ResourcesNevada NRS 116Ombudsman Audit Checklist

Nevada HOA Ombudsman Records Audit Checklist

An operational compliance checklist under NRS Chapter 116 for volunteer boards. Covers NRED registration, records retention, owner inspection rights, meeting notice requirements, and financial audit tiers — so your association is audit-ready on any given day.

Nevada · NRS 116·6 sections · 5 min read·Updated June 2026
Important Disclaimer

This checklist is informational only and does not constitute legal advice. NRS Chapter 116, NAC Chapter 116, and NRED regulations are updated regularly — information here reflects our understanding as of June 2026. Consult qualified Nevada HOA counsel before making compliance decisions or responding to an NRED investigation.

In Nevada, the Nevada Real Estate Division (NRED) and the Office of the Ombudsman for Owners in Common-Interest Communities actively enforce compliance. A homeowner complaint filed via an Intervention Affidavit (Form 530) frequently triggers a formal NRED investigation or records audit.

An NRED investigation starts the moment a homeowner files Form 530. By then, your records either pass or they don't. Under NRS 116.31175, failing to maintain required records, denying owner inspection requests, or violating notice timelines can result in a $25 per day fine for withholding financial records and personal liability for board members.

Section 01NRED Registration & Board Certification Files

State auditors will first verify that the association is properly registered and that officers are legally certified.

Annual Association Registration (NRED Form 562)

Verify that the association has filed its annual registration with NRED and paid the annual Ombudsman fee (currently $4.25 per unit).

Registration Filing Addendum (NRED Form 623)

If any board members or contact details changed between annual registrations, verify that Form 623 was filed with NRED within 30 days of the change.

Board Member Declarations of Certification (NRED Form 602)

Every board member must sign Form 602 within 90 days of election or appointment, certifying they have read and understand the governing documents and NRS 116.

Audit Rule

Do not mail Form 602 to NRED. These must be kept in the association's official files for 10 years and produced only upon request.

Current Board & Management Roster

A listing of all current board members, officers, and the community manager with active license details.

Section 02Statutory Records Retention Schedule

Nevada law dictates exactly how long different association files must be preserved. Auditors will verify that records are not prematurely destroyed.

Meeting minutes retained indefinitely (board & homeowner)
10yrs
Financials, contracts, correspondence, Form 602
30days
Meeting audio must remain available to owners
Record TypeRetentionBasis
Meeting minutes — homeowner & board (including executive session)IndefinitelyNRS 116.3108, 116.31083
Financial statements, general ledgers, bank reconciliations10 years minimumNRS 116.31175
All contracts to which the association is a party10 years from expirationNRS 116.31175
Board certifications (Form 602)10 years from date of signatureNRS 116.31175
General correspondence & email logs — association business10 years minimumNRS 116.31175
Violation logs, ARC applications, dispute files10 years minimumNRS 116.31175
Audio recordings of open board meetingsAvailable within 30 days of meetingNRS 116.31083 (availability window)

Section 03Records Request & Owner Inspection Compliance

NRED auditors will review the association's response log to verify that homeowner document requests are handled in compliance with state timelines and fee caps under NRS 116.31175.

The 21-Day Financial Delivery Deadline

Financial statements, budgets, and reserve studies must be provided to a requesting owner within 21 days of receiving a written request.

Penalty: Failure to deliver within 21 days can result in a state penalty of $25 per day payable to the owner.

Electronic Document Delivery

If requested documents are available electronically, the association must provide them in an electronic format at no charge to the owner.

Physical Copy Fee Caps

If physical copies are required, the association cannot charge more than:

  • $0.25 per page for the first 10 pages
  • $0.10 per page for any pages thereafter
On-Site Review Fee Cap

If an owner requests to inspect records physically, the association may charge a maximum fee of $10 per hour to cover administrative oversight.

Statutory Document Redaction Rules

Verify that the records custodian has redacted protected information before inspection:

Redact: Private financial ledgers of other owners, individual architectural plans (unless consented), and personnel records (except employee hours, salaries, and benefits).

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Section 04Open Board Meetings & Notices

Auditors will verify that board meetings are announced properly and that homeowners have the opportunity to participate under NRS 116.31083.

The 12-Day General Board Meeting Notice

Notice of general board meetings (including a detailed agenda) must be given to all owners at least 12 days in advance by mail, email, or hand-delivery.

Agendas & Conspicuous Posting

A copy of the agenda must be posted in a designated, conspicuous common area in the community at least 12 days before the meeting.

The Homeowner Right-to-Speak Forum

Verify that meeting agendas include a designated period for homeowner comments — one at the beginning of the meeting on agenda items, and one at the end for general items.

30-Day Minutes Availability

Draft summaries or approved minutes of open board meetings must be made available to owners within 30 days after the meeting.

Section 05Financial Audits & Reserve Studies

Nevada law requires periodic reserve studies and CPA-led financial reviews or audits based on the association's annual budget size under NRS 116.31144 and NRS 116.31152.

Reserve Study 5-Year Cycle

Verify that the association has commissioned and recorded a professional Reserve Study at least once every 5 years, with the executive board conducting an annual review of the reserve funding plan.

Annual BudgetRequirementNotes
Under $45,000No audit or review requiredUnless requested by board or majority of owners
$45,000 – $74,999CPA review — once per reserve study cycleRequired in the year immediately preceding the reserve study
$75,000 – $149,999CPA review — every fiscal yearIndependent CPA; no full audit required unless owner-petitioned
$150,000 or moreCPA audit — every fiscal yearFull audit required; 15% petition rule does not apply

Section 06Collections Timelines & Fee Caps

If your HOA pursues delinquent assessments, auditors will verify that late fees, certified notices, and collection fees do not exceed state statutory limits under NAC 116.470.

Late Fees & Interest Caps

Verify that late fees do not exceed $20 or 10 percent of the delinquent amount (whichever is greater), and interest is capped at the rate defined in your governing documents.

Notice of Intent to Lien (NIL) — 30-Day Window

Before a lien can be recorded, the owner must be sent a detailed warning notice via certified mail and first-class mail, giving them at least 30 days to cure or request a payment plan.

NAC 116.470 Collection Fee Caps

If the association charges owners for collection costs, verify that those fees do not exceed the statutory limits defined by the Real Estate Commission for intent letters, default recordings, and foreclosure preparation. Verify against the current NAC 116.470 schedule before billing any collection fees to an owner.

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Not legal advice. Reviewed for accuracy June 2026. NRS Chapter 116 and NAC Chapter 116 are updated regularly — verify all requirements against current Nevada statutes and NRED guidance before making compliance decisions.