[Rev. 11/21/2013 10:13:03 AM--2013]

CHAPTER 218G - LEGISLATIVE AUDITS

GENERAL PROVISIONS

NRS 218G.010        Legislative declaration.

NRS 218G.030        “Agency of the State” defined.

AUDIT DIVISION

NRS 218G.100        Qualifications of Legislative Auditor.

NRS 218G.110        General powers and duties; standards for audits.

NRS 218G.120        Performance of regular and special audits and investigations.

NRS 218G.130        Retention of audit reports and other documents; confidentiality and destruction of working papers from audits; exceptions.

NRS 218G.140        Duty to report improper practices, inadequacy of fiscal records or illegal transactions found in course of audit.

NRS 218G.150        Duties following report of inadequacy of fiscal records.

NRS 218G.160        Biennial report to Legislature and Governor.

AUDITS OF STATE AGENCIES

NRS 218G.200        Audits of state agencies required; duty of agency personnel to assist in audit.

NRS 218G.210        Duty of agency personnel to make all information available; duty extends to confidential information; exceptions.

NRS 218G.220        Duty of State Controller and agency personnel to submit financial statements.

NRS 218G.230        Discussion of preliminary report with audited agency; inclusion of agency’s explanation or rebuttal in final report; presentation and distribution of final report when Legislature in regular session.

NRS 218G.240        Presentation and distribution of final report to Legislative Commission; adoption of additional procedures; restrictions on disclosure before presentation.

NRS 218G.250        Notice to agency of acceptance of final report; submission of plan for corrective action.

NRS 218G.260        Order to withhold appropriated money from agency for failure to submit or comply with plan for corrective action.

NRS 218G.270        Report on agency’s implementation of recommendations made by Legislative Auditor; review of report.

AUDITS OF STATE AGENCIES AWARDED FEDERAL GRANTS

NRS 218G.330        Arrangements with Legislative Auditor to conduct audit; payment of cost of audit; creation and purpose of Audit Contingency Account.

NRS 218G.340        Certain audits may be conducted by Legislative Auditor or private firms; procedure for evaluating qualifications of firms; combining of audits to obtain services from single source.

NRS 218G.350        Selection of private firms; execution of contract; oversight; performance of audit; submission, presentation and distribution of report.

AUDITS OF CERTAIN STATE BOARDS

NRS 218G.400        Certain regulatory boards required to prepare balance sheets or have professional audit conducted; payment of cost of audit; audits by Legislative Auditor; remedies and penalties for violations.

AUDITS OF CERTAIN NON-STATE ENTITIES

NRS 218G.450        Special audits required of non-state entities which receive public money; duty of entity to make all information available; duty extends to confidential information.

AUDITS AND REVIEWS OF CERTAIN ENTITIES WHICH PROVIDE SERVICES FOR CHILDREN

General Provisions

NRS 218G.500        Definitions.

NRS 218G.505        “Abuse or neglect of a child” defined.

NRS 218G.510        “Agency which provides child welfare services” defined.

NRS 218G.515        “Family foster home” defined.

NRS 218G.520        “Governmental facility for children” defined.

NRS 218G.525        “Group foster home” defined.

NRS 218G.530        “Near fatality” defined.

NRS 218G.535        “Private facility for children” defined.

 

Child Welfare Agencies

NRS 218G.550        Duty of agency to notify Legislative Auditor of cases involving fatality or near fatality of child; review of agency’s handling of case; duty of agency to cooperate with review.

NRS 218G.555        Disclosure of certain information by Legislative Auditor regarding child’s case; conditions and limitations on disclosure.

 

Facilities Having Physical Custody of Children

NRS 218G.570        Performance audits of governmental facilities for children.

NRS 218G.575        Inspection, review and survey of governmental facilities for children and private facilities for children.

NRS 218G.580        Scope of inspection, review and survey.

NRS 218G.585        Duty of facilities to cooperate with inspection, review and survey.

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GENERAL PROVISIONS

      NRS 218G.010  Legislative declaration.  The intent of this chapter is to provide for the impartial postauditing of each agency of the State to furnish the Legislature with factual information necessary to the discharge of its constitutional duties and by which it may exercise its valid powers.

      (Added to NRS by 1965, 1462; A 1973, 1661; 1977, 753; 1985, 851; 1987, 961)—(Substituted in revision for NRS 218.767)

      NRS 218G.030  “Agency of the State” defined.  As used in this chapter, unless the context otherwise requires, “agency of the State” includes all offices, departments, boards, commissions and institutions of the Executive Department and the Judicial Department, but does not include the Legislative Department.

      (Added to NRS by 1987, 959; A 1999, 1806; 2007, 613; 2011, 3247)—(Substituted in revision for NRS 218.737)

AUDIT DIVISION

      NRS 218G.100  Qualifications of Legislative Auditor.  The Legislative Auditor shall:

      1.  Be a certified public accountant or public accountant qualified to practice public accounting under the provisions of chapter 628 of NRS.

      2.  Have 5 years of progressively responsible experience in governmental accounting and auditing.

      3.  Have a comprehensive knowledge of the principles and practices of public budgeting, governmental accounting, finance and auditing standards.

