What financial threshold necessitates an audit according to NRS 116?

The financial threshold that triggers the requirement for an audit according to Nevada Revised Statutes (NRS) 116 is indeed set at $150,000. This amount reflects the minimum level of financial activity for a community association that requires independent verification of financial records through an audit.

The significance of this threshold lies in ensuring transparency and accountability in the management of community funds. When community associations reach this level of revenue, it becomes crucial for stakeholders, such as residents and board members, to have a clear and accurate picture of the financial health of the association. Audits serve to reassure members that the management of funds is being conducted properly and in accordance with legal requirements.

Understanding this threshold helps community managers and board members adhere to legal standards, ensuring proper financial oversight and protecting the interests of all community members.