Nrs: Chapter 218G - Legislative Audits

Link to law: https://www.leg.state.nv.us/NRS/NRS-218G.html
Published: 2015

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[Rev. 11/21/2013 10:13:03

AM--2013]



CHAPTER 218G - LEGISLATIVE AUDITS

GENERAL PROVISIONS

NRS 218G.010        Legislative

declaration.

NRS 218G.030        “Agency

of the State” defined.

AUDIT DIVISION

NRS 218G.100        Qualifications

of Legislative Auditor.

NRS 218G.110        General

powers and duties; standards for audits.

NRS 218G.120        Performance

of regular and special audits and investigations.

NRS 218G.130        Retention

of audit reports and other documents; confidentiality and destruction of

working papers from audits; exceptions.

NRS 218G.140        Duty

to report improper practices, inadequacy of fiscal records or illegal

transactions found in course of audit.

NRS 218G.150        Duties

following report of inadequacy of fiscal records.

NRS 218G.160        Biennial

report to Legislature and Governor.

AUDITS OF STATE AGENCIES

NRS 218G.200        Audits

of state agencies required; duty of agency personnel to assist in audit.

NRS 218G.210        Duty

of agency personnel to make all information available; duty extends to

confidential information; exceptions.

NRS 218G.220        Duty

of State Controller and agency personnel to submit financial statements.

NRS 218G.230        Discussion

of preliminary report with audited agency; inclusion of agency’s explanation or

rebuttal in final report; presentation and distribution of final report when

Legislature in regular session.

NRS 218G.240        Presentation

and distribution of final report to Legislative Commission; adoption of

additional procedures; restrictions on disclosure before presentation.

NRS 218G.250        Notice

to agency of acceptance of final report; submission of plan for corrective

action.

NRS 218G.260        Order

to withhold appropriated money from agency for failure to submit or comply with

plan for corrective action.

NRS 218G.270        Report

on agency’s implementation of recommendations made by Legislative Auditor;

review of report.

AUDITS OF STATE AGENCIES

AWARDED FEDERAL GRANTS

NRS 218G.330        Arrangements

with Legislative Auditor to conduct audit; payment of cost of audit; creation

and purpose of Audit Contingency Account.

NRS 218G.340        Certain

audits may be conducted by Legislative Auditor or private firms; procedure for

evaluating qualifications of firms; combining of audits to obtain services from

single source.

NRS 218G.350        Selection

of private firms; execution of contract; oversight; performance of audit;

submission, presentation and distribution of report.

AUDITS OF CERTAIN STATE BOARDS

NRS 218G.400        Certain

regulatory boards required to prepare balance sheets or have professional audit

conducted; payment of cost of audit; audits by Legislative Auditor; remedies and

penalties for violations.

AUDITS OF CERTAIN NON-STATE ENTITIES

NRS 218G.450        Special

audits required of non-state entities which receive public money; duty of

entity to make all information available; duty extends to confidential

information.

AUDITS AND REVIEWS OF CERTAIN ENTITIES WHICH PROVIDE SERVICES

FOR CHILDREN

General Provisions

NRS 218G.500        Definitions.

NRS 218G.505        “Abuse

or neglect of a child” defined.

NRS 218G.510        “Agency

which provides child welfare services” defined.

NRS 218G.515        “Family

foster home” defined.

NRS 218G.520        “Governmental

facility for children” defined.

NRS 218G.525        “Group

foster home” defined.

NRS 218G.530        “Near

fatality” defined.

NRS 218G.535        “Private

facility for children” defined.

 

Child Welfare Agencies

NRS 218G.550        Duty

of agency to notify Legislative Auditor of cases involving fatality or near

fatality of child; review of agency’s handling of case; duty of agency to

cooperate with review.

NRS 218G.555        Disclosure

of certain information by Legislative Auditor regarding child’s case;

conditions and limitations on disclosure.

 

Facilities Having Physical Custody of Children

NRS 218G.570        Performance

audits of governmental facilities for children.

NRS 218G.575        Inspection,

review and survey of governmental facilities for children and private

facilities for children.

NRS 218G.580        Scope

of inspection, review and survey.

NRS 218G.585        Duty

of facilities to cooperate with inspection, review and survey.

_________

_________

GENERAL PROVISIONS

      NRS 218G.010  Legislative declaration.  The

intent of this chapter is to provide for the impartial postauditing of each

agency of the State to furnish the Legislature with factual information

necessary to the discharge of its constitutional duties and by which it may

exercise its valid powers.

      (Added to NRS by 1965, 1462; A 1973, 1661; 1977, 753;

1985, 851; 1987, 961)—(Substituted

in revision for NRS 218.767)

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

used in this chapter, unless the context otherwise requires, “agency of the

State” includes all offices, departments, boards, commissions and institutions

of the Executive Department and the Judicial Department, but does not include

the Legislative Department.

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

in revision for NRS 218.737)

AUDIT DIVISION

      NRS 218G.100  Qualifications of Legislative Auditor.  The

Legislative Auditor shall:

      1.  Be a certified public accountant or

public accountant qualified to practice public accounting under the provisions

of chapter 628 of NRS.

