All Roll Calls
Yes: 178 • No: 4
North DakotaSB 22512025 Regular SessionSenateWALLET
AN ACT to amend and reenact section 54-10-01, subsection 5 of section 54-10-14, and sections 54-10-22 and 54-10-27 of the North Dakota Century Code, relating to audits conducted by the state auditor and charges for audits.
Sponsored By: Sean Cleary (Republican)
Became Law
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 4 costs, 1 mixed.
Fixed audit fees for farm commodity groups
Listed agricultural commodity groups pay $6,000 for an annual financial statement audit. A two-year single-page audit done in the biennium ending June 30, 2025 costs $4,000. These fees may increase by 5% on July 1 of each odd-numbered year after 2025.
Audit rules and options for licensing boards
Occupational and professional boards must get an audit every two years by a licensed accountant and send the report to the state auditor. Boards with under $2,000,000 in annual receipts may file an annual report instead, and the auditor may charge up to $90 per hour to review it. If a board chooses the annual report and does not file it, the auditor may do extra work and bill the fair value. If the report uses the auditor’s required form, the auditor does not also audit that board. A board may ask the state auditor to do its audit.
No general audit fees for state colleges
The state auditor does not charge audit fees to institutions under the state board of higher education, including passthrough grants. A proportional share can be charged to audited federal programs only when those grants allow cost recovery. Schools without an approved indirect cost recovery fund are not charged for closed federal programs.
Local governments must hold back 25% of audit pay
A local government cannot pay a public accountant in full until the state auditor accepts the audit. It may make progress payments, but must hold back 25% of each progress payment until the audit is accepted.
State agencies audited; pay with nongeneral funds
The state auditor audits each state agency every two to four years, except the Department of Financial Institutions and the lottery’s separate annual audit. Agencies that spend nongeneral funds are charged the cost of their audits, with a possible reduction for agencies that spend both general and nongeneral funds. Agencies must use nongeneral funds to pay audit costs when available. Using general funds requires approval by the Legislative Assembly, or by the Budget Section when the Assembly is not in session.
Stronger audit powers and records rules
Public officers and employees must help the state auditor. They must provide records and make sworn returns in the form the auditor requires. The auditor can review records and question witnesses under oath, and may hire stenographers or clerical help and charge those costs to the audited entity. If the auditor gets a records request for information an agency or local government submitted, the auditor sends the request to that entity and that counts as the auditor’s response.
Sponsors & Cosponsors
Sponsor
Sean Cleary
Republican • Senate
Cosponsors
Karen M. Rohr
Republican • House
Matthew Ruby
Republican • House
Jose L. Castaneda
Republican • Senate
Bob Paulson
Republican • Senate
Kent Weston
Republican • Senate
Roll Call Votes
Senate vote • 4/15/2025
Second reading, passed, yeas 46 nays 0
Yes: 46 • No: 0
House vote • 4/4/2025
Second reading, passed as amended, yeas 90 nays 0
Yes: 90 • No: 0
Senate vote • 2/3/2025
Second reading, passed, yeas 42 nays 4
Yes: 42 • No: 4
Actions Timeline
Filed with Secretary Of State 04/22
4/24/2025HouseSigned by Governor 04/21
4/23/2025SenateSent to Governor
4/18/2025SenateSigned by President
4/18/2025SenateSigned by Speaker
4/18/2025HouseSecond reading, passed, yeas 46 nays 0
4/15/2025SenateConcurred
4/15/2025SenateReturned to Senate (12)
4/7/2025SenateSecond reading, passed as amended, yeas 90 nays 0
4/4/2025HouseReported back, do pass, place on calendar 20 0 3
3/31/2025HouseRereferred to Appropriations
3/24/2025HouseAmendment adopted
3/24/2025HouseReported back amended, do pass, amendment placed on calendar 13 0 1
3/21/2025HouseCommittee Hearing 03:30
3/6/2025HouseIntroduced, first reading, referred Government and Veterans Affairs Committee
2/18/2025HouseReceived from Senate
2/4/2025HouseMotion to reconsider failed
2/4/2025SenateSecond reading, passed, yeas 42 nays 4
2/3/2025SenateDivision B passed
2/3/2025SenateDivision A lost
2/3/2025SenateDivision of bill
2/3/2025SenateReported back, do pass, place on calendar 6 0 0
1/31/2025SenateCommittee Hearing 10:00
1/30/2025SenateIntroduced, first reading, referred State and Local Government Committee
1/20/2025Senate
Bill Text
Adopted by the House Government and Veterans Affairs Committee
Enrollment
FIRST ENGROSSMENT
FIRST ENGROSSMENT with House Amendments
INTRODUCED
Prepared by the Legislative Council staff for Senate Chamber
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