      4.  Have a working knowledge of statistical methods and other techniques of scientific operational analysis.

      [5:205:1949; 1943 NCL § 7345.05]—(NRS A 1963, 1016; 1973, 1661; 1977, 753)—(Substituted in revision for NRS 218.740)

      NRS 218G.110  General powers and duties; standards for audits.

      1.  The Legislative Auditor shall:

      (a) Perform postaudits as provided by law;

      (b) Establish procedures, methods and standards of auditing for the Audit Division;

      (c) Recommend to the Legislature the enactment or amendment of statutes based upon the results of the postaudit; and

      (d) Perform such other functions as may be assigned by the Legislature, the Legislative Commission or the Director.

      2.  The Legislative Auditor may:

      (a) Within budgetary limitations, contract for the services of consultants or other professional or technical personnel as the Legislative Auditor’s duty to perform postaudits may require, or to conduct a review of the operation of the Legislative Auditor’s office, and fix their fees in an amount which is reasonable and customary for such services; and

      (b) With the approval of the Legislative Commission, contract with federal agencies or state departments to perform audits required by federal or state law, if the Division may be reimbursed for such audits. Any money received by the Division for such audits must be deposited in the State Treasury to the credit of the Legislative Fund.

      3.  A postaudit must be conducted in accordance with generally accepted standards for governmental and other audits.

      [6:205:1949; A 1955, 123]—(NRS A 1957, 368; 1963, 1017; 1965, 1456; 1969, 131; 1971, 1548; 1973, 1661; 1977, 41, 754; 1985, 851; 1989, 1494; 2011, 3247)—(Substituted in revision for NRS 218.770)

      NRS 218G.120  Performance of regular and special audits and investigations.

      1.  Each of the audits provided for in chapters 218A to 218H, inclusive, of NRS must be made and concluded as directed by the Legislative Commission and in accordance with the terms of this chapter.

      2.  The Legislative Commission shall direct the Legislative Auditor to make any special audit or investigation that in its judgment is proper and necessary to carry out the purpose of chapters 218A to 218H, inclusive, of NRS or to assist the Legislature in the proper discharge of its duties.

      [13:205:1949; 1943 NCL § 7345.13]—(NRS A 1963, 1020; 1965, 1459; 1969, 134; 1973, 1664; 1985, 854; 2007, 614)—(Substituted in revision for NRS 218.850)

      NRS 218G.130  Retention of audit reports and other documents; confidentiality and destruction of working papers from audits; exceptions.

      1.  The Legislative Auditor shall keep or cause to be kept a complete file of copies of all reports of audits, examinations, investigations and all other reports or releases issued by the Legislative Auditor.

      2.  All working papers from an audit are confidential and may be destroyed by the Legislative Auditor 5 years after the report is issued, except that the Legislative Auditor:

      (a) Shall release such working papers when subpoenaed by a court or when required to do so pursuant to NRS 239.0115; or

      (b) May make such working papers available for inspection by an authorized representative of any other governmental entity for a matter officially before the authorized representative or by any other person authorized by the Legislative Commission.

      [16:205:1949; 1943 NCL § 7345.16]—(NRS A 1963, 1021; 1969, 497; 1973, 1664; 1977, 6; 1979, 291; 1985, 854; 2007, 2080)—(Substituted in revision for NRS 218.870)

      NRS 218G.140  Duty to report improper practices, inadequacy of fiscal records or illegal transactions found in course of audit.

      1.  If the Legislative Auditor finds, in the course of an audit, evidence of improper practices of financial administration or inadequacy of fiscal records, the Legislative Auditor shall report these practices immediately to the Governor, each Legislator and the head of the agency affected.

      2.  If the Legislative Auditor finds evidence of illegal transactions, the Legislative Auditor shall forthwith report these transactions to the Governor, each Legislator and the Attorney General.

      [17:205:1949; 1943 NCL § 7345.17]—(NRS A 1963, 1021; 1965, 1459; 1973, 1665; 1981, 157; 1985, 855; 2011, 3247)—(Substituted in revision for NRS 218.880)

      NRS 218G.150  Duties following report of inadequacy of fiscal records.

      1.  Immediately upon receipt of a report from the Legislative Auditor of inadequacy of fiscal records, the Legislative Commission shall review the Legislative Auditor’s report and hold hearings with the department head or heads concerning such inadequacy of fiscal records.

      2.  The Legislative Commission, after holding such hearings, shall make a report to the department head or heads requesting the installation of the necessary fiscal records.

      3.  The Legislative Commission shall report to the Legislature any refusal of the department officials to install proper fiscal records.

      [18:205:1949; 1943 NCL § 7345.18]—(NRS A 1963, 1021; 1965, 1459; 1973, 1665)—(Substituted in revision for NRS 218.890)

      NRS 218G.160  Biennial report to Legislature and Governor.

      1.  The Legislative Auditor shall prepare a biennial report for the Governor and Legislators and submit the report before December 31 of each even-numbered year. Copies of the report must be filed in the Office of the Secretary of State.

