NRS354.626. Unlawful expenditure of money in excess of amount appropriated; penalties; exceptions.

      1.  No governing body or member thereof, officer, office, department or agency may, during any fiscal year, expend or contract to expend any money or incur any liability, or enter into any contract which by its terms involves the expenditure of money, in excess of the amounts appropriated for that function, other than bond repayments, medium-term obligation repayments and any other long-term contract expressly authorized by law. Any officer or employee of a local government who willfully violates NRS 354.470 to 354.626, inclusive, is guilty of a misdemeanor and upon conviction thereof ceases to hold his or her office or employment. Prosecution for any violation of this section may be conducted by the Attorney General or, in the case of incorporated cities, school districts or special districts, by the district attorney.

      2.  Without limiting the generality of the exceptions contained in subsection 1, the provisions of this section specifically do not apply to:

      (a) Purchase of coverage and professional services directly related to a program of insurance which require an audit at the end of the term thereof.

      (b) Long-term cooperative agreements as authorized by chapter 277 of NRS.

      (c) Long-term contracts in connection with planning and zoning as authorized by NRS 278.010 to 278.630, inclusive.

      (d) Long-term contracts for the purchase of utility service such as, but not limited to, heat, light, sewerage, power, water and telephone service.

      (e) Contracts between a local government and an employee covering professional services to be performed within 24 months following the date of such contract or contracts entered into between local government employers and employee organizations.

      (f) Contracts between a local government and any person for the construction or completion of public works, money for which has been or will be provided by the proceeds of a sale of bonds, medium-term obligations or an installment-purchase agreement and that are entered into by the local government after:

             (1) Any election required for the approval of the bonds or installment-purchase agreement has been held;

             (2) Any approvals by any other governmental entity required to be obtained before the bonds, medium-term obligations or installment-purchase agreement can be issued have been obtained; and

             (3) The ordinance or resolution that specifies each of the terms of the bonds, medium-term obligations or installment-purchase agreement, except those terms that are set forth in subsection 2 of NRS 350.165, has been adopted.

Ê Neither the fund balance of a governmental fund nor the equity balance in any proprietary fund may be used unless appropriated in a manner provided by law.

      (g) Contracts which are entered into by a local government and delivered to any person solely for the purpose of acquiring supplies, services and equipment necessarily ordered in the current fiscal year for use in an ensuing fiscal year and which, under the method of accounting adopted by the local government, will be charged against an appropriation of a subsequent fiscal year. Purchase orders evidencing such contracts are public records available for inspection by any person on demand.

      (h) Long-term contracts for the furnishing of television or FM radio broadcast translator signals as authorized by NRS 269.127.

      (i) The receipt and proper expenditure of money received pursuant to a grant awarded by an agency of the Federal Government.

      (j) The incurrence of obligations beyond the current fiscal year under a lease or contract for installment purchase which contains a provision that the obligation incurred thereby is extinguished by the failure of the governing body to appropriate money for the ensuing fiscal year for the payment of the amounts then due.

      (k) The receipt by a local government of increased revenue that:

             (1) Was not anticipated in the preparation of the final budget of the local government; and

             (2) Is required by statute to be remitted to another governmental entity.

      (l) An agreement authorized pursuant to NRS 277A.370.

      (Added to NRS by 1965, 736; A 1969, 801; 1971, 1016, 1345; 1973, 68, 1155; 1975, 40, 279, 711; 1981, 1769; 1985, 648; 1987, 1720; 1995, 1908; 1997, 573; 1999, 833; 2001, 1812, 2324; 2003, 162, 802; 2005, 579; 2009, 432, 852; 2011, 1690, 2728; 2013, 2715)