N.J. Admin. Code § 5:30-5.2

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

Section 5:30-5.2 - Encumbrance systems

(a) All local units except those subject to the Local Authorities Fiscal Control Law (N.J.S.A. 40A:5A-1 et seq.) shall maintain an encumbrance accounting system for all funds as follows:

1. The system shall be designed at a minimum to record charges to amounts appropriated for "Other Expenses" in the same or greater level of detail as "Other Expenses" are maintained in the adopted budget. This shall be done in such a way to record charges against amounts appropriated at the time the charges are authorized so that the funds allocated for such purposes are reserved and cannot be used for other charges within that line item. Examples of such authorization actions include the issuance of a purchase order or the execution of a contract.

2. If the local unit budget uses a greater detail level through the use of object accounts, transactions shall be encumbered at the object level detail.

3. Local units shall maintain internal controls that ensure that all purchases charged to "Other Expense" or other non-salary line items shall be sequentially numbered through a computerized system that produces appropriate purchasing internal control.

(b) The Director of the Division of Local Government Services shall make available such technical documents as may be advisable to local units to provide further guidance on encumbrance systems.

N.J. Admin. Code § 5:30-5.2

New Rule, R.2000 d.485, effective 12/4/2000.
See: 32 New Jersey Register 3237(a), 32 New Jersey Register 4300(a).
Amended by R.2003 d.404, effective 10/20/2003.
See: 35 New Jersey Register 2427(a), 35 New Jersey Register 4862(b).
In (a), substituted "all funds" for "its current fund" in the introductory paragraph; deleted former (b) and recodified former (c) and (d) as (b) and (c).

Amended by 55 N.J.R. 1690(a), effective 8/7/2023