      2.  The biennial report must contain, among other things:

      (a) Copies of, or the substance of, reports made to the various agencies of the State and a summary of changes made in the system of accounts and records thereof;

      (b) A list of those agencies on which audit reports were issued during the biennium which had not carried out a system of internal accounting and administrative control pursuant to NRS 353A.020; and

      (c) Specific recommendations to the Legislature for the amendment of existing laws or the enactment of new laws designed to improve the functioning of the agencies of the State.

      [11:205:1949; 1943 NCL § 7345.11]—(NRS A 1963, 1020; 1969, 134; 1973, 312, 1664; 1985, 854; 1987, 2055; 2011, 3247)—(Substituted in revision for NRS 218.830)

AUDITS OF STATE AGENCIES

      NRS 218G.200  Audits of state agencies required; duty of agency personnel to assist in audit.

      1.  The Legislative Auditor shall perform a postaudit of all accounts, funds and other records of all agencies of the State to determine one or any combination of the following:

      (a) Whether the financial statements of the audited agency comply with generally accepted principles of accounting.

      (b) The honesty and integrity of fiscal affairs, the accuracy and reliability of information and reports, and the effectiveness of the system of management controls of the audited agency.

      (c) Compliance with all applicable laws and regulations.

      (d) Whether the operations of the agency of the State have been conducted in accordance with its contractual obligations.

      (e) Whether control by management and the system of information provide an adequate and efficient system of records and accounting.

      2.  Every officer and employee of an agency of the State shall aid and assist the Legislative Auditor at such times as the Legislative Auditor requires in the inspection, examination and audit of any books, accounts and records in their possession.

      (Added to NRS by 1977, 755; A 1985, 852; 1995, 1109)—(Substituted in revision for NRS 218.775)

      NRS 218G.210  Duty of agency personnel to make all information available; duty extends to confidential information; exceptions.

      1.  Except as provided in subsection 2, upon the request of the Legislative Auditor or the Legislative Auditor’s authorized representative, all officers and employees of the agencies of the State shall make available to the Legislative Auditor all their books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, necessary, irrespective of their form or location in performing authorized audits or investigations.

      2.  This section does not authorize the Legislative Auditor or authorized representative to have access to any books, accounts, claims, reports, vouchers or other records or information of any business or activity which NRS 665.130 and 668.085 require to be kept confidential.

      [7:205:1949; A 1953, 171]—(NRS A 1963, 1018; 1965, 1457; 1973, 1847; 1985, 852, 2155)—(Substituted in revision for NRS 218.780)

      NRS 218G.220  Duty of State Controller and agency personnel to submit financial statements.  The State Controller or the head of any agency of the State, and any employee or agent thereof, acting by, for or on account of such agency or officer receiving, paying or otherwise controlling any public money in the State of Nevada, in whole or in part, whether the money is provided by the State of Nevada, received from the Federal Government of the United States or any branch, bureau or agency thereof, or received from private or other source, shall submit to the Legislative Auditor, upon the Legislative Auditor’s request, the appropriate financial statement prepared pursuant to generally accepted accounting principles for the period designated by the Legislative Auditor.

      [10a:205:1949; added 1953, 171]—(NRS A 1963, 1019; 1973, 1663; 1977, 43; 1985, 853)—(Substituted in revision for NRS 218.820)

      NRS 218G.230  Discussion of preliminary report with audited agency; inclusion of agency’s explanation or rebuttal in final report; presentation and distribution of final report when Legislature in regular session.

      1.  The Legislative Auditor or the Legislative Auditor’s authorized representative shall furnish a copy of the preliminary report of the audit to the head of the audited agency and discuss the report with the head of the agency. The head of the agency shall submit to the Legislative Auditor, within 10 days after the discussion, a written statement of explanation or rebuttal concerning any of the findings, and the Legislative Auditor shall include in the final report the officer’s explanation or rebuttal to any of the findings contained in the final report.

      2.  When the Legislature is in a regular session, the Legislative Auditor shall notify the Chair of the Legislative Commission or the Chair of the Audit Subcommittee, immediately following this 10-day period, that an audit report is ready for presentation to the Legislative Commission.

      3.  If, within 5 days after notification, the Chair of the Legislative Commission does not call a meeting of the Legislative Commission or the Chair of the Audit Subcommittee does not call a meeting of the Audit Subcommittee, the Legislative Auditor shall distribute the report and any statement received from the agency to each Legislator.

      (Added to NRS by 1977, 756; A 1981, 156; 1983, 160; 1985, 853; 2011, 3248)—(Substituted in revision for NRS 218.821)

      NRS 218G.240  Presentation and distribution of final report to Legislative Commission; adoption of additional procedures; restrictions on disclosure before presentation.

      1.  The Legislative Auditor shall present a final written report of each audit to the Legislative Commission and furnish copies to all Legislators, other appropriate state officers and the head of the agency audited.

      2.  The Legislative Commission may by regulation provide for the:

      (a) Presentation of the final written report of each audit to the Audit Subcommittee before the report is presented to the Legislative Commission.

