In a recent meeting of the North Dakota Legislature's House Industry, Business, and Labor Committee, lawmakers discussed significant changes to the auditing process for the North Dakota Development Fund. The committee's focus was on enhancing transparency and accountability within the fund, which has historically operated with limited oversight due to its confidential nature.

The Department of Commerce undergoes audits every two years; however, the Development Fund has been exempt from these audits. This exemption raised concerns among legislators, prompting a desire for increased scrutiny. To address these concerns, the committee proposed hiring an independent third-party auditing firm to conduct a performance audit of the Development Fund. This audit would be integrated into the Department of Commerce's biennial audit, ensuring that findings are shared and utilized for ongoing oversight.

During the discussions, a proposed amendment was introduced to allocate approximately $250,000 for the audit, accounting for potential travel expenses. The committee emphasized the importance of this audit in shedding light on the fund's operations and ensuring that its financial activities are properly monitored. The independent auditor's findings will be reported back to legislative management, further enhancing the legislative body's ability to oversee the fund's effectiveness.

The committee's chair noted that while a broader audit would have been ideal, the current budget constraints necessitated a more focused approach. The incoming commissioner of the Department of Commerce expressed support for the audit, indicating a shift towards greater transparency within the department.

As the committee moved forward, they voted to amend the bill and referred it for further consideration in appropriations. This decision marks a significant step towards improving oversight of the North Dakota Development Fund, addressing long-standing concerns about its financial privacy and operational transparency. The anticipated audit is expected to provide valuable insights that will inform future legislative actions and enhance public trust in the fund's management.