New Mexico CPA CPE Requirements

How to reach the regulator directly.

New Mexico Public Accountancy Board
5500 San Antonio Drive NE, Suite A
Albuquerque, NM 87109

Tel: (505) 222-9850
Fax: (505) 222-9855

Email: accountancy.board@state.nm.us

The regulator's own published rules and related resources.

New Mexico Public Accountancy Board

The total continuing education hours required.

120 credit hours.

The detailed rules behind that total -- category minimums, ethics, and other conditions.

Each person holding an active CPA certificate/license issued by the board shall show completion of no less than 120 hours of continuing professional education complying with these rules during the preceding 36-month period ending on the last day of the certificate/license holder's birth month, and [Effective October 1, 2015] with a minimum of 20 hours completed in each reporting year.

Ethics:

Effective February 27, 2009: Ethics: For any CPE reporting period which begins on or after January 1, 2010, continuing professional education must include a minimum of 4 hours of ethics education during the 36-month period after January 1, 2010.

Updated October 1, 2020: Acceptable ethics topics may include, but are not limited to, instruction focusing on the AICPA code of professional conduct, the New Mexico occupational and professional licensing code of professional conduct applicable to certified public accountants, Treasury Circular 230, malpractice avoidance, organization ethics, moral reasoning, and the duties of the CPA to the public, clients, and colleagues; ethics hours may be earned as part of any professional development program otherwise qualifying under this rule, provided the ethics content and the time devoted to such content are separately identifiable on the program agenda. (Courses shoiuld have Ethics in the title or a course outline and documentation must be submitted to substantiate it cover the requisite ethics material.)

• NOTE: May 20, 2011: CeriFi has confirmed with the NM Board that they will accept another state's ethics course because the rules allow any course in ethics to be counted, regardless of the state for which it is designed.

Additional Requirements:

Updated October 1, 2020: Technical Subjects: For each 3-year reporting period, at least 96 of the hours reported shall be courses, programs or seminars whose content is in technical fields of study. Technical fields of study are technical subjects that contribute to the maintenance and improvement of the competence of a CPA in the profession of accountancy and that directly realted to the CPA's field of business. (Technical and non-technical fields of study can be found below in the "General Characteristics of Accredited Education" section.) Prior to October 1, 2020: Techical subjects included: audit; attestation; financial reporting; tax, management consulting; financial advisory or consulting; and other areas acceptable to the board as directly related to the professional competence of the individual.

Non-Firm/Employer CPE: Effective for CPE reporting periods ending on or after July 31, 2007: For each 3-year reporting period, at least 24 of the hours reported shall not include CPE sponsored by the licensee’s firm, agency, company, or organization but may include all methods of CPE delivery, provided that each hour meets the Board's standards.

How the reporting cycle is structured.

Triennial.

The period is rolling, i.e., licensees must always have completed 120 hours over the prior three years.

When a reporting cycle begins.

This rolling cycle begins on the first day of the month after your birth month and ends on the last day of your birth month three years later.

How completed credits are reported to the regulator.

Licensees shall report CPE completion on board prescribed forms including a signed statement indicating they have met the requirements for participation in the CPE program set forth in board rules.

Continuing professional education records requirements:

When applications to the board require evidence of CPE, the applicants shall maintain such records necessary to demonstrate evidence of compliance with requirements of this rule.

Responsibility for documenting program acceptability and validity of credits rests with the licensee and CPE sponsor. Such documentation should be retained for a period of five years after program completion and at minimum shall consist of the following:

1. Copy of the outline prepared by the course sponsor along with the information required for a program to qualify as acceptable CPE as specified in this rule; or
2. For courses taken for scholastic credit in accredited universities and colleges, a transcript reflecting completion of the course. For noncredit courses taken, a statement of the hours of attendance, signed by the instructor, is required.
3. Institutional documentation of completion is required for formal, individual self-study/correspondence programs.

Licensees reporting of CPE must document their participation and retain evidence for a period of [5] five years after course completion. Documentation and/or evidence must include, at minimum:

1. sponsor name and identification number;
2. title and description of content;
3. date(s) of completion;
4. location;
5. number of credit hours; and
6. Effective October 1, 2020: name of the registered licensee who completed the course.

The board may, at its discretion, accept a sworn affidavit as evidence of certificate/license holder compliance with CPE requirements in support of renewal applications in lieu of documented evidence of such. Reciprocity and reinstatement applications shall require documented evidence of compliance with CPE provisions.