      (b) Distribution of copies of the final written report of an audit to each member of the Legislative Commission or Audit Subcommittee, or both, before the report is presented to the Legislative Commission.

      (c) Distribution of copies of the final written report or a summary of the final report to all Legislators, other appropriate state officers and the head of the agency audited after the final report is presented to the Audit Subcommittee.

      3.  Except as otherwise provided by chapters 218A to 218H, inclusive, of NRS, the Legislative Auditor shall not disclose the content of any audit before it is presented to the:

      (a) Audit Subcommittee, if the final written report is presented to the Audit Subcommittee pursuant to regulations adopted by the Legislative Commission.

      (b) Legislative Commission, if the final written report is not presented to the Audit Subcommittee pursuant to regulations adopted by the Legislative Commission.

      (Added to NRS by 1977, 756; A 1989, 264; 1991, 393; 2011, 3248)—(Substituted in revision for NRS 218.823)

      NRS 218G.250  Notice to agency of acceptance of final report; submission of plan for corrective action.

      1.  The Legislative Commission or the Audit Subcommittee shall notify an agency of the State of its acceptance of a final written report of an audit by the Legislative Auditor that concerns the agency and contains any recommendations for corrective action. Within 60 working days after the receipt of notification, if corrective action is recommended for:

      (a) The Judicial Department, the Court Administrator shall submit a plan for corrective action to the Legislative Auditor and a copy of the plan to the Director of the Department of Administration.

      (b) An elected officer of the State, the officer shall submit a plan for corrective action to the Legislative Auditor and a copy of the plan to the Director of the Department of Administration.

      (c) Any other agency of the State, the agency shall submit a plan for corrective action to the Director of the Department of Administration and a copy of the plan to the Legislative Auditor. The agency shall commence corrective action pursuant to the plan immediately after its submission.

      2.  The Legislative Auditor shall notify the:

      (a) Audit Subcommittee, if the final written report was first presented to the Audit Subcommittee pursuant to regulations adopted by the Legislative Commission; or

      (b) Legislative Commission, if the final written report was first presented to the Legislative Commission,

Ê of any failure to submit a plan pursuant to subsection 1.

      (Added to NRS by 1987, 959; A 1991, 393; 2011, 3249)—(Substituted in revision for NRS 218.8235)

      NRS 218G.260  Order to withhold appropriated money from agency for failure to submit or comply with plan for corrective action.

      1.  The Director of the Department of Administration shall enforce the provisions of paragraph (c) of subsection 1 of NRS 218G.250.

      2.  The Director of the Department of Administration may, if the Director determines that such an order is necessary and in the public interest, order the withholding of any portion of the money appropriated to an agency, including the salary of an officer of the agency in the unclassified service of the State, for the failure or refusal to submit or perform pursuant to a plan for corrective action.

      3.  An order to withhold money must not be entered except upon a hearing following reasonable notice to an affected agency of the State.

      4.  The Director of the Department of Administration shall notify the Interim Finance Committee and the State Controller of the amount of money ordered to be withheld, and the State Controller shall not allow or draw a warrant for that amount unless the order is cancelled or withdrawn.

      (Added to NRS by 1987, 960)—(Substituted in revision for NRS 218.824)

      NRS 218G.270  Report on agency’s implementation of recommendations made by Legislative Auditor; review of report.

      1.  Each person who submits a plan pursuant to paragraph (a) or (b) of subsection 1 of NRS 218G.250 shall, within 6 months after submission of the plan, submit to the Legislative Auditor a report specifying the extent to which the recommendations of the Legislative Auditor have been carried out, the extent to which the recommendations have not been carried out and the reasons for any failure to carry out the recommendations.

      2.  The Director of the Department of Administration shall, within 6 months after the period for submission of plans pursuant to paragraph (c) of subsection 1 of NRS 218G.250, submit to the Legislative Auditor a report specifying the extent to which the recommendations of the Legislative Auditor have been carried out, the extent to which the recommendations have not been carried out and the reasons for any failure to carry out the recommendations.

      3.  The Legislative Auditor shall submit each report received pursuant to subsections 1 and 2 to the Legislative Commission and the Interim Finance Committee. If the Legislature is in a regular session, the Legislative Auditor shall also submit the reports to each member of the Assembly Standing Committee on Ways and Means and the Senate Standing Committee on Finance. The Legislative Commission may review the reports, conduct hearings to examine any justification for a failure to carry out the recommendations of the Legislative Auditor and report its findings to the Legislature.

      4.  The Legislative Auditor shall notify the:

      (a) Audit Subcommittee, if so authorized by regulations adopted by the Legislative Commission; or

      (b) Legislative Commission,

Ê of any failure to submit a report pursuant to subsection 1 or 2.

      5.  The Legislative Commission may by regulation:

      (a) Provide that reports received by the Legislative Auditor pursuant to subsections 1 and 2 must be submitted to the Audit Subcommittee before they are submitted to the Legislative Commission.

