New Jersey Division of Local Government Services Local Finance Notice 2021-24
Wielkotz & Company
December 1, 2021
Local Finance Notice 2021-24 CY 2022 Budget Deadline Extension and Enforcement
Governing bodies may adopt a budget anytime within 10 days of receiving the Director’s certification of approval of the budget.
COVID-19 Issues
- Section 1 of P.L. 2020, c.74 authorizes the Director of the Division of Local Government Services to use a three-year average for calculation of COVID-19 affected revenues.
- The first installment of COVID-19 Special Emergencies will be budgeted in CY 2022. It can be excluded from both the 1977 and 2010 caps.
- If you are anticipating revenue from ARP funds in the 2022 budget, submit the loss of revenue calculation for supporting documentation.
Transitional Aid Application Process
- CY municipalities in financial distress will have one opportunity to apply for Transitional Aid to Localities. The deadline for applications will be released in the coming weeks.
Other Budget Reminders
- The budget cycle begins after the public hearing, and the budget can be amended on the same night.
- Employee contributions and waivers must be disclosed to the public in each formal Budget Message. The cap exclusion is based on an average State Health Benefit increase of 5 percent for CY 2022.
- Each municipality and county is required to post their current year adopted budget and three prior years on their web site. Municipalities without their own websites must have their adopted budgets posted on the Division’s website.
- P.L.2020, c. 34, authorizes the Director to extend the due dates for audits ending June 30, 2021 by 90 days.
Local Finance Notice 2021-24
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/21/2021-24.pdf
Contact Wielkotz & Company, LLC Today
For further information on Local Finance Notice 2021-24 and its implementation feel free to reach out to Steven Wielkotz at (973)-835-7900 ext. 201 or sdw@w-cpa.com.
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