Nac: Chapter 354 - Local Financial Administration

Link to law: http://www.leg.state.nv.us/nac/NAC-354.html
Published: 2015

[Rev. 6/10/2014 4:47:47 PM]

[NAC-354 Revised Date: 6-14]

CHAPTER 354 - LOCAL FINANCIAL

ADMINISTRATION

GENERAL PROVISIONS

354.001            Definitions.

354.002            “Committee” defined.

354.003            “Department” defined.

354.005            “Local government” defined.

EXEMPTION OF SPECIAL DISTRICTS FROM CERTAIN REQUIREMENTS

354.010            Eligible districts; authorized

exemptions; petition for exemption.

354.020            Action on petition of district.

354.030            Petition to reconsider audit

exemption.

354.040            Information to be filed by exempt

district.

354.050            Public hearing by exempt district

concerning its budget.

TRANSFER OF GOVERNMENTAL FUNCTIONS BETWEEN LOCAL GOVERNMENTS

AND STATE AGENCIES

354.060            Definitions.

354.062            “Affected entity” defined.

354.064            “Function” defined.

354.066            “Interested person” defined.

354.068            “Intergovernmental agreement”

defined.

354.070            “Lead entity” defined.

354.072            “State agency” defined.

354.074            “Transfer plan” defined.

354.076            Applicability.

354.078            Notice of intent to transfer

function; preparation and approval of transfer plan or intergovernmental

agreement.

354.080            Lead entity: Responsibilities;

designation by affected entities; requests for information.

354.082            Action on tentative draft of

transfer plan; proposed transfer plan.

354.084            Transfer plans and

intergovernmental agreements: Contents.

354.086            Transfer plans and

intergovernmental agreements: Limitations; scope.

354.088            Transfer plans and

intergovernmental agreements: Workshops and public hearings.

354.090            Transfer plans and

intergovernmental agreements: Expiration of approval; disapproval.

CONSOLIDATION OR SHARING OF SERVICES, FUNCTIONS OR PERSONNEL

AMONG SCHOOL DISTRICTS

354.095            Definitions.

354.0952          “Affected district” defined.

354.0954          “Function” defined.

354.0956          “Interdistrict service agreement”

defined.

354.0958          “Interdistrict service plan”

defined.

354.096            “Interested person” defined.

354.0962          “Lead district” defined.

354.0964          Lead district: Designation; duties;

requests for information.

354.0966          Action on tentative draft of

interdistrict service plan; proposed interdistrict service plan.

354.0968          Interdistrict service plans:

Contents.

354.097            Interdistrict service plans and

interdistrict service agreements: Limitations; scope.

354.0972          Interdistrict service plans and

interdistrict service agreements: Workshops and public hearings.

354.0974          Interdistrict service plans and

interdistrict service agreements: Expiration of approval.

PREPARATION OF BUDGETS

354.100            Budget forms.

354.140            Tentative budget: Submission of

letter of certification.

354.150            Adoption of tentative budget as

filed: Submission of additional documents.

354.155            Submission of notice of information.

354.160            Substantial change in budget:

Submission of affected fund schedules.

LIMITATIONS ON FEES

354.185            Application to exceed allowable

increase in revenue from fees for business licenses or allowable increase in

building permit basis.

TAXES AD VALOREM

354.211            Submission to Department of

resolution levying common rate for common services in unincorporated towns.

354.221            Submission of amended final budget

which changes combined rate.

CREATION OF FUNDS

354.241            Contents and filing of resolution

adopted to create certain funds.

LETTER OF CREDIT; ADVANCE APPORTIONMENT OF TAX

354.270            Letter of credit issued to local

government.

354.280            Advance of taxes apportioned to

local government.

INTERFUND LOANS

354.290            Temporary interfund loans: Conditions;

interest.

TRANSFER OF MONEY BETWEEN ACCOUNTS

354.350            Transfer of certain unclaimed

money.

354.360            Transfer of budget appropriations

between accounts; transfer of money from certain funds.

BUDGET AUGMENTATION

354.400            Purpose.

354.410            Available resources.

354.420            Revised revenue schedule.

354.430            Notice of hearing.

354.440            Vote by proxy.

354.450            Deadline.

354.481            Expenses in excess of original

budget appropriation.

354.490            Report of augmented budget.

FISCAL REPORTS

354.555            Fulfillment of requirements of

submitting tentative budget and transmitting final budget.

354.557            Submission in electronic format;

petition for exemption; submission in alternative format.

354.559            Contents and form; deadlines for

submission; forwarding of final budget.

354.561            Summary of report: Publication and

contents.

REPORTS REGARDING RECEIPT AND DISTRIBUTION OF PROPERTY TAXES

354.566            Definitions.

354.567            “Central assessment roll” defined.

354.569            “Property tax receipts” defined.

354.571            Preliminary summary reports: Filing

by tax receiver in each county.

354.573            Preliminary summary reports:

Contents.

354.575            Report by county school district of

corresponding receipts and deductions; reconciliation of differences between

reports.

354.577            Final summary reports: Filing by

tax receiver in each county; contents.

REPORTS OF EXPENDITURES FOR LOBBYING ACTIVITIES

354.581            Interpretation of certain statutory

terms.

354.585            Form of report.

COUNTIES: STATEMENT OF TOTAL AMOUNT OF BILLS ALLOWED

354.595            Posting and maintenance on website

of statements of amount of bills allowed.

UNAPPROPRIATED ENDING FUND BALANCE

354.650            Explanation by local government;

reduction of debt rate.

354.660            Ending balance not subject to

negotiations.

AUDITS

354.700            Audit required after first year of

operation.

354.712            Adoption by reference of Government

Auditing Standards; “generally accepted auditing standards in the United

States” interpreted.

354.715            Contents of audit report: Opinions

required; fairness statement; reference to certain separate reports; statement

of corrective action.

354.717            Contents of audit report: Statement

of total number of referrals to regional facility for detention of children.

354.719            Contents of audit report:

Discussion and analysis of financial condition; exemption from requirement to

submit plan of corrective action; appeals.

354.721            Proposed plan of correction.

354.725            Filing in duplicate; notification

of Department.

354.735            Request for extension of time to

file report.

INVENTORY

354.750            Inventory of capital assets:

Requirement; guidelines; identifying number.

GENERAL IMPROVEMENT DISTRICTS

354.760            Duties of board of county

commissioners after creation of district.

354.770            Hearing regarding corrective

action: Date; submission of certified copy of ordinance or resolution.

SPECIAL DISTRICTS

354.780            Transfer of property, money, taxes

and special assessments upon merger or consolidation of district.

354.790            Transfer of property, money, taxes

and special assessments upon dissolution of district.

BUDGETS OF LOCAL GOVERNMENTS

Enterprise Fund for Building Permit Fees

354.805            Definitions.

354.815            “Cost center” defined.

354.825            “Direct cost” defined.

354.835            “Indirect cost” defined.

354.845            Application for exemption from

limitation on increase of building permit basis.

354.855            Permissible expenditures;

collection of fees.

Allocation of Costs to Enterprise Fund

354.865            Definitions.

354.8652          “Applicable credits” defined.

354.8654          “Central service cost allocation

plan” defined.

354.8656          “Cost” defined.

354.8658          “Direct cost” defined.

354.866            “Indirect costs” defined.

354.8662          “Payments in lieu of taxes”

defined.

354.8664          “Reasonable cost” defined.

354.8666          Applicability.

354.8668          Central service cost allocation

plan: Requirements.

354.867            Costs which may be allocated to

enterprise fund.

Loans and Transfers From Enterprise Fund

354.870            Application: Generally. [Effective

through June 30, 2017.]

354.8702          Application: Additional

requirements. [Effective through June 30, 2017.]

354.8704          Approval of application: Factors

for consideration. [Effective through June 30, 2017.]

354.8706          Denial or approval of application.

[Effective through June 30, 2017.]

354.8708          Quarterly report. [Effective

through June 30, 2017.]

DELINQUENT DOCUMENTS AND PAYMENTS; TECHNICAL FINANCIAL

ASSISTANCE; SEVERE FINANCIAL EMERGENCY

Determination of Severe Financial Emergency

354.875            Identification of certain

conditions: Interpretation of certain statutory terms.

Proceedings Before the Committee on Local Government Finance

354.880            Definitions.

354.882            “Day” defined.

354.884            “Director” defined.

354.886            “Hearing officer” defined.

354.888            “Intervener” defined.

354.890            “Party” defined.

354.892            “Staff” defined.

354.894            Scope and construction of

provisions; deviation from provisions.

354.896            Hearings conducted by Committee or

hearing officer; applicability of provisions.

354.898            Pleadings; communications.

354.900            Transcripts.

354.902            Interveners.

354.904            Rights of parties and staff at

evidentiary hearings.

354.906            Representation of parties;

qualifications of attorneys.

354.908            Hearings: Notice; location;

telephone conference; duties of representatives; conduct required.

354.910            Prehearing conferences.

354.912            Continuances; recesses.

354.914            Failure of party to appear.

354.916            Burden of proof or explanation.

354.918            Presentation of evidence.

354.920            Admission of evidence; depositions;

affidavits.

354.922            Official notice.

354.924            Briefs.

354.926            Orders for information.

354.928            Hearing officer: Proposed decision;

findings and conclusions.

354.930            Proposed decision of hearing

officer: Written objection; reply to objection; action by Committee.

354.932            Hearing before Committee: Basis on

record before hearing officer; determination that record is inadequate.

354.934            Hearing before Committee: Action by

Committee; issuance of written order.

354.936            Final decision of Committee.

354.938            Petition for reconsideration:

Grounds; filing and contents; answer; grant or denial.

354.940            Advisory opinions: Petition.

354.942            Advisory opinions: Form; contents;

issuance; delivery; appeals.

 

 

GENERAL PROVISIONS

      NAC 354.001  Definitions. (NRS 354.107)  As used

in this chapter, unless the context otherwise requires, the words and terms

defined in:

     1.  NAC 354.002, 354.003 and 354.005 have

the meanings ascribed to them in those sections; and

     2.  The Local Government Budget and Finance

Act, NRS 354.470 to 354.626, inclusive, have the

meanings ascribed to them in that act.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

      NAC 354.002  “Committee” defined. (NRS 354.107)  “Committee”

means the Committee on Local Government Finance created pursuant to NRS 354.105.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

      NAC 354.003  “Department” defined. (NRS 354.107)  “Department”

means the Department of Taxation.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

      NAC 354.005  “Local government” defined. (NRS 354.107)  “Local

government” means any local government subject to the provisions of the Local

Government Budget and Finance Act, NRS

354.470 to 354.626,

inclusive.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

EXEMPTION OF SPECIAL DISTRICTS FROM CERTAIN REQUIREMENTS

      NAC 354.010  Eligible districts; authorized exemptions; petition for

exemption. (NRS

354.107, 354.475, 354.594)

     1.  Any special district with annual total

expenditures of less than $200,000 during a current fiscal year and annual

total expenditures of less than $200,000 budgeted for the succeeding fiscal

year may petition the Department for exemption from all or any one of the

following:

     (a) Filing of a tentative budget.

     (b) Filing of independent audit reports.

     (c) Publishing requirements of the Local Government

Budget and Finance Act, NRS 354.470

to 354.626, inclusive, other

than the annual publication of a notice of budget adoption and filing.

     (d) Maintaining accounting records on an accrual or

modified accrual basis.

     2.  The petition must be in the form of an

ordinance or resolution adopted by the governing body of the district.

     3.  No district will be granted an exemption

if it is:

     (a) In noncompliance with any law or regulation at

the time the petition is made; or

     (b) In default in payments due for the redemption

of any bond or for any other outstanding indebtedness.

     [Tax Comm’n, Local Gov’t Reg. No. 14 § 1, eff. 9-7-73;

A 2-7-76; No. 14 § 4, eff. 9-7-73]—(NAC A 1-10-84; 1-16-92; A by Com. on Local

Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.020  Action on petition of district. (NRS 354.107, 354.475, 354.594)

     1.  The Department has final authority to

grant all or part of the petition of each special district. The Executive

Director may act on behalf of the Department in granting or denying the

petition of any special district filed pursuant to NAC

354.010 to 354.040, inclusive.

     2.  The Department’s determination must be

made and the special district must be notified of that determination not later

than 30 days after the special district files the petition with the Department.

     [Tax Comm’n, Local Gov’t Reg. No. 14 §§ 3 & 6, eff.

9-7-73; A 2-7-76]—(A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.030  Petition to reconsider audit exemption. (NRS 354.107, 354.475, 354.594)

     1.  A board of county commissioners may

petition the Department to reconsider an audit exemption on any exempt

district.

     2.  The granting of an exemption does not

preclude the Department from ordering that a subsequent audit cover exempt

fiscal periods.

     [Tax Comm’n, Local Gov’t Reg. No. 14 § 7, eff. 9-7-73;

A 2-7-76]

      NAC 354.040  Information to be filed by exempt district. (NRS 354.107, 354.475, 354.594)  In

addition to the filings required by NRS

354.475, a district which has been granted an exemption shall file a:

     1.  Statement of revenues, expenditures and

changes in fund balance.

     2.  Balance sheet.

     [Tax Comm’n, Local Gov’t Reg. No. 14 § 2, eff. 9-7-73]—(NAC

A 1-10-84; 5-16-86)

      NAC 354.050  Public hearing by exempt district concerning its budget. (NRS 354.107, 354.475, 354.594)

     1.  A special district that has been exempted

from the requirement of filing its tentative budget and audit reports pursuant

to the provisions of NRS 354.475

and NAC 354.010 to 354.040,

inclusive, shall hold a public hearing concerning its final budget before

submitting the final budget to the Department.

     2.  The officer charged by law with the

preparation of the district’s budget or the governing body of the district

shall cause a notice of the public hearing to be published in a newspaper of

general circulation within the area of the district. The publication must occur

not more than 14 nor less than 7 days before the date set for the hearing. An

alternative method of publication may be used with the prior approval of the

Department. The notice must contain the following information:

     (a) The time and place of the public hearing;

     (b) The location at which and the times during

which the budget document is available for public inspection; and

     (c) That the budget document has been prepared with

the detail and in the form prescribed by the Department.

     (Added to NAC by Tax Comm’n, eff. 10-26-84; A by Com.

on Local Gov’t Finance by R201-01, 4-5-2002)

TRANSFER OF GOVERNMENTAL FUNCTIONS BETWEEN LOCAL

GOVERNMENTS AND STATE AGENCIES

      NAC 354.060  Definitions. (NRS 353.203, 354.5943)  As used

in NAC 354.060 to 354.090,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 354.062 to 354.074,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.062  “Affected entity” defined. (NRS 353.203, 354.5943)  “Affected

entity” means a state agency or local government from which a function is

proposed to be transferred and a state agency or local government to which a

function is proposed to be transferred.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.064  “Function” defined. (NRS 353.203, 354.5943)  “Function”

has the meaning ascribed to it in NRS

354.529 and includes, without limitation, any administrative activities and

responsibilities associated with a function, including, without limitation,

those relating to budgeting, contracting, finances, personnel, office

facilities, information technology and communications.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.066  “Interested person” defined. (NRS 353.203, 354.5943)  “Interested

person” means a person, government, governmental agency or political

subdivision of a government, other than an affected entity, who is directly and

substantially affected by the transfer of a function from a state agency to a

local government, from a local government to a state agency or from a local

government to another local government.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.068  “Intergovernmental agreement” defined. (NRS 353.203, 354.5943)  “Intergovernmental

agreement” means a written agreement between the affected entities for the

implementation of the transfer of a function from a state agency to a local

government, from a local government to a state agency or from a local

government to another local government.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.070  “Lead entity” defined. (NRS 353.203, 354.5943)  “Lead

entity” means the affected entity who is designated to act as the lead entity

pursuant to subsection 2 of NAC 354.080.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.072  “State agency” defined. (NRS 353.203, 354.5943)  “State

agency” means an agency, a bureau, a board, a commission, a department, a

division or any other unit of the Executive Branch of the State Government,

other than such an entity which is administered by an elected officer of the

State.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.074  “Transfer plan” defined. (NRS 353.203, 354.5943)  “Transfer

plan” means a written plan for the implementation of the transfer of a function

from a state agency to a local government, from a local government to a state

agency or from a local government to another local government.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.076  Applicability. (NRS 353.203, 354.5943)

     1.  Except as otherwise provided in

subsection 2, the provisions of NAC 354.060 to 354.090, inclusive, apply to the transfer of a

function from a state agency to a local government, from a local government to

a state agency or from a local government to another local government.

