Nev. Admin. Code § 669A.240 - Procedures for conduct of examination

Current through October 13, 2021

The Division will, and a qualified firm shall, perform the examination in accordance with the examination procedures as follows:

1. If applicable, review the results of the most recent examination and confirm with the management of the licensed family trust company that all corrective action has been completed.
2. Confirm the submission of the required financial information to the Division, including any supplementary information requested by the Division.
3. Review the licensed family trust company's compliance with the provisions of this chapter and chapter 669A of NRS.
4. Review the board and the committee structure of the licensed family trust company for compliance with the governing instruments of the licensed family trust company.
5. Review the minutes of the board and any committees and determine whether the minutes are retained permanently at the licensed family trust company office in physical or electronic form and in compliance with the governing instruments of the licensed family trust company.
6. If the licensed family trust company has elected to undergo an independent review pursuant to section 24 of this regulation, determine whether previous matters in the management letter for external financial audits of the financial statements of the licensed family trust company have been resolved, are being addressed by the management of the licensed family trust company in a response to the external auditor or do not require response or action.
7. If the licensed family trust company does not submit audited financial statements to the Division as part of its examination:
(a) Ensure that the licensed family trust company provides an annual report, if required pursuant to NRS NRS 669A.255, as amended by section 14 of Senate Bill No. 384, chapter 256, Statutes of Nevada 2015, at page 1213;
(b) Make not more than five selections from licensed family trust company accounts and client accounts and test transactions in the accounts to determine whether the transactions are properly authorized and properly recorded;
(c) Confirm through documentation and review that procedures have been established to address periodic and timely reconciliations of general ledger accounts and subsidiary ledgers of the licensed family trust company, as appropriate; and
(d) Test through documentation and review that:
(1) Controls are in place over suspense accounts;
(2) The accounts are periodically reconciled;
(3) The accounts reflect appropriate items; and
(4) The accounts are promptly cleared.

Notes

Nev. Admin. Code § 669A.240
Added to NAC by Comm'r of Financial Institutions by R051-16, eff. 1-1-2017

NRS 669A.270

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