INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROL

Nev. Rev. Stat. 353A
in effect

Nev. Rev. Stat. § 353A.010 Definitions.

As used in this chapter, unless the context otherwise requires: 1. “Agency” means every agency, department, division, board, commission or similar body, or elected officer, of the Executive Branch of the State. 2. “Committee” means the Executive Branch Audit Committee created pursuant to NRS 353A.038 . 3. “Director” means the Director of the Office of Finance. 4. “Internal accounting and administrative control” means a method through which agencies can safeguard assets, check the accuracy and reliability of their accounting information, promote efficient operations and encourage adherence to prescribed managerial policies.

Nev. Rev. Stat. § 353A.020 Adoption; elements; modification; development of procedures.

1. The Director, in consultation with the Committee and Legislative Auditor, shall adopt a uniform system of internal accounting and administrative control for agencies. The elements of the system must include, without limitation: (a) A plan of organization which provides for a segregation of duties appropriate to safeguard the assets of the agency; (b) A plan which limits access to assets of the agency to persons who need the assets to perform their assigned duties; (c) Procedures for authorizations and recordkeeping which effectively control accounting of assets, liabilities, revenues and expenses; (d) A system of practices to be followed in the performance of the duties and functions of each agency; and (e) An effective system of internal review. 2. The Director, in consultation with the Committee and Legislative Auditor, may modify the system whenever the Director considers it necessary. 3. Each agency shall develop written procedures to carry out the system of internal accounting and administrative control adopted pursuant to this section. 4. For the purposes of this section, “agency” does not include: (a) A board created by the provisions of NRS 590.485 and chapters 623 to 625A , inclusive, 628 , 630 to 644A , inclusive, 648 , 654 and 656 of NRS. (b) The Nevada System of Higher Education. (c) The Public Employees’ Retirement System. (d) The Housing Division of the Department of Business and Industry. (e) The Colorado River Commission of Nevada.

Nev. Rev. Stat. § 353A.025 Periodic review; biennial report of compliance by agency; biennial report of status of accounting and controls in agencies by Director.

1. The head of each agency shall periodically review the agency’s system of internal accounting and administrative control to determine whether it is in compliance with the uniform system of internal accounting and administrative control for agencies adopted pursuant to subsection 1 of NRS 353A.020 . 2. On or before July 1 of each even-numbered year, the head of each agency shall report to the Director whether the agency’s system of internal accounting and administrative control is in compliance with the uniform system adopted pursuant to subsection 1 of NRS 353A.020 . The reports must be made available for inspection by the members of the Legislature. 3. For the purposes of this section, “agency” does not include: (a) A board created by the provisions of NRS 590.485 and chapters 623 to 625A , inclusive, 628 , 630 to 644A , inclusive, 648 , 654 and 656 of NRS. (b) The Nevada System of Higher Education. (c) The Public Employees’ Retirement System. (d) The Housing Division of the Department of Business and Industry. (e) The Colorado River Commission of Nevada. 4. The Director shall, on or before the first Monday in February of each odd-numbered year, submit a report on the status of internal accounting and administrative controls in agencies to the: (a) Director of the Legislative Counsel Bureau for transmittal to the: (1) Senate Standing Committee on Finance; and (2) Assembly Standing Committee on Ways and Means; (b) Governor; and (c) Legislative Auditor. 5. The report submitted by the Director pursuant to subsection 4 must include, without limitation: (a) The identification of each agency that has not complied with the requirements of subsections 1 and 2; (b) The identification of each agency that does not have an effective method for reviewing its system of internal accounting and administrative control; and (c) The identification of each agency that has weaknesses in its system of internal accounting and administrative control, and the extent and types of such weaknesses.

Nev. Rev. Stat. § 353A.031 Definitions.

As used in NRS 353A.031 to 353A.100, inclusive, unless the context otherwise requires, the words and terms defined in NRS 353A.034 and 353A.036 have the meanings ascribed to them in those sections.

Nev. Rev. Stat. § 353A.038 Executive Branch Audit Committee: Creation; membership; compensation of members; duties.

1. The Executive Branch Audit Committee is hereby created. 2. The Committee must consist of one member who is a representative of the general public appointed by the Governor, who has at least 5 years of progressively responsible experience in the field of auditing and who does not engage in business with any agency, and the following ex officio members: (a) The Governor, who shall serve as Chair of the Committee; (b) The Lieutenant Governor; (c) The Secretary of State; (d) The State Treasurer; (e) The State Controller; and (f) The Attorney General. 3. The member of the Committee who is a representative of the general public is entitled to receive a salary of $80 per day while engaged in the business of the Committee. 4. While engaged in the business of the Committee, each member of the Committee is entitled to receive the per diem allowance and travel expenses provided for state officers and employees generally. 5. The Committee shall: (a) Adopt policies and procedures for the operation of the Division; (b) Approve, with or without revision, each annual plan for auditing agencies presented by the Administrator pursuant to NRS 353A.045 , and any revisions to such a plan, before the plan is implemented; and (c) Approve, with or without revision, each annual report submitted by the Administrator pursuant to NRS 353A.065 .

