ND HB1145

State auditor must audit 20 types of political subdivisions once every two years, including counties, cities, school districts, and water resource districts.

Political subdivisions are charged fair value fees for audits, which are deposited in the state auditor operating account and used to pay audit expenses.

Small political subdivisions may submit annual reports instead of biennial audits if they have less than specified thresholds: school districts with fewer than 100 enrolled students, cities with less than 500 population, or other subdivisions with less than $200,000 in annual receipts.

Political subdivisions may choose to hire certified or licensed public accountants for audits instead of using the state auditor, subject to state auditor review and acceptance of the audit report.

State auditor may charge up to $80 per hour (capped at $500 per review) for reviewing audit reports and up to $80 per hour for reviewing annual reports; political subdivisions must retain 20% of progress payments to public accountants until the audit is accepted.