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ND PISB Audit Finds Five Areas for Improvement

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Summary

The North Dakota State Auditor released a legislatively mandated performance audit of the Private Investigative and Security Board (PISB), covering the period January 1, 2019 through June 30, 2025. The audit identified five operational deficiencies: absence of documented policies and procedures, an unmaintained licensee database, manual pocket card issuance consuming over 425 hours annually, insufficient renewal period timeframes, and failure to utilize Attorney General legal services instead of private counsel—resulting in approximately $114 per hour in potential taxpayer savings. The report does not impose any binding compliance obligations on regulated entities.

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What changed

The North Dakota State Auditor conducted a performance audit of the Private Investigative and Security Board (PISB) as required by Senate Bill 2051 during the 2025-2027 legislative session. The audit examined board operations from January 1, 2019 through June 30, 2025 and identified five improvement opportunities: lack of documented policies creating inconsistent practices and fraud risk, an unmaintained licensing database, manual pocket card creation requiring over 425 hours annually, insufficient renewal processing time, and not utilizing Attorney General legal services at approximately $114 per hour savings.

The audit findings are informational and do not create direct compliance obligations for private investigators or security guards licensed by PISB. However, the report may inform legislative action or board administrative reforms. Regulated entities should monitor for any subsequent administrative rulemaking or policy changes the board may implement in response to these findings.

Archived snapshot

Apr 22, 2026

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Legislatively Mandated Audit of Private Investigative and Security Board Finds Five Areas for Improvement

Monday, March 16, 2026 - 01:07 pm

Categories: News Releases During the 2025-2027 legislative session, the North Dakota Legislative Assembly passed Senate Bill 2051, which required the State Auditor to conduct a performance audit of the Private Investigative and Security Board (PISB). The reason for the audit was because lawmakers wanted an independent review of how PISB was operating. The audit identified five opportunities for improvement. They were:

Lack of Policies and Procedures
The audit found that there are no documented policies or procedures. Because of this, there can be inconsistent practices, loss of institutional knowledge, high risk of errors or fraud, inefficient operations, compliance issues, and weak accountability.

Licensing Process Inefficiencies
One of the duties of PISB is to issue licenses for private investigators and security guards. The database that they use is not being maintained, which means there is no accurate list of licensees or registrants. Additionally, applications and renewals in varying stages of processing are kept in various filing cabinets, banker boxes, and storage crates.

Issuing Pocket Cards
For individuals providing private investigative or security services, they should have a pocket card which is issued by PISB. The current process in place for creating these cards is completely manual which leaves potential for not only error, but also creates time inefficiencies, with over 425 hours annually going to creating these cards manually.

Impractical Renewal Period
State law requires individuals who provide private investigative and security services to operate with a license. The license must be issued by PISB. Applications are backlogged, and there currently is not enough time in the renewal period to allow time for processing.

Not Utilizing Attorney General Legal Services
Because it’s a state entity, PISB could be using the Attorney General’s Office for any legal services. This would save taxpayers approximately $114 per hour by using a state attorney rather than a private attorney for legal matters.

The audit report period was from January 1, 2019, to June 30, 2025. To download the full audit report, visit: https://portalapps.nd.gov/_entity/annotation/ADBA36B1-96DE-FF98-A8A9-B7169BF3462B/.

Named provisions

Lack of Policies and Procedures Licensing Process Inefficiencies Issuing Pocket Cards Impractical Renewal Period Not Utilizing Attorney General Legal Services

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Last updated

Classification

Agency
ND Auditor
Published
March 16th, 2026
Instrument
Notice
Branch
Executive
Bill ID
SB 2051
Legal weight
Non-binding
Stage
Final
Change scope
Minor

Who this affects

Applies to
Government agencies Licensed professionals
Industry sector
9211 Government & Public Administration
Activity scope
Performance audit Licensing administration Operational review
Geographic scope
US-ND US-ND

Taxonomy

Primary area
Compliance
Operational domain
Compliance
Topics
Government Contracting Consumer Protection

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