Nev. Rev. Stat. § 353A.041 Qualifications of Administrator; staff.

1. The Administrator must: (a) Be a certified public accountant certified by this state or a public accountant qualified pursuant to chapter 628 of NRS to practice public accounting in this state; (b) Be a certified internal auditor or government auditing professional; or (c) Have a master’s degree in business administration, accounting, finance or a closely related field. 2. The Administrator must have at least 6 years of progressively responsible experience in professional auditing and performing internal audits or postaudits. The experience must include, without limitation, the performance of audits of governmental entities or of private business organizations, whether or not organized for profit. 3. The Administrator may employ, within the limits of legislative appropriations, such staff as is necessary to the performance of his or her duties.

Nev. Rev. Stat. § 353A.045 Duties of Administrator.

The Administrator shall: 1. Report to the Director. 2. Develop long-term and annual work plans to be based on the results of periodic documented risk assessments. The annual work plan must list the agencies to which the Division will provide training and assistance and be submitted to the Director for approval. Such agencies must not include: (a) A board created by the provisions of NRS 590.485 and chapters 623 to 625A , inclusive, 628 , 630 to 644A , inclusive, 648 , 654 and 656 of NRS. (b) The Nevada System of Higher Education. (c) The Public Employees’ Retirement System. (d) The Housing Division of the Department of Business and Industry. (e) The Colorado River Commission of Nevada. 3. Provide a copy of the approved annual work plan to the Legislative Auditor. 4. In consultation with the Director, prepare a plan for auditing executive branch agencies for each fiscal year and present the plan to the Committee for its review and approval. Each plan for auditing must: (a) State the agencies which will be audited, the proposed scope and assignment of those audits and the related resources which will be used for those audits; and (b) Ensure that the internal accounting, administrative controls and financial management of each agency are reviewed periodically. 5. Perform the audits of the programs and activities of the agencies in accordance with the plan approved pursuant to subsection 5 of NRS 353A.038 and prepare audit reports of his or her findings. 6. Review each agency that is audited pursuant to subsection 5 and advise those agencies concerning internal accounting, administrative controls and financial management. 7. Submit to each agency that is audited pursuant to subsection 5 analyses, appraisals and recommendations concerning: (a) The adequacy of the internal accounting and administrative controls of the agency; and (b) The efficiency and effectiveness of the management of the agency. 8. Report any possible abuses, illegal actions, errors, omissions and conflicts of interest of which the Division becomes aware during the performance of an audit. 9. Adopt the standards of The Institute of Internal Auditors for conducting and reporting on internal audits. 10. Consult with the Legislative Auditor concerning the plan for auditing and the scope of audits to avoid duplication of effort and undue disruption of the functions of agencies that are audited pursuant to subsection 5.

Nev. Rev. Stat. § 353A.049 Reports of abuse, fraud or waste regarding public money received and used by agency or contractor: Establishment of telephone number by Director; notice; action by Division; confidentiality; disclosure.

1. The Director shall: (a) Establish a telephone number at which a person may confidentially report to the Division information relating to abuse, fraud or waste with respect to public money received and used by an agency or contractor; and (b) Create a written notice that: (1) Clearly identifies the telephone number established pursuant to paragraph (a); and (2) Contains a statement directing any person with any information relating to abuse, fraud or waste with respect to public money received and used by an agency or contractor to report the information at the telephone number established pursuant to paragraph (a). 2. The written notice created pursuant to paragraph (b) of subsection 1 must be posted conspicuously: (a) In each public building of an agency; and (b) On the Internet website maintained by the Office of Finance. 3. Upon receipt of information from a person calling the telephone number established pursuant to paragraph (a) of subsection 1, the Division shall perform a review and prepare a report of its findings. The report is a public record and: (a) Must include, without limitation, an explanation of: (1) The purpose of the review; and (2) Any resolution or corrective action taken by the Division that resulted from the review. (b) Must not include the identity of the person who reported the information. 4. Except as otherwise provided in subsections 3 and 5, any information reported to the Division at the telephone number established pursuant to paragraph (a) of subsection 1, including, without limitation, the identity of the person who reported the information, is confidential. 5. The Division shall not disclose information that is confidential pursuant to subsection 4 except: (a) Pursuant to NRS 239.0115 ; (b) For the purpose of carrying out any duty of the Division prescribed by NRS 353A.031 to 353A.100 , inclusive, or for the purpose of assisting the Director or Administrator in carrying out any duty of the Director or Administrator prescribed by this chapter; (c) Upon the lawful order of a court of competent jurisdiction; or (d) To the Office of the Attorney General or the office of a district attorney within this State for the purpose of investigating the alleged abuse, fraud or waste reported to the Division. 6. As used in this section: (a) “Contractor” means any person, business, organization or nonprofit corporation that contracts with an agency to receive public money. The term includes a subcontractor or a third party who receives any portion of the public money from the contractor to carry out any obligation pursuant to a contract between the contractor and the agency. (b) “Public money” means any money deposited with a depository by the State Treasurer and includes money which is received by an agency from the Federal Government for distribution and use in this State pursuant to a federal law or federal regulation.

