Assembly Bill No. 216–Committee on
Government Affairs

 

(On Behalf of the Department of Administration,
Division of Internal Audits)

 

February 28, 2003

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Revises manner in which certain claims against state are audited. (BDR 31‑491)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to state financial administration; revising the manner in which certain claims against this state are audited; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. NRS 353.055 is hereby amended to read as follows:

1-2  353.055  1.  [As often as it may be deemed proper, the State

1-3  Board of Examiners shall examine the books of the State Controller

1-4  and the State Treasurer, and the accounts and vouchers in their

1-5  offices.

1-6  2.] For the purpose of discharging the duties imposed on the

1-7  State Board of Examiners by law, the State Board of Examiners is

1-8  authorized to demand information, and the State Controller and the

1-9  State Treasurer are required to furnish to the Board without delay

1-10  such information as the Board may demand, touching the books,

1-11  papers, vouchers or matters pertaining to or cognizable in their

1-12  respective offices.

1-13      [3.] 2. The State Controller and the State Treasurer shall permit

1-14  the State Board of Examiners to examine the books and papers of

2-1  their respective offices whenever the Board may wish to make an

2-2  examination, without delaying the examination on any pretense

2-3  whatever.

2-4  Sec. 2.  NRS 353.090 is hereby amended to read as follows:

2-5  353.090  1.  Except for claims against the Legislative Fund or

2-6  for the payment of the salaries of public officers, every claim for

2-7  payment from the State Treasury pursuant to an appropriation or

2-8  authorization by the Legislature must be presented to the State

2-9  Board of Examiners for a determination of its correctness. The State

2-10  Board of Examiners [may] shall adopt regulations providing for the

2-11  use of sampling procedures and postaudit techniques for making

2-12  such a determination.

2-13      2.  Any money which:

2-14      (a) Is allocated to this state pursuant to a federal program in the

2-15  form of a letter of credit or its equivalent;

2-16      (b) Is authorized for expenditure by the Legislature;

2-17      (c) Has not been deposited in the State Treasury; and

2-18      (d) Is immediately available to this state through an automated

2-19  federal payment management system,

2-20  shall be deemed to be available for a claim for payment from the

2-21  State Treasury.

2-22      3.  The State Controller shall not allow or draw his warrant for:

2-23      (a) Any claim of the class described in this section which has

2-24  not been approved by the State Board of Examiners; or

2-25      (b) A greater amount than allowed by the Board,

2-26  except when the claim has not been acted upon by the Board within

2-27  30 days after its presentation to the Board.

2-28      Sec. 3.  NRS 353.190 is hereby amended to read as follows:

2-29      353.190  1.  In addition to his other duties, the Chief is ex

2-30  officio Clerk of the State Board of Examiners. Except as otherwise

2-31  provided in subsection 4 of NRS 41.036, the Chief shall:

2-32      (a) Assist the State Board of Examiners in the examination[,

2-33  classification and preparation for audit] and classification of all the

2-34  claims required to be presented to the Board[.] pursuant to

2-35  NRS 353.090.

2-36      (b) Conduct [an effective check and preaudit of all those claims

2-37  before they are submitted] a postaudit of claims that have been

2-38  presented to the Board[.] in the manner prescribed in the

2-39  regulations adopted pursuant to NRS 353.090.

2-40      (c) Approve, on behalf of and when authorized by the Board,

2-41  claims against the State not required to be passed upon by the

2-42  Legislature.

2-43      (d) Each calendar quarter, provide to the Board a report of his

2-44  determinations regarding any claims, refunds or other payments the

2-45  Board has authorized him to approve on its behalf.

3-1  2.  The rules of procedure governing the duties of the Chief

3-2  pursuant to this section must be adopted by the State Board of

3-3  Examiners.

3-4  3.  The Chief may delegate these duties to his Deputy.

3-5  Sec. 4.  NRS 353A.045 is hereby amended to read as follows:

3-6  353A.045  The Chief shall:

3-7  1.  Report to the Director.

3-8  2.  Develop long-term and annual work plans to be based on the

3-9  results of periodic documented risk assessments. The annual work

3-10  plan must list the agencies to which the Division will provide

3-11  training and assistance and be submitted to the Director for

3-12  approval. Such agencies must not include:

3-13      (a) A board created by the provisions of chapters 623 to 625A,

3-14  inclusive, 628, 630 to 640A, inclusive, 641 to 644, inclusive, 654

3-15  and 656 of NRS.

