USA Statutes : nevada
Title : Title 31 - PUBLIC FINANCIAL ADMINISTRATION
Chapter : CHAPTER 353A - INTERNAL ACCOUNTING AND ADMINISTRATIVE CONTROL
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 Department of
Administration.
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.
(Added to NRS by 1987, 2054; A 1991, 993; 1993, 396; 1995, 645;
1999, 1821 , 2889 , 3065 )
SYSTEM OF ACCOUNTING AND CONTROL
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 he 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 644 , 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.
(Added to NRS by 1987, 2055; A 1999, 2889 ; 2001, 207 , 208 , 943 , 2444 , 2445 ; 2003, 908 , 2076 ; 2005, 1138 )
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 644 , 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.
(Added to NRS by 1995, 388; A 1999, 882 , 2890 , 2892 ; 2001, 207 , 209 , 943 , 2444 , 2445 ; 2003, 909 , 2077 ; 2005, 1138 )
DIVISION OF INTERNAL AUDITS
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.
(Added to NRS by 1999, 2887 ; A 2001, 944 )
“Chief” means the Chief of the
Division.
(Added to NRS by 1999, 2887 )
“Division” means the Division of
Internal Audits of the Department of Administration.
(Added to NRS by 1999, 2887 )
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 Chairman 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 Chief 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 Chief pursuant to NRS 353A.065 .
(Added to NRS by 1999, 2887 )
1. The Chief must:
(a) Be a certified public accountant licensed by this state or a
public accountant qualified pursuant to chapter 628 of NRS to practice public accounting in this state;
and
(b) Have at least 5 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.
2. The Chief may employ, within the limits of legislative
appropriations, such staff as is necessary to the performance of his
duties.
(Added to NRS by 1999, 2887 )
The Chief shall:
1. Report to the Director.
2. Develop long-term and annual work plans to be based on the
results of periodic documented risk assessments. The annual work plan
must list the agencies to which the Division will provide training and
assistance and be submitted to the Director for approval. Such agencies
must not include:
(a) A board created by the provisions of NRS 590.485 and chapters 623
to 625A , inclusive, 628 , 630 to 644 , 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 findings.
6. Review each agency that is audited pursuant to subsection 5 and
advise those agencies concerning internal accounting, administrative
controls and financial management.
7. Submit to each agency that is audited pursuant to subsection 5
analyses, appraisals and recommendations concerning:
(a) The adequacy of the internal accounting and administrative
controls of the agency; and
(b) The efficiency and effectiveness of the management of the
agency.
8. Report any possible abuses, illegal actions, errors, omissions
and conflicts of interest of which the Division becomes aware during the
performance of an audit.
9. Adopt the standards of the Institute of Internal Auditors for
conducting and reporting on internal audits.
10. Consult with the Legislative Auditor concerning the plan for
auditing and the scope of audits to avoid duplication of effort and undue
disruption of the functions of agencies that are audited pursuant to
subsection 5.
11. Appoint a Manager of Internal Controls.
(Added to NRS by 1995, 397; A 1997, 505; 1999, 2890 ; 2001, 944 ; 2003, 626 , 909 , 2077 ; 2005, 1139 )
1. The Manager of Internal Controls appointed pursuant to NRS
353A.045 must:
(a) Be a certified public accountant licensed by this state or a
public accountant qualified pursuant to chapter 628 of NRS to practice public accounting in this state;
and
(b) Have at least 4 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.
2. The Manager of Internal Controls is in the unclassified service
of this state and serves at the pleasure of the Chief.
3. The Chief shall establish the powers and duties of the Manager
of Internal Controls.
(Added to NRS by 2001, 942 )
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.
(Added to NRS by 1995, 397; A 1997, 505; 1999, 2891 )
1. Within 90 days after the end of each fiscal year, the Chief
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 Chief shall provide a copy of the annual report to the:
(a) Committee;
(b) Director;
(c) Interim Finance Committee; and
(d) Legislative Auditor.
(Added to NRS by 1995, 398; A 1997, 505; 1999, 2892 )
1. Except as otherwise provided in subsection 2, upon the request
of the Chief or his 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 Chief or his 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.
(Added to NRS by 1999, 2888 )
1. After each audit is completed, the Chief or his 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 Chief a
written statement of acceptance, explanation or rebuttal concerning the
findings. The Chief shall include the statement of the head of the agency
in the final report.
2. The Chief 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 Chief 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.
(Added to NRS by 1999, 2888 )
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 Chief shall determine whether appropriate corrective actions
are being taken and whether those actions are achieving the desired
result. The Chief shall inform the Committee and the head of the audited
agency of the effect of any corrective actions taken.
(Added to NRS by 1999, 2888 )
1. The Chief 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 him.
2. All working papers from an audit are confidential and may be
destroyed by the Chief 5 years after the report is issued, except that
the Chief:
(a) Shall release such working papers when subpoenaed by a court of
competent jurisdiction;
(b) Shall make such working papers available to the Legislative
Auditor upon his 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.
(Added to NRS by 1999, 2889 )