     2.  The provisions of NAC

354.060 to 354.090, inclusive, do not apply to

the transfer of a function as a result of:

     (a) The creation of a new governmental entity; or

     (b) The detachment of any territory from a taxing

district and its annexation to another taxing district.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.078  Notice of intent to transfer function; preparation and approval

of transfer plan or intergovernmental agreement. (NRS 353.203, 354.5943)  Before

transferring a function from a state agency to a local government, from a local

government to a state agency or from a local government to another local

government:

     1.  Except as otherwise provided in this

subsection, notice of the intent to transfer the function must be provided to

the affected entities:

     (a) If the transfer is from a state agency to a

local government or from a local government to a state agency, not less than 30

days before September 1 of an even-numbered year, unless a different period of

notification is required by a statute or by contractual agreement; or

     (b) If the transfer is from a local government to

another local government, not less than 180 days before the effective date of

the transfer, unless a different period of notification is required by a

statute or by contractual agreement.

Ê The affected

entities may, by mutual agreement, waive the notice otherwise required by this

subsection.

     2.  If the affected entities:

     (a) Do not agree to waive the notice required by

subsection 1, the affected entities must jointly prepare a transfer plan for

the transfer in accordance with the provisions of NAC

354.080 to 354.088, inclusive; or

     (b) Agree to waive the notice required by

subsection 1, the affected entities must jointly prepare an intergovernmental

agreement for the transfer in accordance with the provisions of NAC 354.084, 354.086 and 354.088.

     3.  Each of the affected entities must

approve the transfer plan or intergovernmental agreement at a public hearing

held in accordance with the provisions of NAC 354.088.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.080  Lead entity: Responsibilities; designation by affected entities;

requests for information. (NRS 353.203, 354.5943)

     1.  If the affected entities are required to

prepare a transfer plan for the transfer of a function, one of the affected

entities must act as the lead entity to be responsible for:

     (a) Collecting data pertaining to the function

proposed to be transferred;

     (b) Identifying any interested persons;

     (c) Preparing a tentative draft of the transfer

plan; and

     (d) Carrying out any other duties prescribed for

the lead agency by NAC 354.060 to 354.090, inclusive.

     2.  If the proposed transfer is from:

     (a) A state agency to a local government or from a

local government to a state agency, the affected entities must, by mutual

agreement, designate one of the affected entities to act as the lead entity; or

     (b) A local government to another local government,

the affected entities may, by mutual agreement, designate one of the affected

entities to act as the lead entity. In the absence of such a designation, the

affected entity who initially proposed the transfer shall be deemed to be

designated to act as the lead entity.

     3.  The lead entity may request from the

other affected entity and any interested person such information relating to

the function proposed to be transferred as may be necessary for the lead entity

to prepare a tentative draft of the transfer plan, including, without

limitation, a description of the function and information concerning the

property and other assets used in the performance of the function, the

operating costs for the function, contracts relating to the performance of the

function, liabilities and pending claims relating to the function, and

mechanisms for funding the performance of the function. An affected entity or

interested person shall, not later than 30 days after receiving a written

request for such information from the lead entity, provide the requested

information to the lead entity.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.082  Action on tentative draft of transfer plan; proposed transfer

plan. (NRS

353.203, 354.5943)

     1.  Upon completing a tentative draft of a

transfer plan, the lead entity shall:

     (a) Provide the notice required by subsection 1 of NAC 354.078; and

     (b) Provide a copy of the draft to the other

affected entity and any interested persons identified by the lead entity.

     2.  The affected entity or any of the

interested persons to whom a copy of the tentative draft is provided pursuant

to subsection 1 may, within 45 days after the affected entity or interested person

receives the copy of the draft, object to any of the provisions contained in

the draft by providing to the lead entity a written statement of its

objections. The statement may include any alternative provisions which the

affected entity or interested person desires to be included in the proposed

transfer plan. The failure of an affected entity or interested person to object

to any of the provisions of a tentative draft of a transfer plan as provided in

this subsection does not affect the right of the affected entity or interested

person to object to any of the provisions of the transfer plan at any time

before the approval of the transfer plan by both of the affected entities in

accordance with subsection 3 of NAC 354.078.

     3.  If the lead entity:

     (a) Does not receive any objections pursuant to

subsection 2, the tentative draft constitutes a proposed transfer plan for the

purposes of NAC 354.088.

     (b) Receives any objections pursuant to subsection

2:

          (1) The affected entities shall review the

objections and may consider any alternative provisions contained in each

written statement of objections and any other alternative provisions proposed

by the affected entities. If the affected entities are unable to agree on the

provisions of a proposed transfer plan within 30 days after the date the last

written statement of objections is provided to the lead entity pursuant to

subsection 2, the affected entities may submit to the Committee, jointly or

individually, a written request for assistance from the Committee in resolving

any disagreements concerning those provisions. Upon the receipt of such a

request, the Chair of the Committee shall appoint a subcommittee of the

Committee to provide the requested assistance. Not later than 15 days after the

receipt of the request, the subcommittee shall meet with representatives of the

affected entities and provide any recommendations regarding those provisions as

the subcommittee determines to be appropriate. The affected entities are not

required to follow any recommendations of the subcommittee.

          (2) Upon the agreement of the affected

entities to the provisions of a proposed transfer plan, the lead entity shall:

               (I) Prepare the proposed transfer plan in

accordance with that agreement; and

               (II) Provide a copy of the proposed

transfer plan to the other affected entity and to any interested persons

identified by the lead entity.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.084  Transfer plans and intergovernmental agreements: Contents. (NRS 353.203, 354.5943)  A

transfer plan or intergovernmental agreement:

     1.  Must include:

     (a) Such information as is necessary to complete

the transfer of the function, including, without limitation, a complete

description of:

          (1) The function being transferred; and

          (2) The mechanism to be used to pay for the

performance of that function; and

     (b) The effective date of the transfer of the

function. If the transfer is from a state agency to a local government or from

a local government to a state agency, and the affected entities have not agreed

to waive the notice required by subsection 1 of NAC

354.078, the effective date of the transfer must not be any earlier than

July 1 of the year after the year in which that notice is given, except that

the affected entities, by mutual agreement, may specify an earlier effective

date.

     2.  May include, without limitation, one or

more of the following:

     (a) The statutory authority for the performance of

the function being transferred.

     (b) A description of the reasons for the transfer

of the function, such as, without limitation, any improvements in the

management or delivery of governmental services, in the implementation of the

laws of this State or in the efficiency of governmental operations which are

expected to result from the transfer.

     (c) A description of any potential financial effect

of the transfer of the function on the affected entities, such as, without

limitation, any potential effect of the transfer on the amount an affected

entity will receive from the Local Government Tax Distribution Account or will

be allowed to receive from taxes ad valorem.

     (d) A detailed description of the transfer or other

disposition, including the timing thereof, of any records, property or

personnel affected by the transfer of the function.

     (e) An analysis of the effect of the transfer of

the function on the employees who were administering the function before the

transfer and the status of those employees upon the completion of the transfer.

     (f) Information concerning the payment of any

outstanding obligations relating to the function being transferred, such as,

without limitation, the affected entity responsible for the outstanding

obligations, the manner and timing of the payment of the outstanding

obligations, and methods to ensure the sufficiency of assets to satisfy the

outstanding obligations.

     (g) Information concerning the affected entity

responsible for prosecuting, defending or conducting any proceedings relating

to the function being transferred which are pending on the effective date of

the transfer of the function.

     (h) A description of any conditions under which the

transfer of the function may be terminated or rescinded and of any procedure

for terminating or rescinding the transfer.

     (i) Any procedure for resolving any disputes

between the affected entities regarding the transfer of the function which

arise after the transfer.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.086  Transfer plans and intergovernmental agreements: Limitations;

scope. (NRS

353.203, 354.5943)

     1.  No transfer plan or intergovernmental

agreement may authorize:

     (a) A local government or state agency to perform a

function that it is not expressly authorized by law to perform on the effective

date of the transfer of the function; or

     (b) The continuation of a function beyond the

period authorized by law for the performance of the function or beyond the date

on which the performance of the function would have terminated if the function

had not been transferred.

     2.  Except as otherwise specifically provided

in a transfer plan or an intergovernmental agreement, the provisions thereof do

not:

     (a) Limit or alter the effect of any regulation or

ordinance adopted by an affected entity or any other action taken by an

affected entity before the effective date of the transfer of the function; or

     (b) Abate any proceedings:

          (1) Commenced by an affected entity before the

effective date of the transfer of the function; or

          (2) Pending before an affected entity on the

effective date of the transfer of the function.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.088  Transfer plans and intergovernmental agreements: Workshops and

public hearings. (NRS 353.203, 354.5943)

     1.  Before approving a transfer plan or an

intergovernmental agreement, the affected entities:

     (a) May jointly hold one or more workshops in

accordance with the provisions of subsection 2 to solicit comments regarding

one or more general topics to be addressed in a proposed transfer plan or

intergovernmental agreement; and

     (b) Shall, jointly or individually, hold a public

hearing in accordance with the provisions of subsection 3 to approve or

disapprove the proposed transfer plan or intergovernmental agreement.

     2.  If the affected entities hold one or more

workshops pursuant to paragraph (a) of subsection 1:

     (a) Each such workshop must be held:

          (1) At a location within an area where the

function proposed to be transferred is provided; and

          (2) Not later than 90 days before the

effective date of the transfer of the function pursuant to the transfer plan or

intergovernmental agreement; and

     (b) Not less than 15 days before each such

workshop, the affected entities shall provide notice of the time and place set

for the workshop:

          (1) In writing to each person who has

requested to be placed on a mailing list for the provision of such notice; and

          (2) In any other manner reasonably calculated

to provide such notice to the general public and any interested persons.

     3.  Except as otherwise provided in this

subsection, each public hearing required by paragraph (b) of subsection 1 must

be conducted in accordance with the provisions of chapter 241 of NRS. If the affected

entities:

     (a) Hold one or more workshops pursuant to

paragraph (a) of subsection 1 regarding the proposed transfer plan or

intergovernmental agreement or do not agree to waive the notice required by

subsection 1 of NAC 354.078, the public hearing

must be held not less than 30 days after the date on which:

          (1) The last such workshop is held; or

          (2) The notice is provided pursuant to

subsection 1 of NAC 354.078,

Ê whichever

occurs later; or

     (b) Do not hold any workshops pursuant to paragraph

(a) of subsection 1 regarding the proposed transfer plan or intergovernmental

agreement and agree to waive the notice required by subsection 1 of NAC 354.078, the public hearing must be held not less

than 30 days after public notice of the hearing has been given.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

      NAC 354.090  Transfer plans and intergovernmental agreements: Expiration of

approval; disapproval. (NRS 353.203, 354.5943)

     1.  The approval of a transfer plan or an

intergovernmental agreement by an affected entity shall be deemed to expire 1

year after the date of that approval unless:

     (a) The transfer of the applicable function has

been completed within that period;

     (b) The transfer plan or intergovernmental

agreement specifies a different period for the expiration of that approval; or

     (c) The affected entities, by mutual agreement,

agree to extend the applicable period for the expiration of that approval.

     2.  If a local government or state agency

disapproves a transfer plan or an intergovernmental agreement, the governing

body of that local government or the chief administrative officer of that state

agency shall notify the affected entities and interested persons of the

disapproval and of the reasons for the disapproval.

     (Added to NAC by Com. on Local Gov’t Finance by R012-10,

eff. 6-30-2010)

CONSOLIDATION OR SHARING OF SERVICES, FUNCTIONS OR

PERSONNEL AMONG SCHOOL DISTRICTS

      NAC 354.095  Definitions. (NRS 386.353)  As used

in NAC 354.095 to 354.0974,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 354.0952 to 354.0962,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0952  “Affected district” defined. (NRS 386.353)  “Affected

district” means a school district for which the consolidation or sharing of one

or more services or functions or of personnel has been proposed.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0954  “Function” defined. (NRS 386.353)  “Function”

has the meaning ascribed to it in NRS

354.529 and includes, without limitation, any administrative activities and

responsibilities associated with a function, including, without limitation,

those relating to budgeting, contracting, finances, personnel, office

facilities, information technology and communications.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0956  “Interdistrict service agreement” defined. (NRS 386.353)  “Interdistrict

service agreement” means a written agreement between two or more affected

districts which provides for the consolidation or sharing of one or more

services or functions or of personnel.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0958  “Interdistrict service plan” defined. (NRS 386.353)  “Interdistrict

service plan” means a written plan which provides for the implementation of an

interdistrict service agreement.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.096  “Interested person” defined. (NRS 386.353)  “Interested

person” means a person, government, governmental agency or political

subdivision of a government, other than an affected district, who is directly

and substantially affected by the consolidation or sharing of a service or

function or of personnel by two or more affected districts.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0962  “Lead district” defined. (NRS 386.353)  “Lead

district” means the affected district which is designated to act as the lead

district pursuant to subsection 1 of NAC 354.0964.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0964  Lead district: Designation; duties; requests for information. (NRS 386.353)

     1.  If two or more school districts wish to

enter into an interdistrict service agreement, each affected district must, by

mutual agreement, designate one of the affected districts to act as the lead

district. In the absence of such a designation, the affected district which

initially proposed the consolidation or sharing of a service or function or of

personnel shall act as the lead district.

     2.  A lead district shall:

     (a) Collect data pertaining to each service or

function or the personnel for which the consolidation or sharing is proposed;

     (b) Identify any interested persons;

     (c) Prepare a tentative draft of an interdistrict

service plan; and

     (d) Carry out any other duties prescribed for the

lead district pursuant to NAC 354.095 to 354.0974, inclusive.

     3.  A lead district may request in writing

from any affected district or interested person such information relating to

each service or function or the personnel for which consolidation or sharing is

proposed as may be necessary for the lead district to prepare a tentative draft

of an interdistrict service plan, including, without limitation, a description

of each service or function or the personnel for which consolidation or sharing

is proposed and information concerning:

     (a) Any property or other assets used to provide

any service, function or personnel for which consolidation or sharing is

proposed;

     (b) The operating costs for each service or

function or the personnel for which consolidation or sharing is proposed;

     (c) Any contracts relating to the provision of any

service, function or personnel for which consolidation or sharing is proposed;

     (d) Any liabilities or pending claims relating to

any service, function or personnel for which consolidation or sharing is

proposed; and

     (e) The mechanism for funding each service or

function or the personnel for which consolidation or sharing is proposed.

     4.  An affected district or interested person

shall, not later than 30 days after receiving a written request for information

from a lead district pursuant to subsection 3, provide the requested

information to the lead district.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0966  Action on tentative draft of interdistrict service plan; proposed

interdistrict service plan. (NRS 386.353)

     1.  Upon completing a tentative draft of an

interdistrict service plan, a lead district shall provide to each affected

district and interested person identified by the lead district a copy of the

draft.

