Conflicts of interestOversight & ethics enforcement

North Dakota audit finds documentation gaps and conflict-of-interest issues at Development Fund; lawmakers seek attorney general review

Confidence: Alleged · 2 sourcesNorth Dakota · Oct 13, 2026

Subject of this story

North Dakota Development Fund

Also named

Oversight

North Dakota State Auditor's Office

North Dakota Legislative Audit and Fiscal Review Committee

North Dakota Attorney General's Office

What happened

A 2019-2024 performance audit of the North Dakota Development Fund, a state-backed business lender, found a lack of documents for millions of dollars of transactions, unverified borrower job data and inconsistent conflict-of-interest disclosures, including nearly $4 million for five organizations with ties to one or two board members, the North Dakota Monitor reported. On Sept. 22, 2026 the Legislative Audit and Fiscal Review Committee voted 9-4 to recommend the 2027 Legislature repeal the fund and 10-3 to send the findings to the attorney general, who is not required to investigate. Fund officials said they mostly agree with the recommendations or have already made changes; as of Sept. 24 the attorney general said he had not received the audit.

Sources (2)

North Dakota MonitorA legislative audit committee voted Tuesday to urge the full Legislature to shut down a state-backed business financing program and send problematic audit findings to the attorney general for investigation.

North Dakota MonitorAttorney General Drew Wrigley told the Monitor he has not received anything regarding the Development Fund audit.

Response

North Dakota Development Fund

Statement given

Contacted and responded — exact wording not on record.

What happened next (0)

No outcome recorded yet.

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