NAC706.401982. Accounts for operating expense.

     1. The account for drivers’ supervision salaries must include the salaries paid to persons employed in supervising drivers of limousines. If only a portion of an employee’s time is spent supervising, the appropriate percentage of his or her salary must be charged to the account for drivers’ supervision salaries.

     2. The account for drivers’ wages and commissions must include all wages and commissions, other than vacation pay, that are paid to drivers.

     3. The account for vacation pay must include all vacation pay paid to supervisors and drivers.

     4. The account for payroll taxes must include all payroll taxes of supervisors and drivers, including, without limitation, payments made pursuant to the Federal Insurance Contributions Act and the Federal Unemployment Tax Act, unemployment compensation paid pursuant to chapter 612 of NRS and costs of workers’ compensation insurance.

     5. The account for payroll benefits must include the costs incurred by the company for welfare and pension benefits of its supervisors and drivers.

     6. The account for limousine expenses must contain the following subaccounts:

     (a) An account for fuel, which must include the cost of fuel used by limousines only. Accurate supporting records of the costs of the fuel and gallons used must be maintained and summarized on a monthly basis.

     (b) An account for oil, which must include the cost of oil used by limousines only. Accurate supporting records of the costs of the oil and quarts used must be maintained on a monthly basis.

     (c) An account for tires, which must include the cost of replacement tires.

     (d) An account for repairs and maintenance, which must include the cost of outside labor, materials and any other expenses incurred in the repair and maintenance of limousines and integral equipment, other than tires, radios and telephonic equipment, attached to limousines, including, without limitation, batteries and accessories. The account must be charged for all limousine repairs and replacement parts purchased by a company for use in making repairs to limousines and integral equipment attached to limousines, but must not include items included in the account for tires described in paragraph (c), and the account for repairs and maintenance of dispatch equipment described in subsection 9 of NAC 706.401983.

     (e) For insurance recoveries:

          (1) Except as otherwise provided in this paragraph, an account for credits for insurance recoveries, which must be credited with all insurance recoveries from losses or damages sustained by limousines regardless of whether the recovery is from insurance companies or other persons. The account must be maintained with sufficient detail and description to allow ready identification, analysis and verification of all facts relevant to each entry.

          (2) If a company obtains any services contemplated in an account for credits for insurance recoveries through a contract that provides for the payment of a fixed amount, the company must use an account for contract services in lieu of the account for credits for insurance recoveries. The account for credits for insurance recoveries must be maintained in such a manner as to allow ready identification, analysis and verification of all facts relevant to each class of expense as stated in the various accounts described in this subsection, and appropriately titled subaccounts may be used for this purpose.

     7. Depreciation expenses must be accounted for in the limousine account and include the amount of depreciation applicable to limousines.

     8. The account for injuries and damages must include:

     (a) All costs, other than insurance premiums, incurred by the company, or by agents of the insurance company if payable by the company under the terms of its insurance coverage, for the investigation of accidents or claims or the adjustment of claims arising from the operation of limousines; and

     (b) All costs incurred by the company in its defense of any legal action arising from the operation of limousines and all costs of settlement if payable by the company under the terms of its insurance coverage.

     9. The account for insurance for limousines must include expenses for insurance premiums and write-offs of premiums for the reporting period applicable specifically to the operation of limousines, including, without limitation, coverage for driver’s liability, property damage and bodily injury of passengers. Prepaid insurance premiums must be charged to the account for prepaid expenses described in NAC 706.401952.

     10. The account for licenses and taxes must include all fees for licenses and taxes, including, without limitation, registration fees, fees for license plates for motor carriers, franchise taxes, toll taxes, county airport fees and any other tax expenses, that are applicable specifically to the operation of limousines. Appropriate subaccounts must be maintained for each class of license or tax expense.

     11. The account for miscellaneous expenses pertaining to limousines must include any costs incurred by the company which are applicable to the actual operation of limousines and which are not otherwise provided for in any other account relating to that operation. The account must be maintained in such a manner as to allow ready identification, analysis and verification of all facts relative to each class of items, and appropriately titled subaccounts may be used for this purpose.

     12. The account for transferred internal costs must include the internal costs transferred from the various other functional divisions to operating expense. Costs transferred to the account for transferred internal costs must be actual costs, or on a percentage basis if the percentage is arrived at through periodic special studies. The use of arbitrary percentages or amounts transferred to the account is prohibited.

     13. The account for gain or loss on disposal of automotive equipment must:

     (a) Include the gain or loss on the disposition of limousines of the company.

     (b) Be charged with the book cost of the limousine plus any expense of disposition.

     (c) Be credited with the related accumulated provision for depreciation recorded to the date of disposition and with the proceeds received on disposition.

     (d) Be maintained with such detail and descriptions as to allow ready identification of each limousine disposed of and verification of all facts relative to each transaction.

     (Added to NAC by Transportation Serv. Auth. by R040-02, eff. 9-20-2002)