Audit of North Dakota State Auditor Finds no Issues

State Auditor Josh Gallion. (Mary Steurer/North Dakota Monitor)

(Mary Steurer – North Dakota Monitor) – A performance audit of the North Dakota State Auditor’s Office found no significant issues, consultants told a panel of lawmakers Thursday afternoon.

“Based on the work that we performed, there weren’t any red flags,” Chris Ricchiuto, representing consulting firm Forvis Mazars, said.

The review was commissioned by the 2023 Legislature following complaints from local governments about the cost of the agency’s services.

The firm found that the State Auditor’s Office is following industry standards and laws, and is completing audits in a reasonable amount of time, said Charles Johnson, a director with the firm’s risk advisory services.

“The answer about the audit up front is that we identified four areas where things are working exactly as you expect the state auditor to do,” Johnson told the committee.

Charles Johnson of consulting firm Forvis Mazars shares the result of a performance audit of the North Dakota State Auditor’s Office during a Legislative Audit and Fiscal Review Committee meeting on Jan. 9, 2025. (Mary Steurer/North Dakota Monitor)

The report also found that the agency has implemented some policies to address concerns raised during the 2023 session.

For example, the Auditor’s Office now provides cost estimates to clients before they hire the office for services, Johnson said. The proposals include not-to-exceed clauses, so clients have to agree to any proposed changes.

The State Auditor’s Office also now includes more details on its invoices, so clients have more comprehensive information about what they’re being charged for.

The audit originally was intended to focus on fiscal years 2020 through 2023. However, the firm extended the scope of its analysis to reflect policy changes that the Auditor’s Office implemented after the 2023 fiscal year ended.

State Auditor Josh Gallion told lawmakers the period the audit covers was an unusual time for his agency. The coronavirus pandemic made timely work more difficult for his staff. Moreover, because of the influx of pandemic-related assistance to local governments from the federal government, the State Auditor’s Office’s workload increased significantly.

Gallion said that, other than confirming that the changes the agency has made were worthwhile, he didn’t glean anything significant from the audit.

“The changes had already been implemented,” he said.