     2.  An affected district or interested person

to whom a copy of a tentative draft is provided pursuant to subsection 1 may,

not later than 45 days after the affected district or interested person receives

a copy of the draft, object to any of the provisions contained in the draft by

providing the lead district with a written statement of its objections. The

statement may include any alternative provisions which the affected district or

interested person desires to be included in the proposed interdistrict service

plan.

     3.  If a lead district:

     (a) Does not receive an objection pursuant to

subsection 2, the tentative draft constitutes a proposed interdistrict service

plan.

     (b) Receives an objection pursuant to subsection 2:

          (1) Each affected district shall review the

objection and may consider any alternative provisions contained in the written

statement of objections and any other alternative provisions proposed by an

affected district or interested person. If the affected districts are unable to

agree on the provisions of a proposed interdistrict service plan within 30 days

after receiving the last written statement of objections submitted pursuant to

subsection 2, the affected districts may, either jointly or individually,

submit to the Department of Education a written request for assistance in

resolving any disagreements concerning the proposed interdistrict service plan.

An affected district is not required to follow any recommendation of the

Department of Education issued pursuant to this subparagraph.

          (2) The lead district shall, upon the mutual

agreement of each affected district to the provisions of a proposed

interdistrict service plan:

               (I) Prepare the proposed interdistrict

service plan in accordance with that agreement; and

               (II) Provide a copy of the proposed

interdistrict service plan to each affected district and interested person

identified by the lead district.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0968  Interdistrict service plans: Contents. (NRS 386.353)  An

interdistrict service plan:

     1.  Must include:

     (a) Such information as is necessary to complete

the consolidation or sharing of each service or function or of personnel as

prescribed by the interdistrict service agreement, including, without

limitation, a complete description of:

          (1) Each service or function or the personnel

being consolidated or shared; and

          (2) The mechanism to fund each service or

function or the personnel; and

     (b) The effective date of the consolidation or

sharing of each service or function or the personnel.

     2.  May include, without limitation, one or

more of the following:

     (a) The statutory authority for the provision of

each service, the performance of each function and the employment of the

personnel being consolidated or shared pursuant to the interdistrict service

agreement.

     (b) The reasons for the consolidation or sharing of

each service or function or the personnel, which may include, without limitation,

any improvements in the management or delivery of a service or function or the

management of personnel, in the implementation of the laws of this State or in

operational efficiency which are expected to result from the consolidation or

sharing of any service, function or personnel.

     (c) For each service or function or for the

personnel being consolidated or shared, a description of any potential

financial effect on any affected district, which may include, without

limitation, any potential financial effect on the amount an affected district

will receive from the Local Government Tax Distribution Account or will be

allowed to receive from taxes ad valorem.

     (d) A description of the transfer or other

disposition, including the timing thereof, of any records, property or

personnel as a result of the consolidation or sharing of a service or function

or of personnel.

     (e) An analysis of the effect of the consolidation

or sharing of each service or function or of personnel on the employees of each

affected district.

     (f) Information concerning the payment of any

outstanding obligation relating to the consolidation or sharing of a service or

function or of personnel, which may include, without limitation, the affected

school responsible for the outstanding obligation, the manner and timing of the

payment of the outstanding obligation, and methods to ensure the sufficiency of

assets to satisfy the outstanding obligation.

     (g) Information concerning the affected district

responsible for prosecuting, defending or conducting any proceeding relating to

the consolidation or sharing of a service or function or of personnel which is

pending when the consolidation or sharing of the service, function or personnel

goes into effect.

     (h) A description of any conditions under which the

consolidation or sharing of a service or function or of personnel may be

terminated or rescinded and of any procedure for terminating or rescinding the

consolidation or sharing of a service or function or of personnel.

     (i) Any procedure for resolving a dispute between

two or more affected districts regarding the consolidation or sharing of a

service or function or of personnel.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.097  Interdistrict service plans and interdistrict service agreements:

Limitations; scope. (NRS 386.353)

     1.  An interdistrict service plan must not

authorize an affected district to:

     (a) Provide a service, perform a function or employ

personnel which the affected district is not expressly authorized by law to

provide, perform or employ on the effective date of the consolidation or sharing

of the respective service, function or personnel.

     (b) Continue to provide a service, perform a

function or employ personnel beyond the period prescribed by law for such

provision, performance or employment or beyond the date on which the authority

for such provision, performance or employment would expire if the respective

service, function or personnel had not been consolidated or shared.

     2.  Except as otherwise specifically provided

in an interdistrict service plan or an interdistrict service agreement, the

provisions of an interdistrict service plan or interdistrict service agreement

do not:

     (a) Limit or alter the effect of any ordinance or

resolution adopted by an affected district or any other action taken by an

affected district before the effective date of the consolidation or sharing of

a service or function or of personnel; or

     (b) Abate any proceedings:

          (1) Commenced by an affected district before

the effective date of the consolidation or sharing of a service or function or

of personnel; or

          (2) Pending before an affected district on the

effective date of the consolidation or sharing of a service or function or of

personnel.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0972  Interdistrict service plans and interdistrict service agreements:

Workshops and public hearings. (NRS 386.353)  Before

approving an interdistrict service plan or interdistrict service agreement, the

affected districts:

     1.  May jointly hold one or more workshops in

each affected district to solicit comments regarding one or more general topics

to be addressed in a proposed interdistrict service plan or interdistrict

service agreement; and

     2.  Shall, either jointly or individually,

hold a public hearing to approve or disapprove the proposed interdistrict

service plan or interdistrict service agreement in accordance with the

provisions of chapter 241 of NRS.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

      NAC 354.0974  Interdistrict service plans and interdistrict service agreements:

Expiration of approval. (NRS 386.353)  The

approval of an interdistrict service plan or an interdistrict service agreement

by an affected district expires 1 year after the date of that approval unless:

     1.  The consolidation or sharing of each

service or function or of personnel as prescribed by the plan has been

completed within that period;

     2.  The interdistrict service plan or

interdistrict service agreement specifies a different period for the expiration

of that approval; or

     3.  Each affected district, by mutual

agreement, agrees to extend the applicable period for the expiration of that

approval.

     (Added to NAC by Com. on Local Gov’t Finance by R006-12,

eff. 12-20-2012)

PREPARATION OF BUDGETS

      NAC 354.100  Budget forms. (NRS 354.107, 354.594, 354.596, 354.598, 354.600)  A local

government shall use the budget forms provided by the Department and complete

the forms as prescribed in:

     1.  NAC 354.100

to 354.160, inclusive; and

     2.  The instructions provided by the

Department.

     [Tax Comm’n, Local Gov’t Reg. No. 21 § 1, eff. 1-24-78]—(A

by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.140  Tentative budget: Submission of letter of certification. (NRS 354.107, 354.594, 354.596)

      1.  Except

as otherwise provided in subsection 2, a tentative budget

submitted to the Department must be accompanied by a letter of certification

signed by the governing body or the officer charged by law with preparing the

budget.

     2.  If the tentative budget is submitted electronically

as part of a fiscal report pursuant to NAC 354.559,

the letter of certification must be submitted separately on paper to the

Department.

     [Tax Comm’n, Local Gov’t Reg. No. 21 § 9, eff. 1-24-78;

A 12-20-79]—(NAC A 1-10-84; A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.150  Adoption of tentative budget as filed: Submission of additional

documents. (NRS

354.107, 354.594, 354.598)

      1.  If

its tentative budget as filed is adopted as a final budget, a local government

shall submit to the Department:

     (a) A cover letter stating that fact; and

     (b) A new letter of certification signed by the

governing body.

     2.  If the tentative budget is submitted

electronically as part of a fiscal report pursuant to NAC

354.559, the documents set forth in subsection 1 must be submitted

separately on paper to the Department.

     [Tax Comm’n, Local Gov’t Reg. No. 21 § 11, eff. 1-24-78]—(A

by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.155  Submission of notice of information. (NRS 354.107, 354.594)  The

officer charged by law with preparing the budget for his or her respective

county shall submit to the Department a copy of the notice of information

prepared and caused to be published by the ex officio tax receiver pursuant to NRS 361.4545.

     (Added to NAC by Tax Comm’n, eff. 5-16-86; A by Com. on

Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.160  Substantial change in budget: Submission of affected fund

schedules. (NRS

354.107, 354.594)  If as a

result of negotiations or a fact-finder’s report, a substantial change to the

budget of a local government becomes necessary, the local government shall

submit to the Department, within 30 days after receiving the report, those fund

schedules affected consistent with the budgetary requirements of the report.

     [Tax Comm’n, Local Gov’t Reg. No. 21 § 12, eff. 1-24-78;

A 12-20-79]—(A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

LIMITATIONS ON FEES

      NAC 354.185  Application to exceed allowable increase in revenue from fees for

business licenses or allowable increase in building permit basis. (NRS 354.107, 354.594, 354.5989, 354.59891)  If a

local government submits an application to the Nevada Tax Commission to

increase the revenue of the local government from fees for business licenses in

excess of the amount allowable pursuant to NRS 354.5989 or to increase the

building permit basis of the local government by an amount greater than

otherwise allowable pursuant to subsection 2 of NRS 354.59891, the application

must be accompanied by:

     1.  A copy of the proposed ordinance or

resolution of the local government that would increase the fee for a business

license or building permit basis;

     2.  A copy of a business impact statement

prepared pursuant to NRS 237.090

or other evidence of compliance with NRS

237.090, if applicable;

     3.  Excerpts from the minutes of a public

hearing at which the proposed increase was discussed, which must include,

without limitation, an indication of the intent of the governing body of the

local government to limit the increase in the fee for a business license or

building permit basis to a specified maximum amount and any comments made at

the hearing by a member of the governing body or the public;

     4.  A study or survey which sets forth the

fees for business licenses or the building permit bases, as appropriate, of

other local governments in this State; and

     5.  Any other supporting data which the

governing body of the local government believes is pertinent to the

consideration of the application.

     (Added to NAC by Com. on Local Gov’t Finance by R031-05,

eff. 2-23-2006)

TAXES AD VALOREM

      NAC 354.211  Submission to Department of resolution levying common rate for

common services in unincorporated towns. (NRS 354.107, 354.594)  The

board of county commissioners shall submit to the Department a copy of any

resolution which levies a common rate of taxes ad valorem for common services

provided in unincorporated towns.

     (Added to NAC by Tax Comm’n, eff. 5-16-86)

      NAC 354.221  Submission of amended final budget which changes combined rate. (NRS 354.107, 354.594, 354.598)  In

addition to the requirements set forth in subsection 6 of NRS 354.598, a local government

shall submit an amended final budget to:

     1.  The county auditor within 15 days after

making any change in its final budget which decreases the combined ad valorem tax

rate; and

     2.  The county clerk within 15 days after

making any change in its final budget which increases or decreases the combined

ad valorem tax rate.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

CREATION OF FUNDS

      NAC 354.241  Contents and filing of resolution adopted to create certain

funds. (NRS

354.612, 360.090)  A

resolution adopted by a local government to create a fund of a type which is

listed in paragraph (a) of subsection 5 of NRS 354.624, must be filed with the

Department immediately upon adoption and must contain:

     1.  A statement of the purpose of the fund.

     2.  The sources of the money that is expected

to be deposited in the fund.

     3.  A short-term and long-term plan for the

expenditures from the fund.

     4.  A plan for the retention or disposition

of the balance, reserves and retained earnings of the fund.

     5.  A mechanism for curing deficiencies in

the balance, reserves and retained earnings of the fund.

     6.  The method by which a determination will

be made as to whether the balance, reserve and retained earnings of the fund

are reasonable and necessary to carry out the purpose of the fund.

     7.  A list of all statutes and regulations

that apply to the fund.

     (Added to NAC by Tax Comm’n, eff. 7-9-96)

LETTER OF CREDIT; ADVANCE APPORTIONMENT OF TAX

      NAC 354.270  Letter of credit issued to local government. (NRS 360.090)

     1.  As used in this section, “letter of

credit” means an authorization from a county treasurer to a county auditor to

honor warrants of a local government prior to the distribution of tax receipts

to the account of the local government.

     2.  A letter of credit may be issued on

behalf of an entity at the option of the county treasurer if the following

conditions are met:

     (a) The letter of credit must be requested of the

county treasurer by the governing body.

     (b) A letter of credit cannot be issued to cover

more than 75 percent of the undistributed tax receipts on hand in the county

treasury to be distributed to the entity.

     (c) The county treasurer shall make a distribution

of taxes to cover any outstanding letters of credit prior to the end of each

fiscal year.

     [Tax Comm’n, Local Gov’t Reg. part No. 2, eff. 11-7-69]

      NAC 354.280  Advance of taxes apportioned to local government. (NRS 360.090)

     1.  Any entity entitled to an apportionment

of taxes may request of the county treasurer an advance tax apportionment if

the following procedures are met:

     (a) An advance apportionment must be requested of

the county treasurer by the governing body.

     (b) An advance apportionment cannot be made in

excess of 75 percent of the undistributed tax receipts on hand in the county

treasury to be distributed to the entity.

     (c) The county treasurer shall make an

apportionment of taxes to cover any outstanding special apportionment prior to

the end of each fiscal year.

     2.  Such an apportionment may be made at the

option of the county treasurer.

     [Tax Comm’n, Local Gov’t Reg. part No. 2, eff. 11-7-69]

INTERFUND LOANS

      NAC 354.290  Temporary interfund loans: Conditions; interest. (NRS 354.107, 354.6118)

     1.  Unless otherwise prohibited by law, the

governing body of a local government may make a temporary interfund loan if:

     (a) The governing body complies with the provisions

of NRS 354.6118;

     (b) Any money for the loan which is obtained from

the proceeds from the sale of a bond is used only for the purposes set forth in

the bond ordinances;

     (c) The loan is not made from any debt service fund

or from any fund established or maintained as a fund dedicated to the payment

of bonded debt and interest;

     (d) The resolution authorizing the loan specifies

whether interest will be charged and the rate thereof, if any;

     (e) It is agreed in writing that the loan must be

repaid within 1 year after the date on which the loan was made;

     (f) A copy of the resolution authorizing the loan

is filed with the Department; and

     (g) The governing body agrees to notify the

Department when the loan has been repaid.

     2.  If the resolution authorizing the making

of a temporary interfund loan does not specify whether interest will be charged

as required pursuant to paragraph (d) of subsection 1, no interest may be

charged.

     3.  As used in this section:

     (a) “Component unit” means a separate legal entity

from a local government whose financial statements must be included in the

annual audit of that local government conducted pursuant to NRS 354.624.

     (b) “Temporary interfund loan” means a loan of

money for a term of less than 1 year from a fund to meet an immediate

obligation of another fund in advance of receipt by the borrowing fund of

sufficient revenues from regular sources, including such a loan from a fund of:

          (1) A local government to:

               (I) Another fund of that local

government;

               (II) A fund of a component unit of that

local government;

               (III) A fund of another local government;

or

               (IV) A fund of a component unit of

another local government; and

          (2) A component unit of a local government to:

               (I) Another fund of that component unit;

               (II) A fund of another component unit of

that local government;

               (III) A fund of that local government or

of another local government; or

               (IV) A fund of a component unit of

another local government.

     (Added to NAC by Com. on Local Gov’t Finance by R135-10,

eff. 12-16-2010)

TRANSFER OF MONEY BETWEEN ACCOUNTS

      NAC 354.350  Transfer of certain unclaimed money. (NRS 354.107, 354.150)

     1.  Entities that have unclaimed money held

for a period of 1 year in accordance with NRS 120A.200 may transfer

the money from the debt service fund to any other fund including, if not

prohibited by statute, the general fund. The transfer must be in accordance

with subparagraph (1) of paragraph (c) of subsection 5 of NRS 354.598005. Counties shall

comply with chapter 150 of NRS for the

transfer of dormant funds.

     2.  This action does not negate consideration

of a claim filed pursuant to chapter 11

of NRS.

