1. Upon notification from the office of jeopardized fund interests under section 26.1-21-02, the state auditor may investigate the relevant state agency or political subdivision and may provide a report to the office regarding any findings. 2. The state auditor may evaluate the blanket bond coverage when conducting an audit of a state agency or political subdivision. The state auditor may recommend changes in the amount of coverage in the audit report. 3. Costs incurred by the state auditor under subsection 1 must be paid from the fund. 4. The state auditor may contract for an investigation under subsection 1.
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