Nevada § 354.624 - Annual audit: Requirements; designation of auditor; scope and disposition; dissemination; prohibited provision in contract with auditor

§ 354.624. Annual audit: Requirements; designation of auditor; scope and disposition; dissemination; prohibited provision in contract with auditor

1. Each local government shall provide for an annual audit of all of its financial

statements. A local government may provide for more frequent audits as it deems necessary. Except as otherwise provided in subsection 2, each annual audit must be concluded

and the report of the audit submitted to the governing body as provided in subsection

6 not later than 5 months after the close of the fiscal year for which the audit is

conducted. An extension of this time may be granted by the Department of Taxation to any local

government that submits an application for an extension to the Department. If the local government fails to provide for an audit in accordance with the provisions

of this section, the Department of Taxation shall cause the audit to be made at the

expense of the local government. All audits must be conducted by a certified public accountant or by a partnership

or professional corporation that is registered pursuant to chapter 628 of NRS . 2. The annual audit of a school district must: (a) Be concluded and the report submitted to the board of trustees as provided in

subsection 6 not later than 4 months after the close of the fiscal year for which

the audit is conducted. (b) If the school district has more than 150,000 pupils enrolled, include an audit

of the expenditure by the school district of public money used: (1) To design, construct or purchase new buildings for schools or related facilities; (2) To enlarge, remodel or renovate existing buildings for schools or related facilities;

and (3) To acquire sites for building schools or related facilities, or other real property

for purposes related to schools. 3. The governing body may, without requiring competitive bids, designate the auditor

or firm annually. The auditor or firm must be designated, and notification of the auditor or firm

designated must be sent to the Department of Taxation not later than 3 months before

the close of the fiscal year for which the audit is to be made. 4. Each annual audit must cover the business of the local government during the full

fiscal year. It must be a financial audit conducted in accordance with generally accepted auditing

standards in the United States, including findings on compliance with statutes and

regulations and an expression of opinion on the financial statements. The Department of Taxation shall prescribe the form of the financial statements,

and the chart of accounts must be as nearly as possible the same as the chart that

is used in the preparation and publication of the annual budget. The report of the audit must include: (a) A schedule of all fees imposed by the local government which were subject to the

provisions of NRS 354.5989 ; (b) A comparison of the operations of the local government with the approved budget,

including a statement from the auditor that indicates whether the governing body has

taken action on the audit report for the prior year; (c) If the local government is subject to the provisions of NRS 244.186 , a report showing that the local government is in compliance with the provisions

of paragraphs (a) and (b) of subsection 1 of NRS 244.186 ; and (d) If the local government is subject to the provisions of NRS 710.140 or 710.145 , a report showing that the local government is in compliance with the provisions

of those sections with regard to the facilities and property it maintains and the

services it provides outside its territorial boundaries. 5. Each local government shall provide to its auditor: (a) A statement indicating whether each of the following funds established by the

local government is being used expressly for the purposes for which it was created,

in the form required by NRS 354.6241 : (1) An enterprise fund. (2) An internal service fund. (3) A fiduciary fund. (4) A self-insurance fund. (5) A fund whose balance is required by law to be: (I) Used only for a specific purpose other than the payment of compensation to a bargaining

unit, as defined in NRS 288.134 ; or (II) Carried forward to the succeeding fiscal year in any designated amount. (b) A list and description of any property conveyed to a nonprofit organization pursuant

to NRS 244.287 or 268.058 . (c) If the local government is subject to the provisions of NRS 244.186 , a declaration indicating that the local government is in compliance with the provisions

of paragraph (c) of subsection 1 of NRS 244.186 . (d) If the local government is subject to the provisions of NRS 710.140 or 710.145 , a declaration indicating that the local government is in compliance with the provisions

of those sections with regard to the facilities and property it maintains and the

services it provides outside its territorial boundaries. 6. The opinion and findings of the auditor contained in the report of the audit must

be presented at a meeting of the governing body held not more than 30 days after the

report is submitted to it. Immediately thereafter, the entire report, together with the management letter required

by generally accepted auditing standards in the United States or by regulations adopted

pursuant to NRS 354.594 , must be filed as a public record with: (a) The clerk or secretary of the governing body; (b) The county clerk; (c) The Department of Taxation; and (d) In the case of a school district, the Department of Education. 7. After the report of the audit is filed by the local government, the report of the

audit, including, without limitation, the opinion and findings of the auditor contained

in the report of the audit, may be disseminated by or on behalf of the local government

for which the report was prepared by inclusion, without limitation, in or on: (a) An official statement or other document prepared in connection with the offering

of bonds or other securities; (b) A filing made pursuant to the laws or regulations of this State; (c) A filing made pursuant to a rule or regulation of the Securities and Exchange

Commission of the United States; or (d) A website maintained by a local government on the Internet or its successor, without the consent of the auditor who prepared the report of the audit. A provision of a contract entered into between an auditor and a local government

that is contrary to the provisions of this subsection is against the public policy

of this State and is void and unenforceable. 8. If an auditor finds evidence of fraud or dishonesty in the financial statements

of a local government, the auditor shall report such evidence to the appropriate level

of management in the local government. 9. The governing body shall act upon the recommendations of the report of the audit

within 3 months after receipt of the report, unless prompter action is required concerning

violations of law or regulation, by setting forth in its minutes its intention to

adopt the recommendations, to adopt them with modifications or to reject them for

reasons shown in the minutes.