      (b) Authorize the Audit Subcommittee to:

             (1) Review the reports;

             (2) Conduct hearings to examine any justification for a failure to carry out the recommendations of the Legislative Auditor; and

             (3) Report its findings to the Legislative Commission.

      (Added to NRS by 1987, 960; A 1989, 264; 1991, 394; 2011, 3249)—(Substituted in revision for NRS 218.8245)

AUDITS OF STATE AGENCIES AWARDED FEDERAL GRANTS

      NRS 218G.330  Arrangements with Legislative Auditor to conduct audit; payment of cost of audit; creation and purpose of Audit Contingency Account.

      1.  Each state agency which is awarded a federal grant, a condition of which is the requirement that an audit be conducted to ensure compliance with federal regulations, shall arrange with the Legislative Auditor for the conducting of the audit and remit to the Legislative Auditor, upon the Legislative Auditor’s request, a sum fixed by the Legislative Auditor which approximates the cost of the audit. That amount may later be adjusted to the actual cost of the audit. The amount of the cost of the audit which the state agency does not contribute must be paid from the Audit Contingency Account which is hereby created in the Legislative Fund.

      2.  If a single audit is required to be conducted pursuant to 31 U.S.C. § 7502, the Department of Administration shall arrange with the Legislative Auditor for the conducting of the single audit and remit to the Legislative Auditor, upon the Legislative Auditor’s request, a sum fixed by the Legislative Auditor which approximates the cost of the audit applicable to the additional federal audit requirements. That cost may later be adjusted to the actual cost of the audit. The costs of the single audit may be included in the statewide cost allocation plan prepared pursuant to NRS 353.331.

      3.  The Legislative Auditor shall deposit any sum remitted pursuant to subsections 1 and 2 with the State Treasurer for credit to the Audit Contingency Account in the Legislative Fund. Expenditures from the Account may be made only to pay the cost of audits described in subsections 1 and 2. All vouchers for expenses must be approved by the Legislative Auditor and paid as other claims against the Legislative Fund are paid.

      (Added to NRS by 1981, 1176; A 1983, 161; 1997, 106)—(Substituted in revision for NRS 218.891)

      NRS 218G.340  Certain audits may be conducted by Legislative Auditor or private firms; procedure for evaluating qualifications of firms; combining of audits to obtain services from single source.

      1.  The Audit Subcommittee may require the Legislative Auditor to conduct, or may choose to contract with a qualified accounting firm to perform, an audit which is a prerequisite to the award of a grant from the Federal Government to a state agency.

      2.  The Legislative Auditor shall keep a list of firms qualified and willing to perform this kind of audit. Firms desiring to be included on the list must annually submit to the Legislative Auditor statements of qualifications and data relating to the performance of the firm, including relevant information regarding any consultants used or to be used by the firm.

      3.  When the Audit Subcommittee chooses to contract with a firm to perform an audit, the Legislative Auditor shall evaluate the data on file for each firm, together with any statements which firms may submit regarding the proposed audit and any other pertinent information. The Legislative Auditor shall prepare a list of not fewer than three firms which, in the judgment of the Legislative Auditor, are qualified to perform the proposed audit. The Legislative Auditor shall submit the list to the Audit Subcommittee.

      4.  Two or more separate audits may be combined by the Audit Subcommittee to obtain auditing services from a single source. Audits combined in this manner shall be deemed a single audit for purposes of compliance with NRS 218G.330, 218G.340 and 218G.350.

      (Added to NRS by 1981, 1177; A 1983, 161)—(Substituted in revision for NRS 218.892)

      NRS 218G.350  Selection of private firms; execution of contract; oversight; performance of audit; submission, presentation and distribution of report.

      1.  The Audit Subcommittee shall confer with the Legislative Auditor to establish standards of performance to be required of a firm chosen to perform an audit. The Audit Subcommittee shall conduct negotiations with each of the firms recommended for consideration by the Legislative Auditor and shall select the firm or firms which, in the judgment of the Audit Subcommittee, are best qualified to meet the standards of performance established. During the negotiations and in making its selection, the Audit Subcommittee shall consider:

      (a) The competency of the firms being considered;

      (b) The estimated cost of the services required to conduct the audit; and

      (c) The scope and complexity of the services required.

      2.  Each contract for an audit must be signed by the Legislative Auditor and an authorized representative of the firm selected to perform the audit. The Legislative Auditor shall periodically inspect the performance of the firm performing the audit to ensure that the terms of the contract are being complied with.

      3.  Except as otherwise provided in this section and NRS 218G.330 and 218G.340, the officers and employees of a firm performing an audit shall keep information disclosed by an audit in strict confidence and shall not disclose the contents of an audit before it is presented to the Audit Subcommittee or submitted to the appropriate federal agency or an entity designated by the federal agency. The officers and employees of the firm have the same rights of access to books, accounts, records, files, correspondence or other documents that the Legislative Auditor has.

      4.  At the conclusion of the audit, the firm or firms which have performed the audit shall submit a written report of the audit to the Legislative Auditor. The Legislative Auditor shall follow the procedures set forth in NRS 218G.230, concerning preliminary audit reports and shall attend, or have a member of the Legislative Auditor’s staff attend, the discussion held pursuant to that section.

