NDUS: Dickinson State investigation ongoing; NDSU providing shared services while financing and internal controls are reviewed

Meredith Larson, chief operating officer for the North Dakota University System, updated the Higher Education Institutions Committee on an ongoing CliftonLarsonAllen (CLA) investigation into Dickinson State University's accounting and business practices.

Investigation status: Larson said CLA has been investigating since late 2025 and is still completing interviews and a comprehensive review of digital records and transactions. "They are still investigating," she said, adding that investigators had reviewed legislative testimony, audit materials and email records. NDUS told the committee it had found no evidence, to date, of missing state dollars related to the inquiry.

Why it matters: The investigation grew out of the December 2025 termination of Dickinson State's chief financial officer and subsequent internal questions about accounting processes. Committee members asked whether any additional state appropriations would be needed to close outstanding projects tied to the campus; NDUS and NDSU officials said they were pursuing financing solutions that would not require new appropriations.

Project and financing status: NDSU and Dickinson State officials said the ag/rodeo project is complete, and that Woods Hall (a residence life project) is in the process of being financed through bond counsel and pledged revenues from housing, not additional direct state appropriations. "We're not looking for additional appropriated dollars," an NDSU official said.

Internal control gaps and remediation: Committee members expressed concern that bank reconciliations had not been completed since June 2022. Bruce Bollinger (NDSU) described a hands‑on approach: NDSU began processing Dickinson's payroll in January, is assisting with appropriation processing, deposits, controller functions and reconciling bank statements that had not been current. "We're currently gathering information to obtain the financing for Woods Hall," he said, and noted NDSU was helping to centralize business office activities while remediation continues.

Accreditation and student impact: NDUS staff told the panel Dickinson State is in "good standing" with the Higher Learning Commission (HLC); the accreditor cited areas to address — faculty qualifications for two‑year vs four‑year tracks, assessment practices and data use for planning — but did not place the campus on probation. NDUS staff said the HLC had been consulted on the shared services plan and did not view the business‑office assistance as a change of control of academic programming.

Shared services reach and policy implications: NDUS and lawmakers discussed several shared services models — ad hoc support, centralized core services, parent–child campus relationships and full business‑office takeovers. NDUS said it is drafting a uniform shared services contract to clarify reporting lines, compensation, scope and safeguards. Meredith Larson said the state's forthcoming system alignment analysis (by Sagency) and the CLA report will inform any statutory or policy changes needed to implement broader shared services safely.

What comes next: CLA’s final report and the NDUS after‑action recommendations were expected by the committee’s June meeting; NDUS officials said they would provide that report and any legislative change ideas at that time.