AB216

Assembly Bill No. 216–Committee on
Government Affairs

CHAPTER..........

AN ACT relating to state financial administration; revising the manner in which certain claims against this state are audited; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. NRS 353.055 is hereby amended to read as follows:

353.055 1. [As often as it may be deemed proper, the State

Board of Examiners shall examine the books of the State Controller

and the State Treasurer, and the accounts and vouchers in their

offices.

2.] For the purpose of discharging the duties imposed on the

State Board of Examiners by law, the State Board of Examiners is

authorized to demand information, and the State Controller and the

State Treasurer are required to furnish to the Board without delay

such information as the Board may demand, touching the books,

papers, vouchers or matters pertaining to or cognizable in their

respective offices.

[3.] 2. The State Controller and the State Treasurer shall permit

the State Board of Examiners to examine the books and papers of

their respective offices whenever the Board may wish to make an

examination, without delaying the examination on any pretense

whatever.

Sec. 2. NRS 353.090 is hereby amended to read as follows:

353.090 1. Except for claims against the Legislative Fund or

for the payment of the salaries of public officers, every claim for

payment from the State Treasury pursuant to an appropriation or

authorization by the Legislature must be presented to the State

Board of Examiners for a determination of its correctness. The

State Board of Examiners [may] shall adopt regulations providing

for the use of sampling procedures and postaudit techniques for

making such a determination.

2. Any money which:

(a) Is allocated to this state pursuant to a federal program in the

form of a letter of credit or its equivalent;

(b) Is authorized for expenditure by the Legislature;

(d) Is immediately available to this state through an automated

federal payment management system,

shall be deemed to be available for a claim for payment from the

State Treasury.

3. The State Controller shall not allow or draw his warrant for:

(a) Any claim of the class described in this section which has

not been approved by the State Board of Examiners; or

(b) A greater amount than allowed by the Board,

except when the claim has not been acted upon by the Board within

30 days after its presentation to the Board.

Sec. 3. NRS 353.190 is hereby amended to read as follows:

353.190 1. In addition to his other duties, the Chief is ex

officio Clerk of the State Board of Examiners. Except as otherwise

provided in subsection 4 of NRS 41.036, the Chief shall:

(a) Assist the State Board of Examiners in the examination[,

classification and preparation for audit] and classification of all the

claims required to be presented to the Board[.] pursuant to

NRS 353.090.

(b) Conduct [an effective check and preaudit of all those claims

before they are submitted] a postaudit of claims that have been

presented to the Board[.] in the manner prescribed in the

regulations adopted pursuant to NRS 353.090.

claims against the State not required to be passed upon by the

Legislature.

(d) Each calendar quarter, provide to the Board a report of his

determinations regarding any claims, refunds or other payments the

Board has authorized him to approve on its behalf.

2. The rules of procedure governing the duties of the Chief

pursuant to this section must be adopted by the State Board of

Examiners.

3. The Chief may delegate these duties to his Deputy.

Sec. 4. NRS 353A.045 is hereby amended to read as follows:

353A.045 The Chief shall:

1. Report to the Director.

2. Develop long-term and annual work plans to be based on the

results of periodic documented risk assessments. The annual work

plan must list the agencies to which the Division will provide

training and assistance and be submitted to the Director for

approval. Such agencies must not include:

(a) A board created by the provisions of chapters 623 to 625A,

inclusive, 628, 630 to 640A, inclusive, 641 to 644, inclusive, 654

and 656 of NRS.

(b) The University and Community College System of Nevada.

(d) The Housing Division of the Department of Business and

Industry.

(e) The Colorado River Commission of Nevada.

3. Provide a copy of the approved annual work plan to the

Legislative Auditor.

4. In consultation with the Director, prepare a plan for auditing

executive branch agencies for each fiscal year and present the plan

to the Committee for its review and approval. Each plan for

auditing must:

(a) State the agencies which will be audited, the proposed scope

and assignment of those audits and the related resources which will

be used for those audits; and

(b) Ensure that the internal accounting, administrative controls

and financial management of each agency are reviewed

periodically.

5. Perform the audits of the programs and activities of the

agencies in accordance with the plan approved pursuant to

subsection 5 of NRS 353A.038 and prepare audit reports of his

findings.

6. Review each agency that is audited pursuant to subsection 5

and advise those agencies concerning internal accounting,

administrative controls and financial management.

7. Submit to each agency that is audited pursuant to subsection

5 analyses, appraisals and recommendations concerning:

(a) The adequacy of the internal accounting and administrative

controls of the agency; and

(b) The efficiency and effectiveness of the management of the

agency.