     [Tax Comm’n, Local Gov’t Reg. No. 6, eff. 8-23-69; A 12-20-79]—(A

by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.360  Transfer of budget appropriations between accounts; transfer of

money from certain funds. (NRS 354.107, 354.594, 354.598005, 354.6115)

      1.  All

the procedures authorized by NRS

354.598005 for the transfer of budget appropriations between accounts must

be completed before June 30 of the affected fiscal year.

     2.  Any transfer of money from a fund

established pursuant to NRS

354.6115 must be completed within 60 days after June 30 of the affected

fiscal year.

     (Added to NAC by Tax Comm’n, eff. 10-26-84; A by R027-99,

1-27-2000; A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

BUDGET AUGMENTATION

      NAC 354.400  Purpose. (NRS 354.107, 354.594, 354.598005)  The

purpose of NAC 354.400 to 354.490,

inclusive, is to define available resources and to specify filing requirements

for budget augmentation for governmental funds.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 1-13-72;

A 11-10-72; 11-8-74; 2-7-76; 12-20-79; 1-14-82]—(A by Com. on Local Gov’t

Finance by R201-01, 4-5-2002; R033-03, 12-16-2003)

      NAC 354.410  Available resources. (NRS 354.107, 354.594, 354.598005)

     1.  An unappropriated ending balance of any

governmental fund, except a fund for capital projects, is not an available

resource. Available resources are:

     (a) An opening balance which is larger than

anticipated;

     (b) Revenues in excess of those budgeted;

     (c) Revenues generated from previously unbudgeted

sources; or

     (d) An unappropriated ending balance of a fund for

capital projects.

     2.  The difference between the total of the

original budgeted resources and the total of the revised resources is the

amount available for budget augmentation.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 1-13-72;

A 2-7-76; 1-14-82]—(NAC A 8-2-90; A by Com. on Local Gov’t Finance by R201-01,

4-5-2002)

      NAC 354.420  Revised revenue schedule. (NRS 354.107, 354.594, 354.598005)  When

augmenting a budget, local governments must prepare a revised revenue schedule

for each affected fund and submit it, with the appropriate resolution, to the

Department.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 1-13-72;

11-8-74; 2-7-76; 1-14-82]

      NAC 354.430  Notice of hearing. (NRS 354.107, 354.594, 354.598005)  The

published notice required by NRS

354.598005 must include the time and place of the hearing, the

appropriations to be augmented and the nature of the unanticipated resources.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 11-8-74;

A 1-14-82]—(NAC A 9-5-89; A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.440  Vote by proxy. (NRS 354.107, 354.594, 354.598005)

     1.  A member of the governing body,

anticipating his or her absence on a date of formal action on a resolution

authorizing augmentation, may vote by written proxy if the proxy:

     (a) Indicates the subject matter of the resolution

to which the vote applies; and

     (b) Is filed with the governing body before the

resolution is considered.

     2.  A copy of the proxy must be forwarded to

the Department with the record of the vote on the resolution.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 11-8-74;

A 2-7-76; 1-14-82]

      NAC 354.450  Deadline. (NRS 354.107, 354.594, 354.598005)  The

procedure for augmentation must be completed before June 30 of the affected

fiscal year.

     [Tax Comm’n, Local Gov’t Reg. part No. 10, eff. 1-13-72;

A 11-8-74; 1-14-82]

      NAC 354.481  Expenses in excess of original budget appropriation. (NRS 354.107, 354.594, 354.598005)  Expenses

charged to an enterprise or internal service fund in excess of the original

budget appropriation therefor are allowable in accordance with NRS 354.612 and are not a violation

of NRS 354.626 if:

     1.  The expenses do not cause a deficit in

the equity balance of the fund; and

     2.  The budget is adjusted in a manner

provided by law.

     (Added to NAC by Com. on Local Gov’t Finance by R033-03,

eff. 12-16-2003)

      NAC 354.490  Report of augmented budget. (NRS 354.107, 354.594, 354.598005)  A local

government is not required to file an augmented budget for an enterprise or

internal service fund with the Department but shall report the budget

augmentation in the next response submitted to the Department to the quarterly

survey prescribed by the Committee concerning the economic conditions affecting

the local government.

     [Tax Comm’n, Local Gov’t Reg. part No. 4, eff. 8-29-68;

A 10-9-71; 11-8-74; 2-7-76]—(NAC A 1-10-84; A by Com. on Local Gov’t Finance by

R201-01, 4-5-2002)

FISCAL REPORTS

      NAC 354.555  Fulfillment of requirements of submitting tentative budget and

transmitting final budget. (NRS 354.107, 354.594, 354.596, 354.598)  If the

governing body of a local government submits a fiscal report of the local

government to the Department pursuant to NRS 354.6015 and NAC 354.557 and 354.559,

the local government shall be deemed to have fulfilled the requirement of:

     1.  Submitting a tentative budget to the

Department pursuant to NRS 354.596;

and

     2.  Transmitting a final budget to the Nevada

Tax Commission pursuant to NRS

354.598.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

4-5-2002, eff. 7-1-2002)

      NAC 354.557  Submission in electronic format; petition for exemption;

submission in alternative format. (NRS 354.107, 354.594, 354.6015)

     1.  Except as otherwise provided in

subsections 7 and 8, the governing body of each local government required to

submit electronically a fiscal report of the local government to the Department

pursuant to NRS 354.6015 shall

complete and submit each portion of the fiscal report:

     (a) On a form prescribed by the Department;

     (b) In accordance with the instructions provided by

the Department; and

     (c) On or before the applicable date and time as

set forth in NAC 354.559.

     2.  A local government that does not have the

current ability to submit a fiscal report of the local government to the

Department in an electronic format may petition the Committee for an exemption

from the requirement of submitting the fiscal report in that format. The

petition must:

     (a) Be in the form of an ordinance or resolution

adopted by the governing body of the local government;

     (b) Be filed with the Department on or before

January 1 of the fiscal year for which the exemption is requested; and

     (c) Include:

          (1) A statement of the reason that the local

government is unable to submit the fiscal report to the Department in an

electronic format;

          (2) An estimate of the cost that the local

government would incur to comply with the requirement of electronically

submitting the fiscal report to the Department;

          (3) The annual revenue of the local

government; and

          (4) Any other evidence of the financial

inability of the local government to comply with the requirement of

electronically submitting the fiscal report to the Department.

     3.  The Department shall forward each

petition filed with the Department pursuant to subsection 2 to the Committee

within 30 days after receiving the petition. The Committee will consider each

petition at the next regularly scheduled meeting of the Committee after receipt

of the petition.

     4.  In determining whether to grant a

petition, the Committee will consider:

     (a) Whether the annual revenue of the local

government is not more than $50,000;

     (b) Any other evidence set forth in the petition of

the financial inability of the local government to comply with the requirement

of electronically submitting the fiscal report to the Department; and

     (c) Whether the local government has the

technological capability to comply with the requirement of electronically

submitting the fiscal report to the Department.

     5.  The Committee will provide notice of its

decision concerning the petition within 30 days after the meeting at which the

petition was considered to:

     (a) The local government; and

     (b) If the Committee grants the petition, the

Department.

     6.  The notice provided to the local

government pursuant to subsection 5 must include the reasons for the decision

of the Committee.

     7.  If the Committee grants a petition filed

with the Department pursuant to subsection 2, the governing body of the local

government that filed the petition shall submit the fiscal report of the local

government to the Department in a format determined by the Department.

     8.  If the governing body of the local

government is unable to submit electronically the fiscal report of the local

government to the Department because of a technological problem with the

website of the Department, the local government shall:

     (a) Notify the Department of the problem; and

     (b) Submit the fiscal report to the Department in a

format determined by the Department.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

4-5-2002, eff. 7-1-2002)

      NAC 354.559  Contents and form; deadlines for submission; forwarding of final budget.

(NRS

354.107, 354.594, 354.6015)

     1.  The fiscal report that the governing body

of a local government is required to submit electronically to the Department

pursuant to NRS 354.6015:

     (a) Includes the information listed in paragraph

(b) of subsection 2 of NRS 354.6015;

     (b) Must be submitted to the Department in the form

of the documentation set forth in subsection 2; and

     (c) Must be submitted to the Department on or before

the dates and times set forth in subsection 2.

     2.  The fiscal report described in subsection

1 consists of the following documentation:

     (a) Except for a local government that has been

exempted from the requirement of filing its tentative budget pursuant to the

provisions of NRS 354.475 and NAC 354.010 to 354.040,

inclusive, the tentative budget that is required to be submitted to the

Department pursuant to NRS 354.596.

The tentative budget must be submitted to the Department on or before 5 p.m. on

April 15 of each year.

     (b) A copy of the final budget that is required to

be submitted to the Nevada Tax Commission pursuant to NRS 354.598. Except as otherwise

provided in this paragraph, the copy of the final budget must be submitted to

the Department on or before 5 p.m. on June 1 of each year. The copy of the

final budget of:

          (1) A school district must be submitted to the

Department on or before 5 p.m. on June 8 of each year; and

          (2) A local government that has been exempted

from the requirement of filing its tentative budget pursuant to the provisions

of NRS 354.475 and NAC 354.010 to 354.040,

inclusive, must be submitted to the Department on or before 5 p.m. on April 15

of each year.

     (c) If the local government is augmenting a budget

pursuant to NRS 354.598005,

the information concerning the budget augmentation that the governing body of

the local government is authorized to file with the Department pursuant to that

section. That information must be submitted to the Department within 30 days

after the adjournment of the legislative session if the governing body files

the information as authorized pursuant to subsection 6 or 7 of NRS 354.598005.

     (d) The responses of the local government to the

quarterly survey prescribed by the Committee concerning the economic conditions

affecting the local government. The responses must be submitted to the

Department not later than 45 days after the end of each quarter of a fiscal

year.

     (e) Except for a local government that has been

exempted from the requirement of filing its audit reports pursuant to the

provisions of NRS 354.475 and NAC 354.010 to 354.040,

inclusive, the actual revenue and the actual expenditures for the fiscal year

immediately preceding the fiscal year in which the information is submitted.

The information relating to the actual revenue and actual expenditures must be

submitted to the Department on or before January 1 of each year.

     (f) If the local government has been exempted from

the requirement of filing its audit reports pursuant to the provisions of NRS 354.475 and NAC 354.010 to 354.040,

inclusive, the statement of revenues, expenditures and changes in fund balance

that is required to be submitted to the Department pursuant to NAC 354.040. The statement must be submitted to the

Department on or before January 1 of each year.

     3.  For the purpose of submitting the

information required to be included in the fiscal report pursuant to paragraph

(a), (b) or (e) of subsection 2, the governing body of a local government shall

report information relating to:

     (a) A special revenue fund, capital project fund or

debt service fund of the local government separately from information relating

to any other special revenue fund, capital project fund or debt service fund of

the local government if any of the revenue in the special revenue fund, capital

project fund or debt service fund was received from property taxes or the Local

Government Tax Distribution Account;

     (b) The expenditures or expenses of the local

government by the governmental function to which the expenditure or expense was

charged for the general fund of the local government and for each special

revenue fund, capital project fund, debt service fund and proprietary fund of

the local government;

     (c) The total expenditures or expenses of the local

government charged against each fund listed in the fiscal report in at least

the following categories:

          (1) Salaries and wages;

          (2) Benefits;

          (3) Services and supplies; and

          (4) Capital outlay; and

     (d) Revenue in categories, including, without

limitation, property taxes, other taxes, business licenses, other licenses and

permits, Local Government Tax Distribution Account, intergovernmental

resources, charges for services, and fines and forfeitures.

     4.  Upon receipt of a final budget, the

Department shall forward a copy of the final budget to the Nevada Tax

Commission.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

4-5-2002, eff. 7-1-2002)

      NAC 354.561  Summary of report: Publication and contents. (NRS 354.107, 354.594, 354.6015)

     1.  The summary of the fiscal report that the

governing body of a local government is required to publish pursuant to NRS 354.6015 must be published

before July 1 of each year in the manner required pursuant to that section.

     2.  The summary of the fiscal report must

include:

     (a) The following information relating to the

general fund of the local government:

          (1) The total actual revenue and the total

actual expenditures for the fiscal year immediately preceding the date on which

the report is published;

          (2) The total anticipated revenue and the

total expenditures for the current fiscal year; and

          (3) The total revenue and the total

expenditures budgeted for the ensuing fiscal year; and

     (b) The following information relating to any

proprietary fund of the local government:

          (1) The operating revenue and the operating

expenses for the fiscal year immediately preceding the date on which the report

is published;

          (2) The anticipated revenue, other than

operating revenue, and the expenses, other than operating expenses, for the

current fiscal year;

          (3) The operating revenue and the operating

expenses budgeted for the ensuing fiscal year; and

          (4) Any revenue, other than operating revenue,

and any expenses, other than operating expenses, budgeted for the ensuing

fiscal year.

     3.  The governing body of the local

government may include information relating to any other fund of the local

government in the summary of the fiscal report.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

4-5-2002, eff. 7-1-2002)

REPORTS REGARDING RECEIPT AND DISTRIBUTION OF PROPERTY

TAXES

      NAC 354.566  Definitions. (NRS 354.107, 354.594)  As used

in NAC 354.566 to 354.577,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 354.567 and 354.569

have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.567  “Central assessment roll” defined. (NRS 354.107, 354.594)  “Central

assessment roll” means the central assessment roll described in NRS 361.3205.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.569  “Property tax receipts” defined.

(NRS 354.107, 354.594)  “Property

tax receipts” means receipts from ad valorem property taxes, including, without

limitation, any receipts from:

     1.  Taxes on real and personal property which

are paid pursuant to NRS 361.483;

     2.  Deferred taxes on real property

previously held for agricultural or open-space use which are assessed pursuant

to NRS 361A.280;

     3.  Taxes on any property that is not on the

secured tax roll which are assessed pursuant to NRS 361.505, 361.767, 361.769 or 361.770;

     4.  Taxes on any property that is valued by

the Nevada Tax Commission pursuant to NRS

361.320 which are collected pursuant to NRS 361.3205; and

     5.  Taxes on the net proceeds of minerals

which are appropriated to a county pursuant to NRS 362.170,

Ê except that

the term does not include any franchise fees, payments for oil or gas leases,

fees for hunting or fishing, or payments by the Federal Government in lieu of

taxes.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.571  Preliminary summary reports: Filing by tax receiver in each

county. (NRS

354.107, 354.594)  On or

before August 1 of each fiscal year, the tax receiver of each county shall file

with the Department, the Department of Education and the county school district

a preliminary summary report of the total amount of property tax receipts for

the immediately preceding fiscal year that were received by the county before

July 1 of the current fiscal year. Except as otherwise provided in NAC 354.577, the report must not duplicate any amounts

previously reported pursuant to NAC 354.566 to 354.577, inclusive, during the immediately preceding

fiscal year.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.573  Preliminary summary reports: Contents. (NRS 354.107, 354.594)  The

preliminary summary report required by NAC 354.571

must include:

     1.  The total amount of the property tax

receipts of the county classified by type, including:

     (a) The total amount of taxes collected for the

immediately preceding fiscal year attributable to property on the secured tax

roll;

     (b) The total amount of taxes collected for the

immediately preceding fiscal year attributable to property on the unsecured tax

roll;

     (c) The total amount of taxes collected for the

immediately preceding fiscal year attributable to property on the central

assessment roll;

     (d) The total amount of taxes on the net proceeds

of minerals collected for the immediately preceding calendar year which was

distributed to the county pursuant to NRS

362.170;

     (e) The total amount of taxes on the net proceeds

of minerals collected for the current calendar year which was distributed to

the county pursuant to NRS 362.170;

     (f) The total amount collected for delinquent taxes

attributable to all the fiscal years ending on or before June 30, 2005;

     (g) The total amount collected for delinquent taxes

attributable to all the fiscal years beginning on or after July 1, 2005, and

before the commencement of the current fiscal year;

     (h) The total of all the amounts described in

paragraphs (a) to (g), inclusive;

     (i) The total amount of the pertinent commission

paid into the county treasury pursuant to NRS 361.530; and

     (j) The result obtained by subtracting the sum

described in paragraph (i) from the sum described in paragraph (h).

