Contents of statement provided by local government to auditor; expenditure of excess reserves in certain funds; restrictions on use of budgeted ending fund balance in certain circumstances.
Nev. Rev. Stat. § 354.6241
in effect1. The statement required by paragraph (a) of subsection 5 of NRS 354.624 must indicate for each fund set forth in that paragraph:
(a) Whether the fund is being used in accordance with the provisions of this chapter.
(b) Whether the fund is being administered in accordance with generally accepted accounting procedures.
(c) Whether the reserve in the fund is limited to an amount that is reasonable and necessary to carry out the purposes of the fund.
(d) The sources of revenues available for the fund during the fiscal year, including transfers from any other funds.
(e) The statutory and regulatory requirements applicable to the fund.
(f) The balance and retained earnings of the fund.
2. Except as otherwise provided in subsections 3 and 4 and NRS 354.59891 and 354.613 , to the extent that the reserve in any fund set forth in paragraph (a) of subsection 5 of NRS 354.624 exceeds the amount that is reasonable and necessary to carry out the purposes for which the fund was created, the reserve may be expended by the local government pursuant to the provisions of chapter 288 of NRS.
3. For any local government other than a school district, for the purposes of chapter 288 of NRS, a budgeted ending fund balance of not more than 16.67 percent of the total budgeted expenditures, less capital outlay, for a general fund:
(a) Is not subject to negotiations with an employee organization; and
(b) Must not be considered by a fact finder or arbitrator in determining the financial ability of the local government to pay compensation or monetary benefits.
4. For a school district, for the purposes of chapter 288 of NRS:
(a) A budgeted ending fund balance of not more than 12 percent of the total budgeted expenditures for a county school district fund:
(1) Is not subject to negotiations with an employee organization; and
(2) Must not be considered by a fact finder or arbitrator in determining the financial ability of the local government to pay compensation or monetary benefits; and
(b) Any portion of a budgeted ending fund balance which exceeds 16.6 percent of the total budgeted expenditures for a county school district fund:
(1) Is not subject to negotiations with an employee organization; and
(2) Must not be considered by a fact finder or arbitrator in determining the financial ability of the local government to pay compensation or monetary benefits.
Source: NV Statutes (Official Site)URL: https://www.leg.state.nv.us/nrs/NRS-354.htmlFetched: 10/4/2026