1. Losses to counties which occur from defalcation, misappropriation or negligent loss of public money or from failure faithfully to perform the duties of office on the part of a county or township officer or employee must be reported by the district attorney of that county to the State Board of Examiners.

2. Losses to cities which occur from defalcation, misappropriation or negligent loss of public money or from failure faithfully to perform the duties of office on the part of a city officer or employee must be reported by the city attorney of that city to the State Board of Examiners.

3. In the case of the State, any losses must be reported to the State Board of Examiners by the Attorney General.

4. In the case of an irrigation district, any losses must be reported to the State Board of Examiners by the board of directors of the irrigation district.

5. In each case the State Board of Examiners shall make, or cause to be made, a full investigation. If, from the investigation, the State Board of Examiners determines that the loss comes under the conditions of a surety bond issued pursuant to the provisions of chapter 193, Statutes of Nevada 1937, as amended, which established the bond trust fund, the State Board of Examiners shall order that restitution be made in the following manner:

(a) If there is a sufficient amount in the Reserve for Statutory Contingency Account to cover the loss, the State Controller shall draw a warrant on the Reserve for Statutory Contingency Account for the full amount of the loss as covered by the surety bond, in the manner in which claims against the State are usually paid, and the State Treasurer shall pay the warrant.

(b) If there is insufficient money in the Reserve for Statutory Contingency Account to cover the loss, the State Controller shall draw a warrant for the full amount in the Reserve for Statutory Contingency Account for the purpose of making restitution in part, and the State Controller shall report the condition of the account to the Governor. The Governor shall take the necessary steps to have the balance due included in the budget, and report to the next succeeding Legislature. When the balance is thus secured, the restitution is completed.

[7:193:1937; 1931 NCL § 4915.27] — (NRS A 1957, 633; 1959, 836; 1963, 546; 1973, 556; 1975, 343; 1991, 1759)