ND AG Opinion: State Auditor Can Audit P&A Records with Confidentiality

AG: North Dakota News

Published March 4th, 2026

Detected March 18th, 2026

Summary

The North Dakota Attorney General issued an opinion clarifying that the State Auditor can audit P&A records, even those containing confidential information. The opinion reaffirms that state law and federal regulations authorize such reviews while requiring the Auditor's office to maintain confidentiality.

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What changed

The North Dakota Attorney General has issued an opinion to the ND State Auditor confirming that federal law does not preclude the state from auditing P&A records. The opinion clarifies that while P&A possesses confidential records, N.D.C.C. § 54-10-22.1 and 42 C.F.R. § 51.45(c) authorize the State Auditor and their employees to review these records without detriment to P&A, provided the Auditor's office maintains the confidentiality of the information as required by state law.

This opinion reaffirms a previous 1995 opinion, stating that records made confidential by N.D.C.C. § 25-01.3-10 are available to the State Auditor for performance audit purposes under N.D.C.C. § 54-10-22. Regulated entities, specifically P&A, should be aware that their records are subject to audit by the State Auditor, and while confidentiality must be maintained by the Auditor's office, access to these records is permitted. No specific compliance deadline or penalty is mentioned, as this is an opinion clarifying existing audit authority.

What to do next

Review N.D.C.C. § 54-10-22.1 and 42 C.F.R. § 51.45(c) regarding state auditor access to confidential records.
Ensure internal policies align with the confidentiality requirements for information accessed by the State Auditor.
Consult legal counsel if specific client records are requested and there is uncertainty about disclosure.

Source document (simplified)

The North Dakota Attorney General issued an opinion to the ND State Auditor

04 Mar The North Dakota Attorney General issued an opinion to the ND State Auditor

Posted at 11:34h in Opinions by Scott Reisenauer 0 Comments

March 4, 2026

Media Contact: Suzie Weigel, 701.328.2210

BISMARCK, ND – It is the opinion that federal law does not prevent the state from auditing P&A and even though P&A possesses confidential records, N.D.C.C. § 54-10-22.1 and 42 C.F.R. § 51.45(c) authorize the state auditor and the employees of the auditor’s office, to review the records without detriment to P &A.

Also, whether Rule 1.6 of the North Dakota Rules of Professional Conduct for licensed attorneys prohibits P&A from disclosing to the State Auditor the contents of a client file for the purpose of conducting a non-financial performance audit under N.D.C.C. ch. 54-10 when the requested file includes information about individuals and businesses in the private sector who chose to contact P &A.

This issue was already addressed in a 1995 opinion of this office regarding P&A. The 1995 opinion highlighted that P&A has authority to contract with private attorneys to represent private individuals. 17 During that performance audit, auditors asked to see billings from the contracted attorneys. 18 P&A redacted the names of the individuals represented by the contract attorneys under the rules for attorney-client privilege or attorney-client confidentiality. 19 The names of individuals seeking services of P&A are protected under N.D.C.C. § 25-01.3. The opinion stated:

Thus, P&A’s records which indicate to whom its services were provided are available to the State Auditor for performance audit purposes. The State Auditor has
been given access by P&A to its records other than the attorney’s billings. Therefore, the State Auditor already has access to the names of the persons to whom P&A
provides services. State law requires that the State Auditor and his employees must keep such information confidential.

Here, P&A has not identified a specific record. Given that, I rely on the past opinions declaring that records made confidential by N.D.C.C. § 25-01.3-10 are available under N.D.C.C. § 54-10-22 to the State Auditor and the Auditor’s employees for audit purposes.

Link to opinion 2026-L-01