Nev. Admin. Code § 354.719

Current through June 11, 2024

Section 354.719 - Contents of audit report: Discussion and analysis of financial condition; exemption from requirement to submit plan of corrective action; appeals

1. Except as otherwise provided in this section, in providing for an annual audit of all its financial statements as required pursuant to NRS 354.624, a local government shall include a discussion and analysis of:

(a) The financial activities and financial position of the local government, including, without limitation, the reasons for any variations in the financial activities and financial position of the local government from the financial assets and financial position of the local government during the immediately preceding fiscal year;

(b) The condition of the capital assets of the local government; and

(c) Any currently known facts, decisions or conditions that are expected to affect the financial condition of the local government.

2. The Department may allow a local government to omit the discussion and analysis described in subsection 1 from the annual audit of all its financial statements as required pursuant to NRS NRS 354.624 if the local government:

(a) Reasonably anticipates that its actual annual expenditures for the immediately succeeding fiscal year will be less than $1,000,000;

(b) Is not a component of another local government; and

(c) Shows to the satisfaction of the Department that the completion of the discussion and analysis described in subsection 1 would impose a hardship on the local government.

3. The Department shall not require a local government which receives approval, pursuant to subsection 2, to omit the discussion and analysis described in subsection 1 to submit a plan of corrective action if the local government receives a qualified opinion from the person who conducts the annual audit and the qualified opinion is only a result of the local government omitting the discussion and analysis described in subsection 1.

4. A local government may appeal a decision of the Department made pursuant to this section to the Committee.

Nev. Admin. Code § 354.719

Added to NAC by Com. on Local Gov't Finance by R072-05, eff. 2-23-2006

NRS 354.107, 354.594, 354.624