Nevada § 116A.630 - Standards of practice for community managers

§ 116A.630. Standards of practice for community managers

In addition to any additional standards of practice for community managers adopted

by the Commission by regulation pursuant to NRS 116A.400 , a community manager shall: 1. Except as otherwise provided by specific statute, at all times: (a) Act as a fiduciary in any client relationship; and (b) Exercise ordinary and reasonable care in the performance of duties. 2. Comply with all applicable: (a) Federal, state and local laws, regulations and ordinances; and (b) Lawful provisions of the governing documents of each client. 3. Keep informed of new developments in the management of a common-interest community

through continuing education, including, without limitation, new developments in law,

insurance coverage and accounting principles. 4. Advise a client to obtain advice from an independent expert relating to matters

that are beyond the expertise of the community manager. 5. Under the direction of a client, uniformly enforce the provisions of the governing

documents of the association. 6. At all times ensure that: (a) The financial transactions of a client are current, accurate and properly documented;

and (b) There are established policies and procedures that are designed to provide reasonable

assurances in the reliability of the financial reporting, including, without limitation: (1) Proper maintenance of accounting records; (2) Documentation of the authorization for any purchase orders, expenditures or disbursements; (3) Verification of the integrity of the data used in business decisions; (4) Facilitation of fraud detection and prevention; and (5) Compliance with all applicable laws and regulations governing financial records. 7. Prepare or cause to be prepared interim and annual financial statements that will

allow the Division, the executive board, the units' owners and the accountant or auditor

to determine whether the financial position of an association is fairly presented

in accordance with all applicable laws and regulations. 8. Cause to be prepared, if required by the Division, a financial audit performed

by an independent certified public accountant of the records of the community manager

pertaining to the common-interest community, which must be made available to the Division. 9. Make the financial records of an association available for inspection by the Division

in accordance with the applicable laws and regulations. 10. Cooperate with the Division in resolving complaints filed with the Division. 11. Upon written request, make the financial records of an association available to

the units' owners electronically or during regular business hours required for inspection

at a reasonably convenient location, which must be within 60 miles from the physical

location of the common-interest community, and provide copies of such records in accordance

with the applicable laws and regulations. As used in this subsection, “ regular business hours ” means Monday through Friday, 9 a.m. to 5 p.m., excluding legal holidays. 12. Maintain and invest association funds in a financial institution whose accounts

are insured by the Federal Deposit Insurance Corporation, National Credit Union Share

Insurance Fund, Securities Investor Protection Corporation, or a private insurer approved

pursuant to NRS 672.755 , or in government securities that are backed by the full faith and credit of the

United States Government. 13. Except as required under collection agreements, maintain the various funds of

the client in separate financial accounts in the name of the client and ensure that

the association is authorized to have direct access to those accounts. 14. Provide notice to each unit's owner that the executive board is aware of all legal

requirements pursuant to the applicable laws and regulations. 15. Maintain internal accounting controls, including, without limitation, segregation

of incompatible accounting functions. 16. Ensure that the executive board develops and approves written investment policies

and procedures. 17. Recommend in writing to each client that the client register with the Division,

maintain its registration and file all papers with the Division and the Secretary

of State as required by law. 18. Comply with the directions of a client, unless the directions conflict with the

governing documents of the client or the applicable laws or regulations of this State. 19. Recommend in writing to each client that the client be in compliance with all

applicable federal, state and local laws, regulations and ordinances and the governing

documents of the client. 20. Obtain, when practicable, at least three qualified bids for any capital improvement

project for the client. 21. Develop written collection policies, approved by the executive board, to comply

with all applicable federal, state and local laws, regulations and ordinances relating

to the collection of debt. The collection policies must require: (a) That the executive board approve all write-offs of debt; and (b) That the community manager provide timely updates and reports as necessary.