Allocating The Cost Amongst Multiple Funds/Sub-Funds, Whether or Not The Allocation is Justified: The Recreation¹ (“RFF”) and Beach² (“BFF”) Facility Fees, and the water/sewer utility rates local parcel owners involuntarily pay³. But annual audits of all local governments’ financial statements is mandated by the NRS⁴. This means IVGID is obligated to conduct annual audits regardless of what functions it exercises, or fails to exercise. Therefore, we believe an audit is an expense which should be 100% assigned to the District’s General Fund⁵.

But notwithstanding an audit is neither a necessary nor mandated service required insofar as the facilities or services assigned to the District’s Community Services (i.e., recreation) Fund⁶ are concerned. Nor its Beach Fund⁷. Nor its Utility Fund⁸. So why does staff allocate portions of its audit costs to these three enterprise funds? Where they’re paid by the RFF, BFF, and the water/sewer fees local parcel owners involuntarily pay/guaranty⁹.

1. See ¶2.1 of Recreation Roll Policy 16.1.1 which states that “the Recreation (Facility) Fee is the annual Recreation Standby and Service Charge assessed by the District on all real property within the District.”
2. See ¶2.2 of Recreation Roll Policy 16.1.1 which states that “the Beach (Facility) Fee is the annual Recreation Standby and Service Charge assessed by the District on all identified real property that was within the District on June 1, 1968.”
3. Local parcel owners are responsible for payment of water [see ¶9.06 of Water Ordinance No. 4 which states “all (water) charges, fees and amounts due and payable shall be billed to the owner of the premises, whether or not the owner is also the occupant”] and sewer [see ¶14.05 of Sewer Ordinance No. 2 which states “all (sewer) charges, fees and amounts due and payable shall be billed to the owner of the premises, whether or not the owner is also the occupant”] services delivered to their parcel whether or not they occupy the parcel nor use the services.
4. See NRS 354.624(1).
5. After all, expenses assigned to “the (District’s) General Fund cover…(its) overall Management and Administration” expenses [see page 563 of the packet of materials prepared by staff in anticipation of the Board’s May 25, 2023 meeting (“the 5/25/2023 Board packet”)].
6. Expenses assigned to the District’s Community Services Fund cover its overall public recreation but for the beaches facilities and services expenses.
7. Expenses assigned to the District’s Beach Fund cover its overall Incline, Burnt Cedar, Ski and Hermit Beach facilities and services expenses [see pages 639-641 of the packet of materials prepared by staff in anticipation of the Board’s May 25, 2023 meeting (“the 5/25/2023 Board packet”)].
8. Expenses assigned to the District’s “Public Works Department (i.e., Utilities Fund cover)…water and sewer services to Incline Village and Crystal Bay, Engineering Services for all District Capital and Maintenance Projects, Compliance Activities, Fleet Maintenance for Public Works, Community Services and Administration and management of the Solid Waste Franchise” with Waste Management (see page 570 of the 5/25/2023 Board packet).
9. Given staff intentionally budget more expenses they assign to the District’s Community Services Fund than the operational revenues they’re able to generate; and, staff plug that deficiency with the RFF; in essence the allocated portion of audit expenses assigned to the Community Services Fund is being paid by the RFF. And given staff intentionally budget more expenses they assign to the District’s Beach Fund than the operational revenues they’re able to generate; and, staff plug that deficiency with the BFF; in essence the allocated portion of the audit expense assigned to the Beach Fund is being paid by the BFF. And given staff create water and sewer utility rates, tolls and charges based upon the expenses they assign to the Utility Fund, in essence the allocated portion of the audit expense assigned to the Utilities Fund is being paid by the water, sewer and solid waste disposal rates, tolls and charges local parcel owners are involuntarily assessed.