      5.  The Legislative Commission may by regulation provide for the distribution of copies of the written report submitted to the Legislative Auditor pursuant to subsection 4, to each member of the Audit Subcommittee before the report is presented to the Audit Subcommittee pursuant to subsection 6.

      6.  The Legislative Auditor shall present the final audit report to the Audit Subcommittee and thereafter distribute the report or a summary of the report to Legislators, other appropriate state officers and the head of the agency audited. If federal law requires the Legislative Auditor to submit the final audit report to a federal agency or an entity designated by the federal agency, the Legislative Auditor may submit the report to the federal agency or entity before the Legislative Auditor presents it to the Audit Subcommittee.

      (Added to NRS by 1981, 1177; A 1983, 162; 1991, 394; 1997, 107; 2011, 3250)—(Substituted in revision for NRS 218.893)

AUDITS OF CERTAIN STATE BOARDS

      NRS 218G.400  Certain regulatory boards required to prepare balance sheets or have professional audit conducted; payment of cost of audit; audits by Legislative Auditor; remedies and penalties for violations.

      1.  Except as otherwise provided in subsection 2, each board created by the provisions of NRS 590.485 and chapters 623 to 625A, inclusive, 628, 630 to 644, inclusive, 648, 654 and 656 of NRS shall:

      (a) If the revenue of the board from all sources is less than $75,000 for any fiscal year and, if the board is a regulatory body pursuant to NRS 622.060, the board has submitted to the Director of the Legislative Counsel Bureau for each quarter of that fiscal year the information required by NRS 622.100, prepare a balance sheet for that fiscal year on the form provided by the Legislative Auditor and file the balance sheet with the Legislative Auditor and the Chief of the Budget Division of the Department of Administration on or before December 1 following the end of that fiscal year. The Legislative Auditor shall prepare and make available a form that must be used by a board to prepare such a balance sheet.

      (b) If the revenue of the board from all sources is $75,000 or more for any fiscal year, or if the board is a regulatory body pursuant to NRS 622.060 and has failed to submit to the Director of the Legislative Counsel Bureau for each quarter of that fiscal year the information required by NRS 622.100, engage the services of a certified public accountant or public accountant, or firm of either of such accountants, to audit all its fiscal records for that fiscal year and file a report of the audit with the Legislative Auditor and the Chief of the Budget Division of the Department of Administration on or before December 1 following the end of that fiscal year.

      2.  In lieu of preparing a balance sheet or having an audit conducted for a single fiscal year, a board may engage the services of a certified public accountant or public accountant, or firm of either of such accountants, to audit all its fiscal records for a period covering two successive fiscal years. If such an audit is conducted, the board shall file the report of the audit with the Legislative Auditor and the Chief of the Budget Division of the Department of Administration on or before December 1 following the end of the second fiscal year.

      3.  The cost of each audit conducted pursuant to subsection 1 or 2 must be paid by the board that is audited. Each such audit must be conducted in accordance with generally accepted auditing standards, and all financial statements must be prepared in accordance with generally accepted principles of accounting for special revenue funds.

      4.  Whether or not a board is required to have its fiscal records audited pursuant to subsection 1 or 2, the Legislative Auditor shall audit the fiscal records of any such board whenever directed to do so by the Legislative Commission. When the Legislative Commission directs such an audit, the Legislative Commission shall also determine who is to pay the cost of the audit.

      5.  A person who is a state officer or employee of a board is guilty of nonfeasance if the person:

      (a) Is responsible for preparing a balance sheet or having an audit conducted pursuant to this section or is responsible for preparing or maintaining the fiscal records that are necessary to prepare a balance sheet or have an audit conducted pursuant to this section; and

      (b) Knowingly fails to prepare the balance sheet or have the audit conducted pursuant to this section or knowingly fails to prepare or maintain the fiscal records that are necessary to prepare a balance sheet or have an audit conducted pursuant to this section.

      6.  In addition to any other remedy or penalty, a person who is guilty of nonfeasance pursuant to this section forfeits the person’s state office or employment and may not be appointed to a state office or position of state employment for a period of 2 years following the forfeiture. The provisions of this subsection do not apply to a state officer who may be removed from office only by impeachment pursuant to Article 7 of the Nevada Constitution.

      (Added to NRS by 1963, 143; A 1963, 1009; 1967, 931; 1969, 133; 1973, 1663; 1975, 113, 1470; 1977, 130, 1178; 1983, 192, 1492; 1985, 853; 1987, 1161; 1991, 992; 1999, 3063; 2003, 907, 1200, 2078; 2005, 1133; 2013, 73)—(Substituted in revision for NRS 218.825)

AUDITS OF CERTAIN NON-STATE ENTITIES

      NRS 218G.450  Special audits required of non-state entities which receive public money; duty of entity to make all information available; duty extends to confidential information.

      1.  The Legislative Auditor, as directed by the Legislative Commission pursuant to NRS 218G.120, shall conduct a special audit of an entity which is not an agency of this State but which receives an appropriation of public money during any fiscal year. Such an audit must, without limitation, examine the use of the public money received by the entity.

