In the State of North Dakota, NDCC 21-04-13 states that the governing body of a City must approve all pledges of securities at each depository a minimum of two times per year. The Auditor is responsible for obtaining proof of pledges of securities and for providing the information to the governing body. The proof of pledge must list all City accounts at each depository at current value, the total amount in excess of the Federal Deposit Insurance Corporation (FDIC) insurance amount, the balance over FDIC insurance at 110 percent of value, and the market value of the pledges of securities. Each bank or depository must provide securities to cover 110 percent of all balances in excess of the $250,000 FDIC insurance. The form must also contain a note stating if and when the board of the depository approved the pledges being given to the City. The approval from the depository should be in writing and attached to the form provided to the board. In addition to the frequency required by law, it is a good practice for Auditors to check your balances and pledges at times when a significant deposit is made for a special project or in the spring when tax levy deposits are made. Although Minnesota does not require the City to conduct a check two times per year, the Minnesota Auditor’s office encourages Auditors to develop procedures for the review of sufficient collateral during times when bank deposits are high. In general, it is a good practice for Auditors in all states to regularly review depository balances and ensure that collateral is pledged by the bank over the FDIC amount.