Appropriations committee orders independent audit of state development fund, adds emergency clause and routes report to legislative audit committee

Senate Bill 2396, presented by Representative Jonathan Morey (R–District 22), would fund a third‑party performance audit of the North Dakota Development Fund and require the findings to be shared with the state auditor and legislative oversight. Morey told the committee the development fund currently contains private/confidential financial information that the state auditor cannot fully inspect under current practice; committee sponsors asked for an independent, conflict‑free reviewer to improve transparency without duplicating routine commerce audits.

Committee testimony included an estimate from the state auditor of roughly 1,200 labor hours to audit the fund. Committee staff solicited pricing from a private firm that estimated remote work after an initial site assessment and proposed a $200/hour rate; the committee amended the appropriation to $250,000 to cover the scope and to require the third‑party audit findings be shared with legislative audit and fiscal review. Representatives raised timing concerns: the private contractor estimated a ~90‑day start and faster lead time than the state auditor’s internal option (9–12 months).

Representative Nelson moved to add an emergency clause and to have the audit report delivered to the Legislative Audit and Fiscal Review Committee; the motion was seconded and the amendment carried on a roll call. The committee then voted to give the bill a “do‑pass as amended.”

Key details: the committee reduced the originally proposed appropriation to $250,000; the bill calls for a conflict‑free third‑party audit whose findings will be shared with the state auditor and legislative audit committee; the aim is targeted transparency into development‑fund transactions and allocations without repeating the Commerce Department’s biennial financial audit.