[Update Oct 24, 2024: The Local Government Finance Committee selected a sub-committee to determine whether IVGID will be placed on “fiscal watch”. The sub-committee members are Gina Rackley, Josh Foli, and Jeffrey Share. Video of the Oct 23, 2024 meeting: https://www.youtube.com/watch?v=XV-q5CLazhM  ]

The Nevada Department of Taxation will consider whether the Incline Village General Improvement District should be put under “fiscal watch” over its severe financial problems.

The meeting agenda says the department may choose to place IVGID under “fiscal watch” — or state monitoring. They may also consider “any other actions deemed necessary by the committee, including, without limitation, appointment of a subcommittee to monitor the budget and fiscal activities of IVGID.”

According to state law, a government can be placed on “fiscal watch” if it demonstrates at least one of 27 conditions, such as uncorrected “serious internal control problems”, insolvency, late or nonpayment of obligations, bad investments, unlawful spending, misappropriation and theft, and regulatory noncompliance.

IVGID’s financial problems have been laid bare by a forensic audit report with 16 observations with high risk of fraud plus procurement card fraud, the external auditor issuing a disclaimer rather than an opinion on its financial statements for fiscal year 2023 financials, and its operating checking account being more than $7 million out-of-balance. Also, residents have complained that certain fund transfers that IVGID has made do not comply with state law. And that financial statement fraud has been hidden for years, due to millions of dollars being capitalized improperly as expenses.

IVGID’s interim Director of Finance Susan Griffith and interim General Manager Karen Crocker have been asked to attend the Taxation meeting.

The committee meeting starts at 9 a.m. on Wednesday, October 23, 2024 at the Department of Taxation’s Reno office. It will also be videoconferenced to the department’s Las Vegas office and over Zoom. [Zoom: https://us02web.zoom.us/j/85842740770].

Item 3-c: Incline Village General Improvement District (IVGID)

·      Report from IVGID regarding the management plan to address recent forensic audit findings.

·      Report regarding the status of the anticipated timely filing of the upcoming 2023/2024 audit to the Department of Taxation.

·      Report regarding bank reconciliations for May, June, and July of 2024.

·      Discussion regarding potential over-expenditures

·      Department’s possible recommendation to place IVGID on Fiscal Watch pursuant to NRS.

[UPDATE 10/24/2024:  The CLGF sent Karen Crocker a certified letter on October 8, 2024 asking the District provide written materials responding to the agenda items specified therein no later than 5 working days before the October 23, 2024 meeting. However, the District did not provide any materials. ]

The full agenda and supporting materials are posted at https://tax.nv.gov/.