Costs which may be allocated to enterprise fund.

1. The costs which may be allocated to an enterprise fund of a local government pursuant to paragraph (c) of subsection 1 of NRS 354.613 must be reasonable costs and include only the amounts remaining after the deduction of any applicable credits. The costs must also be: (a) Necessary and reasonable for the proper and efficient administration and performance of the enterprise fund; (b) Consistent with policies, regulations and procedures that apply uniformly to the enterprise fund and other activities of the local government; (c) Determined in accordance with generally accepted accounting principles; and (d) Documented adequately for independent verification. 2. In determining whether a cost is a reasonable cost for the purposes of subsection 1, consideration must be given to: (a) Whether the cost is of a type generally recognized as ordinary and necessary for the operation of the enterprise fund; (b) Whether the cost is consistent with sound business practices, the indicia of an arm’s length transaction, and the requirements and restraints imposed by state laws and regulations; (c) The market prices for comparable services or property; (d) Whether the persons incurring the cost acted with prudence under the circumstances considering their responsibilities to each pertinent governmental unit and its employees, and to the general public; and (e) Any significant deviations from the established practices of the local government that may have unjustifiably increased the cost.