federativas (30.2%): Funds transferred to middle-level education institutions.
• Resources Transferred to Higher Education Institutions (17.9%): These include observations related to the allocation of funds.
• Fondo de Infraestructura Social para las Entidades (10.5%): Funds dedicated to social infrastructure in the states.

Together, these categories account for 93.1% of the total amount under scrutiny.

ASF Actions

The ASF took several corrective measures, including:

• 585 Corrective Actions: This includes 236 observation reports, 213 administrative responsibility promotion sanctions, and 79 recommendations.
• 100% Fiscalization Coverage: For the first time, 19 entities achieved complete fiscalization coverage, while more than 40% of municipalities and city councils were also covered.

Health Sector Analysis

First-Ever Comprehensive Health Resource Audit: The ASF analyzed health resources across all 32 states, identifying 1,591.2 million pesos in irregularities that state governments must justify.

The audits covered four key programs: Fondo de Aportaciones para los Servicios de Salud, Programa de Atención a la Salud y Medicamentos Gratuitos para la Población sin Seguridad Social Laboral, and Programa de Atención a la Salud de Personas sin Seguridad Social. These programs account for 153,609.4 million pesos in total.

Lack of Documentation: The most severe irregularity, accounting for 1,030.1 million pesos, was the absence of proper documentation in Coahuila, Hidalgo, Oaxaca, and Veracruz (totaling 64.7% of the observations).

No Observations

Contrasting Cases: Ciudad de México, Querétaro, Quintana Roo, Sinaloa, and Zacatecas have no observations. These states now have the opportunity to clarify and justify their resource management before the ASF within the timeframes set by the Federal Fiscalization and Accountability Law.