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Legislative Audit and Fiscal Review Committee accepts performance review of State Auditor's office
Summary
The committee voted to accept a Forvis Mazars LLP performance review of the North Dakota State Auditor's Office, which found compliance with standards but recommended continued use of detailed cost proposals and itemized invoices after prior invoicing gaps were corrected in January 2024.
On Jan. 9, 2025, the Legislative Audit and Fiscal Review Committee accepted a performance review of the North Dakota State Auditor's Office after hearing Forvis Mazars LLP consultants summarize the report and after brief procedural debate.
The review, presented by W. Charles Johnson Jr. and introduced by Chris Ricchiuto of Forvis Mazars LLP, evaluated operations for fiscal years 2020–2023 and included limited testing of fiscal-year 2024 workpapers and invoices. The consultants reported that current processes demonstrate compliance with required standards, that audit hours appear reasonable, and that monitoring and oversight mechanisms are in place.
The review identified gaps in invoicing practices before January 2024: invoices lacked itemized hours, staff rates, and descriptions of services rendered, and there were no formal processes for cost proposals or change orders. Forvis Mazars recommended the State Auditor's Office continue providing itemized invoices, written cost proposals, estimated maximum audit costs, and formal change orders. The report also noted the Auditor's Office stopped charging for Independent Public Accountant reviews in June 2024 and recommended that, if such charges resume, cost proposals and itemized invoices be provided.
A stakeholder survey of 105 respondents included in the review flagged opportunities to improve communications during the audit process, invoicing practices, timeliness of audit completion, and assistance with form completion. Mr. Johnson told the committee that, in the sample tested, auditors found no instances of improper billing and that billed amounts were substantiated by costs incurred.
Senator Jeffery J. Magrum moved to delay consideration of the review, citing insufficient time to review the report; the motion failed for lack of a second. Representative Scott Wagner moved and Representative Bert Anderson seconded a motion, pursuant to Section 54-35-02.2, to accept the performance review. The committee carried the motion on a roll call vote. Representatives Emily O'Brien, Bert Anderson, Dan Ruby, Austen Schauer, and Scott Wagner and Senators Josh Boschee, David A. Clemens, Jerry Klein, Judy Lee, and Scott Meyer voted yes; Senator Magrum voted no.
State Auditor Josh Gallion told the committee his office will continue providing detailed audit cost proposals and itemized invoices and will provide written communication when additional services and associated costs are needed. The committee did not take additional action beyond accepting the report.
