The areas listed below are categorized by audit type. The directives listed below are required by the State Auditor's Office per N.D.C.C. 54-10-14(4). The audit report (or working papers) may be reviewed by the Auditor's Office to ensure the directives were included in the audit.  

If the county budget concerns are not addressed, the audit may be rejected. This may also result in the Office of the State Auditor conducting the next audit (North Dakota Century Code 54-10-13).

(Last updated on March 15, 2022)

County Audit Directives 

County Budgets | March 15, 2022

We have found that in many county audits, supporting documentation for county budgets are either absent, or incorrect.

Our office is responsible to review fiscal concerns that come to our attention. Beginning with 2021 financial audits, all county audits issued must include the county budget in the planning, testing and conclusions.

Areas that must be looked at:

  • Ensure all sections of N.D.C.C. 11-23-02 are included in the audit period’s final budget
  • Inquire, if necessary, for understanding of the budget process
  • Obtain the clients budget file to ensure all elements are included
  • Test various elements of the budget to ensure compliance (see common issues below)
  • Conclude on compliance with N.D.C.C. 11-23-02

 Common issues found:

  • Estimated cash balances lack supporting documentation
  • Transfers in and out not balancing
  • Cash reserve over what is allowed
  • Overall budget not complete
  • Revenue and expenditure estimates lacking supporting documentation
  • Common funds with problems include: General fund, County Road and Bridge fund, Noxious Weed fund