      2.  Have 5 years of progressively

responsible experience in governmental accounting and auditing.

      3.  Have a comprehensive knowledge of the

principles and practices of public budgeting, governmental accounting, finance

and auditing standards.

      4.  Have a working knowledge of statistical

methods and other techniques of scientific operational analysis.

      [5:205:1949; 1943 NCL § 7345.05]—(NRS A 1963, 1016;

1973, 1661; 1977, 753)—(Substituted in revision for NRS 218.740)

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

      1.  The Legislative Auditor shall:

      (a) Perform postaudits as provided by law;

      (b) Establish procedures, methods and standards

of auditing for the Audit Division;

      (c) Recommend to the Legislature the enactment or

amendment of statutes based upon the results of the postaudit; and

      (d) Perform such other functions as may be

assigned by the Legislature, the Legislative Commission or the Director.

      2.  The Legislative Auditor may:

      (a) Within budgetary limitations, contract for

the services of consultants or other professional or technical personnel as the

Legislative Auditor’s duty to perform postaudits may require, or to conduct a

review of the operation of the Legislative Auditor’s office, and fix their fees

in an amount which is reasonable and customary for such services; and

      (b) With the approval of the Legislative

Commission, contract with federal agencies or state departments to perform

audits required by federal or state law, if the Division may be reimbursed for

such audits. Any money received by the Division for such audits must be

deposited in the State Treasury to the credit of the Legislative Fund.

      3.  A postaudit must be conducted in

accordance with generally accepted standards for governmental and other audits.

      [6:205:1949; A 1955, 123]—(NRS A 1957, 368; 1963,

1017; 1965, 1456; 1969, 131; 1971, 1548; 1973, 1661; 1977, 41, 754; 1985, 851; 1989, 1494; 2011, 3247)—(Substituted

in revision for NRS 218.770)

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

      1.  Each of the audits provided for in chapters 218A to 218H, inclusive, of NRS must be made and

concluded as directed by the Legislative Commission and in accordance with the

terms of this chapter.

      2.  The Legislative Commission shall direct

the Legislative Auditor to make any special audit or investigation that in its

judgment is proper and necessary to carry out the purpose of chapters 218A to 218H, inclusive, of NRS or to assist the

Legislature in the proper discharge of its duties.

      [13:205:1949; 1943 NCL § 7345.13]—(NRS A 1963, 1020;

1965, 1459; 1969, 134; 1973, 1664; 1985, 854; 2007, 614)—(Substituted

in revision for NRS 218.850)

      NRS 218G.130  Retention of audit reports and other documents; confidentiality

and destruction of working papers from audits; exceptions.

      1.  The Legislative Auditor shall keep or

cause to be kept a complete file of copies of all reports of audits,

examinations, investigations and all other reports or releases issued by the

Legislative Auditor.

      2.  All working papers from an audit are

confidential and may be destroyed by the Legislative Auditor 5 years after the

report is issued, except that the Legislative Auditor:

      (a) Shall release such working papers when

subpoenaed by a court or when required to do so pursuant to NRS 239.0115; or

      (b) May make such working papers available for

inspection by an authorized representative of any other governmental entity for

a matter officially before the authorized representative or by any other person

authorized by the Legislative Commission.

      [16:205:1949; 1943 NCL § 7345.16]—(NRS A 1963, 1021;

1969, 497; 1973, 1664; 1977, 6; 1979, 291; 1985, 854; 2007, 2080)—(Substituted

in revision for NRS 218.870)

      NRS 218G.140  Duty to report improper practices, inadequacy of fiscal records

or illegal transactions found in course of audit.

      1.  If the Legislative Auditor finds, in

the course of an audit, evidence of improper practices of financial

administration or inadequacy of fiscal records, the Legislative Auditor shall

report these practices immediately to the Governor, each Legislator and the

head of the agency affected.

      2.  If the Legislative Auditor finds

evidence of illegal transactions, the Legislative Auditor shall forthwith

report these transactions to the Governor, each Legislator and the Attorney

General.

      [17:205:1949; 1943 NCL § 7345.17]—(NRS A 1963, 1021;

1965, 1459; 1973, 1665; 1981, 157; 1985, 855; 2011, 3247)—(Substituted

in revision for NRS 218.880)

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

      1.  Immediately upon receipt of a report

from the Legislative Auditor of inadequacy of fiscal records, the Legislative

Commission shall review the Legislative Auditor’s report and hold hearings with

the department head or heads concerning such inadequacy of fiscal records.

      2.  The Legislative Commission, after

holding such hearings, shall make a report to the department head or heads

requesting the installation of the necessary fiscal records.

      3.  The Legislative Commission shall report

to the Legislature any refusal of the department officials to install proper

fiscal records.

      [18:205:1949; 1943 NCL § 7345.18]—(NRS A 1963, 1021;

1965, 1459; 1973, 1665)—(Substituted in revision for NRS 218.890)

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

      1.  The Legislative Auditor shall prepare a

biennial report for the Governor and Legislators and submit the report before

December 31 of each even-numbered year. Copies of the report must be filed in

the Office of the Secretary of State.

