The North Dakota State Auditor’s Office recently finished its audit on the City of Parshall.
In February, the office received a citizen petition request to look at the city’s books. Under state law, the auditor’s office can be called to audit or review a political subdivision if enough qualified voters of that entity request the audit. In Parshall’s case, the petition required 50 valid signatures to obtain the audit or review.
The Auditor’s Office found one main issue: concerns regarding the city’s failure to properly file and void checks at an appropriate time.
The office noted such a failure makes accurately reporting the city’s finances extremely difficult, which could potentially cause the finances to be misrepresented.
The auditor requested Parshall begin to void their checks in a more timely manner in the general ledger, in order to ensure reporting of cash and expenses is done as quickly and as accurately as possible.
Normally, state audits occur once a year, but special audits can take place when requested by citizens through petitions requesting the State Auditor’s office to perform an in-depth audit of a city or other government entity outside of the designated times. In this case, a successful citizen petition effort was what led to Parshall’s audit.
This isn’t the first time the State Auditor’s office has been called to perform audits as a result of citizen petitions. Over the past year, the auditing office has performed requested audits on the cities of Lincoln and Williston, as well as the Gwinner Rural Fire District.