     2.  The portions of the property tax receipts

of the county distributed for the operation of public schools, using a tax rate

of 75 cents on each $100 of assessed valuation of taxable property, including:

     (a) The portion of the total amount of taxes

collected for the immediately preceding fiscal year attributable to property on

the secured tax roll which was distributed to the county school district;

     (b) The portion of the total amount of taxes

collected for the immediately preceding fiscal year attributable to property on

the unsecured tax roll which was distributed to the county school district;

     (c) The portion of the total amount of taxes

collected for the immediately preceding fiscal year attributable to property on

the central assessment roll which was distributed to the county school district;

     (d) The portion of the total amount of taxes on the

net proceeds of minerals distributed to the county during the immediately

preceding fiscal year pursuant to NRS

362.170 which is available to the county school district for use in the

current fiscal year pursuant to subsection 2 of NRS 387.195;

     (e) The portion of the total amount of taxes on the

net proceeds of minerals collected for the immediately preceding calendar year

which was distributed to the county pursuant to NRS 362.170 and subsequently

distributed to the county school district;

     (f) The portion of the total amount of taxes on the

net proceeds of minerals collected for the current calendar year which was

distributed to the county pursuant to NRS

362.170 and subsequently distributed to the county school district;

     (g) The portion of the total amount collected for

delinquent taxes attributable to all the fiscal years ending on or before June

30, 2005, which was distributed to the county school district;

     (h) The portion of the total amount collected for

delinquent taxes attributable to all the fiscal years beginning on or after

July 1, 2005, and before the commencement of the current fiscal year which was

distributed to the county school district;

     (i) The total of all the amounts described in

paragraphs (a) to (h), inclusive;

     (j) The total amount of the pertinent commission

paid into the county treasury pursuant to NRS 361.530; and

     (k) The result obtained by subtracting the sum

described in paragraph (j) from the sum described in paragraph (i).

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.575  Report by county school district of corresponding receipts and

deductions; reconciliation of differences between reports. (NRS 354.107, 354.594)

     1.  On or before August 10 of each fiscal

year, a county school district shall provide to the Department, the Department

of Education and the tax receiver of the county a report of all the receipts

and deductions of the county school district for the immediately preceding

fiscal year which pertain to the amounts included in the preliminary summary

report filed pursuant to NAC 354.571. If the total

amounts reported by the county school district pursuant to this subsection

differ from the corresponding amounts included in the preliminary summary

report by more than 3 percent in any category, representatives of the school

district and the tax receiver must jointly determine the reasons for that

difference.

     2.  On or before August 15 of each fiscal

year, the tax receiver of each county shall:

     (a) Make any adjustments necessary to reconcile the

amounts contained in the preliminary summary report filed pursuant to NAC 354.571 for the immediately preceding fiscal year

with the amounts contained in the report filed by the county school district

pursuant to subsection 1;

     (b) Include in the preliminary summary report an

explanation of the reasons for any differences of greater than 3 percent

determined pursuant to subsection 1; and

     (c) Submit a copy of the preliminary summary

report, as revised pursuant to this subsection, to the Department, the

Department of Education and the county school district.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

      NAC 354.577  Final summary reports: Filing by tax receiver in each county;

contents. (NRS

354.107, 354.594)

     1.  On or before September 10 of each fiscal

year, the tax receiver of each county shall file with the Department, the

Department of Education and the county school district a final summary report

of the total amount of property tax receipts for the immediately preceding fiscal

year that were received by the county. The final summary report must include

the information described in NAC 354.573 and the

total amount of any property tax receipts for the immediately preceding fiscal

year that were received by the county during July and August of the current

fiscal year.

     2.  The amounts reported pursuant to this

section must not be duplicated in any preliminary summary report filed pursuant

to NAC 354.571 during any subsequent fiscal year,

except that the total amount of any property tax receipts for the immediately

preceding fiscal year that were received by the county during July and August

of the current fiscal year must be included in and accounted for in the

preliminary summary report filed during the next fiscal year.

     (Added to NAC by Com. on Local Gov’t Finance by R117-09,

eff. 6-30-2010)

REPORTS OF EXPENDITURES FOR LOBBYING ACTIVITIES

      NAC 354.581  Interpretation of certain statutory terms. (NRS 354.107, 354.594, 354.59803)  As used

in NRS 354.59803, the

Committee interprets:

     1.  “Expends more than $6,000” to include

only those expenditures that are incurred by the local government in

preparation for or during the legislative session.

     2.  “Salary or wages paid to its officers and

employees” to include only that portion of the salary or wages paid to those

officers and employees for time actually spent on activities designed to influence

the passage or defeat of any legislation.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

      NAC 354.585  Form of report. (NRS 354.107, 354.594, 354.59803)  A local

government that is required to file a report with the Department pursuant to NRS 354.59803 shall file the

report on a form prescribed by the Department for that purpose.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

COUNTIES: STATEMENT OF TOTAL AMOUNT OF BILLS ALLOWED

      NAC 354.595  Posting and maintenance on website of statements of amount of

bills allowed. (NRS 354.107, 354.210)

     1.  If a county maintains an official

Internet website, the county must place a link on the official Internet website

to the statement of the total amount of bills allowed by the county that is

required pursuant to NRS 354.210.

Such a link must be on a web page that is easily located within the official

Internet website of the county.

     2.  In addition to the requirements set forth

in NRS 354.210, a statement of

the total amount of bills allowed by the county that is maintained on the

official Internet website of the county:

     (a) Must:

          (1) Remain on the official Internet website of

the county until the county updates the statement after the end of the next

calendar quarter.

          (2) Be updated not later than 45 days after

the end of every calendar quarter.

          (3) Identify whether the accounting basis of

the statement is the cash or modified accrual basis.

          (4) Report on a cash or modified accrual basis

the bills allowed by the county during the calendar quarter. The statement of

the total amount of bills allowed must:

               (I) Except as otherwise provided in this

sub-subparagraph, be summarized by payee. Allowances related to the employment

of personnel may be reported as total salaries, wages or benefits, as

applicable, without reference to the amounts paid to or on behalf of any individual

officer or employee; and

               (II) Set forth the total amount of bills

allowed and paid to each payee during the calendar quarter and the period from

the beginning of the current fiscal year through the end of the calendar

quarter.

     (b) May include, without limitation:

          (1) A report that compares the bills allowed

and paid during the calendar quarter to the amounts budgeted for the bills for

the calendar quarter.

          (2) A report of the bills allowed and paid

during the calendar quarter out of each fund or account maintained by the

county.

     3.  The Department, on behalf of the

Committee, may notify the county if the statement of the total bills allowed

that is posted on the official Internet website of the county does not comply

with the requirements of this section.

     (Added to NAC by Com. on Local Gov’t Finance by R005-12,

eff. 12-20-2012)

UNAPPROPRIATED ENDING FUND BALANCE

      NAC 354.650  Explanation by local government; reduction of debt rate. (NRS 354.107, 360.090)

     1.  If the ending fund balance in the general

fund of a local government has been budgeted for less than 4 percent of the

actual expenditures from the general fund of the local government for the previous

fiscal year, the local government shall provide a written explanation to the

Department that includes the reason for the low ending fund balance and the

manner in which the local government plans to increase the fund balance.

     2.  If that portion of an ending fund balance

in a debt service fund of a local government which is attributable to revenue

from property taxes exceeds the principal and interest payable from that

portion of the fund for the ensuing year, the local government shall provide a

written explanation to the Department that includes the reason and any

authority for the excess.

     3.  Except as otherwise provided in

subsections 5 and 6, if the Department finds that there is no authority for the

excess, the Department shall require the local government to reduce the debt

rate.

     4.  A local government may propose to the

Department a plan to reduce the debt rate over a period not to exceed 3 years.

The Department may consider the plan and require the local government to reduce

the debt rate in phases.

     5.  The Department shall exempt a local

government from the requirement to reduce the debt rate pursuant to subsection

3 if the local government demonstrates to the satisfaction of the Department

that:

     (a) The debt rate is levied pursuant to subsection

4 of NRS 350.020; or

     (b) A reduction in the debt rate would decrease the

balance in the debt service fund to an amount less than the amount required for

the reserve account pursuant to subsection 5 of NRS 350.020 for any fiscal year

during which a bond issued pursuant to subsection 4 of NRS 350.020 is outstanding and

would reduce the debt rate below the rate approved for that bond.

     6.  The Department may exempt for a period

determined pursuant to subsection 7 a local government from the requirement to

reduce the debt rate pursuant to subsection 3 if the local government

demonstrates to the satisfaction of the Department:

     (a) That at least one of the following conditions

exist:

          (1) The estimated annual revenues from

property taxes are not sufficient to pay the scheduled principal and interest

of current outstanding and proposed bonds;

          (2) Projects to be financed by bonds are

delayed for a reasonable cause; or

          (3) A temporary increase in assessed values of

taxable property within the boundaries of the local government caused an

increase in revenues from property taxes; and

     (b) A need exists to issue bonds during the

subsequent 3 years which:

          (1) Would be used to finance projects included

in the 5-year capital improvement plan and debt management policy of the local

government; and

          (2) Would result in that portion of the ending

fund balance in a debt service fund that is attributable to revenues from

property taxes being at a level that would not require the local government to

provide a written explanation to the Department pursuant to subsection 2.

     7.  The Department may exempt a local

government pursuant to subsection 6:

     (a) Only for the period during which the local

government has voter authorization for the debt; and

     (b) For a period specified by the Department which

does not exceed 3 years.

     [Tax Comm’n, Local Gov’t Reg. part No. 13, eff. 1-11-73;

A 2-29-80]—(NAC A 1-10-84; 8-2-90; A by Com. on Local Gov’t Finance by R201-01,

4-5-2002; R028-08, 9-18-2008)

      NAC 354.660  Ending balance not subject to negotiations. (NRS 354.107)  A

budgeted ending fund balance of not more than 8.3 percent of the total budgeted

expenditures, less capital outlay, for a general or special revenue fund which

receives revenue from property taxes or the Local Government Tax Distribution

Account is not subject to negotiations with other local governments or employee

organizations.

     [Tax Comm’n, Local Gov’t Reg. part No. 13, eff. 1-11-73;

A 2-29-80]—(NAC A 1-10-84; A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

AUDITS

     NAC 354.700  Audit required after first year of operation. (NRS 354.107, 354.594, 354.624)  Every

newly created entity must file an independent audit report at the end of its

first full fiscal year of operation; thereafter it may petition for an

exemption under NAC 354.010 to 354.040, inclusive.

     [Tax Comm’n, Local Gov’t Reg. No. 14 § 5, eff. 9-7-73]

      NAC 354.712  Adoption by reference of Government Auditing Standards;

“generally accepted auditing standards in the United States” interpreted. (NRS 354.107, 354.594, 354.624)

     1.  For the purposes of NRS 354.624, the Committee

interprets the phrase “generally accepted auditing standards in the United

States” to mean the Government Auditing Standards adopted by reference

pursuant to subsection 2. Each annual audit required pursuant to NRS 354.624 must be conducted, and

any audit report, report on internal accounting control or other report issued

by the auditor relating to that audit must be prepared in accordance with the Government

Auditing Standards.

     2.  The Committee hereby adopts by reference

the Government Auditing Standards, July 2007 Revision, and any

subsequent revision to the Standards issued by the Comptroller General

of the United States that has been approved by the Committee for use in this

State. Each revision of the Standards shall be deemed approved by the

Committee unless the Committee files an objection to the revision with the

Office of the Secretary of State within 60 days after the date of publication

of the revision. The Standards may be obtained from the Superintendent

of Documents, United States Government Printing Office, P. O. Box 979050, St.

Louis, Missouri 63197-9000, for $12.50 or at no cost on the Internet at http://www.gao.gov/govaud/ybk01.htm.

     (Added to NAC by Com. on Local Gov’t Finance by R211-08,

eff. 12-17-2008)

      NAC 354.715  Contents of audit report: Opinions required; fairness statement;

reference to certain separate reports; statement of corrective action. (NRS 354.107, 354.594, 354.624, 360.090)

     1.  If the auditor has been engaged to

examine only the combined financial statements, the audit report must also

present combining, individual fund and account group financial statements for

all funds and account groups maintained by the local government. The auditor’s

report must, in addition to expressing an opinion on the combined financial

statements, state whether the combining, individual fund and account group

financial statements, and supporting schedules are stated fairly in all

material respects in relation to the combined financial statements taken as a

whole.

     2.  A report on internal accounting control

may be included as a part of the audit report or filed separately. If the

report on internal accounting control is to be filed separately, the audit

report must include a reference that such a separate report has been filed or

will be filed as a public record pursuant to NRS 354.624.

     3.  The statement which NRS 354.624 requires concerning

previously noted deficiencies and recommendations must include, for each

previously noted violation of statute or regulation, a statement whether

corrective action has been taken to prevent any recurrence, and if so, what

progress has been achieved.

     (Added to NAC by Tax Comm’n, eff. 10-10-83; A by Com.

on Local Gov’t Finance by R211-08, 12-17-2008)

      NAC 354.717  Contents of audit report: Statement of total number of referrals

to regional facility for detention of children. (NRS 354.594, 354.624)

     1.  The report of the annual audit required

pursuant to NRS 354.624 of a

county or an administrative entity established pursuant to NRS 277.080 to 277.180, inclusive, that operates a

regional facility for children must include the total number of children

referred to the facility from each participating county served by the facility

in the year to which the audit applies.

     2.  As used in this section, “regional

facility for children” has the meaning ascribed to “regional facility for the

detention of children” in NRS

62A.280.

     (Added to NAC by Tax Comm’n by R004-00, eff. 3-2-2001)

      NAC 354.719  Contents of audit report: Discussion and analysis of financial

condition; exemption from requirement to submit plan of corrective action;

appeals. (NRS

354.107, 354.594, 354.624)

     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 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.

     (Added to NAC by Com. on Local Gov’t Finance by R072-05,

eff. 2-23-2006)

      NAC 354.721  Proposed plan of correction. (NRS 354.107, 354.594, 354.6245)

     1.  Each proposed plan of correction

submitted pursuant to NRS 354.6245

must:

     (a) Identify the statute or regulation violated;

     (b) Describe the violation, including when it

occurred, how it occurred and the frequency of its occurrence;

     (c) If the violation was reported in the local

government’s last audit, describe that occurrence and the corrective action

taken in the preceding year;

     (d) Identify the administrative and procedural

means of control used to prevent a recurrence of the violation; and

     (e) Describe planned changes in the procedures for

control and review to prevent future violations and identify the public

officers responsible for carrying out those changes.

     2.  Each governing body shall submit with its

proposed plan of correction a statement of the date on which it reviewed and

approved the plan for submission to the Department.

     (Added to NAC by Tax Comm’n, eff. 1-10-84)

      NAC 354.725  Filing in duplicate; notification of Department. (NRS 354.107, 354.594, 354.624)

     1.  The audit report which NRS 354.624 requires to be filed

with the Department must be provided in duplicate at the time of filing.

     2.  At the time of filing, the local

government shall inform the Department of the date on which the auditor

submitted his or her report to the local government.

