North Dakota Lawmakers Clash Over Development Fund Audit Findings

A legislative meeting in North Dakota turned volatile on Thursday as lawmakers clashed over the future of the state’s Development Fund and a recent performance audit of the Department of Commerce.

The confrontation during a meeting of Legislative Management involved Jeff Magrum and Mike Nathe. The argument broke out as Magrum presented a report from the Legislative Audit and Fiscal Review Committee, bringing tensions surrounding the troubled state agency into a public forum.

Severe conflicts of interest and a troubling lack of documentation regarding millions in public funds were brought to light by a September audit of the North Dakota Development Fund presented to that committee. Those findings have placed the Commerce Department under intense scrutiny as Gov. Kelly Armstrong prepares for major restructuring.

During Thursday’s session, Nathe questioned Magrum regarding whether he had looked over an August 10 evaluation of the Development Fund conducted by the State Auditor’s Office, which examined the biennium concluding on June 30, 2025.

“I do believe I haven’t seen it,” Magrum said, dismissing financial audits as a waste of time and money.

“This was a performance audit, and when you read page one, it said it was a clean audit,” Nathe replied.

Clashing perspectives on state oversight

The exchange quickly escalated as Nathe defended the findings of the state auditor’s review, which concluded that no errors, internal control weaknesses, or potential violations of law were identified for significant or high-risk functions of the agency.

Sen. Jeff Magrum gaveled down after outburst

Magrum questioned the scope of the review, asking whether auditors examined all funds handled by the department, such as the Wonder Fund and the tourism fund.

“I would suggest, though, before you make these accusations, that you actually read the audit and see,” Nathe shot back, calling the accusations unprofessional.

“I think it’s, well, Rep. Nathe and Chairman, I don’t really think for a guy who doesn’t even show up to committee … I wish you would show up to committee and voice your opinion in committee,” Magrum shouted before being gaveled down by Senate Majority Leader David Hogue.

When questioned about his committee attendance, Nathe maintained he had missed only one meeting in September due to a vacation, though a review of Legislative Audit and Fiscal Review Committee minutes of interim operations showed that he did also miss an August 2025 meeting.

With activities inside the Development Fund already halted by the Armstrong administration, lawmakers are likely to face a request from the administration to dismantle the fund during the upcoming legislative session.