3-16      (b) The University and Community College System of Nevada.

3-17      (c) The Public Employees’ Retirement System.

3-18      (d) The Housing Division of the Department of Business and

3-19  Industry.

3-20      (e) The Colorado River Commission of Nevada.

3-21      3.  Provide a copy of the approved annual work plan to the

3-22  Legislative Auditor.

3-23      4.  In consultation with the Director, prepare a plan for auditing

3-24  executive branch agencies for each fiscal year and present the plan

3-25  to the Committee for its review and approval. Each plan for auditing

3-26  must:

3-27      (a) State the agencies which will be audited, the proposed scope

3-28  and assignment of those audits and the related resources which will

3-29  be used for those audits; and

3-30      (b) Ensure that the internal accounting, administrative controls

3-31  and financial management of each agency are reviewed periodically.

3-32      5.  Perform the audits of the programs and activities of the

3-33  agencies in accordance with the plan approved pursuant to

3-34  subsection 5 of NRS 353A.038 and prepare audit reports of his

3-35  findings.

3-36      6.  Review each agency that is audited pursuant to subsection 5

3-37  and advise those agencies concerning internal accounting,

3-38  administrative controls and financial management.

3-39      7.  Submit to each agency that is audited pursuant to subsection

3-40  5 analyses, appraisals and recommendations concerning:

3-41      (a) The adequacy of the internal accounting and administrative

3-42  controls of the agency; and

3-43      (b) The efficiency and effectiveness of the management of the

3-44  agency.

4-1  8.  Report any possible abuses, illegal actions, errors, omissions

4-2  and conflicts of interest of which the Division becomes aware

4-3  during the performance of an audit.

4-4  9.  Adopt the standards of the Institute of Internal Auditors for

4-5  conducting and reporting on internal audits.

4-6  10.  Consult with the Legislative Auditor concerning the plan

4-7  for auditing and the scope of audits to avoid duplication of effort

4-8  and undue disruption of the functions of agencies that are audited

4-9  pursuant to subsection 5.

4-10      11.  Appoint a Manager of Internal Controls.

4-11      Sec. 5.  NRS 41.010 is hereby amended to read as follows:

4-12      41.010  An officer or person who has presented a claim against

4-13  the State:

4-14      1.  For services or advances authorized by law, and for which

4-15  an appropriation has been made, but of which the amount has not

4-16  been fixed by law; or

4-17      2.  For refund of an overpayment,

4-18  which claim the State Board of Examiners or the State Controller

4-19  has refused to [audit and] allow, in whole or in part, may commence

4-20  an action in any court having jurisdiction of the amount, for the

4-21  recovery of such portion of the claim as [shall have] has been

4-22  rejected. In such action , the State of Nevada [shall] must be named

4-23  as defendant, and the summons [shall] must be served upon the

4-24  State Controller, and the action [shall] must proceed as other civil

4-25  actions to final judgment.

4-26      Sec. 6.  NRS 242.211 is hereby amended to read as follows:

4-27      242.211  1.  The Fund for Information Services is hereby

4-28  created as an internal service fund. Money from the Fund must be

4-29  paid out on claims as other claims against the State are paid. The

4-30  claims must be made in accordance with budget allotments and are

4-31  subject to [preaudit] postaudit examination and approval.

4-32      2.  All operating, maintenance, rental, repair and replacement

4-33  costs of equipment and all salaries of personnel assigned to the

4-34  Department must be paid from the Fund.

4-35      3.  Each agency using the services of the Department shall pay

4-36  a fee for that use to the Fund, which must be set by the Director in

4-37  an amount sufficient to reimburse the Department for the entire cost

4-38  of providing those services, including overhead. Each using agency

4-39  shall budget for those services. All fees, proceeds from the sale of

4-40  equipment and any other money received by the Department must

4-41  be deposited with the State Treasurer for credit to the [appropriate]

4-42  Fund.

 

 

 

5-1  Sec. 7.  NRS 242.221 is hereby amended to read as follows:

5-2  242.221  1.  All claims made pursuant to NRS 242.122 to

5-3  242.241, inclusive, must, when approved by the Department, be

5-4  [audited and] paid as other claims against the State are paid.

5-5  2.  If the State Controller finds that current claims against the

5-6  Fund for Information Services exceed the amount available in the

5-7  Fund to pay the claims, he may advance temporarily from the State

5-8  General Fund to the [appropriate] Fund the amount required to pay

5-9  the claims, but no more than 25 percent of the revenue expected to

5-10  be received in the current fiscal year from any source authorized for

5-11  the Fund. No amount may be transferred unless requested by the

5-12  Chief of the Budget Division of the Department of Administration.