Reinstatement and reciprocity applicants shall file with their applications a signed report form and statement of the CPE credit claimed. For each course claimed, the report shall show the sponsoring organization, location of program, title of program or description of content, the dates attended, and the hours claimed.

The renewal or reporting deadline.

Your CPA license must be renewed every year.

Deadline for receipt of license renewal applications and supporting CPE reports or affidavits is no later than the last day of the certificate/license holder's birth month. Renewal applications and supporting CPE affidavits or reports shall be postmarked or hand delivered no later than the renewal deadline date or the next business day if the deadline date falls on a weekend or holiday.

→ Get monthly reminders before this deadline

What happens if the requirement is not met.

The board may, at its discretion, examine certificate holder/licensee or CPE sponsor documentation to evaluate program compliance with board rules. Non-compliance with established standards may result in denial of CPE credit for non-compliant programs and may be a basis for disciplinary action by the board for fraudulent documentation and representation by a CPE sponsor or certificate holder/licensee of a knowingly noncompliant CPE program.

The board may verify CPE reporting information from applicants at its discretion. Certificate holders/licensees or prospective certificate holders/licensees are required to provide supporting documentation or access to such records and documentation as necessary to substantiate validity of CPE hours claimed. Certificate holders/licensees are required to maintain documentation to support CPE hours claimed for a period of 5 years after course completion/CPE reporting. Should the board exercise its discretion to accept an affidavit in lieu of a CPE report, the board shall audit certificate/license holder CPE rules compliance of no less than 10 percent of active CPA/RPA licensees annually.

In cases where the board determines requirements have not been met, the board may grant an additional period of time in which CPE compliance deficiencies may be removed. Fraudulent reporting is a basis for disciplinary action.

Updated October 1, 2020: An individual who has submitted records of completion, or a sworn affidavit on their renewal application as evidence of compliance with CPE requirements and is found, as the result of a random audit, not to be in compliance will be subject to a fine and any other penalties deemed appropriate by the board.

The board may look to recognized state or national accounting organizations for assistance in interpreting the acceptability of the credit to be allowed for individual courses. The board will accept programs meeting the standards set forth in the NASBA CPE registry, AICPA guidelines, NASBA quality assurance service, or such other programs deemed acceptable to the board.

In the event that a renewal applicant has not completed the requisite CPE by the renewal deadline, he shall provide a written explanation for failure to complete CPE and shall also submit a written request for an extension for completion of the required CPE.

1. The approval of an extension request is not automatic. The Board has the discretion to grant or deny a request.
2. The request for extension shall include documentation of the extenuating circumstances that prevented him from completing the CPE. A written plan of action to remediate the deficiency must accompany the renewal application and extension request.
3. If a request for extension is received in the board office after the expiration date of the license, the license shall not be renewed, and the file shall be referred to the board for possible disciplinary action.
4. An extension up to 60 days beyond the expiration date of the license may be granted by board staff; extenuating circumstances beyond the control of the licensee necessitating an extension beyond 60 days requires the approval of the board. Failure to complete the required CPE within the extension period shall result in disciplinary action against the licensee.
5. The board may waive this fine for good cause.
6. If all CPE requirements are not met within 90 days beyond the expiration date of the license, the license shall be subject to cancellation.

Renewal applications and CPE reports received after prescribed deadlines shall include prescribed delinquency fees.

Applications will not be considered complete without satisfactory evidence to the board that the applicant has complied with the CPE requirements of Sections 9E and 12A of the act and of these rules.

Reinstatement applicants whose certificates/licenses have lapsed shall provide documented evidence of completion of 40 hours of CPE for each year the certificate/license was expired, not to exceed 200 hours. If the license was expired for longer than 36 months, at least 120 of the hours must have been earned within the preceding 36 months. For any post-2009 year for which the certificate/license was expired, the continuing professional education must include a minimum of 4 hours of ethics education during the 36 months preceding reinstatement.

1. The length of expiration shall be calculated from the date the license expired to the date the application for reinstatement was received by the board office.
2. If the license was expired for less than one year, documented evidence of 40 hours of CPE earned within the 12 months immediately preceding the date of application for reinstatement must be provided.
3. If the license was expired for longer than one year, for the purpose of determining the number of CPE hours required, the length of expiration shall be rounded down to the last full year if the partial year was less than six months and rounded up to the next full year if the partial year was more than six months.

