The Office of the State Auditor says the financial threshold that triggers an audit of local governments is increasing from $300,000 to $750,000.
According to Communications Officer Emily Dalzell, all local governments listed in N.D.C.C. 54-10-14, regardless of the type (such as school districts, cities and water districts) that have over $750,000 in total income will be required to submit an audit to the State Auditor’s Office.
Dalzell says the reason for this change was House Bill 1004, which updates the below Century Code:
In lieu of conducting an audit every two years, the state auditor may require annual
reports from political subdivisions subject to this section, or otherwise provided by law,
with less than seven hundred fifty thousand dollars of annual receipts, excluding any
federal funds passed through the political subdivision to another entity. If any federal
agency performs or requires an audit of a political subdivision that receives federal
funds to pass through to another entity, the political subdivision shall provide a copy to
the state auditor upon request by the state auditor. The reports must contain the
financial information required by the state auditor. The state auditor also may make
any additional examination or audit determined necessary in addition to the annual
report. When a report is not filed, the state auditor may charge the political subdivision
an amount equal to the fair value of the additional examination or audit and any other
services rendered. The state auditor may charge a political subdivision a fee not to
exceed eighty-six dollars an hour for the costs of reviewing the annual report.
This change begins Thursday. Dalzell says local governments that are directly impacted will receive more information in the coming weeks.