5-13      Sec. 8.  NRS 331.103 is hereby amended to read as follows:

5-14      331.103  1.  The Department of Administration’s

5-15  Communications Fund is hereby created as an internal service fund.

5-16  The Fund is a continuing fund and its money may not revert to the

5-17  State General Fund at any time.

5-18      2.  Claims against the Fund which are approved by the Chief

5-19  must be paid as other claims against the State are paid.

5-20      3.  Claims must be made in accordance with budget and

5-21  quarterly work allotments and subject to [preaudit] postaudit

5-22  examination and approval.

5-23      Sec. 9.  NRS 333.450 is hereby amended to read as follows:

5-24      333.450  1.  All claims for supplies, materials, equipment and

5-25  services purchased pursuant to the provisions of this chapter must,

5-26  when approved by the Chief, be [audited and] paid in the same

5-27  manner as other claims against the State are required to be [audited

5-28  and] paid.

5-29      2.  The Chief shall annually assess each using agency a fee for

5-30  the procurement and inventory services provided by the Purchasing

5-31  Division to the using agency. The fee must be based on the using

5-32  agency’s use of the procurement and inventory services of the

5-33  Purchasing Division during preceding years. The Chief shall adjust

5-34  the formula for calculating the fee each biennium.

5-35      3.  If an agency is not a using agency, the Chief shall assess a

5-36  fee of not more than the cost to the Division to process the order for

5-37  the agency.

5-38      4.  The Chief may adopt regulations to carry out the provisions

5-39  of this section.

5-40      Sec. 10.  NRS 336.110 is hereby amended to read as follows:

5-41      336.110  1.  The Motor Pool Fund is hereby created as an

5-42  internal service fund. No money in the Fund may revert to the State

5-43  General Fund at any time. Money from the Motor Pool Fund must

5-44  be paid out on claims as other claims against the State are paid. The

5-45  claims must be made in accordance with budget and quarterly work

6-1  allotments and subject to [preaudit] postaudit examination and

6-2  approval.

6-3  2.  All operating, maintenance and repair costs for vehicles

6-4  assigned to the State Motor Pool must be paid from the Motor Pool

6-5  Fund and the accounting for depreciation must be accomplished in

6-6  that Fund.

6-7  3.  All agencies using vehicles of the State Motor Pool shall pay

6-8  a fee for the use and a proportionate share of operational costs in an

6-9  amount determined by the Executive Officer. The formula for

6-10  spreading costs of operation may be adjusted from time to time as

6-11  may be necessary to replace worn vehicles, pay vehicle costs and

6-12  defray the costs of Motor Pool operation.

6-13      4.  All fees, including amounts on account of depreciation

6-14  accrued, costs and other money received by the State Motor Pool,

6-15  including all proceeds from the sale of vehicles, must be deposited

6-16  with the State Treasurer for credit to the Fund.

6-17      Sec. 11.  NRS 422.240 is hereby amended to read as follows:

6-18      422.240  1.  Money to carry out the provisions of NRS

6-19  422.001 to 422.410, inclusive, and 422.580, including, without

6-20  limitation, any federal money allotted to the State of Nevada

6-21  pursuant to the program to provide Temporary Assistance for Needy

6-22  Families and the Program for Child Care and Development, must be

6-23  provided by appropriation by the Legislature from the State General

6-24  Fund.

6-25      2.  Disbursements for the purposes of NRS 422.001 to 422.410,

6-26  inclusive, and 422.580 must be made upon claims duly filed[,

6-27  audited] and allowed in the same manner as other money in the

6-28  State Treasury is disbursed.

6-29      Sec. 12.  NRS 432.080 is hereby amended to read as follows:

6-30      432.080  All administrative expenses incurred by the Division

6-31  in carrying out the provisions of NRS 432.010 to 432.085, inclusive,

6-32  must be paid out of money which may be appropriated by the

6-33  Legislature from the State General Fund and out of such other

6-34  money as may be made available to the Division for the payment of

6-35  administrative expenses. Disbursements must be made upon claims

6-36  filed[, audited] and allowed in the same manner as other money in

6-37  the State Treasury is disbursed. All claims must be approved by the

6-38  Administrator before they are paid.