      2.  The biennial report must contain, among

other things:

      (a) Copies of, or the substance of, reports made

to the various agencies of the State and a summary of changes made in the

system of accounts and records thereof;

      (b) A list of those agencies on which audit

reports were issued during the biennium which had not carried out a system of

internal accounting and administrative control pursuant to NRS 353A.020; and

      (c) Specific recommendations to the Legislature

for the amendment of existing laws or the enactment of new laws designed to

improve the functioning of the agencies of the State.

      [11:205:1949; 1943 NCL § 7345.11]—(NRS A 1963, 1020;

1969, 134; 1973, 312, 1664; 1985, 854; 1987, 2055; 2011, 3247)—(Substituted

in revision for NRS 218.830)

AUDITS OF STATE AGENCIES

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

assist in audit.

      1.  The Legislative Auditor shall perform a

postaudit of all accounts, funds and other records of all agencies of the State

to determine one or any combination of the following:

      (a) Whether the financial statements of the

audited agency comply with generally accepted principles of accounting.

      (b) The honesty and integrity of fiscal affairs,

the accuracy and reliability of information and reports, and the effectiveness

of the system of management controls of the audited agency.

      (c) Compliance with all applicable laws and

regulations.

      (d) Whether the operations of the agency of the

State have been conducted in accordance with its contractual obligations.

      (e) Whether control by management and the system

of information provide an adequate and efficient system of records and

accounting.

      2.  Every officer and employee of an agency

of the State shall aid and assist the Legislative Auditor at such times as the

Legislative Auditor requires in the inspection, examination and audit of any

books, accounts and records in their possession.

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

in revision for NRS 218.775)

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

extends to confidential information; exceptions.

      1.  Except as provided in subsection 2,

upon the request of the Legislative Auditor or the Legislative Auditor’s

authorized representative, all officers and employees of the agencies of the

State shall make available to the Legislative Auditor all their books,

accounts, claims, reports, vouchers or other records of information,

confidential or otherwise, necessary, irrespective of their form or location in

performing authorized audits or investigations.

      2.  This section does not authorize the

Legislative Auditor or authorized representative to have access to any books,

accounts, claims, reports, vouchers or other records or information of any

business or activity which NRS 665.130

and 668.085 require to be kept

confidential.

      [7:205:1949; A 1953, 171]—(NRS A 1963, 1018; 1965,

1457; 1973, 1847; 1985,

852, 2155)—(Substituted

in revision for NRS 218.780)

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

financial statements.  The State

Controller or the head of any agency of the State, and any employee or agent

thereof, acting by, for or on account of such agency or officer receiving,

paying or otherwise controlling any public money in the State of Nevada, in

whole or in part, whether the money is provided by the State of Nevada,

received from the Federal Government of the United States or any branch, bureau

or agency thereof, or received from private or other source, shall submit to

the Legislative Auditor, upon the Legislative Auditor’s request, the

appropriate financial statement prepared pursuant to generally accepted

accounting principles for the period designated by the Legislative Auditor.

      [10a:205:1949; added 1953, 171]—(NRS A 1963, 1019;

1973, 1663; 1977, 43; 1985, 853)—(Substituted

in revision for NRS 218.820)

      NRS 218G.230  Discussion of preliminary report with audited agency; inclusion

of agency’s explanation or rebuttal in final report; presentation and

distribution of final report when Legislature in regular session.

      1.  The Legislative Auditor or the

Legislative Auditor’s authorized representative shall furnish a copy of the

preliminary report of the audit to the head of the audited agency and discuss

the report with the head of the agency. The head of the agency shall submit to

the Legislative Auditor, within 10 days after the discussion, a written

statement of explanation or rebuttal concerning any of the findings, and the

Legislative Auditor shall include in the final report the officer’s explanation

or rebuttal to any of the findings contained in the final report.

      2.  When the Legislature is in a regular

session, the Legislative Auditor shall notify the Chair of the Legislative

Commission or the Chair of the Audit Subcommittee, immediately following this

10-day period, that an audit report is ready for presentation to the

Legislative Commission.

      3.  If, within 5 days after notification,

the Chair of the Legislative Commission does not call a meeting of the

Legislative Commission or the Chair of the Audit Subcommittee does not call a

meeting of the Audit Subcommittee, the Legislative Auditor shall distribute the

report and any statement received from the agency to each Legislator.

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

in revision for NRS 218.821)

      NRS 218G.240  Presentation and distribution of final report to Legislative

Commission; adoption of additional procedures; restrictions on disclosure

before presentation.

      1.  The Legislative Auditor shall present a

final written report of each audit to the Legislative Commission and furnish

copies to all Legislators, other appropriate state officers and the head of the

agency audited.

      2.  The Legislative Commission may by

regulation provide for the:

      (a) Presentation of the final written report of

each audit to the Audit Subcommittee before the report is presented to the

Legislative Commission.

