Which annual budget amount requires an annual audit under NRS 116?

The requirement for an annual audit under NRS 116 is specifically tied to the budget amounts managed by a community association. According to Nevada Revised Statutes, an annual budget amount that equals or exceeds a certain threshold mandates a formal audit to ensure financial integrity and transparency in the management of the association's funds. That threshold is set at $150,000.

When a community association's budget meets or exceeds this amount, it indicates a significant volume of financial activity that necessitates an audit to provide oversight and protect the interests of the residents and stakeholders. Audits help to detect and prevent fraud, mismanagement, and financial discrepancies. Thus, for budgets at or above the $150,000 mark, an audit is essential to offer assurance that the financial statements reflect the true financial position of the community association and adhere to applicable laws.

The lower amounts listed do not trigger this requirement, meaning budgets of $45,000 and $75,000 fall below the threshold set by NRS 116 and thus do not require an annual audit under the statute. This underscores the importance of understanding the financial regulations that apply to community management in Nevada.