6-39      Sec. 13.  NRS 463.330 is hereby amended to read as follows:

6-40      463.330  1.  Costs of administration of this chapter incurred

6-41  by the Commission and the Gaming Control Board must be paid

6-42  from the State General Fund on claims presented by the

6-43  Commission and the Board, respectively, and approved and paid as

6-44  other claims against the State are paid. The Commission and the

6-45  Board shall comply with the provisions of the State Budget Act in

7-1  order that legislative authorization for budgeted expenditures may

7-2  be provided.

7-3  2.  In order to facilitate the confidential investigation of

7-4  violations of this chapter and the regulations adopted by the

7-5  Commission pursuant to this chapter, there is hereby created the

7-6  State Gaming Control Board Revolving Account. Upon the written

7-7  request of the Chairman of the Board, the State Controller shall

7-8  draw his warrant in favor of the Chairman in the amount of $10,000,

7-9  and upon presentation of the warrant to the State Treasurer, he shall

7-10  pay it. When the warrant is paid, the Chairman shall deposit the

7-11  $10,000 in a bank or credit union of reputable standing which shall

7-12  secure the deposit with a depository bond satisfactory to the State

7-13  Board of Examiners.

7-14      3.  The Chairman of the Board may use the Revolving Account

7-15  to pay the reasonable expenses of agents and employees of the

7-16  Board engaged in confidential investigations concerning the

7-17  enforcement of this chapter, including the prepayment of expenses

7-18  where necessary, whether such expenses are incurred for

7-19  investigation of known or suspected violations. In allowing such

7-20  expenses , the Chairman is not limited or bound by the provisions of

7-21  NRS 281.160.

7-22      4.  After the expenditure of money from the Revolving

7-23  Account, the Chairman of the Board shall present a claim to the

7-24  State Board of Examiners for the amount of the expenditure to be

7-25  replaced in the Revolving Account. The claim must be [audited,]

7-26  allowed and paid as are other claims against the State, but the claim

7-27  must not detail the investigation made as to the agent or employee

7-28  making the investigation or the person or persons investigated. If

7-29  the State Board of Examiners is not satisfied with the claim, the

7-30  members thereof may orally examine the Chairman concerning the

7-31  claim.

7-32      5.  Expenditures from the Revolving Account may not exceed

7-33  the amount authorized by the Legislature in any fiscal year.

7-34      Sec. 14.  NRS 703.168 is hereby amended to read as follows:

7-35      703.168  The Commission may, in carrying out its duties:

7-36      1.  Cooperate with the Federal Government, its departments and

7-37  agencies.

7-38      2.  Confer with the regulatory agencies of other states on

7-39  matters of mutual concern and benefit to persons served by the

7-40  public utilities and alternative sellers of this state.

7-41      3.  Use the services, records, facilities and cooperation of

7-42  federal and state regulatory agencies, and hold joint hearings and

7-43  participate in joint conferences to reach decisions in matters which

7-44  require cooperation. All necessary expenses incurred in attending

7-45  hearings and conferences outside this state are a charge against the

8-1  State, and must be [audited and] paid as other claims against this

8-2  state are paid. The claims must be sworn to by the commissioner

8-3  who incurred the expense and approved by the chairman.

8-4  Sec. 15.  NRS 706.1717 is hereby amended to read as follows:

8-5  706.1717  The Authority may, in carrying out its duties:

8-6  1.  Cooperate with the Federal Government and its departments

8-7  and agencies.

8-8  2.  Confer with the regulatory agencies of other states on

8-9  matters of mutual concern and benefit to persons served by motor

8-10  carriers of this state.

8-11      3.  Use the services, records, facilities and cooperation of

8-12  federal and state regulatory agencies, and hold joint hearings and

8-13  participate in joint conferences to reach decisions in matters that

8-14  require cooperation. All necessary expenses incurred in attending

8-15  hearings and conferences outside this state are a charge against the

8-16  State and must be [audited and] paid as other claims against the

8-17  State are paid.

8-18      Sec. 16.  NRS 225.130 is hereby repealed.

8-19      Sec. 17.  This act becomes effective upon passage and

8-20  approval.

 

8-21  TEXT OF REPEALED SECTION

 

8-22      225.130  Board of Examiners to audit expenditures.  All

8-23   expenditures made by or under the direction of the Secretary of

8-24   State shall be audited by the State Board of Examiners, and no

8-25   warrant shall be issued by the State Controller for payment of such

8-26   expenditures unless the same shall have been approved and allowed

8-27   by the State Board of Examiners.

 

8-28  H