N.J. Admin. Code § 19:32-3.4

Current through Register Vol. 57, No. 1, January 6, 2025

Section 19:32-3.4 - Disbursements

(a) Disbursement of grant funds shall be made at intervals as work progresses and expenses are incurred by the district and approved by the Authority for payment. Total disbursements shall not exceed the grant amount and in any case shall not exceed the State share. No disbursement of the grant shall be made until the Authority receives all documentation required for that disbursement, including all forms and information required by the Authority and completed in a manner satisfactory to the Authority.

1. A request by the district that grant monies be paid by the Authority shall be in writing, provide a complete description of the approved costs incurred, be signed by an authorized officer of the district, and include a voucher.

2. A request for disbursement shall only be for approved costs which have already been incurred by the district.

(b) Except as provided at (c) or (d) below, the disbursement schedule shall be as follows:

1. The first disbursement of the grant in the amount of 10 percent of the grant shall be made upon:

i. Completion to the satisfaction of the Authority of the design phase checklist;

ii. Satisfactory compliance with Executive Order No. 215 (1989) (regarding the preparation and submission of environmental impact statements), Executive Order No. 24 (2002) (regarding inclusion of LEED (Leadership in Energy and Environmental Design) green building principles in school facility projects), and P.L. 2007, c. 1 (N.J.S.A. 52:27D-130.5) (regarding issuance of construction permits for child care or education centers in certain locations), if applicable, as determined by the Authority;

iii. Approval by the Department of the final plans and specifications pursuant to N.J.A.C. 6A:26-5.4, if applicable;

iv. Submission to the Authority of acceptable documentation of required insurance coverages; and

v. Submission of a request for disbursement as set forth at (a) above.

2. Following the first disbursement and up to the disbursement upon final completion, the Authority shall make disbursements to the district upon submission to the satisfaction of the Authority of a request for disbursement based upon construction completion as follows:

i. When the school facilities project is 35 percent complete, the district will receive 30 percent of the grant;

ii. When the school facilities project is 65 percent complete, the district will receive 40 percent of the grant; and

iii. When the school facilities project is substantially complete, the district will receive 15 percent of the grant.

3. The Authority shall not make scheduled disbursements for construction percentages completed as identified at (b)1 above, unless and until:

i. A construction phase checklist has been completed to the satisfaction of the Authority for each contract/bid advertisement of the work constituting the relevant percentage completed; and

ii. Acceptable documentation of required insurance coverages has been submitted to the Authority; and

iii. Submission of a request for the applicable disbursement as set forth at (a) above.

4. Upon final completion, the district shall prepare and submit to the Authority, for review and approval, a request for disbursement together with the final completion checklist. Upon approval, the Authority shall disburse the amounts remaining under the grant, the district shall thereupon make final payment to its contracted parties and thereupon, the Authority shall be released from any further responsibility to make any payments in connection with the school facilities project.

(c) In the case of a school facilities project with final eligible costs less than or equal to $ 250,000, there shall be only three disbursements as follows:

1. The first disbursement of the grant in the amount of 50 percent of the grant shall be made after execution of the grant agreement upon a showing to the satisfaction of the Authority of 50 percent construction completion, after submission of acceptable documentation of required insurance coverages, and after submission of a request for disbursement as set forth at (a) above.

2. The second disbursement of the grant in the amount of 45 percent of the grant shall be made upon a showing to the satisfaction of the Authority of substantial completion, acceptable documentation of required insurance coverage has been submitted to the Authority and submission of a request for disbursement as set forth at (a) above.

3. Upon final completion, the district shall prepare and submit to the Authority, for review and approval, a request for disbursement together with the final completion checklist. Upon approval, the Authority shall disburse the amounts remaining under the grant, the district shall thereupon make final payment to its contracted parties and thereupon, the Authority shall be released from any further responsibility to make any payments in connection with the school facilities project.

(d) In the case of special circumstances and/or extraordinary need, the district may request a waiver from the above applicable schedule of disbursements upon application to the Authority indicating the reasons for such request and a proposed schedule of disbursements. Upon review by the Authority, the Authority may approve the waiver and shall notify the district accordingly.

N.J. Admin. Code § 19:32-3.4

Amended by 47 N.J.R. 2001(a), effective 8/3/2015

Amended by 55 N.J.R. 756(a), effective 4/17/2023