How often is our city required to have an audit?
The state auditor is required to audit cities and park districts every two years. All political subdivisions, at the option of the local governing body, may be audited by a certified public accountant or licensed public accountant rather than by the state auditor. The audit report must be in the form and content required by the state auditor. The state auditor shall review the audit report to determine if the report is in the required form and has the required content, and if the audit meets generally accepted government accounting standards. The state auditor may charge the political subdivision a fee of up to $80 an hour, but not to exceed $500 per review. A political subdivision may not pay a public accountant for an audit until the state auditor has accepted the audit. However, a political subdivision may make progress payments to the public accountant, retaining 20% until the audit report is accepted by the state auditor.

In lieu of conducting an audit every two years, the state auditor may require annual reports from cities with less than 500 population and park districts with less than $200,000 of annual receipts. (NDCC 54-10-14)

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2. How often is our city required to have an audit?
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