Nev. Admin. Code § 116.457

Current through December 12, 2024

Section 116.457 - Preparation, contents and availability of audited financial statements; qualifications of auditor

1. The audited financial statement of an association must:

(a) Include a full presentation of accrual-basis accounting prepared in accordance with generally accepted accounting principles which includes, at a minimum:

(1) A balance sheet for the operating fund and reserve fund, presenting assets, liabilities and fund balances;

(2) A statement of revenues and expenses for the operating fund and reserve fund which presents information about all assessments, revenues and expenses;

(3) A statement of changes in fund balances which reconciles beginning and ending fund balances with results of operations;

(4) A statement of cash flows;

(5) Any note disclosures as required by the standards followed pursuant to NAC 116.410; and

(6) The following unaudited supplementary information:

(I) Any reserve disclosures as required by the standards followed pursuant to NAC 116.410 and NRS 116.31152; and

(II) An accompanying schedule which compares details of the actual expenses of the association to the budgeted amounts of the association.

(b) Be prepared, completed and adopted not later than 210 days after the end of the fiscal year for the association.

(c) Be made available to the Division not later than 30 days after requested by the Division.

(d) Include on the annual registration form with the Division the following information:

(1) The amount of budgeted revenues;

(2) Whether the financial statements were audited or reviewed and, if so, the date on which the audit or review of the financial statements was completed; and

(3) Whether the audit opinion is qualified or unqualified or whether the review report is modified or unmodified.

2. In addition to the requirements set forth in paragraph (b) of subsection 1, the executive board shall adopt the audited financial statement of an association at a meeting conducted pursuant to NRS 116.31083 not later than 100 days after receiving the initial draft of the audited financial statement.

3. An auditor performing the annual audit for an association must:

(a) Be a certified public accountant licensed pursuant to chapter 628 of NRS.

(b) Be independent of the association as set forth in the standards followed pursuant to NAC 116.410.

Nev. Admin. Code § 116.457

Added to NAC by Comm'n for Common-Interest Communities by R205-05, eff. 9-18-2006; A by Comm'n for Common-Interest Communities & Condo. Hotels by R186-07, 5-5-2011; A by R129-21A, eff. 12/29/2022

NRS 116.31142, 116.31144, 116.615