Annual audits of the North Dakota development fund; to provide for a performance audit of the North Dakota development fund; to provide for a legislative management report; and to provide an appropriation.
If enacted, the bill will necessitate the contracting of an independent third party to conduct the performance audit and will also establish a framework for presenting the audit results to the legislative audit and fiscal review committee. The appropriations for these audits are set at $250,000, classified as one-time funding from the general fund. This establishes a precedent for state-funded audits and seeks to enhance the accountability of state-funded programs, emphasizing the importance of financial oversight in government operations.
Senate Bill 2396 aims to enhance oversight of the North Dakota Development Fund by mandating annual financial audits as well as a comprehensive performance audit. The bill seeks to amend existing state code by requiring performance evaluations of the fund that assess its economy, efficiency, and effectiveness, offering an opportunity for legislative insights into how these funds are utilized over a specific review period from July 1, 2019, to June 30, 2024. This is to ensure that taxpayer money is being used appropriately and that the fund's operations align with state objectives.
The sentiment surrounding SB2396 appears to be largely supportive among legislators, as evidenced by its strong passage through both houses, with counts of 90-3 in the House and 44-3 in the Senate. Advocates argue that the bill is a necessary step towards greater transparency and accountability in managing state funds, avoiding inefficiencies and mismanagement by ensuring diligent oversight. Critics, if any, have not been prominently highlighted in the discussions but may voice concerns over the resources allocated for these audits versus their perceived necessity.
Noteworthy points of contention may arise during discussions on the effectiveness of the proposed audits and whether the allocated budget of $250,000 is adequate for the thoroughness required by such evaluations. Furthermore, there could be debates regarding the implications of increased state oversight of development programs and whether this may lead to administrative complexities or hinder the fund's operational flexibility.