      (b) Distribution of copies of the final written

report of an audit to each member of the Legislative Commission or Audit

Subcommittee, or both, before the report is presented to the Legislative

Commission.

      (c) Distribution of copies of the final written

report or a summary of the final report to all Legislators, other appropriate

state officers and the head of the agency audited after the final report is

presented to the Audit Subcommittee.

      3.  Except as otherwise provided by chapters 218A to 218H, inclusive, of NRS, the Legislative

Auditor shall not disclose the content of any audit before it is presented to

the:

      (a) Audit Subcommittee, if the final written

report is presented to the Audit Subcommittee pursuant to regulations adopted

by the Legislative Commission.

      (b) Legislative Commission, if the final written

report is not presented to the Audit Subcommittee pursuant to regulations

adopted by the Legislative Commission.

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

in revision for NRS 218.823)

      NRS 218G.250  Notice to agency of acceptance of final report; submission of

plan for corrective action.

      1.  The Legislative Commission or the Audit

Subcommittee shall notify an agency of the State of its acceptance of a final

written report of an audit by the Legislative Auditor that concerns the agency

and contains any recommendations for corrective action. Within 60 working days

after the receipt of notification, if corrective action is recommended for:

      (a) The Judicial Department, the Court

Administrator shall submit a plan for corrective action to the Legislative

Auditor and a copy of the plan to the Director of the Department of

Administration.

      (b) An elected officer of the State, the officer

shall submit a plan for corrective action to the Legislative Auditor and a copy

of the plan to the Director of the Department of Administration.

      (c) Any other agency of the State, the agency

shall submit a plan for corrective action to the Director of the Department of

Administration and a copy of the plan to the Legislative Auditor. The agency

shall commence corrective action pursuant to the plan immediately after its

submission.

      2.  The Legislative Auditor shall notify

the:

      (a) Audit Subcommittee, if the final written

report was first presented to the Audit Subcommittee pursuant to regulations

adopted by the Legislative Commission; or

      (b) Legislative Commission, if the final written

report was first presented to the Legislative Commission,

Ê of any

failure to submit a plan pursuant to subsection 1.

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

in revision for NRS 218.8235)

      NRS 218G.260  Order to withhold appropriated money from agency for failure to

submit or comply with plan for corrective action.

      1.  The Director of the Department of

Administration shall enforce the provisions of paragraph (c) of subsection 1 of

NRS 218G.250.

      2.  The Director of the Department of

Administration may, if the Director determines that such an order is necessary

and in the public interest, order the withholding of any portion of the money

appropriated to an agency, including the salary of an officer of the agency in

the unclassified service of the State, for the failure or refusal to submit or

perform pursuant to a plan for corrective action.

      3.  An order to withhold money must not be

entered except upon a hearing following reasonable notice to an affected agency

of the State.

      4.  The Director of the Department of

Administration shall notify the Interim Finance Committee and the State

Controller of the amount of money ordered to be withheld, and the State

Controller shall not allow or draw a warrant for that amount unless the order

is cancelled or withdrawn.

      (Added to NRS by 1987, 960)—(Substituted

in revision for NRS 218.824)

      NRS 218G.270  Report on agency’s implementation of recommendations made by

Legislative Auditor; review of report.

      1.  Each person who submits a plan pursuant

to paragraph (a) or (b) of subsection 1 of NRS

218G.250 shall, within 6 months after submission of the plan, submit to the

Legislative Auditor a report specifying the extent to which the recommendations

of the Legislative Auditor have been carried out, the extent to which the

recommendations have not been carried out and the reasons for any failure to

carry out the recommendations.

      2.  The Director of the Department of

Administration shall, within 6 months after the period for submission of plans

pursuant to paragraph (c) of subsection 1 of NRS

218G.250, submit to the Legislative Auditor a report specifying the extent

to which the recommendations of the Legislative Auditor have been carried out,

the extent to which the recommendations have not been carried out and the

reasons for any failure to carry out the recommendations.

      3.  The Legislative Auditor shall submit

each report received pursuant to subsections 1 and 2 to the Legislative

Commission and the Interim Finance Committee. If the Legislature is in a

regular session, the Legislative Auditor shall also submit the reports to each

member of the Assembly Standing Committee on Ways and Means and the Senate

Standing Committee on Finance. The Legislative Commission may review the

reports, conduct hearings to examine any justification for a failure to carry

out the recommendations of the Legislative Auditor and report its findings to

the Legislature.

      4.  The Legislative Auditor shall notify

the:

      (a) Audit Subcommittee, if so authorized by

regulations adopted by the Legislative Commission; or

      (b) Legislative Commission,

Ê of any

failure to submit a report pursuant to subsection 1 or 2.

      5.  The Legislative Commission may by

regulation:

      (a) Provide that reports received by the

Legislative Auditor pursuant to subsections 1 and 2 must be submitted to the

Audit Subcommittee before they are submitted to the Legislative Commission.

