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Posted on: May 3, 2019

County placed on fiscal watch by state

Nye County has been placed on fiscal watch by the Committee on Local Government Finance. County Commission Chairman John Koenig received the Notice of Fiscal Watch Status on Wednesday, May 1, from Nevada Department of Taxation, which will oversee the watch.

"Under fiscal watch, the Department will ask for increased financial reporting, to include, but not limited to, a monthly bank reconciliation report along with monthly treasurer's reports, proof of submission to the Board of County Commissioners along with approval or acceptance by the Board of County Commissioners," the letter stated. "Additionally, written status reports on how fiscal practices or budgetary conditions have been corrected and/or improved. Provide the written Policies & Procedures that have been put into place to address the internal control issues mentioned in the 2018 audit addressing the treasury financial functions along with the succession planning to prevent a future reoccurrence."

A representative of the County's financial staff and Board of County Commissioners will be asked to appear periodically at meetings of Committee on Local Government Finance to give an update on the status of the financial condition of the County. 

The state's  Committee on Local Government Finance put the county on fiscal watch during its April 23 meeting in Carson City, which was attended by Comptroller Savannah Rucker, Commission Chairman John Koenig, and Treasurer John Prudhont. The County and Treasurer were already having weekly phone meetings with the Department of Taxation to work on the issues addressed in the letter.

CLGF members agreed that the Treasurer's Office has accomplished a great deal towards getting the office on track by completing the Treasurer’s Reports and Bank Reconciliation Reports through December 2018.

"I have overcome many challenges since I was appointed to the office or Nye County Treasurer roughly 3 ½ months ago and will continue to do so," Prudhont said. "I also have a great team of highly qualified Deputy Treasurers in place now, need to replace one vacant position and to add a much needed Deputy Treasurer to our team moving forward. We will continue to work together with the Nevada Department of Taxation (DTAX) to demonstrate that we are consistently, and correctly, accomplishing the many tasks required of this office in a timely fashion. I’m confident that the CLGF will remove the Nye County Treasurer’s Office, results from past mismanagement, from the list of reasons that Nye County was placed back on Fiscal Watch, before the end of 2019."

"The County already submitted a Corrective Action Letter that was approved by the Board of County Commissioners on March 11  to address the state's concerns before being placed back on fiscal watch," Rucker said. "The finance office will continue to work with the Treasurer's Office the become compliant and off fiscal watch."

The state letter emphasized, "It is also important to understand that a fiscal watch does not place the County under state control. It is simply a way to monitor financial conditions so that the County, Department, CLGF, and the Tax Commission may timely address conditions should they worsen over time." 

Notice of fiscal watch with attachment (pdf)