The financial threshold that would trigger an audit for local governments has been increased from $750,000 to $2,000,000. That means all local governments listed in N.D.C.C. 54-10-14, regardless of the type (such as school districts, cities, and other districts) that have under $2,000,000 in annual receipts will no longer be required to submit an audit to the State Auditor’s Office. Instead, those local governments will need to submit an annual financial report to the Office of the State Auditor. 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 state law and is retroactive for any outstanding audits dating back to January 1, 2022. Local governments that are directly impacted will receive additional correspondence in the coming weeks.
For questions on this threshold change, please call the State Auditor’s Office at 701-328-2241.