Nev. Rev. Stat. § 353A.055 Training and assistance provided to agencies; regulations; prohibited acts.

1. The Division shall: (a) Determine the adequacy of the system of internal accounting, administrative control and financial management of each agency to which the Division provides training and assistance. (b) Adopt regulations, approved by the Committee, requiring the provision of training to any employee of an agency who is responsible for administering budgetary accounts. The training must address: (1) The laws and regulations of this state and the Federal Government applicable to the operations of the agency. (2) Internal accounting, administrative controls and financial management. (3) Techniques to address the adequacy of controls of the agency. (c) Develop and administer a procedure to evaluate the effectiveness of any training provided to an agency. (d) Provide technical assistance to agencies in developing and carrying out their systems of internal accounting, administrative controls and financial management. (e) Prepare separate reports for each agency which summarize the results of the training and assistance provided to the agency. 2. The Division shall not: (a) Provide any services to an agency that is under the direct control or administration of a constitutional officer unless the constitutional officer requests such services. (b) Conduct investigations, but shall refer such matters to the appropriate agency.

Nev. Rev. Stat. § 353A.065 Annual report.

1. Within 90 days after the end of each fiscal year, the Administrator shall submit an annual report to the Committee for its approval which: (a) Lists the agencies to which the Division provided training and assistance; (b) Separately lists any other activities undertaken by the Division that are related to the provision of training and assistance and the status of those activities; (c) Contains a list of the final reports that have been submitted pursuant to NRS 353A.085 ; (d) Contains a separate list of any other activities undertaken by the Division that are related to the final reports submitted pursuant to NRS 353A.085 and the status of those activities; and (e) Describes the accomplishments of the Division. 2. The Administrator shall provide a copy of the annual report to the: (a) Committee; (b) Director; (c) Interim Finance Committee; and (d) Legislative Auditor.

Nev. Rev. Stat. § 353A.075 Agency to make records available to Division; limitation.

1. Except as otherwise provided in subsection 2, upon the request of the Administrator or the Administrator’s authorized representative, all officers and employees of each executive branch agency shall make available to the Division all books, accounts, claims, reports, vouchers or other records of information, confidential or otherwise, in the possession or control of the agency. 2. This section does not authorize the Administrator or the Administrator’s 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.

Nev. Rev. Stat. § 353A.085 Preliminary findings and recommendations of audit; written statement of acceptance, explanation or rebuttal from agency; final report; confidentiality.

1. After each audit is completed, the Administrator or the Administrator’s designated representative shall submit a copy of the preliminary findings and recommendations of the audit to the head of the audited agency. Within 10 working days after receipt of the preliminary findings and recommendations, the head of the agency shall submit to the Administrator a written statement of acceptance, explanation or rebuttal concerning the findings. The Administrator shall include the statement of the head of the agency in the final report. 2. The Administrator shall submit a final report to the Committee and the head of the audited agency. 3. Except as otherwise provided in NRS 353A.031 to 353A.100 , inclusive, the Administrator shall not disclose the content of any audit before the final report is submitted to the Committee pursuant to subsection 2 except in the case of alleged illegal acts which must be reported immediately upon discovery.

Nev. Rev. Stat. § 353A.090 Corrective actions.

Within 6 months after the date that the final report is submitted pursuant to NRS 353A.085, if corrective action is recommended for an agency, the Administrator shall determine whether appropriate corrective actions are being taken and whether those actions are achieving the desired result. The Administrator shall inform the Committee and the head of the audited agency of the effect of any corrective actions taken.

Nev. Rev. Stat. § 353A.100 Administrator to maintain file of copies of reports; confidentiality.

1. The Administrator 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 Administrator. 2. All working papers from an audit are confidential and may be destroyed by the Administrator 5 years after the report is issued, except that the Administrator: (a) Shall release such working papers when subpoenaed by a court of competent jurisdiction or when required to do so pursuant to NRS 239.0115 ; (b) Shall make such working papers available to the Legislative Auditor upon his or her request; and (c) May make such working papers available for inspection by an authorized representative of any other governmental entity for a matter officially before him or her.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-353A.htmlFetched: 10/4/2026