Reduced or prorated requirements for a first renewal.

Licensees are exempt from the CPE requirement from the date their license was issued to the immediately following last day of their month of birth.

Effective October 1, 2015: An initial license is the first license issued to an individual. CPE Reporting will begin on the first day following the licensee’s initial expiration date (birth month) for license renewal. No CPE will be required for the period between issue date and first expiration date (birth month).

The first rolling cycle begins on the first day of the month after your birth month and ends on the last day of your birth month three years later.

Rules for professionals licensed elsewhere.

Reciprocity Requirements:

Interstate reciprocity: The board may issue a certificate/license to the holder of a certificate issued by a state other than New Mexico (as defined under Sections 3O, 11B and D, and 26A of the act) provided that the license from the other state is valid.

and in good standing and that the applicant:

1. provides proof from a board-approved national qualifications service that their CPA qualifications are substantially equivalent to the CPA requirements of the act; or
2. successfully completed the CPA examination in accordance with the rules of the other state at the time it granted the applicant’s initial certificate; and
3. meets the experience requirements under the act and these rules for issuance of the initial certificate; and
4. has met the CPE requirement of the state in which he is currently licensed pursuant to the act and board rules.

All applicants for licensure by reciprocity shall have passed either the American institute of certified public accountants ethics examination with a score of 90 percent or higher or an ethics examination of another state board of accountancy with a score of 90 percent or higher.

An applicant who holds a certificate from another state based upon passage of the examination but who does not hold a license to practice shall not be eligible for licensure by reciprocity.

The board may rely on the national association of state boards of accountancy (NASBA), the American institute of certified public accountants (AICPA), or other professional bodies deemed acceptable to the board for evaluation of other state's CPA qualification requirements in making substantial equivalency determinations.

International reciprocity: The board may designate a professional accounting credential issued in a foreign country as substantially equivalent to a New Mexico CPA certificate and may issue a certificate/license to the holder of a professional accounting credential issued in a foreign country.

The board may rely on NASBA, AICPA, or other professional bodies deemed acceptable to the board for evaluation of foreign credentials in making equivalency determinations.

An applicant for renewal of a CPA certificate/license originally issued in reliance on a foreign country accounting credential shall:

1. meet all board prescribed certificate/license renewal requirements; and
2. present documentation from the foreign country accounting credential issuing body that the applicant’s foreign country credential has not been suspended or revoked and is not the subject of a current investigation; and
3. report any investigations undertaken or sanctions imposed by a foreign country credential body against the CPA’s foreign country credential.

Who may be excused from all or part of this requirement.

Hardship Exceptions: The board may make exceptions to CPE requirements for reason of individual hardship including health, military service, foreign country residence, or other good cause. Requests for such exceptions shall be subject to board approval and presented in writing to the board. Requests shall include such supporting information and documentation as the board deems necessary to substantiate and evaluate the basis of the exception request.

Exemption from CPE requirements through change of certificate/license status between inactive/retired and active status:

Licensees granded an exception from the board must place the word inactive adjacent to their CPA title on any business card, letterhead, or any other document or device, wiht the exception of their CPA certificate, on which their CPA titel appears. Licensees granted the exception who are at least fifty-five (55) years of age may replace inactive with retired. Any of these terms must not be applied in such a manner that could likely confuse the public as to the current state of the licensee.

Licensees granted the use of inactive or retired may volunteer their time to nonprofit or governmental organizations, to the extent provided in the statute. Licensees may not be compensated for such volunteer work other than through reimbursement of actual expenses.

Licensees have the reponsiblity to maintain professional compentence relatiev to the volunteer services they provide even though exempt from specific CPE requirements (16.60.3.15 NMAC).

Persons requesting to change from "inactive" or "retired" to "active" certificate/license status shall:

1. complete board-prescribed change-of-status forms and remit related fees; and
2. provide documented evidence of 40 hours of CPE for each year the certificate/license was inactive, not to exceed 200 hours; if the license was inactive for longer than 36 months, at least 120 of the hours must have been earned within the preceding 36 months. For any post-2009 year for which the certificate/license was inactive, the continuing professional education must include a minimum of 4 hours of ethics education during the 36 months preceding application for change of status to “active”.
3. If an individual has not held an active license within five years preceding the date of the application for “Change of Status,” the approval of the Board will be required.

