Local Fiscal Affairs Law

Question 1

Fiscal Year

Answer 1

-Period for which a local unit adopts a budget

Question 2

Annual Audit

Answer 2

• completed within 6 months after close of fiscal year
• prepared by RMA or by Director of DLGS
• Not required to advertise for bids for audit services by RMA

Question 3

Scope of Audit

Answer 3

• embrace books, accounts and transactions of local unit, every board, body, officer or commission supported and maintained by funds of local unit
• cover complete fiscal year and include verification of all cash and bank balances

Question 4

Report of Audit

Answer 4

RMA shall file original report of audit and recommendations with the clerk
-5 days thereafter file a certified copy with the Director

Question 5

Publication of report and recommendations

Answer 5

Synopsis of all audits and recommendations shall be prepared and published by the clerk in the official newspaper
-If clerk fails to make publication within 30 days after receipt or report, subject to $10 fine per day after 30 day expiration

Question 6

Audit by Director

Answer 6

If governing body fails to complete audit in time, then the Director will complete audit

Question 7

Annual Financial Statement

Answer 7

• CFO shall file annually with Director a verified statement of financial condition at close of fiscal year
• Due Feb 10/Aug 10 - Municipality
• Due Jan 26 - County
• If not filed within 10 days of dates above, then fined $5 per day

Question 8

Cash Management Plan

Answer 8

• Deposit and/or invest in funds pursuant to plan
• Designate public depositories
• Designate any funds that meet requirements
• Authorize investments
• Approved annually by majority of vote and can be modified
• CFO administers the plan
• Subject to annual audit
• set policies for selecting and evaluating investment instruments
• requires monthly report to governing body summarizing investments
• Official charged with custody of moneys will be relieved of any liability for loss of moneys due to decrease in value of investment

Question 9

Depositing Funds

Answer 9

-Deposit funds within 48 hours of receipt in legal depository

Question 10

Permitted Investments

Answer 10

• Bonds of the USA or guaranteed by USA
• Gov’t money market mutual funds
• Bonds or other obligations of local unit or bonds of school districts which local unit is part of
• bonds having a maturity date not more than 397 days from date of purchase
• local gov’t investment pools
• Deposits with the State of NJ Cash Management Fund

Question 11

Requirements for Paying out Money

Answer 11

• party presents detailed bill of items or demand
• certification of party claiming payment that it is correct
• by resolution, can require affidavit in lieu of certification
• certification that goods were received and services rendered

Question 12

Advances for expenses

Answer 12

• by resolution, provide for and authorize payment of advances to officers and employees toward their expenses for authorized official travel and expenses
• Receipts should be submitted within 10 days after completion of travel

Question 13

Refund Delinquency less than $10

Answer 13

• by resolution refund property tax less then $10.

- by resolution cancel property tax refund or delinquency less than $10

Question 14

Public recording of approval of claims

Answer 14

-All claims approved for payment by local unit shall be recorded by the local unit, either in its minutes or in a manner prescribed by the director. The record of approval shall be open to the public.

Question 15

Petty Cash Fund

Answer 15

-Establish petty cash fund upon written application and after approval from Director.

Question 16

Blanket Bond

Answer 16

-All officials covered