8. Report any possible abuses, illegal actions, errors, omissions

and conflicts of interest of which the Division becomes aware

during the performance of an audit.

9. Adopt the standards of the Institute of Internal Auditors for

conducting and reporting on internal audits.

10. Consult with the Legislative Auditor concerning the plan

for auditing and the scope of audits to avoid duplication of effort

and undue disruption of the functions of agencies that are audited

pursuant to subsection 5.

11. Appoint a Manager of Internal Controls.

Sec. 5. NRS 41.010 is hereby amended to read as follows:

41.010 An officer or person who has presented a claim against

the State:

1. For services or advances authorized by law, and for which

an appropriation has been made, but of which the amount has not

been fixed by law; or

2. For refund of an overpayment,

which claim the State Board of Examiners or the State Controller

has refused to [audit and] allow, in whole or in part, may

commence an action in any court having jurisdiction of the amount,

for the recovery of such portion of the claim as [shall have] has

been rejected. In such action , the State of Nevada [shall] must be

named as defendant, and the summons [shall] must be served upon

the

State Controller, and the action [shall] must proceed as other civil

actions to final judgment.

Sec. 6. NRS 242.211 is hereby amended to read as follows:

242.211 1. The Fund for Information Services is hereby

created as an internal service fund. Money from the Fund must be

paid out on claims as other claims against the State are paid. The

claims must be made in accordance with budget allotments and are

subject to [preaudit] postaudit examination and approval.

2. All operating, maintenance, rental, repair and replacement

costs of equipment and all salaries of personnel assigned to the

Department must be paid from the Fund.

3. Each agency using the services of the Department shall pay

a fee for that use to the Fund, which must be set by the Director in

an amount sufficient to reimburse the Department for the entire cost

of providing those services, including overhead. Each using agency

shall budget for those services. All fees, proceeds from the sale of

equipment and any other money received by the Department must

be deposited with the State Treasurer for credit to the [appropriate]

Fund.

Sec. 7. NRS 242.221 is hereby amended to read as follows:

242.221 1. All claims made pursuant to NRS 242.122 to

242.241, inclusive, must, when approved by the Department, be

[audited and] paid as other claims against the State are paid.

2. If the State Controller finds that current claims against the

Fund for Information Services exceed the amount available in the

Fund to pay the claims, he may advance temporarily from the State

General Fund to the [appropriate] Fund the amount required to pay

the claims, but no more than 25 percent of the revenue expected to

be received in the current fiscal year from any source authorized for

the Fund. No amount may be transferred unless requested by the

Chief of the Budget Division of the Department of Administration.

Sec. 8. NRS 331.103 is hereby amended to read as follows:

331.103 1. The Department of Administration’s

Communications Fund is hereby created as an internal service fund.

The Fund is a continuing fund and its money may not revert to the

State General Fund at any time.

2. Claims against the Fund which are approved by the Chief

must be paid as other claims against the State are paid.

3. Claims must be made in accordance with budget and

quarterly work allotments and subject to [preaudit] postaudit

examination and approval.

Sec. 9. NRS 333.450 is hereby amended to read as follows:

333.450 1. All claims for supplies, materials, equipment and

services purchased pursuant to the provisions of this chapter must,

when approved by the Chief, be [audited and] paid in the same

manner as other claims against the State are required to be [audited

and] paid.

2. The Chief shall annually assess each using agency a fee for

the procurement and inventory services provided by the Purchasing

Division to the using agency. The fee must be based on the using

agency’s use of the procurement and inventory services of the

Purchasing Division during preceding years. The Chief shall adjust

the formula for calculating the fee each biennium.

3. If an agency is not a using agency, the Chief shall assess a

fee of not more than the cost to the Division to process the order for

the agency.

4. The Chief may adopt regulations to carry out the provisions

of this section.

Sec. 10. NRS 336.110 is hereby amended to read as follows:

336.110 1. The Motor Pool Fund is hereby created as an

internal service fund. No money in the Fund may revert to the State

General Fund at any time. Money from the Motor Pool Fund must

be paid out on claims as other claims against the State are paid. The

claims must be made in accordance with budget and quarterly work

allotments and subject to [preaudit] postaudit examination and

approval.

2. All operating, maintenance and repair costs for vehicles

assigned to the State Motor Pool must be paid from the Motor Pool

Fund and the accounting for depreciation must be accomplished in

that Fund.

3. All agencies using vehicles of the State Motor Pool shall pay

a fee for the use and a proportionate share of operational costs in an

amount determined by the Executive Officer. The formula for

spreading costs of operation may be adjusted from time to time as

may be necessary to replace worn vehicles, pay vehicle costs and

defray the costs of Motor Pool operation.

