(KFYR) – We’re learning more about the departures of two North Dakota Development Fund board members, as questions continue about oversight of its finances.
State lawmakers could play a role in the program’s future.
Resignation letters from Development Fund chair Jim Albrecht and vice chair Rob Lindberg were submitted Oct. 20, well before the Ethics Commission announced its decision to launch an inquiry into the fund.
Neither letter referred to the Ethics Commission or their actions, with Albrecht writing that he was stepping down to support Commerce’s efforts to take the fund in a new direction.
Lindberg offered his best wishes as the department and administration restructure economic development efforts.
The audit that started this all revealed missing or incomplete paperwork for nearly four million dollars in loans and grants. That was a one-time performance review.
State Auditor Josh Gallion said his office hired the independent firm to conduct it, but another performance audit would likely require action from lawmakers.
“If they want a follow-up performance audit, the legislature is likely going to have to put that into a bill and require that to happen,” Gallion said.
The fund still receives an annual financial statement audit. That’s performed by a private firm under a contract administered by the auditor’s office.
A performance audit, however, separately examines how the fund operates.
The legislature’s audit review committee recommended eliminating the fund and transferring its outstanding loans and investments to the Bank of North Dakota.
Sen. Jeff Magrum, R-Hazelton, the committee’s chair, still supports getting rid of it and believes lawmakers will have enough votes in the upcoming session.
”I think at the very least, we will probably dissolve the North Dakota Development Fund this coming session. For sure, I think we have the support for that,” Magrum said.
Eliminating the fund would require legislative approval.
Meanwhile, the Ethics Commission will begin to review the audit and gather information before deciding whether to launch an investigation.
Development Fund CEO Brian Opp confirmed both resignations but declined to comment on the Ethics Commission’s probe.
Fund officials previously said they have begun to strengthen disclosure and recordkeeping practices and planned additional improvements.
The inquiry does not mean that an ethics violation occurred.
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