      (b) Authorize the Audit Subcommittee to:

             (1) Review the reports;

             (2) Conduct hearings to examine any

justification for a failure to carry out the recommendations of the Legislative

Auditor; and

             (3) Report its findings to the Legislative

Commission.

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

in revision for NRS 218.8245)

AUDITS OF STATE AGENCIES AWARDED FEDERAL GRANTS

      NRS 218G.330  Arrangements with Legislative Auditor to conduct audit; payment

of cost of audit; creation and purpose of Audit Contingency Account.

      1.  Each state agency which is awarded a

federal grant, a condition of which is the requirement that an audit be

conducted to ensure compliance with federal regulations, shall arrange with the

Legislative Auditor for the conducting of the audit and remit to the

Legislative Auditor, upon the Legislative Auditor’s request, a sum fixed by the

Legislative Auditor which approximates the cost of the audit. That amount may

later be adjusted to the actual cost of the audit. The amount of the cost of

the audit which the state agency does not contribute must be paid from the

Audit Contingency Account which is hereby created in the Legislative Fund.

      2.  If a single audit is required to be

conducted pursuant to 31 U.S.C. § 7502, the Department of Administration shall

arrange with the Legislative Auditor for the conducting of the single audit and

remit to the Legislative Auditor, upon the Legislative Auditor’s request, a sum

fixed by the Legislative Auditor which approximates the cost of the audit

applicable to the additional federal audit requirements. That cost may later be

adjusted to the actual cost of the audit. The costs of the single audit may be included

in the statewide cost allocation plan prepared pursuant to NRS 353.331.

      3.  The Legislative Auditor shall deposit

any sum remitted pursuant to subsections 1 and 2 with the State Treasurer for

credit to the Audit Contingency Account in the Legislative Fund. Expenditures

from the Account may be made only to pay the cost of audits described in

subsections 1 and 2. All vouchers for expenses must be approved by the

Legislative Auditor and paid as other claims against the Legislative Fund are

paid.

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

in revision for NRS 218.891)

      NRS 218G.340  Certain audits may be conducted by Legislative Auditor or

private firms; procedure for evaluating qualifications of firms; combining of

audits to obtain services from single source.

      1.  The Audit Subcommittee may require the

Legislative Auditor to conduct, or may choose to contract with a qualified

accounting firm to perform, an audit which is a prerequisite to the award of a

grant from the Federal Government to a state agency.

      2.  The Legislative Auditor shall keep a

list of firms qualified and willing to perform this kind of audit. Firms

desiring to be included on the list must annually submit to the Legislative

Auditor statements of qualifications and data relating to the performance of

the firm, including relevant information regarding any consultants used or to

be used by the firm.

      3.  When the Audit Subcommittee chooses to

contract with a firm to perform an audit, the Legislative Auditor shall

evaluate the data on file for each firm, together with any statements which

firms may submit regarding the proposed audit and any other pertinent

information. The Legislative Auditor shall prepare a list of not fewer than

three firms which, in the judgment of the Legislative Auditor, are qualified to

perform the proposed audit. The Legislative Auditor shall submit the list to

the Audit Subcommittee.

      4.  Two or more separate audits may be

combined by the Audit Subcommittee to obtain auditing services from a single

source. Audits combined in this manner shall be deemed a single audit for

purposes of compliance with NRS 218G.330, 218G.340 and 218G.350.

      (Added to NRS by 1981, 1177; A 1983,

161)—(Substituted in revision for NRS 218.892)

      NRS 218G.350  Selection of private firms; execution of contract; oversight;

performance of audit; submission, presentation and distribution of report.

      1.  The Audit Subcommittee shall confer

with the Legislative Auditor to establish standards of performance to be

required of a firm chosen to perform an audit. The Audit Subcommittee shall

conduct negotiations with each of the firms recommended for consideration by

the Legislative Auditor and shall select the firm or firms which, in the

judgment of the Audit Subcommittee, are best qualified to meet the standards of

performance established. During the negotiations and in making its selection,

the Audit Subcommittee shall consider:

      (a) The competency of the firms being considered;

      (b) The estimated cost of the services required

to conduct the audit; and

      (c) The scope and complexity of the services

required.

      2.  Each contract for an audit must be

signed by the Legislative Auditor and an authorized representative of the firm

selected to perform the audit. The Legislative Auditor shall periodically

inspect the performance of the firm performing the audit to ensure that the

terms of the contract are being complied with.

      3.  Except as otherwise provided in this

section and NRS 218G.330 and 218G.340, the officers and employees of a firm

performing an audit shall keep information disclosed by an audit in strict

confidence and shall not disclose the contents of an audit before it is

presented to the Audit Subcommittee or submitted to the appropriate federal

agency or an entity designated by the federal agency. The officers and

employees of the firm have the same rights of access to books, accounts,

records, files, correspondence or other documents that the Legislative Auditor

has.

      4.  At the conclusion of the audit, the

firm or firms which have performed the audit shall submit a written report of

the audit to the Legislative Auditor. The Legislative Auditor shall follow the

procedures set forth in NRS 218G.230, concerning

preliminary audit reports and shall attend, or have a member of the Legislative

Auditor’s staff attend, the discussion held pursuant to that section.

