Local Finance Notice 2021-04 – Regulatory Chapter Readoption: Authority and Fire District Budgets
The Local Finance Board has readopted N.J.A.C. 5:31, which contains extensive rule changes corresponding to revised statutes, current regulatory guidance and forms. Most amendments codify previously existing requirements without change.
Key Regulatory Changes Impacting Authorities and Fire Districts
- Authorities and fire districts no longer need to identify individuals listed on the public entity compensation schedule that have a family or business relationship with any other person listed on the schedule.
- Authorities are no longer required to report the income of their commissioners, officers, key employees, and highest compensated employees to public entities.
- The authority and fire district audit questionnaires have been updated to incorporate questions on timely debt service payment, bond covenant compliance, and electronic funds transfers, along with additional questions pertaining to authority financial administration.
- A fire district may request Director approval to extend the certification deadline for a February election, levy cap referendum, or restricted fund balance referendum, and may require a public question for a levy cap referendum or restricted fund balance release referendum.
- Has standardized forms for operating leases and regional sewerage authority appropriations and revenue caps. Authorities and fire districts have up to 96 hours from the time of initial receipt to deposit funds into the authority’s or fire district’s depository, but must still pay over funds to the officer charged with the custody of the authority’s general funds within 48 hours. Authorities and fire districts must utilize electronic systems and services for financial, payroll, and revenue accounting, and must provide a separate fidelity bond with faithful performance coverage for the individual holding overall management responsibility for the authority’s or fire district’s finances.
Local Finance Notice 2021-04
Please follow the link below to read more about these items and guidance on how your local unit can implement them: https://www.nj.gov/dca/divisions/dlgs/lfns/21/2021-04.pdf
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For further information on Local Finance Notice 2021-04 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or email@example.com.