§ 54-10-01 — Powers and duties of state auditor - Report (Retroactive application - See note)

North Dakota § 54-10-01

• Jurisdiction: North Dakota
• Title 54: State Government
• Ch. 54-10: State Auditor

Text

See note )
1. The state auditor shall:
a. Be vested with the duties, powers, and responsibilities involved in performing the
postaudit of all financial transactions of state government, detecting and reporting
any defaults, and determining that expenditures have been made in accordance
with law and appropriation acts.
b. Perform or provide for the audit of the general purpose financial statements and a
review of the material included in the annual comprehensive financial report of
the state in accordance with government auditing standards.
c. Except for the audit of the department of financial institutions as outlined in
section 54-10-31, perform or provide for audits of state agencies in accordance
with government auditing standards and legislative audit and fiscal review
committee guidelines developed under section 54-35-02.10. Except for the
annual audit of the North Dakota lottery required by section 53-12.1-03, the state
auditor shall audit each state agency once every two to four years. Audits may be
conducted at more frequent intervals if requested by the governor or the
legislative audit and fiscal review committee.
d. Except for the audit of the department of financial institutions as outlined in
section 54-10-31, perform or provide for performance audits of state agencies, or
the agencies' blended component units or discreetly presented component units,
as determined necessary by the legislative assembly, or the legislative audit and
fiscal review committee if the legislative assembly is not in session. When
determining the necessity of a performance audit, the legislative audit and fiscal
review committee shall consider:
(1) The potential cost-savings or efficiencies that may be gained as a result of
the performance audit;
(2) The staff resources of the state auditor's office and of the state agency
being audited which will be required to conduct the audit;
(3) The potential for discovery of noncompliance with state law or legislative
intent regarding the program or agency; and
(4) The potential for the performance audit to identify opportunities for program
improvements.
e. Report quarterly to the legislative audit and fiscal review committee regarding:
(1) Communication processes with audited entities and any changes to the
processes;
(2) Billing practices and procedures, including the use of cost estimates for
audits, an itemized invoicing methodology, and a defined change order
process for audits that exceed the original estimate;
(3) Information on audits completed, including:
(a) Name of the audited organization;
(b) Organization type;
(c) Audit type;
(d) Audit period;
(e) Estimated and actual hours and costs; and
(f) Total audit cost and the total cost as a percentage of the audited
organization's operating budget; and
(4) Audit schedules, including audits performed by private firms and audits
performed by the state auditor's office.
f. Report on the functions of the state auditor's office to the governor and the
secretary of state in accordance with section 54-06-04 or more often as
circumstances may require.

g. Perform work on mineral royalties for the federal government in accordance with
section 1735(a) of the Mineral Lands and Mining Act [30 U.S.C. 1735 et seq.].
h. Report to the legislative audit and fiscal review committee regarding final report
distribution policies and practices and any final audit reports released to the
public prior to distribution of the final audit report to all individuals charged with
the governance of the audit client.
i. Perform all other duties as prescribed by law.
2. The state auditor may:
a. Conduct any work required by the federal government and charge an amount
equal to the cost of the audit to be paid by the audited federal funds of the
appropriate government agency and deposited into the general fund.
b. Within the resources available to the state auditor, perform or provide for
performance audits of state agencies as determined necessary by the state
auditor.
c. Audit the International Peace Garden at the request of the board of directors of
the International Peace Garden.
d. Contract with a private certified public accountant or other qualified professional
to conduct or assist with an audit, review, or other work the state auditor is
authorized to perform or provide for under this section. Before entering any
contract, the state auditor shall present information to the legislative audit and
fiscal review committee on the need for the contract and its estimated cost and
duration. Except for performance audits conducted under subdivision d of
subsection 1 or subdivision b of this subsection and except for audits of
occupational or professional boards, the state auditor shall execute the contract
and any executive branch agency, including higher education institutions, shall
pay the fees of the contractor. For performance audits conducted under
subdivision d of subsection 1 or subdivision b of this subsection, the state auditor
may charge a state agency for the cost of a contract relating to an audit, subject
to approval by the legislative assembly or the legislative audit and fiscal review
committee if the legislative assembly is not in session. When considering a
request, the legislative audit and fiscal review committee shall consider the effect
of the audit cost on the agency being audited, the necessity of the contract, and
the potential benefit to the state resulting from the contract. The state auditor
shall notify the affected agency of the potential cost before requesting approval
from the legislative assembly or the legislative audit and fiscal review committee.
3. Notwithstanding subdivision c of subsection 1 and subdivision d of subsection 2, the
state auditor may not charge audit fees to an institution of higher education, agency, or
office under the control of the state board of higher education, including passthrough
grants, except for a proportional share of audit fees on federal programs or grants to
the extent those audited federal programs or grants provide for allowable cost
recovery. Institutions without an approved indirect cost recovery fund may not be
assessed audit fees on closed federal programs.