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SB 2396

AN ACT to amend and reenact section 10-30.5-08 of the North Dakota Century Code, relating to annual audits of the North Dakota development fund; to provide for a performance audit of the North Dakota development fund; to provide for a legislative management report; and to provide an appropriation.

69th Legislative Assembly (2025-26) Introduced by Keith Boehm and 5 co-sponsors

NDDF will face an independent performance audit; its annual financial audits shift to the State Auditor, which NDDF pays, with a one-time $250,000 funding for 2025–27.

Filed with Secretary Of State 05/01
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Bill Summary · SB 2396

Summary — SB 2396 (North Dakota)

Purpose

SB 2396 requires an independent performance audit of the North Dakota Development Fund (NDDF), revises the statutory authority for the NDDF’s annual financial audit, and provides one‑time funding to pay for the performance audit. The bill is codified as an amendment to section 10‑30.5‑08 of the North Dakota Century Code.

Key provisions

  • Amends NDCC 10‑30.5‑08 (Annual audit)
    • Transfers responsibility for conducting the NDDF’s annual financial statement audit to the state auditor’s office.
    • If the state auditor’s office does not perform the audit, it must contract with a certified public accounting firm to perform an annual audit in accordance with generally accepted auditing standards.
    • The cost of the annual financial audit is borne by the corporation (the NDDF).
  • Performance audit of the NDDF
    • The state auditor’s office shall contract with an independent third party to complete a performance audit of the NDDF covering the period July 1, 2019 – June 30, 2024.
    • The final audit report must be received by the state auditor’s office by August 1, 2026.
    • After receipt, the state auditor’s office will present the report to the Legislative Audit and Fiscal Review Committee and, before September 30, 2026, also to Legislative Management.
    • The performance audit must examine economy, efficiency, and effectiveness (internal processes, controls, and results) and provide recommendations for corrective actions.
  • Appropriation
    • A one‑time appropriation of $250,000 from the general fund to the state auditor’s office for contracting the performance audit for the biennium beginning July 1, 2025 and ending June 30, 2027.

Who is affected

  • North Dakota Development Fund — subject to the new performance audit and to the revised annual audit process; bears the cost of annual financial statement audits.
  • State Auditor’s Office — responsible for contracting and receiving the performance audit and for presenting the report to legislative oversight bodies.
  • Legislative Audit and Fiscal Review Committee and Legislative Management — recipients of the audit findings and positioned to consider follow‑up actions or legislative responses.

Timeline / procedural items

  • Audit coverage period: 7/1/2019 – 6/30/2024.
  • Final performance audit report due to the state auditor’s office by 8/1/2026.
  • Presentations to the Legislative Audit and Fiscal Review Committee (next meeting after receipt) and to Legislative Management by 9/30/2026.
  • One‑time appropriation covers the 2025–2027 biennium.

Legislative status

  • Enacted: Passed both chambers (Senate: 44–3; House: 90–3), enrolled and signed by the Governor (signed 04/30/2025), filed with the Secretary of State 05/01/2025.

Compiled from official sources — confirm details with the bill’s official record.

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