     (Added to NAC by Tax Comm’n, eff. 10-10-83)

      NAC 354.735  Request for extension of time to file report. (NRS 354.107, 354.594, 354.624)

     1.  Except as otherwise provided in subsection

2, a local government which desires an extension of time to file an audit

report required by NRS 354.624

must, on or before November 30, submit to the Department the following

information in support of its application:

     (a) The name of the local government;

     (b) The name of the auditor and firm, if any;

     (c) The date the report will be filed with the

governing body;

     (d) The date the report will be filed with the

Department;

     (e) The reason the application is being made,

including an explanation of why the statutory date for submission could not be

met if due care and adequate planning were exercised by the local government

and the auditor;

     (f) The name of the person making the application;

and

     (g) The date of the application.

     2.  If the local government making the

application for an extension of time is a school district, the school district

must submit the information set forth in subsection 1 to the Department on or

before October 31.

     3.  The person making the application for an

extension of time must sign it.

     (Added to NAC by Tax Comm’n, eff. 1-10-84; A 9-5-89; A

by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

INVENTORY

     NAC 354.750  Inventory of capital assets: Requirement; guidelines; identifying

number. (NRS

354.107, 354.594, 354.625)

     1.  The governing body of every local

government shall take an inventory at least once every 2 years of all its

equipment and other personal property which constitute capital assets. The

governing body may adopt by resolution guidelines for the conduct of such an

inventory. For the purposes of such an inventory, unless the governing body of

the local government establishes a different guideline concerning the threshold

for required capitalization by resolution:

     (a) An asset of the local government that has a

value of $3,000 or more must be capitalized;

     (b) An asset of the local government that has a

value of less than $3,000 may be capitalized or categorized as an expenditure;

and

     (c) The useful life of the equipment and personal

property of the local government is 1 year or more.

     2.  Each item of property subject to the

inventory must be assigned an identifying number and be labeled as belonging to

the local government.

     [Tax Comm’n, Local Gov’t Reg. No. 3, eff. 7-2-82]—(NAC

A by Com. on Local Gov’t Finance by R043-01, 11-1-2001; R201-01, 4-5-2002)

GENERAL IMPROVEMENT DISTRICTS

      NAC 354.760  Duties of board of county commissioners after creation of

district. (NRS

354.107)  After

adopting an ordinance creating a general improvement district, the board of

county commissioners, as ex officio board of trustees of the district, shall:

     1.  Transmit a certified copy of the

ordinance and the service plan required by chapter

308 of NRS to the Department.

     2.  Comply with the requirements of

subsection 2 of NRS 318.080 in a

manner consistent with the provisions of this chapter and the Local Government

Budget and Finance Act, NRS 354.470

to 354.626, inclusive.

     [Tax Comm’n, Local Gov’t Reg. part No. 19, eff. 11-15-77]—(A

by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.770  Hearing regarding corrective action: Date; submission of

certified copy of ordinance or resolution. (NRS 360.090)

     1.  Whenever a board of county commissioners

is required to hold a public hearing pursuant to the provisions of NRS 318.515, the hearing date must

be set by that board not later than 30 days from the date of receipt of

notification by the Department or the date of receipt of the petition.

     2.  A certified copy of any ordinance or

resolution adopted by a board of county commissioners following the hearing

required by the provisions of NRS

318.515, must be transmitted immediately following its adoption by the

clerk of the board of county commissioners to the Department.

     [Tax Comm’n, Local Gov’t Reg. part No. 19, eff. 11-15-77]

SPECIAL DISTRICTS

      NAC 354.780  Transfer of property, money, taxes and special assessments upon

merger or consolidation of district. (NRS 354.107)

     1.  Upon the merger of any special district

to which the Local Government Budget and Finance Act, NRS 354.470 to 354.626, inclusive, is applicable,

all property and money remaining in the treasury of that district must be

surrendered and transferred to the governmental unit which assumes its

obligations.

     2.  Upon the consolidation of any special

district to which the Local Government Budget and Finance Act is applicable,

all property and money remaining in the treasury of that district must be

surrendered and transferred to the consolidated governmental unit.

     3.  Taxes, including delinquent taxes, and

special assessments paid after the merger or consolidation of special districts

must be paid to the governmental unit assuming the district’s obligations in

case of merger or to the consolidation governmental unit in the case of

consolidation.

     [Tax Comm’n, Local Gov’t Reg. part No. 5, eff. 3-9-69;

A 1-13-72; 11-15-77]—(A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

      NAC 354.790  Transfer of property, money, taxes and special assessments upon

dissolution of district. (NRS 354.107)

     1.  Upon the dissolution of any special

district to which the Local Government Budget and Finance Act, NRS 354.470 to 354.626, inclusive, is applicable,

all property and money remaining in the treasury of that district must be

surrendered and transferred to the county general fund.

     2.  Taxes, including delinquent taxes, and

special assessments paid after dissolution of a special district must be placed

in the general fund of the county in which the property was assessed.

     3.  If any area comprising the district or

portion thereof:

     (a) Is annexed to a city or town within 6 months

from the effective date of the dissolution ordinance, a pro rata share of the

property and money must be transferred to the municipality.

     (b) Is not annexed to a city or town within 6

months from the effective date of the dissolution ordinance, the county

commissioners shall pay to the owners of property located within the former

district pro rata shares of the money remaining in the district treasury, and

an amount of money equal to the value of any property which is not used for the

benefit of the area formerly comprising the district. The county commissioners

may, before paying such money, apply a proportionate amount of the payment to

any special assessments which are due.

     [Tax Comm’n, Local Gov’t Reg. part No. 5, eff. 3-9-69;

A 1-13-72; 11-15-77]—(A by Com. on Local Gov’t Finance by R201-01, 4-5-2002)

BUDGETS OF LOCAL GOVERNMENTS

Enterprise Fund for Building Permit Fees

      NAC 354.805  Definitions. (NRS 354.107, 354.594, 354.59891)  As used

in NAC 354.805 to 354.855,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 354.815, 354.825

and 354.835 have the meanings ascribed to them in

those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R043-01,

eff. 11-1-2001)

      NAC 354.815  “Cost center” defined. (NRS 354.107, 354.594, 354.59891)  “Cost

center” means an account used by a local government to track specific assets,

liabilities, capital, expenses or income of the local government.

     (Added to NAC by Com. on Local Gov’t Finance by R043-01,

eff. 11-1-2001)

      NAC 354.825  “Direct cost” defined. (NRS 354.107, 354.594, 354.59891)  “Direct

cost” means a cost that is readily identifiable with a specific cost center.

     (Added to NAC by Com. on Local Gov’t Finance by R043-01,

eff. 11-1-2001)

      NAC 354.835  “Indirect cost” defined. (NRS 354.107, 354.594, 354.59891)  “Indirect

cost” means a cost that is not readily identifiable with a specific cost

center, including, without limitation, indirect labor expenses and general

expenses for the maintenance of an office and support services.

     (Added to NAC by Com. on Local Gov’t Finance by R043-01,

eff. 11-1-2001)

     NAC 354.845  Application for exemption from limitation on increase of building

permit basis. (NRS

354.107, 354.594, 354.59891)  The

Nevada Tax Commission will exempt a local government from the limitation on the

increase of its building permit basis as provided pursuant to the provisions of

NRS 354.59891 if the local

government files with the Department:

     1.  A resolution approved by the governing

board of the local government which:

     (a) Authorizes the creation of an enterprise fund

exclusively for fees for building permits; and

     (b) Restricts the use of the money in the

enterprise fund as provided by the provisions of subsection 4 of NRS 354.59891.

     2.  A statement of the method used to

calculate the general overhead and the costs of administering the program for

the issuance of building permits.

     3.  A completed form prescribed by the

Department which relates to the enterprise fund.

     (Added to NAC by Tax Comm’n, eff. 8-2-90)—(Substituted

in revision for NAC 354.755)

      NAC 354.855  Permissible expenditures; collection of fees. (NRS 354.107, 354.594, 354.59891)

     1.  In accordance with paragraph (e) of

subsection 4 of NRS 354.59891

and except as otherwise limited by NAC 354.865 to 354.867, inclusive, the following direct and indirect

costs of a program for the issuance of building permits are permissible

expenditures from the enterprise fund created exclusively for building permit fees:

     (a) Issuance of building permits;

     (b) Review of the plans for development of the

site, including, without limitation, grading of the property;

     (c) Review of the plans for conformance with zoning

ordinances and regulations;

     (d) Review of the plans for and inspection of:

          (1) A building or structure, including,

without limitation, the mechanical, electrical and plumbing systems and the

structural components of the building or structure;

          (2) A permanent ride or structure that carries

passengers over a fixed or restricted route primarily for the amusement of

passengers;

          (3) A system designed primarily for the

transportation of passengers over a restricted course, including, without

limitation, a monorail;

          (4) The installation of manufactured homes and

manufactured buildings; and

          (5) Outdoor advertising signs, displays and

devices;

     (e) Administration of and support activities for

the program; and

     (f) Inspection of a building or structure after a

disaster.

     2.  A local government that has created an

enterprise fund for building permit fees:

     (a) Shall not collect as a portion of a building

permit fee a fee for any inspection activities that are provided by another

local governmental entity for which an inspection fee has been collected.

     (b) May collect fees and taxes for other

governmental entities at the time a building permit is issued. The local

government shall remit any fees and taxes collected for another local

governmental entity to that entity at least once each month on a date agreed to

by the local government and the entity, and unless otherwise authorized by

statute or local ordinance, may not retain any part of the fees or taxes as a

collection or administrative fee.

     3.  As used in this section:

     (a) “Building permit” has the meaning ascribed to

it in paragraph (b) of subsection 1 of NRS 354.59891.

     (b) “Building permit fee” has the meaning ascribed

to it in paragraph (d) of subsection 1 of NRS 354.59891.

     (c) “Inspection” means an examination of a building

or structure, or the components of a building or structure, to determine

compliance with local building and fire codes and regulations.

     (Added to NAC by Com. on Local Gov’t Finance by R043-01,

eff. 11-1-2001; A by R007-12, 12-20-2012)

Allocation of Costs to Enterprise Fund

      NAC 354.865  Definitions. (NRS 354.107, 354.594, 354.613)  As used

in NAC 354.865 to 354.867,

inclusive, unless the context otherwise requires, the words and terms defined

in NAC 354.8652 to 354.8664,

inclusive, have the meanings ascribed to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8652  “Applicable credits” defined. (NRS 354.107, 354.594, 354.613)  “Applicable

credits” means those receipts or other credits which apply to offset or reduce

any items of expense that are allocable to an enterprise fund, such as, without

limitation, the return of a product.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8654  “Central service cost allocation plan” defined. (NRS 354.107, 354.594, 354.613)  “Central

service cost allocation plan” means the documentation of a local government

that identifies, accumulates, allocates or develops billing rates for the

allocation of the cost of services and property provided by the local

government on a centralized basis to its departments, agencies and enterprise

funds.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8656  “Cost” defined. (NRS 354.107, 354.594, 354.613)  “Cost”

means the amount of cost as determined on a cash basis, an accrual basis or any

other basis in accordance with generally accepted accounting principles.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8658  “Direct cost” defined. (NRS 354.107, 354.594, 354.613)  “Direct

cost” means a cost incurred by a department, an agency or an enterprise fund of

a local government for services or property specifically associated with and

used by that department, agency or enterprise fund, such as the rental charged

to a specific department, agency or enterprise fund for its particular use of a

building.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.866  “Indirect costs” defined. (NRS 354.107, 354.594, 354.613)  “Indirect

costs” means costs incurred for a common or joint purpose that benefits more

than one cost objective, such as, without limitation, general overhead costs

that are not directly linked to a specific program.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8662  “Payments in lieu of taxes” defined. (NRS 354.107, 354.594, 354.613)  “Payments

in lieu of taxes” means payments that:

     1.  Are made to a local government to help

offset losses in property taxes;

     2.  Can be independently determined and

verified; and

     3.  Relate to specific property taxes.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8664  “Reasonable cost” defined. (NRS 354.107, 354.594, 354.613)  “Reasonable

cost” means a cost which, in its nature and amount, does not exceed the cost

that would be incurred by a prudent person under the circumstances prevailing

at the time the decision was made to incur the cost.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8666  Applicability. (NRS 354.107, 354.594, 354.613)  NAC 354.8668 and 354.867

do not apply to a local government:

     1.  That does not have any enterprise funds;

or

     2.  To which subsection 1 of NRS 354.613 does not apply.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.8668  Central service cost allocation plan: Requirements. (NRS 354.107, 354.594, 354.613)  Except

as otherwise limited by the provisions of this section and NAC 354.867, the central service cost allocation plan

of a local government:

     1.  May include costs for services and

property that are payable from the general fund or any internal service funds

or other funds of the local government.

     2.  Must be limited to indirect costs for

services and property provided by the local government on a centralized basis,

which may include, without limitation, general administrative costs, planning costs,

budgeting costs, payroll costs, legal costs, legislative costs, and costs for

general ledger accounting, internal audits, the administration of accounts

payable, human resources, general services, emergency services, public

relations, public works, property management, building and grounds maintenance,

procurement and contracts, grants management, risk management, a motor pool,

road maintenance, water and sewer service, telecommunications, automatic data

processing services, printing, maintaining a library, records maintenance,

storage and warehousing, and animal control.

     3.  Must not include any transfers of

franchise fees, payments in lieu of taxes made for the use of any

rights-of-way, payments for debt service or any direct costs which are billable

directly to a specific department, agency or enterprise fund of the local

government.

     4.  Must be based upon either audited

historical data or budget data. The determination of which data to use must

anticipate any expected program changes for the coming year that would not be

reflected in historical data.

     5.  Must allocate costs in a manner that:

     (a) Provides for an equitable distribution of

general, overhead, administrative and similar costs of the local government;

and

     (b) Allocates to an enterprise fund only costs for

services and property that are assignable or chargeable to the cost objective

of the enterprise fund.

     6.  Must include a description of the

methodology used to determine the allocation of costs and a schedule of the

current billing rates for those costs.

     7.  Must be updated annually before:

     (a) The date on which the local government submits

its tentative budget to the Department; or

     (b) If the local government is exempt from the

requirement to submit a tentative budget to the Department, the date on which

the local government submits its final budget to the Department.

     8.  Must include an attestation, signed by

the chief financial officer of the local government or his or her designee,

that the central service cost allocation plan complies with the provisions of NAC 354.865 to 354.867,

inclusive.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

      NAC 354.867  Costs which may be allocated to enterprise fund. (NRS 354.107, 354.594, 354.613)

     1.  The costs which may be allocated to an

enterprise fund of a local government pursuant to paragraph (c) of subsection 1

of NRS 354.613 must be

reasonable costs and include only the amounts remaining after the deduction of

any applicable credits. The costs must also be:

     (a) Necessary and reasonable for the proper and

efficient administration and performance of the enterprise fund;

     (b) Consistent with policies, regulations and

procedures that apply uniformly to the enterprise fund and other activities of

the local government;

     (c) Determined in accordance with generally

accepted accounting principles; and

     (d) Documented adequately for independent

verification.

     2.  In determining whether a cost is a

reasonable cost for the purposes of subsection 1, consideration must be given

to:

     (a) Whether the cost is of a type generally

recognized as ordinary and necessary for the operation of the enterprise fund;

     (b) Whether the cost is consistent with sound

business practices, the indicia of an arm’s length transaction, and the

requirements and restraints imposed by state laws and regulations;

     (c) The market prices for comparable services or

property;

     (d) Whether the persons incurring the cost acted

with prudence under the circumstances considering their responsibilities to

each pertinent governmental unit and its employees, and to the general public;

and

     (e) Any significant deviations from the established

practices of the local government that may have unjustifiably increased the

cost.

