NAC116.457. 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 Guide; and

          (6) The following unaudited supplementary information:

               (I) Any reserve disclosures as required by the Guide 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 and completed 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. 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 Guide.

     (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)

Notation

REVISER’S NOTE.

      The regulation of the Commission for Common-Interest Communities (now the Commission for Common-Interest Communities and Condominium Hotels) filed with the Secretary of State on September 18, 2006 (LCB File No. R205-05), the source of this section, contains the following provisions not included in NAC:

      “1.  If an association has not previously caused the financial statements of the association to be audited on an annual basis, the association must cause the financial statements of the association to be audited pursuant to NRS 116.31144 for the first fiscal year that begins on or after July 1, 2006.

      2.  If an association which is required to cause the financial statements of the association to be audited at least once every 4 years pursuant to NRS 116.31144 has caused the financial statements of the association to be audited for the fiscal year immediately preceding the first fiscal year that begins on or after July 1, 2006, the association is not required to cause the financial statements of the association to be audited for another 4 years.”