Finance Flashcards
Bid Bonds
-payable to a local contracting unit for the faithful signing and execution of a contract
-10%of bid but not in excess of $20,000
-cert check, cashiers check or bid bond
Tax Collector
-Receives and collects money assessed or raised by taxation
-must prepare monthly reports on all receipts, deposits and cash on hand belonging to the municipality
Tax Assessor
-Ascertains the names of the owners of all real property in the tax district
- Determines full and fair market value of each parcel of real property at such a price it would see by October 1 of the preceeding year
CFO
-prepares the annual finicial statement
- prepares the annual debt statement
- prepares the balance sheet
- responsible for all general financial matters such as budget execution, bond issuance , investments and revenue analysis
Captial Budget
A plan for expenditures of public funds for capital purposes for a period not greater than 6 years. Municipalities under 10,000 only need a 3 year captain plan
Rejecting All Bids
- lowest bid substantially exceeds the cost estimate for good or service
- lowest bid substantially exceeds contracting units appropriations for goods or services
- Governing Body abandons the project
- contracting unit substantially revises the specs
- publuc contracts law is being violated
- Governing Body uses state contract
Annual Financial statement
A verified statement of the financial condition of the local unit at the close of the fiscal year
- file by : calendar year Feb 10 Fiscal Year Aug 10
- if not filed within 10 days of deadline a $5.00 a day penalty imposed
Competitive Contract (RFP)
Can be used for specialized goods and services
- professional services, computer software, home health, lab testing, food service
- length of contract 5 years
Return of bid bond
- Not amount the lowest 3 bidders return with 10 days of bid opening
- within 3 days after awarding and signing the contract to the remaining unsuccessful bidders
Vote on Bond Ordinance
2/3 vote of full membership for adoption
Non-Fair and Open (Alternate Process )
Contractor must certify that no reportable contributions exceeding 300.00 per election cycle were made 1 year preceeding the award of contract
Budget transfers
During the last two months of the current budget fiscal year and during the first 3 moths of the succeeding year.
- 2/3 vote of full membership
Special Emergency Appropriations
-2/3 vote of full membership for repair, reconstruction of streets , roads or bridges or other properties damage by flood or hurricane
- prep of approved tax map
- prep and execution of revaluation
- Revision of notification ordered
- prep of a master plan
- Prep of a drainage map for flood control purposes
- Engineering studies for a sanitary sewer
- Authorized expenses for a municipal consolidation act
Sale of bid bonds
- Public sale by CFO through sealed bids or electronic proposal
- Adopt a resolution for sale of bond majority vote a full membership
- Published in 2 newspapers 1 week prior one designated newspaper of the municipality and the other in a New York or New Jersey based newspaper carrying bond notices
Advertising for bids
- Not less than 10 days prior to receiving bids
- Date time and place
- Solid waste one municipal newspaper 1 state newspaper 60 days prior
What the clerk has to do with the audit
- Within 30 days of receiving audit report must publish a synopsis of the report in one local newspaper
- $10 fine for each day after 30 days that the publication fails to appear
- Within 45 days of receipt of the office pass a resolution that the governing body has reviewed the schedule report of finding And have them sign a group affidavit
- Must forward to the department of local government services copy of the resolution and the original signed group affidavit
After awarding the contract
The clerk shall publish a notice in the official newspaper summarizing the award of contract attract to include the nature duration and the amount of contract
The name of the vendor and statement at the resolution and the resolution and written contract are available for public inspection
Budget surplus AKA fund balance
Can be canceled prior to the end of the year by resolution
Down payment on bond ordinances
- Not less than 5%
- Comes from previously adopted budget or capital improvement purchases emergency appropriations or my or money’s actually held by the local unit for such purpose
Debt limit of municipality
3.5 %
Annual debt statement
Filed annually with the clerk and electronically with the department of local government services by the CFO by the end of the 1st month of each fiscal year
General ledger
Official financial permanent record of the municipality that contains a summary of all financial transactions.