     (Added to NAC by Com. on Local Gov’t Finance by R007-12,

eff. 12-20-2012)

Loans and Transfers From Enterprise Fund

      NAC 354.870  Application: Generally. [Effective through June 30, 2017.] (NRS 354.107, 354.594, 354.6135)  The

governing body of a local government may, pursuant to NRS 354.6135, submit an

application to the Committee for approval of a loan or transfer of money from

an enterprise fund, money collected from fees imposed for the purpose for which

an enterprise fund was created or any income or interest earned on money in an

enterprise fund. An application for approval of a loan or transfer submitted

pursuant to this section must be made on a form prescribed by the Committee and

include the following information:

     1.  A copy of the resolution of the local

government which sets forth:

     (a) The amount of the loan or transfer and the

repayment period;

     (b) A description of the purpose for which the loan

or transfer will be used; and

     (c) A description of the service or services

previously provided by the local government that will be restored if the loan

or transfer is approved, and the effect such approval will have on service

levels in future years.

     2.  A written declaration by the governing

body of the local government stating that:

     (a) Approval of the loan or transfer will not harm

the financial viability of the enterprise fund from which the loan or transfer

will be made;

     (b) The governing body will take whatever action is

necessary to preserve the financial viability of the enterprise fund from which

the loan or transfer will be made; and

     (c) The governing body will only use the money from

the loan or transfer for the specific purpose described in the resolution

required by subsection 1, unless a change in the purpose is first approved by

the Committee.

     3.  A description of all accounts and records

relating to the purpose for which the loan or transfer will be used, including

the actual proposed use of the money from the loan or transfer if the loan or

transfer is approved, and how such accounts and records will be maintained

separately from other funds for auditing purposes.

     4.  A copy of the report of the annual audit

prepared pursuant to NRS 354.624

for the fiscal year immediately preceding the year in which the application for

approval of the loan or transfer is made.

     5.  An analysis showing whether the ending

fund balance of the general fund of the local government at the end of the

immediately preceding fiscal year was less than 9 percent of the total

expenditures of the local government from the general fund during that fiscal

year. The analysis must not include, as the total expenditures of the local

government, any transfers of money from the general fund except such transfers

made for the payment of debt service or any grant match in the exact amount

requested to satisfy known obligations in the fund to which the transfer was

made.

     6.  Documentation showing that the local

government has, during each of the 5 fiscal years immediately preceding June

10, 2013, loaned or transferred money from an enterprise fund, money collected

from fees imposed for the purpose for which an enterprise fund was created or

any income or interest earned on money in an enterprise fund. The documentation

must include, at a minimum, records showing the amount of each individual loan

or transfer from an enterprise fund in each of the 5 fiscal years, along with

the cumulative total of the amounts loaned or transferred within that time.

     7.  For each fiscal year through June 30,

2021, projections of all revenues, expenditures, sources, uses and liabilities,

including, without limitation, liabilities resulting from loans and transfers,

associated with:

     (a) Any enterprise fund;

     (b) Any governmental fund that is authorized to

receive taxes under the laws of this State; and

     (c) Any other fund for which there are long-term

liabilities.

     8.  A list of all assumptions on which the

projections described in subsection 7 are based.

     9.  A statement showing how the local

government will inform the public about the effects of the loan or transfer on

the enterprise fund, including, without limitation, any changes in rates, the

fund balance and future capital expenditures. The information described in this

subsection is subject to public disclosure and must also be separately provided

in the form of a notice which is transmitted directly to each person known by

the local government to be affected by the enterprise fund.

     10.  A copy of the resolution establishing

the enterprise fund from which the loan or transfer will be made, including any

amendments thereto.

     11.  A copy of the fee schedule for the enterprise

fund from which the loan or transfer will be made.

     12.  A copy of the most recent report of

indebtedness required to be submitted by the local government pursuant to NRS 354.6025, updated to the

current quarter and separately identifying the indebtedness of the enterprise

fund from which the loan or transfer will be made.

     13.  A list showing any bonds that have been

issued for the enterprise fund from which the loan or transfer will be made and

indicating whether the bonds are general obligation bonds or revenue bonds, the

amounts, the issue dates, the schedules of payment and payment terms, including

whether any balloon payments are required.

     14.  Any additional information the Committee

may require.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13,

eff. 12-23-2013)

      NAC 354.8702  Application: Additional requirements. [Effective through June 30,

2017.] (NRS 354.107,

354.594, 354.6135)  An

application for approval of a loan or transfer of money from an enterprise

fund, money collected from fees imposed for the purpose for which an enterprise

fund was created or any income or interest earned on money in an enterprise

fund must include, in addition to the information required pursuant to NAC 354.870:

     1.  A statement indicating whether the local

government has made a transfer pursuant to subsection 1 of NRS 354.613 and, if so,

documentation showing that any transfer from an enterprise fund to the general

fund of the local government for the purpose of subsidizing the general fund of

the local government did not result in a violation of paragraph (a) or (b) of

subsection 9 of NRS 354.613.

     2.  If applicable, a copy of the plan

required to be filed with the Department pursuant to subsection 10 of NRS 354.613, revised to show the

manner in which:

     (a) All transfers from an enterprise fund,

including any transfer applied for pursuant to NAC

354.870, will be eliminated on or before the fiscal year beginning on July

1, 2021; and

     (b) Any expenditures of the general fund that are

intended to be paid by any transfer applied for pursuant to NAC 354.870 will be funded upon the elimination of

such transfer on or before the fiscal year beginning on July 1, 2021.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13,

eff. 12-23-2013)

      NAC 354.8704  Approval of application: Factors for consideration. [Effective

through June 30, 2017.] (NRS 354.107, 354.594, 354.6135)  The

Committee will, before approving an application submitted pursuant to NAC 354.870, consider whether:

     1.  The governing body of the local

government is eligible for approval pursuant to the requirements set forth in NRS 354.6135.

     2.  The governing body of the local

government has not previously been in noncompliance of any provision of NRS 354.613, 354.6135 or 354.626.

     3.  The governing body of the local

government has reduced levels of service, caused layoffs or closed any public

facility.

     4.  Any special revenue fund has experienced

a materially adverse condition, including, without limitation:

     (a) A substantial decline in major sources of tax

revenue, including, without limitation, property tax or allocations from the

Local Government Tax Distribution Account; or

     (b) An inability to repay debt or insufficient cash

to meet required payments for payroll, workers’ compensation, payroll taxes or

contributions to the Public Employees’ Retirement System in a timely manner.

     5.  The financial viability of the enterprise

fund from which the loan or transfer will be made would be adversely affected.

     6.  The local government has the ability to

repay a loan or eliminate a transfer and thereafter continue to maintain its

functions and activities.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13,

eff. 12-23-2013)

      NAC 354.8706  Denial or approval of application. [Effective through June 30,

2017.] (NRS

354.107, 354.594, 354.6135)

     1.  The Committee may deny or withhold

approval of an application submitted pursuant to NAC

354.870 if it makes any of the following findings:

     (a) The financial viability of the enterprise fund

from which the loan or transfer will be made or the local government, as a

whole, would be materially harmed by the loan or transfer;

     (b) The governing body of the local government has

previously been in noncompliance of any provision of NRS 354.613, 354.6135 or 354.626;

     (c) The governing body of the local government has

demonstrated an inability to properly control or manage its finances; or

     (d) The application is based on unlikely

assumptions or contains information that is incomplete, inaccurate, unreliable

or unverifiable.

     2.  Upon written request from the governing

body of a local government, the Committee will schedule a hearing on the

application at the next meeting of the Committee, but in any event not later

than 45 days after receipt of the request by the Committee.

     3.  The approval of an application by the

Committee will be contingent upon a budget augmentation by the local government

pursuant to NAC 354.400 to 354.490,

inclusive, and the submission of the following information:

     (a) A description of the source and amount of new

revenue to be augmented or the underperforming revenue source that the loan or

transfer is intended to replace; and

     (b) A description of how the money from the loan or

transfer will be used.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13,

eff. 12-23-2013)

      NAC 354.8708  Quarterly report. [Effective through June 30, 2017.] (NRS 354.107, 354.594, 354.6135)

     1.  The governing body of a local government

that loans or transfers any money after obtaining approval of an application

submitted pursuant to NAC 354.870 shall submit a

quarterly report to the Committee. Each report must be submitted within 45 days

after the end of each calendar quarter and include, at a minimum, the following

information:

     (a) A statement indicating whether the transaction

on which the report is based is a loan or a transfer and, if the transaction is

a loan, a copy of the loan agreement;

     (b) The date on which the loan or transfer was

made;

     (c) The amount of the loan or transfer;

     (d) A description of the fund into which the

proceeds of the loan or transfer are placed;

     (e) The purpose of the loan or transfer and a

description of the service to be funded or claim to be paid from the proceeds

of the loan or transfer;

     (f) A summary description of any increase in a fee

imposed by the local government for the benefit of the enterprise fund during

the immediately preceding fiscal year or the prior reporting period, whichever

is applicable, and in any preceding year if the increase becomes effective in

the current fiscal year, including the amount of the increase and a copy of the

resolution approving the increase;

     (g) A summary description of any change in salaries

or benefits paid to employees of the local government during the immediately

preceding fiscal year or the prior reporting period, whichever is applicable,

in accordance with existing collective bargaining agreements or any action

taken by the governing body of the local government with respect to employees

who are not members of an employee organization as defined in NRS 288.040;

     (h) A copy of any written report that may have been

prepared pursuant to NRS 288.153;

     (i) An explanation of how any service restored by

the loan or transfer will be maintained in future years, including an

identification of the revenue stream that will be used to support any such

service;

     (j) A description of any amendments to the

resolution which established the enterprise fund;

     (k) A copy of the most recent report of

indebtedness required to be submitted by the local government pursuant to NRS 354.6025, updated to the

current quarter and separately identifying the indebtedness of the enterprise

fund from which the loan or transfer was made;

     (l) For the first quarter after the report of the

annual audit prepared pursuant to NRS

354.624 has been submitted to the governing body of the local government, a

comparison of each final budgeted general fund revenue and expenditure against

the actual revenue and expenditure;

     (m) An explanation for any variance between the

final budgeted and actual amounts described in paragraph (l) exceeding 5

percent;

     (n) A copy of the notice required by subsection 9

of NAC 354.870, along with proof satisfactory to

the Committee that the notice was transmitted in accordance with that

provision;

     (o) The name, telephone number, facsimile number,

mailing address and electronic mail address of the person who prepared the

report pursuant to this section;

     (p) A certification by the person who prepared the

report pursuant to this section stating that to the best of his or her

knowledge and belief the information submitted is true and accurate; and

     (q) The signature of the person who prepared the report

pursuant to this section, his or her official title and the date on which the

report was prepared.

     2.  If the governing body of a local

government fails or refuses to submit a completed quarterly report in

accordance with this section or is otherwise habitually late in submitting the

reports, the Committee may:

     (a) Revoke approval of any loan or transfer that

has not yet been made; and

     (b) Deny approval of any future application

submitted pursuant to NAC 354.870.

     (Added to NAC by Com. on Local Gov’t Finance by R082-13,

eff. 12-23-2013)

DELINQUENT DOCUMENTS AND PAYMENTS; TECHNICAL FINANCIAL

ASSISTANCE; SEVERE FINANCIAL EMERGENCY

Determination of Severe Financial Emergency

      NAC 354.875  Identification of certain conditions: Interpretation of certain

statutory terms. (NRS 354.107, 354.685)  As used

in NRS 354.685, the Committee

interprets:

     1.  The term “decline” to mean a decline of

20 percent or more in the balance of the general fund of the local government.

     2.  “Past 2 years” to mean the past 2 fiscal

years.

     (Added to NAC by Com. on Local Gov’t Finance by R201-01,

eff. 4-5-2002)

Proceedings Before the Committee on Local Government

Finance

      NAC 354.880  Definitions. (NRS 354.107)  As used

in NAC 354.880 to 354.942,

inclusive, the words and terms defined in NAC 354.882

to 354.892, inclusive, have the meanings ascribed

to them in those sections.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.882  “Day” defined. (NRS 354.107)  “Day”

means a calendar day.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.884  “Director” defined. (NRS 354.107)  “Director”

means the Executive Director of the Department.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.886  “Hearing officer” defined. (NRS 354.107)  “Hearing

officer” means any person the Committee may designate to hear a matter on

behalf of the Committee.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.888  “Intervener” defined. (NRS 354.107)  “Intervener”

means a person or local government, other than an original party to a

proceeding, who has secured an order from the Committee, Director or hearing

officer granting leave to intervene in the proceeding.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.890  “Party” defined. (NRS 354.107)  “Party”

means a person or local government entitled or required to appear in a

proceeding before the Committee. The term includes an intervener.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.892  “Staff” defined. (NRS 354.107)  “Staff”

means the staff of the Department. The term includes the Attorney General and

his or her duly appointed deputies when acting as legal advisers to the Committee

pursuant to NRS 228.110.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.894  Scope and construction of provisions; deviation from provisions. (NRS 354.107)

     1.  The provisions of NAC

354.880 to 354.942, inclusive:

     (a) Govern the practice and procedure for

proceedings before the Committee to carry out the provisions of NRS 354.655 to 354.725, inclusive.

     (b) Must be liberally construed to secure the just,

speedy and economical determination of all issues presented to the Committee to

carry out the provisions of NRS

354.655 to 354.725,

inclusive.

     2.  In special cases, where good cause

appears, not contrary to statute, deviation from the provisions of NAC 354.880 to 354.942,

inclusive, if stipulated to by all parties of record, will be permitted.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.896  Hearings conducted by Committee or hearing officer; applicability

of provisions. (NRS 354.107)

     1.  The Committee may hold a hearing on any

issue presented to the Committee to carry out the provisions of NRS 354.655 to 354.725, inclusive, or assign a

hearing officer to hear the matter on behalf of the Committee and propose a

decision for its consideration. Except as otherwise provided in subsection 2,

the provisions of NAC 354.898 to 354.938, inclusive, apply to all such proceedings.

     2.  If the Committee:

     (a) Does not assign a hearing officer to hear a

matter and propose a decision, the provisions of NAC

354.928 to 354.934, inclusive, do not apply to

the proceedings.

     (b) Assigns a hearing officer to hear a matter and

propose a decision, the provisions of NAC 354.936

and 354.938 do not apply to the proceedings.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.898  Pleadings; communications. (NRS 354.107)

     1.  All pleadings, including, without

limitation, any complaints, petitions, answers, briefs, motions, affidavits and

applications, must be addressed to the Department and not to individual members

of the Committee or staff. All pleadings shall be deemed to be officially

received by the Department when a true copy of the paper or document, properly

addressed and stamped, is deposited in the United States mail.

     2.  Informal communications may be made with

individual members of the staff, and these communications and documents shall

be deemed to be officially received by the Department when they are properly

addressed and stamped and deposited in the United States mail.

     3.  Informal communications from the

Department or Committee must be signed by the responsible staff member or the

Chair of the Committee.

     4.  Each communication must be limited to one

subject and contain the name and address of the person originating the

communication.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.900  Transcripts. (NRS 354.107)

     1.  If a party desires a transcript of any

hearing held by the Committee or a hearing officer, the party must furnish the

reporter, pay for the transcript and deliver a copy of the transcript to the

Director within 20 days after filing an appeal or petition for reconsideration

of the matter.

     2.  If a party prepares a transcript from a

tape recording provided by the Department and desires to use the transcript in

any subsequent hearing or appeal of the matter, the party must deliver a copy

of the transcript to the Department within the time required by subsection 1.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.902  Interveners. (NRS 354.107)

     1.  A person or local government, other than

an original party to a proceeding, who is directly and substantially affected

by the proceeding and wishes to participate in the proceeding must secure an

order from the Committee, Director or hearing officer granting leave to

intervene before being allowed to participate. The granting of leave to

intervene in any proceeding is not a finding or determination of the Committee,

Director or hearing officer that the party will or may be a party aggrieved by

any ruling or decision of the Committee or the hearing officer for the purposes

of any review or appeal.