      5.  The Legislative Commission may by

regulation provide for the distribution of copies of the written report

submitted to the Legislative Auditor pursuant to subsection 4, to each member

of the Audit Subcommittee before the report is presented to the Audit

Subcommittee pursuant to subsection 6.

      6.  The Legislative Auditor shall present

the final audit report to the Audit Subcommittee and thereafter distribute the

report or a summary of the report to Legislators, other appropriate state

officers and the head of the agency audited. If federal law requires the

Legislative Auditor to submit the final audit report to a federal agency or an

entity designated by the federal agency, the Legislative Auditor may submit the

report to the federal agency or entity before the Legislative Auditor presents

it to the Audit Subcommittee.

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

in revision for NRS 218.893)

AUDITS OF CERTAIN STATE BOARDS

      NRS 218G.400  Certain regulatory boards required to prepare balance sheets or

have professional audit conducted; payment of cost of audit; audits by

Legislative Auditor; remedies and penalties for violations.

      1.  Except as otherwise provided in

subsection 2, each board created by the provisions of NRS 590.485 and chapters 623 to 625A,

inclusive, 628, 630

to 644, inclusive, 648, 654 and 656 of NRS shall:

      (a) If the revenue of the board from all sources

is less than $75,000 for any fiscal year and, if the board is a regulatory body

pursuant to NRS 622.060, the board has

submitted to the Director of the Legislative Counsel Bureau for each quarter of

that fiscal year the information required by NRS

622.100, prepare a balance sheet for that fiscal year on the form provided

by the Legislative Auditor and file the balance sheet with the Legislative

Auditor and the Chief of the Budget Division of the Department of

Administration on or before December 1 following the end of that fiscal year.

The Legislative Auditor shall prepare and make available a form that must be

used by a board to prepare such a balance sheet.

      (b) If the revenue of the board from all sources

is $75,000 or more for any fiscal year, or if the board is a regulatory body

pursuant to NRS 622.060 and has failed

to submit to the Director of the Legislative Counsel Bureau for each quarter of

that fiscal year the information required by NRS

622.100, engage the services of a certified public accountant or public

accountant, or firm of either of such accountants, to audit all its fiscal

records for that fiscal year and file a report of the audit with the

Legislative Auditor and the Chief of the Budget Division of the Department of

Administration on or before December 1 following the end of that fiscal year.

      2.  In lieu of preparing a balance sheet or

having an audit conducted for a single fiscal year, a board may engage the

services of a certified public accountant or public accountant, or firm of

either of such accountants, to audit all its fiscal records for a period

covering two successive fiscal years. If such an audit is conducted, the board

shall file the report of the audit with the Legislative Auditor and the Chief

of the Budget Division of the Department of Administration on or before

December 1 following the end of the second fiscal year.

      3.  The cost of each audit conducted

pursuant to subsection 1 or 2 must be paid by the board that is audited. Each

such audit must be conducted in accordance with generally accepted auditing

standards, and all financial statements must be prepared in accordance with

generally accepted principles of accounting for special revenue funds.

      4.  Whether or not a board is required to

have its fiscal records audited pursuant to subsection 1 or 2, the Legislative

Auditor shall audit the fiscal records of any such board whenever directed to

do so by the Legislative Commission. When the Legislative Commission directs

such an audit, the Legislative Commission shall also determine who is to pay

the cost of the audit.

      5.  A person who is a state officer or

employee of a board is guilty of nonfeasance if the person:

      (a) Is responsible for preparing a balance sheet

or having an audit conducted pursuant to this section or is responsible for

preparing or maintaining the fiscal records that are necessary to prepare a

balance sheet or have an audit conducted pursuant to this section; and

      (b) Knowingly fails to prepare the balance sheet

or have the audit conducted pursuant to this section or knowingly fails to

prepare or maintain the fiscal records that are necessary to prepare a balance

sheet or have an audit conducted pursuant to this section.

      6.  In addition to any other remedy or

penalty, a person who is guilty of nonfeasance pursuant to this section forfeits

the person’s state office or employment and may not be appointed to a state

office or position of state employment for a period of 2 years following the

forfeiture. The provisions of this subsection do not apply to a state officer

who may be removed from office only by impeachment pursuant to Article 7 of the Nevada Constitution.

      (Added to NRS by 1963, 143; A 1963, 1009; 1967, 931;

1969, 133; 1973, 1663; 1975, 113, 1470; 1977, 130, 1178; 1983, 192, 1492; 1985, 853; 1987, 1161; 1991, 992; 1999, 3063; 2003, 907, 1200, 2078; 2005, 1133; 2013, 73)—(Substituted

in revision for NRS 218.825)

AUDITS OF CERTAIN NON-STATE ENTITIES

      NRS 218G.450  Special audits required of non-state entities which receive

public money; duty of entity to make all information available; duty extends to

confidential information.

