N.J. Admin. Code § 5:30-5.4

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

Section 5:30-5.4 - Procedure

(a) The following procedure shall be utilized for the certification of funds when a contract is to be authorized by the governing body of the local unit:

1. The chief financial officer or certifying finance officer, as appropriate, charged with the responsibility of maintaining the financial records of the contracting unit shall certify in writing to the governing body the availability, or lack thereof, of adequate funds for each contract that is pending authorization by the governing body. Said certification shall designate specifically the line item appropriation(s) of the official budget and/or appropriation from a source other than the budget to which the contract will be properly charged; ensuring that the same funds shall not be certified as available for more than one pending contract. Said officer shall be solely responsible for the accuracy of the certification. The maximum dollar value of the contract pending authorization by the governing body shall be referenced in the certification, unless a special situation set forth in N.J.A.C. 5:30-5.5 permits the certification of either no amount or an amount less than the maximum dollar value of the contract.

2. No resolution or ordinance authorizing the entering into of any contract pursuant to N.J.S.A. 40A:11-1 et seq., or any other law for the expenditure of public funds to a vendor shall be enacted unless the governing body has been provided with the written certification of available funds required by (a)1 above and the resolution or ordinance recites that the required certification of available funds has been provided to the governing body. Either the local unit's attorney or the secretary to the governing body shall ensure that the required certification of available funds has been provided to the governing body prior to it adopting a resolution or ordinance authorizing entering into a contract. The resolution or ordinance authorizing entering into the contract shall also specify the exact line item appropriation(s) and/or appropriation from a source other than the budget, which shall be charged and the maximum dollar value of the contract.

3. The certification of availability of funds shall either be incorporated into the resolution or ordinance authorizing entering into the contract or attached to an original copy of the resolution or ordinance. The certification of availability of funds shall be kept in the files of the municipal clerk, clerk of the board of chosen freeholders, or secretary to the governing body.

4. When a contract is issued as a purchase order or amendment thereto, the certification of availability of funds shall be executed through the budgetary accounting encumbrance process set forth at (b) below and N.J.A.C. 5:30-5.3(c), which shall take the place of, and be used instead of, the written certification of available funds described at (a)1 above. If a local unit subject to the Local Authorities Fiscal Control Law (N.J.S.A. 40A:5A-1 et seq.) does not maintain an encumbrance system, the record of open contracts maintained pursuant to N.J.A.C. 5:30-5.3(d) shall be updated to reflect the issuance of the purchase order or amendment thereto.

(b) When a contract is awarded and a resolution or ordinance of the governing body is not required, the chief financial officer or certifying finance officer shall cause an appropriate entry to be made into the local unit's encumbrance system pursuant to N.J.A.C. 5:30-5.1 and 5.2 prior to the issuance of a contract. If a local unit subject to the Local Authorities Fiscal Control Law (N.J.S.A. 40A:5A-1 et seq.) does not maintain an encumbrance system, the record of open contracts maintained pursuant to N.J.A.C. 5:30-5.3(d) shall be updated to reflect the awarded contract.

N.J. Admin. Code § 5:30-5.4

Amended by 49 N.J.R. 1386(a), effective 6/5/2017

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