     2.  A petition for leave to intervene must:

     (a) Be in writing;

     (b) Clearly identify the proceeding in which

intervention is sought;

     (c) Set forth the name and address of the

petitioner;

     (d) Contain a clear and concise statement of the

direct and substantial interest of the petitioner in the proceeding, stating

the manner in which the petitioner will be affected by the proceeding and the

matters relied upon by the petitioner as a basis for the request to intervene;

and

     (e) If the petitioner is seeking affirmative

relief, contain a clear and concise statement of the relief sought and the

basis for that relief, together with a statement as to the nature and quantity

of evidence the petitioner will present if the petition is granted.

     3.  A petition for leave to intervene must

not be considered unless the petitioner:

     (a) Files the petition and proof of service of

copies of the petition on all other parties of record not less than 15 days before

the commencement of the hearing; or

     (b) States a substantial reason for the delay.

     4.  If a petition for leave to intervene

shows a direct and substantial interest in the subject matter of the proceeding

or any part thereof and does not unduly broaden the issues, the Committee,

Director or hearing officer may grant leave to intervene or otherwise appear in

the proceeding with respect to the matters set out in the petition, subject to

such reasonable conditions as may be prescribed.

     5.  If it appears during the course of a

proceeding that an intervener has no direct or substantial interest in the

proceeding and that the public interest does not require the intervener’s

participation in the proceeding, the Committee may dismiss the intervener from

the proceeding.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.904  Rights of parties and staff at evidentiary hearings. (NRS 354.107)  At any

evidentiary hearing, the parties and staff may:

     1.  Call and examine witnesses.

     2.  Introduce exhibits relevant to the issues

of the proceeding.

     3.  Cross-examine opposing witnesses on any

matter relevant to the issues of the proceeding, even though that matter was not

covered in the direct examination.

     4.  Impeach any witness, regardless of which

party first called the witness to testify.

     5.  Offer rebuttal evidence.

     6.  Call any person who may be an adverse

witness because of his or her relationship to any party, and examine the person

as an adverse witness.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.906  Representation of parties; qualifications of attorneys. (NRS 354.107)

     1.  A party may appear in person or as

provided in subsection 2, or may be represented by an attorney, accountant or

authorized representative.

     2.  A party, if other than a natural person,

may appear:

     (a) If a partnership, by a partner.

     (b) If a corporation, by an officer or other

authorized representative or regular employee.

     (c) If a local government, by an authorized

officer, agent or employee.

     (d) If an unincorporated association, by an

authorized representative, officer or employee.

     3.  If a party chooses to be represented by

an attorney, the attorney must be admitted to practice and in good standing

before the highest court of any state of the United States. If the attorney is

not admitted to practice and in good standing before the Supreme Court of

Nevada, an attorney so admitted and in good standing must be associated with

the attorney appearing before the Committee or hearing officer.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.908  Hearings: Notice; location; telephone conference; duties of

representatives; conduct required. (NRS 354.107)

     1.  Except as otherwise provided in

subsection 5, not less than 10 days before the date set for a hearing, the

staff shall serve notice of the place, date and time of the hearing on each

party or the authorized agent of a party at the address of the party or

authorized agent as it appears in the records of the Department.

     2.  The staff shall notify the appropriate

representative of a party regarding a hearing which may have a direct effect

upon a matter within the representative’s scope of authority. The

representative shall:

     (a) Attend any hearing specified in this

subsection, unless otherwise directed by the Committee; and

     (b) Make any presentation prescribed by the

Committee, Director or hearing officer.

     3.  Hearings will be held at the offices of

the Department in Carson City, Nevada, or at such other place in the State as

may be designated in the notice of hearing.

     4.  The Committee may conduct a hearing or

any part thereof by means of a telephone conference so long as it complies with

the applicable provisions of chapter 241

of NRS.

     5.  In all hearings held by the Committee or

hearing officer, the hearing date may be set with less than 10 days’ notice if

the parties and staff agree in writing.

     6.  A person appearing in a proceeding shall

conform to the recognized standards of ethical and courteous conduct.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.910  Prehearing conferences. (NRS 354.107)

     1.  Upon the motion of the Committee, the

hearing officer or a party, the Committee or hearing officer may hold a

prehearing conference for the purpose of formulating or simplifying the issues,

obtaining admissions of fact or documents which will avoid unnecessary proof,

arranging for the exchange of proposed exhibits or prepared expert testimony,

limiting the number of witnesses, establishing any hearing procedure or

determining any other matters which may expedite the orderly conduct and

disposition of the proceeding or settlement of the proceeding.

     2.  The action taken at a prehearing

conference and the agreements, admissions or stipulations made by the parties

concerned must be made a part of the record and must be approved by the

parties. When approved, the action will control the course of subsequent

proceedings, unless otherwise stipulated to by all the parties of record with

the consent of the Committee or hearing officer.

     3.  In any proceeding, the Committee or

hearing officer may, at the discretion of the Committee or hearing officer,

call all of the parties together for a conference before the taking of

testimony. The Committee or hearing officer shall state on the record the

results of the conference.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.912  Continuances; recesses. (NRS 354.107)  The

Committee or hearing officer may, at the discretion of the Committee or hearing

officer, either before or during a hearing, grant continuances or recesses.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.914  Failure of party to appear. (NRS 354.107)  At the

time and place set for a hearing, if a party fails to appear, the Committee or

hearing officer may, at the discretion of the Committee or hearing officer,

dismiss the proceeding with or without prejudice or may recess the hearing for

a period of time to be set by the Committee or hearing officer to enable the

party to attend.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.916  Burden of proof or explanation. (NRS 354.107)  Any

party required to appear before the Committee pursuant to:

     1.  NRS

354.665 to explain the reason that a document has not been filed has the

burden of proving that the document was filed as required or providing an

explanation satisfactory to the Committee of the reason that the document was

not filed as required.

     2.  NRS

354.671 to explain the reason that a payment has not been made has the

burden of proving that the payment was made as required or providing an

explanation satisfactory to the Committee of the reason that the payment was

not made as required.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.918  Presentation of evidence. (NRS 354.107)  Evidence

may be received in any manner ordered by the Committee or hearing officer, but

will ordinarily be received from the parties in the following order:

     1.  Brief orientation by the staff;

     2.  Each party;

     3.  The staff;

     4.  Interveners; and

     5.  Rebuttal by each party.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.920  Admission of evidence; depositions; affidavits. (NRS 354.107)

     1.  In conducting a hearing, the Committee or

hearing officer is not bound by technical rules of evidence. Any relevant

evidence may be admitted, except where precluded by law, if it is of a type

commonly relied upon by reasonable and prudent persons in the conduct of their

affairs, even though the evidence might be subject to objection in civil

actions.

     2.  Oral evidence may be taken only upon oath

or affirmation administered by the hearing officer, the Director, a deputy

attorney general or a member of the Committee. Before taking the witness stand,

each person must swear or affirm that the testimony the person is about to give

will be the truth, the whole truth and nothing but the truth.

     3.  Hearsay evidence, as that term is used in

civil actions, may be admitted for the purpose of supplementing or explaining

other evidence, but it is not sufficient to support findings of fact unless it

would be admissible over objection in civil actions.

     4.  The rules of privilege must be applied as

they are applied in civil actions.

     5.  Irrelevant, cumulative and unduly

repetitious evidence is not admissible, nor is incompetent evidence, as that

term is used in civil actions, with the exception of hearsay evidence as

provided in subsection 3.

     6.  The parties or their counsel may by

written stipulation agree that certain specified evidence may be admitted, even

though the evidence would otherwise be subject to objection.

     7.  The Committee, the hearing officer or any

party to a proceeding may cause the depositions of witnesses to be taken in

such a manner as the Committee or hearing officer may prescribe which is

consistent with the rules of the court for depositions in civil actions in the

district courts.

     8.  The affidavit of any person may be

admitted in evidence if all the parties stipulate and consent to its admission.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.922  Official notice. (NRS 354.107)  The

Committee or hearing officer may take official notice of the following matters:

     1.  Rules, regulations, official reports,

decisions and orders of the Committee and any regulatory agency of the State.

     2.  Matters of common knowledge and technical

or scientific facts of established character.

     3.  Official documents, if pertinent, when

properly introduced into the record of formal proceedings by reference, if

proper and definite reference to the document is made by the party offering it

and it is published and generally circulated so that all of the parties of

interest at the hearing have an opportunity to examine it and present rebuttal

evidence.

     4.  Matters which may be judicially noticed

by the courts of the State.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.924  Briefs. (NRS 354.107)

     1.  In any proceeding, the Committee,

Director or hearing officer may order briefs filed within such time as the

Committee, Director or hearing officer allows.

     2.  Briefs must be filed with the Director or

hearing officer and be accompanied by an acknowledgment of or an affidavit showing

service on all other parties of record.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.926  Orders for information. (NRS 354.107)  The

Committee may order any information it deems necessary to determine the matters

before it.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.928  Hearing officer: Proposed decision; findings and conclusions. (NRS 354.107)

     1.  Not later than 60 days after the close of

a hearing conducted by a hearing officer, the hearing officer shall file with

the Committee a proposed decision that sets forth the findings and conclusions

of the hearing officer and the reasons and bases for those findings and

conclusions. The proposed decision must be served on each party.

     2.  The findings and conclusions of a hearing

officer are not required to be included in a stipulated agreement.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.930  Proposed decision of hearing officer: Written objection; reply to

objection; action by Committee. (NRS 354.107)

     1.  Except as otherwise provided in this

subsection, a party may file with the Committee a written objection to the

proposed decision of a hearing officer not later than 20 days after receipt of

the proposed decision. The written objection must state with particularity the

issues presented, the points of law or fact on which the party relies and the

relief requested by the party. The Committee may, upon good cause shown, allow

a party to file a written objection with the Committee more than 20 days after

receipt of a proposed decision.

     2.  A party who files a written objection

shall serve a copy of the written objection on all parties.

     3.  Except as otherwise provided in this

subsection, a party may reply to a written objection not later than 15 days

after receipt of the written objection. A party replying to a written objection

must serve the reply on all parties. The Director may, upon good cause shown,

grant an extension of time for a party to file a reply to a written objection.

     4.  If no party files a written objection

pursuant to subsection 1, the Committee will place the proposed decision on the

agenda for its next scheduled meeting for action by the Committee.

     5.  If a party files a written objection

pursuant to subsection 1 within 20 days after receipt of the proposed decision

or if the Committee chooses to take any action concerning the review of the

proposed decision, other than to remand the proposed decision to the hearing

officer for clarification of the decision, the Committee will hold a hearing on

the proposed decision. The Committee will provide notice of the hearing to the

parties not later than 15 days before the hearing, unless the parties waive the

notice in writing or on the record before the Committee.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.932  Hearing before Committee: Basis on record before hearing officer;

determination that record is inadequate. (NRS 354.107)  The hearing

held before the Committee pursuant to NAC 354.930

must be based on the record made before the hearing officer. If the Committee

determines the record is inadequate, the Committee may remand the matter to the

hearing officer for further proceedings or open the record and hear new

evidence.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.934  Hearing before Committee: Action by Committee; issuance of

written order. (NRS 354.107)

     1.  After the close of oral argument, the

Committee will:

     (a) Make a final decision that adopts, reverses or

modifies, in whole or in part, the proposed decision of the hearing officer; or

     (b) Remand the matter to the hearing officer for

further proceedings.

     2.  The Director shall issue the written

decision on behalf of the Committee not later than 60 days after the final

decision is made or the matter is remanded pursuant to subsection 1.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.936  Final decision of Committee. (NRS 354.107)

     1.  The staff shall, pursuant to the

direction and with the approval of the Committee, prepare the Committee’s final

decision on the issues presented in a hearing conducted by the Committee. The

draft of each decision must be approved by the Chair of the Committee before

being issued.

     2.  The Committee’s final decision will be

written and will include separate findings and conclusions based upon

substantial evidence or matters officially noticed. After the hearing is

completed, the Committee may request a party to prepare proposed findings and

conclusions.

     3.  The staff shall serve a copy of the

Committee’s final decision on each party of record.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.938  Petition for reconsideration: Grounds; filing and contents;

answer; grant or denial. (NRS 354.107)

     1.  A party who believes that a decision of

the Committee, or any portion thereof, is:

     (a) Unlawful;

     (b) Unreasonable; or

     (c) Based on findings or conclusions that are

erroneous,

Ê may file a

petition for reconsideration. The petition must be filed with the Committee and

served on all parties within 15 days after the date of service of the decision.

     2.  A petition for reconsideration must:

     (a) Identify with precision each portion of the

decision that the party alleges is unlawful, unreasonable or erroneous.

     (b) Cite with specificity those portions of the

record, the statutes or the regulations that support the allegations in the

petition. The petition must not include additional evidence or request the

submission or taking of new evidence.

     3.  A party may submit an answer in

opposition to a petition for reconsideration. The answer must be filed with the

Committee and served on all other parties within 5 days after the date of

service of the petition for reconsideration. The answer must be limited to the

issues raised in the petition for reconsideration.

     4.  The Committee may grant or deny, in whole

or in part, a timely filed petition for reconsideration within 60 days after

the date of service of the final decision. If the Committee takes no action

within that period, the petition shall be deemed to be denied.

     5.  Unless otherwise provided by the

Committee, the filing of a petition for reconsideration or the granting of such

a petition by the Committee does not excuse compliance with or suspend the

effectiveness of the challenged decision.

     6.  If the Committee grants a petition for

reconsideration, it will reexamine the decision and the record with regard to

the issues on which it granted reconsideration. After this reexamination, the

Committee will issue a modified final decision or reaffirm its original

decision.

     7.  A modified final decision incorporates

all portions of the original decision not modified. A modified final decision,

or the original decision if reaffirmed, is the final decision of the Committee.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.940  Advisory opinions: Petition. (NRS 233B.120)

     1.  Any person may petition for an advisory

opinion concerning matters within the jurisdiction of the Committee.

     2.  All petitions must be in writing, be

addressed to the Director and set forth at least the following:

     (a) A statement that an advisory opinion is

requested;

     (b) A succinct statement of all the facts and

circumstances necessary to dispose of the petition;

     (c) A clear, simple statement of the issue or

question to be resolved;

     (d) A statement of all statutes, rules, agency

decisions or other authorities which the petitioner believes may be relevant in

disposing of the petition; and

     (e) A statement with supporting arguments and

authorities of the petitioner’s opinion of a proper disposition of the

petition.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)

      NAC 354.942  Advisory opinions: Form; contents; issuance; delivery; appeals. (NRS 233B.120)

     1.  Advisory opinions must:

     (a) Be written;

     (b) Include a statement of facts, question,

analysis and opinion;

     (c) Be issued by the Director within 45 days after

the filing of the petition unless the Director in writing orders an extension

of time up to a maximum of 60 days after filing; and

     (d) Be delivered to the petitioner in person or by

certified mail.

     2.  Advisory opinions issued by the Director

are appealable to the Committee. An appeal of an advisory opinion issued by the

Director must be filed not later than 20 days after receipt of the advisory

opinion and state with particularity the issues presented, the points of law or

fact on which the party relies and the relief requested.

     3.  If a person files an appeal of an advisory

opinion pursuant to subsection 2, the Committee will hold a hearing on the

advisory opinion. The Committee will provide notice of the hearing to the

person who filed the appeal not later than 15 days before the hearing.

     4.  After the close of a hearing held

pursuant to subsection 3, the Committee will issue an order that adopts,

reverses or modifies, in whole or in part, the advisory opinion issued by the

Director. The Director shall issue the written order and an advisory opinion

that reflects the order not later than 60 days after the order is made.

     (Added to NAC by Com. on Local Gov’t Finance by R042-09,

eff. 6-30-2010)
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