      1.  The Legislative Auditor, as directed by

the Legislative Commission pursuant to NRS 218G.120,

shall conduct a special audit of an entity which is not an agency of this State

but which receives an appropriation of public money during any fiscal year.

Such an audit must, without limitation, examine the use of the public money

received by the entity.

      2.  As a condition of the acceptance of any

appropriation of public money, an entity which is not an agency of this State

must agree to make available to the Legislative Auditor all books, accounts,

claims, reports, vouchers or other records of information, confidential or

otherwise and irrespective of their form or location, that the Legislative

Auditor determines to be necessary to conduct an audit pursuant to this

section.

      (Added to NRS by 2007, 613)—(Substituted

in revision for NRS 218.855)

AUDITS AND REVIEWS OF CERTAIN ENTITIES WHICH PROVIDE

SERVICES FOR CHILDREN

General Provisions

      NRS 218G.500  Definitions.  As

used in NRS 218G.500 to 218G.585,

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

in NRS 218G.505 to 218G.535,

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

      (Added to NRS by 2007, 198; A 2009, 4)—(Substituted

in revision for NRS 218.862)

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

or neglect of a child” has the meaning ascribed to it in NRS 432B.020.

      (Added to NRS by 2007, 198)—(Substituted

in revision for NRS 218.863)

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

has the meaning ascribed to it in NRS

432B.030.

      (Added to NRS by 2007, 198)—(Substituted

in revision for NRS 218.864)

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

foster home” has the meaning ascribed to it in NRS 424.013.

      (Added to NRS by 2009, 2)

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

      1.  “Governmental facility for children”

means any facility, detention center, treatment center, hospital, institution,

group shelter or other establishment which is owned or operated by a

governmental entity and which has physical custody of children pursuant to the

order of a court.

      2.  The term does not include any facility,

detention center, treatment center, hospital, institution, group shelter or

other establishment which is licensed as a family foster home or group foster

home, except one which provides emergency shelter care or which is capable of

handling children who require special care for physical, mental or emotional

reasons.

      (Added to NRS by 2009, 2)

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

foster home” has the meaning ascribed to it in NRS 424.015.

      (Added to NRS by 2009, 2)

      NRS 218G.530  “Near fatality” defined.  “Near

fatality” means an act that places a child in serious or critical condition as

verified orally or in writing by a physician, a registered nurse or other

licensed provider of health care. Such verification may be given in person or

by telephone, mail, electronic mail or facsimile.

      (Added to NRS by 2007, 198)—(Substituted

in revision for NRS 218.865)

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

      1.  “Private facility for children” means

any facility, detention center, treatment center, hospital, institution, group

shelter or other establishment which is owned or operated by a person and which

has physical custody of children pursuant to the order of a court.

      2.  The term does not include any facility,

detention center, treatment center, hospital, institution, group shelter or

other establishment which is licensed as a family foster home or group foster

home, except one which provides emergency shelter care or which is capable of

handling children who require special care for physical, mental or emotional

reasons.

      (Added to NRS by 2009, 2)

Child Welfare Agencies

      NRS 218G.550  Duty of agency to notify Legislative Auditor of cases involving

fatality or near fatality of child; review of agency’s handling of case; duty

of agency to cooperate with review.

      1.  Any time that a child who has had

contact with, or who has been in the custody of, an agency which provides child

welfare services suffers a fatality or a near fatality, the agency which

provides child welfare services shall notify the Legislative Auditor or the

Legislative Auditor’s designee and shall forward to the Legislative Auditor or

designee as soon as possible any files, notes, information and records which

the agency has concerning the child, the manner in which the case was handled,

any services that were provided to the child or the family of the child and any

other relevant information.

      2.  The Legislative Auditor or designee

shall review the information obtained pursuant to subsection 1 to determine

whether the case was handled in a manner which is consistent with state and

federal law and to determine whether any measures, procedures or protocols

could have assisted in preventing the fatality or near fatality.

      3.  Each agency which provides child

welfare services shall:

      (a) Cooperate fully with the Legislative Auditor

or designee;

      (b) Provide the Legislative Auditor or designee

with any data, reports or information concerning a report or investigation of

the abuse or neglect of a child and the response by the agency; and

      (c) Allow the Legislative Auditor to inspect,

review and copy any records, reports and other documents relevant to his or her

duties pursuant to this section.

      (Added to NRS by 2007, 198)—(Substituted

in revision for NRS 218.866)

      NRS 218G.555  Disclosure of certain information by Legislative Auditor

regarding child’s case; conditions and limitations on disclosure.