      2.  As a condition of the acceptance of any appropriation of public money, an entity which is not an agency of this State must agree to make available to the Legislative Auditor all books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise and irrespective of their form or location, that the Legislative Auditor determines to be necessary to conduct an audit pursuant to this section.

      (Added to NRS by 2007, 613)—(Substituted in revision for NRS 218.855)

AUDITS AND REVIEWS OF CERTAIN ENTITIES WHICH PROVIDE SERVICES FOR CHILDREN

General Provisions

      NRS 218G.500  Definitions.  As used in NRS 218G.500 to 218G.585, inclusive, unless the context otherwise requires, the words and terms defined in NRS 218G.505 to 218G.535, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2007, 198; A 2009, 4)—(Substituted in revision for NRS 218.862)

      NRS 218G.505  “Abuse or neglect of a child” defined.  “Abuse or neglect of a child” has the meaning ascribed to it in NRS 432B.020.

      (Added to NRS by 2007, 198)—(Substituted in revision for NRS 218.863)

      NRS 218G.510  “Agency which provides child welfare services” defined.  “Agency which provides child welfare services” has the meaning ascribed to it in NRS 432B.030.

      (Added to NRS by 2007, 198)—(Substituted in revision for NRS 218.864)

      NRS 218G.515  “Family foster home” defined.  “Family foster home” has the meaning ascribed to it in NRS 424.013.

      (Added to NRS by 2009, 2)

      NRS 218G.520  “Governmental facility for children” defined.

      1.  “Governmental facility for children” means any facility, detention center, treatment center, hospital, institution, group shelter or other establishment which is owned or operated by a governmental entity and which has physical custody of children pursuant to the order of a court.

      2.  The term does not include any facility, detention center, treatment center, hospital, institution, group shelter or other establishment which is licensed as a family foster home or group foster home, except one which provides emergency shelter care or which is capable of handling children who require special care for physical, mental or emotional reasons.

      (Added to NRS by 2009, 2)

      NRS 218G.525  “Group foster home” defined.  “Group foster home” has the meaning ascribed to it in NRS 424.015.

      (Added to NRS by 2009, 2)

      NRS 218G.530  “Near fatality” defined.  “Near fatality” means an act that places a child in serious or critical condition as verified orally or in writing by a physician, a registered nurse or other licensed provider of health care. Such verification may be given in person or by telephone, mail, electronic mail or facsimile.

      (Added to NRS by 2007, 198)—(Substituted in revision for NRS 218.865)

      NRS 218G.535  “Private facility for children” defined.

      1.  “Private facility for children” means any facility, detention center, treatment center, hospital, institution, group shelter or other establishment which is owned or operated by a person and which has physical custody of children pursuant to the order of a court.

      2.  The term does not include any facility, detention center, treatment center, hospital, institution, group shelter or other establishment which is licensed as a family foster home or group foster home, except one which provides emergency shelter care or which is capable of handling children who require special care for physical, mental or emotional reasons.

      (Added to NRS by 2009, 2)

Child Welfare Agencies

      NRS 218G.550  Duty of agency to notify Legislative Auditor of cases involving fatality or near fatality of child; review of agency’s handling of case; duty of agency to cooperate with review.

      1.  Any time that a child who has had contact with, or who has been in the custody of, an agency which provides child welfare services suffers a fatality or a near fatality, the agency which provides child welfare services shall notify the Legislative Auditor or the Legislative Auditor’s designee and shall forward to the Legislative Auditor or designee as soon as possible any files, notes, information and records which the agency has concerning the child, the manner in which the case was handled, any services that were provided to the child or the family of the child and any other relevant information.

      2.  The Legislative Auditor or designee shall review the information obtained pursuant to subsection 1 to determine whether the case was handled in a manner which is consistent with state and federal law and to determine whether any measures, procedures or protocols could have assisted in preventing the fatality or near fatality.

      3.  Each agency which provides child welfare services shall:

      (a) Cooperate fully with the Legislative Auditor or designee;

      (b) Provide the Legislative Auditor or designee with any data, reports or information concerning a report or investigation of the abuse or neglect of a child and the response by the agency; and

      (c) Allow the Legislative Auditor to inspect, review and copy any records, reports and other documents relevant to his or her duties pursuant to this section.

      (Added to NRS by 2007, 198)—(Substituted in revision for NRS 218.866)

      NRS 218G.555  Disclosure of certain information by Legislative Auditor regarding child’s case; conditions and limitations on disclosure.

