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Stenehjem: University foundations are not subject to performance audits

Attorney General Wayne Stenehjem says the Legislature cannot order a “performance audit” of university development foundations.

In its January 29th meeting , the Legislative Audit and Fiscal Review Committee directed the state Auditor’s office to perform performance audits of the development foundations at UND, NDSU and Dickinson State University. But in a memorandum, Stenehjem said the state Auditor can only conduct performance audits on state agencies – and those foundations are not state agencies. Stenehjem does say because the foundations perform governmental functions on behalf of the universities, they are subject to the open records law – and can be financially audited.

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