- Contains the funds accounts and transactions in a double entry form debit and credit system accounting
Defeated school board budget
School board must deliver the proposed budget to the governing body within 2 days
- By may 19th the governing body in consultation with the school board determine the amount for each school board item and certify to the board of taxation
- Within 15 days the school board must notify the notify the they intend to appeal to the state commissioner of education
Disqualifying bidders
By resolution if they had prior negative experience with the bitter
- Shall be for a reasonable defined amount of time not to exceed 5 years
Define responsible
Able to complete the contract in accordance with its requirements. Experience experience moral integrity operating capacity financial capability credit workforce and equipment
Define responsive
Conforming in all material respects to the terms and conditions specs legal requirements and other provisions that were requested
Temporary budget
Adapted by resolution in the 1st 30 days of the budget year
- Is requires a majority vote a full membership
- Not to exceed 26.25% of the prior year’s budget
Change orders
- 20% change order limitation
- Is only change the number of units or items
Bond anticipation notes AKA BANS
- Is short term borrows
- Issued for one year and can be renewed for 9 more years for 10 years in total
Length of contracts
- Professional services 12 months
- Other contracts not to exceed 24 months
Award of contract
Must a ward or reject all bids within 60 days
Quotes
Must be solicited when the amount exceeds 15% of the bid threshold
Negotiated contracts
- 2/3 vote of the full membership
- Twice no bids received or rejected twice or a combination of both Twice no bids received or rejected twice or a combination of both
Petty cash fund
Must be approved by the department of local government services and requests for increases made through resolution
Public hearing on bond ordinances
In full or summary an official newspaper one week prior to hearing
- Local improvement assessment requires 10 days
- Final adoption must be at least 10 days after the 1st reading by roll is Earth reading by roll call vote
- 2/3 vote of the full membership
Receiving bits
Not allowed to receive bids after the time in the advertisement
- Hand delivered bids should not be the same person who will officially receive an open bids
- Submitted and properly labeled and sealed envelopes
2% cap
Is municipal levy cap law
Chapter 20 expenses
Soft costs architect fees accounting engineering and inspections legal expenses and publication
Cash bases budget
Current fund revenues that is in the year the cash is received
Items clerk sends to the director for the audit
Proof of publication, certified copy of the resolution as a governing body, signed group affidavit
Estoppel
Within 20 days of the passage of a final adoption anyone aggrieved can file a petition to stop it
Consent of surety
Given at the time bonds are received that the performance bond will be given upon contract signing if required
Bid bond
Payable to a local contracting unit for the faithful signing an execution of a contract
Trust fund
Record specific receipts that may be used solely for the purpose for which we they were intended example dog licenses
Performance bond
A bond provided by a surety company for the contractor’s faithful performance of all provisions of the contract specification
Amending the budget
- Can be made prior to public hearing without advertisement
- Amendment resolution must be read in full at the meeting an average heigat the meeting an advertised 3 days prior to the hearing
- A public hearing is required when you add new items in excess of 1% of the total appropriation increase increase the amount raised by taxation by 5% or increase or decrease Any item of appropriation by more than 10%
Solid waste contract
Published in one official newspaper of the immune’s palate and 1 newspaper in general circulation of the state 60 days prior receiving bid
Utility fund
Fund accounts for the operation and acquisition of municipal owned facilities receive income from user fees collected example water and sewer utility swimming pool utility
Withdraw of bids
Can request a withdrawal of bid within 5 days after opening the bid for a mistake for public works it means an unintentional clerical error
Estoppel
Within 20 days after adoption someone can stop it petition must be signed by 15% of the number of votes cast in the last general election ordnance remains inapparable inapproprible until ratified by a referendum of voters
Disposal of personal property
By resolution
- Tangible movable property
- Can sell to other government agencies for $1
- Cannot be held less than 7 days or more than 14 days after the last publication
Parts of a budget document
BAACCE
Budget Notice
Anticipated Revenue
Appropriations
Certification Page
Captial Budgey
Explanatory Statemeny
Roll clerk has in the budget process
Municipal clerk is responsible for the advertisement execution and execution and filing of the budget resolution as well as any other resolutions and ordinances amending the budget. Most of the documents Submitted to the division by the municipality are required by statute to have a proper certification of the municipal clerk in order to be considered legal
Is 2 types of bond ordinances
Regular general bond ordinance and local assessment or assessment or assessment or assessment or assessment or assessment or assessment or assessment or assessment or assessment ordinance
What is a general bond ordinance
All property owners benefit from the capital improvement
⁰What is a local assessment/assessment or
Certain people/property stand to gain special benefit from the improvement
What is in a Bond Ordinance
PPSPEC
Purpose
Period of Usefulness
Supplement Debt Statement
Provision that the captial budget is amended if project was not included
Estoppel
Chapter 20 expenses
Major revenue items in the budget are?
Anticipated revenue
Misc revenue
Surplus
Delinquent tax
State aid
Grants
Current taxes
1/5/10 Rule
Requires public hearing
1% - New item of appropriation in excess
5%- raises taxes
10% - increase or decrease any item of appropriations
Chapter 159
Funds may become available which were not anticipated at the time of the adoption of the budget.
- Approved by resolution and is filed electronically by the CFO with the division of local government services
Annual audit requirements
Must be completed within 6 months after the close of the fiscal year
- Must be prepared by the Registered municipal accountant
- Must cover complete fiscal year