4. All fees, including amounts on account of depreciation

accrued, costs and other money received by the State Motor Pool,

including all proceeds from the sale of vehicles, must be deposited

with the State Treasurer for credit to the Fund.

Sec. 11. NRS 422.240 is hereby amended to read as follows:

422.240 1. Money to carry out the provisions of NRS

422.001 to 422.410, inclusive, and 422.580, including, without

limitation, any federal money allotted to the State of Nevada

pursuant to the program to provide Temporary Assistance for

Needy Families and the Program for Child Care and Development,

must be provided by appropriation by the Legislature from the State

General Fund.

2. Disbursements for the purposes of NRS 422.001 to 422.410,

inclusive, and 422.580 must be made upon claims duly filed[,

audited] and allowed in the same manner as other money in the

State Treasury is disbursed.

Sec. 12. NRS 432.080 is hereby amended to read as follows:

432.080 All administrative expenses incurred by the Division

in carrying out the provisions of NRS 432.010 to 432.085,

inclusive, must be paid out of money which may be appropriated by

the Legislature from the State General Fund and out of such other

money as may be made available to the Division for the payment of

administrative expenses. Disbursements must be made upon claims

filed[, audited] and allowed in the same manner as other money in

the State Treasury is disbursed. All claims must be approved by the

Administrator before they are paid.

Sec. 13. NRS 463.330 is hereby amended to read as follows:

463.330 1. Costs of administration of this chapter incurred

by the Commission and the Gaming Control Board must be paid

from the State General Fund on claims presented by the

Commission and the Board, respectively, and approved and paid as

other claims against the State are paid. The Commission and the

Board shall comply with the provisions of the State Budget Act in

order that legislative authorization for budgeted expenditures may

be provided.

2. In order to facilitate the confidential investigation of

violations of this chapter and the regulations adopted by the

Commission pursuant to this chapter, there is hereby created the

State Gaming Control Board Revolving Account. Upon the written

request of the Chairman of the Board, the State Controller shall

draw his warrant in favor of the Chairman in the amount of

$10,000, and upon presentation of the warrant to the State

Treasurer, he shall pay it. When the warrant is paid, the Chairman

shall deposit the $10,000 in a bank or credit union of reputable

standing which shall secure the deposit with a depository bond

satisfactory to the State Board of Examiners.

3. The Chairman of the Board may use the Revolving Account

to pay the reasonable expenses of agents and employees of the

Board engaged in confidential investigations concerning the

enforcement of this chapter, including the prepayment of expenses

where necessary, whether such expenses are incurred for

investigation of known or suspected violations. In allowing such

expenses , the Chairman is not limited or bound by the provisions

of NRS 281.160.

4. After the expenditure of money from the Revolving

Account, the Chairman of the Board shall present a claim to the

State Board of Examiners for the amount of the expenditure to be

replaced in the Revolving Account. The claim must be [audited,]

allowed and paid as are other claims against the State, but the claim

must not detail the investigation made as to the agent or employee

making the investigation or the person or persons investigated. If

the State Board of Examiners is not satisfied with the claim, the

members thereof may orally examine the Chairman concerning the

claim.

5. Expenditures from the Revolving Account may not exceed

the amount authorized by the Legislature in any fiscal year.

Sec. 14. NRS 703.168 is hereby amended to read as follows:

703.168 The Commission may, in carrying out its duties:

1. Cooperate with the Federal Government, its departments and

agencies.

2. Confer with the regulatory agencies of other states on

matters of mutual concern and benefit to persons served by the

public utilities and alternative sellers of this state.

3. Use the services, records, facilities and cooperation of

federal and state regulatory agencies, and hold joint hearings and

participate in joint conferences to reach decisions in matters which

require cooperation. All necessary expenses incurred in attending

hearings and conferences outside this state are a charge against the

State, and must be [audited and] paid as other claims against this

state are paid. The claims must be sworn to by the commissioner

who incurred the expense and approved by the chairman.

Sec. 15. NRS 706.1717 is hereby amended to read as follows:

706.1717 The Authority may, in carrying out its duties:

1. Cooperate with the Federal Government and its departments

and agencies.

2. Confer with the regulatory agencies of other states on

matters of mutual concern and benefit to persons served by motor

carriers of this state.

3. Use the services, records, facilities and cooperation of

federal and state regulatory agencies, and hold joint hearings and

participate in joint conferences to reach decisions in matters that

require cooperation. All necessary expenses incurred in attending

hearings and conferences outside this state are a charge against the

State and must be [audited and] paid as other claims against the

State are paid.

Sec. 16. NRS 225.130 is hereby repealed.

Sec. 17. This act becomes effective upon passage and

approval.

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