Evolution of the Auditing of Federal Funds in Mexico: A Longitudinal Analysis of Audit Findings (2016-2023)

Abstract

This paper analyzes the evolution of findings in audits conducted by the Regional Operations and Social Oversight Unit (UORCS), historically attached to the Ministry of Public Administration (now the Ministry of Anti-Corruption and Good Governance, SABG). The study covers the period 2016–2023 and identifies trends and factors associated with the quality of management of federal funds transferred to states and municipalities. Through a longitudinal analysis of 1,171 audits, descriptive statistics, Pearson and Spearman correlation, and ANOVA were used. The results show a drastic decreasing trend in the average number of findings, falling from 11.04 in 2016 to 0.85 in 2023 (-92.3%). A significant positive correlation (r = 0.55, p < 0.001) was found between the number of audited entities and the findings generated. Significant differences were also detected between fiscal years and types of funds, with infrastructure and upper secondary education programs showing the highest incidence. The findings suggest a possible strengthening of internal controls, although the sharp drop in findings raises questions about changes in auditing criteria that require further discussion.