N.J. Admin. Code § 5:30-7.4

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

Section 5:30-7.4 - Eligibility for local examination

(a) The Director shall randomly assign each municipality to one of three reporting year pools. Each pool shall be assigned the years in which the budget shall be considered for local examination.

1. Within 30 days after the start of each fiscal year, the Director shall determine and notify all municipalities if they are eligible or ineligible for local examination for the fiscal year.

(b) Municipalities that meet one or more of the following criteria shall not be eligible for local examination in a given year and shall have their budgets examined by the Director:

1. Have outstanding fiscal year adjustment bonds or refunding obligations of fiscal year adjustment bonds;

2. Qualify for municipal (urban) aid pursuant to N.J.S.A. 52:27D-178 et seq.;

3. Received Supplemental Municipal Property Tax Relief Discretionary (N.J.S.A. 52:27D-118.35) funds or Transitional Aid to Localities (N.J.S.A. 53:27S-118.42a) funds in the previous fiscal year;

4. Were subject to a Division field audit that produced negative findings in the previous fiscal year;

5. Are currently or during the previous year were under any form of Local Finance Board supervision pursuant to N.J.S.A. 52:27BB-1 et seq.;

6. Sold its tax levy if permitted by statute in the previous year;

7. If, during the current or prior fiscal year, a private entity is or was temporarily fulfilling the duties of a chief municipal finance officer pursuant to N.J.S.A. 40A:9-140.10;

8. If, during the current or prior fiscal year, an individual who does not hold a municipal finance officer certificate is or was serving as a temporary municipal finance officer pursuant to N.J.S.A. 40A:9-140.13.f;

9. If, in the prior fiscal year, voters approved the sale of a water or sewer system pursuant to N.J.S.A. 40:62-5;

10. If, in the prior fiscal year, the municipality has completed the approval process pursuant to the Water Infrastructure Protection Act (N.J.S.A. 58:30-1 et seq.) for the sale of a water or sewer system;

11. Failed to submit to the Division a user-friendly budget section corresponding with the previous year's adopted budget;

12. The Director's subsequent review of the previous year's locally examined adopted budget shows that the budget failed to meet the requirements of local examination. Such a finding shall disqualify a municipality from local examination for the following three years; or

13. If, in the opinion of the Director, the fiscal integrity or solvency of the municipality will be jeopardized by local examination.

(c) At the initiative of the Director, the criteria at (b) above may be waived if the Director determines the fiscal integrity or solvency of the municipality shall not be jeopardized by local examination. Requests for waivers by a municipality shall not be considered by the Director.

N.J. Admin. Code § 5:30-7.4

Amended by R.2004 d.353, effective 9/20/2004.
See: 36 New Jersey Register 2607(a), 36 New Jersey Register 4297(a).
In (b), inserted "or refunding obligations of fiscal year adjustment bonds" after "bonds" in 1, added 9.

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