Rule changes the regulator has finalized, with effective dates.

Refer to the specific sections above for more details on any of the items noted below.

Effective October 1, 2020: The NM Board updated its CPE rules. Changes included:

• Adoption of nano-learning (per NASBA/AICPA CPE Standards) with a limitation of 8 CPE credits in nano-learning per 3-year reporting period;
• Adoption of blended learning (per NASBA/AICPA CPE Standards);
• Acceptance of NASBA credit calculations and increments;
• Redefinition of acceptable 'technical' and 'non-technical' subject areas (to align with the 20 recognized NASBA fields of study);
• Teaching/Instruction calculation has been revised to allow 1 hour of preparation for each 1 hour of presentation;
• Other wording and language updates (refer to paragraphs preceded by "Update October 1, 2020:" above).

Breakdown of Specific Requirements:

Updated October 1, 2015: A minimum of 20 hours completed in each reporting year.

Reporting Method:

Effective October 1, 2015: The sponsor of a continuing education program is required to maintain an outline of the program and attendance/registration records for a period of 5 years after program completion.

1. Licensees reporting of CPE must document their participation and retain evidence for a period of 5 years after course completion. Documentation and/or evidence must include, at minimum:
   1. sponsor name and identification number;
   2. title and description of content;
   3. date(s) of completion;
   4. location; and
   5. number of credit hours.

Requirements for New Licensees:

Effective October 1, 2015: An initial license is the first license issued to an individual. CPE Reporting will begin on the first day following the licensee’s initial expiration date (birth month) for license renewal. No CPE will be required for the period between issue date and first expiration date (birth month).

Other Special Rules:

Effective October 1, 2015: The board will allow up to a total of 24 hours of CPE credits for firm peer review program participation. Hours may be earned and allocated on the date the Peer Reviewer issues their report.

Updated October 1, 2015: A minimum of 20 hours completed in each reporting year.

Effective February 27, 2009: For any CPE reporting period which begins on or after January 1, 2010, continuing professional education must include a minimum of 4 hours of ethics education during the 36-month period after January 1, 2010.

Effective February 27, 2009: For reporting periods on or after January 1, 2010, acceptable ethics topics may include, but are not limited to, instruction focusing on the AICPA code of professional conduct, the New Mexico occupational and professional licensing code of professional conduct applicable to certified public accountants, Treasury Circular 230, malpractice avoidance, organization ethics, moral reasoning, and the duties of the CPA to the public, clients, and colleagues; ethics hours may be earned as part of any professional development program otherwise qualifying under this rule, provided the ethics content and the time devoted to such content are separately identifiable on the program agenda.

Effective February 27, 2009: For any post-2009 year for which the certificate/license was expired, the continuing professional education must include a minimum of 4 hours of ethics education during the 36 months preceding reinstatement.

Effective 5/12/2006 for reinstatements on or after January 1, 2007:

• Reinstatement applicants whose certificates/licenses have lapsed shall provide documented evidence of completion of 40 hours of CPE for each year the certificate/license was expired, not to exceed 200 hours. If the license was expired for longer than 36 months, at least 120 of the hours must have been earned within the preceding 36 months.
  • The length of expiration shall be calculated from the date the license expired to the date the application for reinstatement was received by the board office.
  • If the license was expired for less than one year, documented evidence of 40 hours of CPE earned within the 12 months immediately preceding the date of application for reinstatement must be provided.
  • If the license was expired for longer than one year, for the purpose of determining the number of CPE hours required, the length of expiration shall be rounded down to the last full year if the partial year was less than six months and rounded up to the next full year if the partial year was more than six months.

Effective April 29, 2005:

• One-half credit increments are permitted after the first credit has been earned in a given learning activity.
• The rules have changed to reflect that compliance periods will now end on the last day of the licensee's birth month rather than the last day of the month preceding the licensee's birthmonth.

Effective January 15, 2004:

• Language added allows an individual from another state applying for licensure by reciprocity in New Mexico to meet the CPE requirements of his/her home state rather than those of New Mexico for the purpose of initial licensure.
• New Language specifies that individuals applying for license renewal and those applying for reinstatement of a cancelled license must have completed 120 hours of CPE during the preceding 36 months (rather than three calendar years).
• Exemption for non-resident licensees repealed.