Specifications include, but are not limited to: The audit consists of the governmental activities, the business‐type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of North Dakota Development Fund, Inc. as of June 30, 2021, and for the year then ended, and the related notes, which collectively comprise North Dakota Development Fund, Inc.’s basic financial statements. The bidder must comply with the accounting principles generally accepted in the United States of America (U.S. GAAP), as promulgated by the Governmental Accounting Standards Board (GASB) require that certain information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the GASB, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. The engagement will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS). These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management’s responses to the bidder inquiries. The bidder will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by U.S. GAAP. This RSI will be subjected to certain limited procedures but will not be audited: Management’s Discussion and Analysis Supplementary information other than RSI will accompany North Dakota Development Fund, Inc.’s basic financial statements. The bidder will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and perform certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and additional procedures in accordance with U.S. GAAS. The bidder must intend to provide an opinion on the following supplementary information in relation to the basic financial statements as a whole: 1. Combining Balance Sheets 2. Combining Statements of Revenue, Expenses and Changes in Net Position 3. Combining Statements of Cash Flows Auditor Responsibilities The bidder will conduct the audit in accordance with U.S. GAAS. Those standards require that the bidder plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the basic financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the basic financial statements, whether due to fraud or error, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the basic financial statements. If appropriate, the procedures will therefore include tests of documentary evidence that support the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of cash, investments, and certain other assets and liabilities by correspondence with creditors and financial institutions. At the conclusion of the audit, the bidder will also request certain written representations from the State about the basic financial statements and related matters. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements (whether caused by errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations) may not be detected exists, even though the audit is properly planned and performed in accordance with U.S. GAAS. In making the risk assessments, the bidder must consider internal control relevant to the entity’s preparation and fair presentation of the basic financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. However, the bidder will communicate to the State in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the basic financial statements that the bidder has identified during the audit. The bidders responsibility as auditors is limited to the period covered by the audit and does not extend to any other periods. The bidder may not provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for bidders to modify the opinions or add emphasis‐of‐matter or other‐matter paragraphs. If the bidders opinions on the basic financial statements are other than unmodified, the bidder will discuss the reasons with the State in advance. If, for any reason, the bidder is unable to complete the audit or are unable to form or have not formed opinions, the bidder may decline to express opinions or to issue a report as a result of this engagement.