      1.  Except as otherwise provided in subsections 2 and 3, upon request, the Legislative Auditor or the Legislative Auditor’s designee shall provide data and information obtained pursuant to NRS 218G.550 concerning a child who suffered a fatality or near fatality who had contact with or who was in the custody of an agency which provides child welfare services. The data or information which must be disclosed includes, without limitation:

      (a) A summary of the report of the abuse or neglect of the child and a factual description of the contents of the report;

      (b) The date of birth and gender of the child;

      (c) The date that the child suffered the fatality or near fatality;

      (d) The cause of the fatality or near fatality, if such information has been determined;

      (e) Whether the agency which provides child welfare services had any contact with the child or a member of the child’s family or household before the fatality or near fatality and, if so:

             (1) The frequency of any contact or communication with the child or a member of the child’s family or household before the fatality or near fatality and the date on which the last contact or communication occurred before the fatality or near fatality;

             (2) Whether the agency which provides child welfare services provided any child welfare services to the child or to a member of the child’s family or household before or at the time of the fatality or near fatality;

             (3) Whether the agency which provides child welfare services made any referrals for child welfare services for the child or for a member of the child’s family or household before or at the time of the fatality or near fatality;

             (4) Whether the agency which provides child welfare services took any other actions concerning the welfare of the child before or at the time of the fatality or near fatality; and

             (5) A summary of the status of the child’s case at the time of the fatality or near fatality, including, without limitation, whether the child’s case was closed by the agency which provides child welfare services before the fatality or near fatality and, if so, the reasons that the case was closed; and

      (f) Whether the agency which provides child welfare services, in response to the fatality or near fatality:

             (1) Has provided or intends to provide child welfare services to the child or to a member of the child’s family or household;

             (2) Has made or intends to make a referral for child welfare services for the child or for a member of the child’s family or household; and

             (3) Has taken or intends to take any other action concerning the welfare and safety of the child or a member of the child’s family or household.

      2.  The Legislative Auditor or his or her designee shall not disclose information pursuant to subsection 1 unless the person making the request has requested such information from the agency which provides child welfare services and has been denied access to such information or has not received the information in a timely manner.

      3.  The Legislative Auditor or his or her designee shall not disclose the following data or information pursuant to subsection 1:

      (a) Except as otherwise provided in NRS 432B.290, data or information concerning the identity of the person responsible for reporting the abuse or neglect of the child to a public agency;

      (b) The name of the child who suffered a near fatality or the name of any member of the family or other person who lives in the household of the child who suffered the fatality or near fatality;

      (c) A privileged communication between an attorney and client; or

      (d) Information that may undermine a criminal investigation or pending criminal prosecution.

      (Added to NRS by 2007, 198; A 2013, 521)—(Substituted in revision for NRS 218.867)

Facilities Having Physical Custody of Children

      NRS 218G.570  Performance audits of governmental facilities for children.  The Legislative Auditor, as directed by the Legislative Commission pursuant to NRS 218G.120, shall conduct performance audits of governmental facilities for children.

      (Added to NRS by 2009, 3)

      NRS 218G.575  Inspection, review and survey of governmental facilities for children and private facilities for children.  The Legislative Auditor or the Legislative Auditor’s designee shall inspect, review and survey governmental facilities for children and private facilities for children to determine whether such facilities adequately protect the health, safety and welfare of the children in the facilities and whether the facilities respect the civil and other rights of the children in their care.

      (Added to NRS by 2009, 3)

      NRS 218G.580  Scope of inspection, review and survey.  The Legislative Auditor or the Legislative Auditor’s designee, in performing his or her duties pursuant to NRS 218G.575, shall:

      1.  Receive and review copies of all guidelines used by governmental facilities for children and private facilities for children concerning the health, safety, welfare, and civil and other rights of children;

      2.  Receive and review copies of each complaint that is filed by any child or other person on behalf of a child who is under the care of a governmental facility for children or private facility for children concerning the health, safety, welfare, and civil and other rights of the child;

      3.  Perform unannounced site visits and on-site inspections of governmental facilities for children and private facilities for children;

      4.  Review reports and other documents prepared by governmental facilities for children and private facilities for children concerning the disposition of any complaint which was filed by any child or other person on behalf of a child concerning the health, safety, welfare, and civil and other rights of the child;

      5.  Review the practices, policies and procedures of governmental facilities for children and private facilities for children for filing and investigating complaints made by children under their care or by any other person on behalf of such children concerning the health, safety, welfare, and civil and other rights of the children; and

      6.  Receive, review and evaluate all information and reports from a governmental facility for children or private facility for children relating to a child who suffers a fatality or near fatality while under the care or custody of the facility.

      (Added to NRS by 2009, 3)

      NRS 218G.585  Duty of facilities to cooperate with inspection, review and survey.  Each governmental facility for children and private facility for children shall:

      1.  Cooperate fully with the Legislative Auditor or the Legislative Auditor’s designee in the performance of his or her duties pursuant to NRS 218G.575 and 218G.580;

      2.  Allow the Legislative Auditor or designee to enter the facility and any area within the facility with or without prior notice;

      3.  Allow the Legislative Auditor or designee to interview children and staff at the facility;

      4.  Allow the Legislative Auditor or designee to inspect, review and copy any records, reports and other documents relevant to his or her duties; and

      5.  Forward to the Legislative Auditor or designee copies of any complaint that is filed by a child under the care or custody of a governmental facility for children or private facility for children or by any other person on behalf of such a child concerning the health, safety, welfare, and civil and other rights of the child.

      (Added to NRS by 2009, 3)