      1.  Except as otherwise provided in

subsections 2 and 3, upon request, the Legislative Auditor or the Legislative

Auditor’s designee shall provide data and information obtained pursuant to NRS 218G.550 concerning a child who suffered a

fatality or near fatality who had contact with or who was in the custody of an

agency which provides child welfare services. The data or information which

must be disclosed includes, without limitation:

      (a) A summary of the report of the abuse or

neglect of the child and a factual description of the contents of the report;

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

      (c) The date that the child suffered the fatality

or near fatality;

      (d) The cause of the fatality or near fatality,

if such information has been determined;

      (e) Whether the agency which provides child

welfare services had any contact with the child or a member of the child’s

family or household before the fatality or near fatality and, if so:

             (1) The frequency of any contact or

communication with the child or a member of the child’s family or household

before the fatality or near fatality and the date on which the last contact or

communication occurred before the fatality or near fatality;

             (2) Whether the agency which provides

child welfare services provided any child welfare services to the child or to a

member of the child’s family or household before or at the time of the fatality

or near fatality;

             (3) Whether the agency which provides

child welfare services made any referrals for child welfare services for the

child or for a member of the child’s family or household before or at the time

of the fatality or near fatality;

             (4) Whether the agency which provides

child welfare services took any other actions concerning the welfare of the

child before or at the time of the fatality or near fatality; and

             (5) A summary of the status of the child’s

case at the time of the fatality or near fatality, including, without

limitation, whether the child’s case was closed by the agency which provides

child welfare services before the fatality or near fatality and, if so, the

reasons that the case was closed; and

      (f) Whether the agency which provides child

welfare services, in response to the fatality or near fatality:

             (1) Has provided or intends to provide

child welfare services to the child or to a member of the child’s family or

household;

             (2) Has made or intends to make a referral

for child welfare services for the child or for a member of the child’s family

or household; and

             (3) Has taken or intends to take any other

action concerning the welfare and safety of the child or a member of the

child’s family or household.

      2.  The Legislative Auditor or his or her

designee shall not disclose information pursuant to subsection 1 unless the

person making the request has requested such information from the agency which

provides child welfare services and has been denied access to such information

or has not received the information in a timely manner.

      3.  The Legislative Auditor or his or her

designee shall not disclose the following data or information pursuant to

subsection 1:

      (a) Except as otherwise provided in NRS 432B.290, data or information

concerning the identity of the person responsible for reporting the abuse or

neglect of the child to a public agency;

      (b) The name of the child who suffered a near

fatality or the name of any member of the family or other person who lives in

the household of the child who suffered the fatality or near fatality;

      (c) A privileged communication between an

attorney and client; or

      (d) Information that may undermine a criminal

investigation or pending criminal prosecution.

      (Added to NRS by 2007, 198; A 2013, 521)—(Substituted

in revision for NRS 218.867)

Facilities Having Physical Custody of Children

      NRS 218G.570  Performance audits of governmental facilities for children.  The Legislative Auditor, as directed by the

Legislative Commission pursuant to NRS 218G.120,

shall conduct performance audits of governmental facilities for children.

      (Added to NRS by 2009, 3)

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

children and private facilities for children.  The

Legislative Auditor or the Legislative Auditor’s designee shall inspect, review

and survey governmental facilities for children and private facilities for children

to determine whether such facilities adequately protect the health, safety and

welfare of the children in the facilities and whether the facilities respect

the civil and other rights of the children in their care.

      (Added to NRS by 2009, 3)

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

Legislative Auditor or the Legislative Auditor’s designee, in performing his or

her duties pursuant to NRS 218G.575, shall:

      1.  Receive and review copies of all

guidelines used by governmental facilities for children and private facilities

for children concerning the health, safety, welfare, and civil and other rights

of children;

      2.  Receive and review copies of each

complaint that is filed by any child or other person on behalf of a child who

is under the care of a governmental facility for children or private facility

for children concerning the health, safety, welfare, and civil and other rights

of the child;

      3.  Perform unannounced site visits and

on-site inspections of governmental facilities for children and private

facilities for children;

      4.  Review reports and other documents

prepared by governmental facilities for children and private facilities for

children concerning the disposition of any complaint which was filed by any

child or other person on behalf of a child concerning the health, safety,

welfare, and civil and other rights of the child;

      5.  Review the practices, policies and

procedures of governmental facilities for children and private facilities for

children for filing and investigating complaints made by children under their

care or by any other person on behalf of such children concerning the health,

safety, welfare, and civil and other rights of the children; and

      6.  Receive, review and evaluate all

information and reports from a governmental facility for children or private

facility for children relating to a child who suffers a fatality or near

fatality while under the care or custody of the facility.

      (Added to NRS by 2009, 3)

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

survey.  Each governmental facility

for children and private facility for children shall:

      1.  Cooperate fully with the Legislative

Auditor or the Legislative Auditor’s designee in the performance of his or her

duties pursuant to NRS 218G.575 and 218G.580;

      2.  Allow the Legislative Auditor or

designee to enter the facility and any area within the facility with or without

prior notice;

      3.  Allow the Legislative Auditor or

designee to interview children and staff at the facility;

      4.  Allow the Legislative Auditor or

designee to inspect, review and copy any records, reports and other documents

relevant to his or her duties; and

      5.  Forward to the Legislative Auditor or

designee copies of any complaint that is filed by a child under the care or

custody of a governmental facility for children or private facility for

children or by any other person on behalf of such a child concerning the

health, safety, welfare, and civil and other rights of the child.

      (Added to NRS by 2009, 3)