The financial threshold that local governments have been following is changing to be strictly revenue-based, and the amount that triggers an audit is increasing from $750,000 to $2,000,000 (two million), this includes any annual years that are delinquent. That means all local governments listed in N.D.C.C. 54-10-14, regardless of the type (such as school districts, cities, and water districts) that have over $2,000,000 in annual receipts will be required to submit an audit to the State Auditor’s Office. This change does not impact audits required by other entities or for other existing reasons.
The reason for this change was from the 68th Legislative Assembly’s Senate Bill 2180 which updates N.D.C.C. 54-10-14(3). This change will start with the fiscal year beginning January 1, 2022.
For questions on these thresholds, please call the State Auditor’s Office at 701-328-2241.