N.J. Admin. Code § 6A:23A-14.2

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

Section 6A:23A-14.2 - Maintenance reserve

(a) A district board of education may establish, by resolution, a maintenance reserve account to be used to implement required maintenance of the school district's facilities. The district board of education shall be prohibited from using the funds for routine or capital maintenance.

(b) The district board of education shall establish and maintain the maintenance reserve account in accordance with GAAP. The account shall be subject to annual audit, pursuant to N.J.S.A. 18A:23-1 et seq.

(c) A district board of education or board of school estimate, as appropriate, may increase the balance in the maintenance reserve account by appropriating funds in the annual general fund budget certified for taxes.

(d) A district board of education or board of school estimate, as appropriate, may supplement a maintenance reserve account through a transfer by board resolution of unanticipated revenue and/or unexpended line-item appropriation amounts anticipated at year end for withdrawal in subsequent school years pursuant to N.J.S.A. 18A:7F-41.a. The transfer resolution shall be adopted by the district board of education or board of school estimates no earlier than June 1 and no later than June 30 of the respective school year.

(e) A district board of education or board of school estimate, as appropriate, may withdraw by resolution funds from the maintenance reserve account and appropriate the funds into the required maintenance account lines at budget time or any time during the year for use on required maintenance activities for a school facility, as reported in the comprehensive maintenance plan pursuant to N.J.A.C. 6A:26A-4.

1. Funds withdrawn from the maintenance reserve account shall be restricted to required maintenance appropriations. A district board of education or board of school estimate shall not transfer the funds to any other line-item account.

(f) In any year that maintenance reserve account funds are withdrawn, the district board of education shall restore to the maintenance reserve account at year-end any unexpended required maintenance appropriations, up to the amount of maintenance reserve account funds withdrawn.

(g) The district board of education shall transfer, by resolution, to the general fund on an annual basis, or more frequently, any interest earned on the investments in the maintenance reserve account.

(h) The district board of education shall ensure the maintenance reserve account balance does not, at any time, exceed four percent of the replacement cost of the school district's school facilities for the current year. If the account exceeds this maximum amount at June 30, the district board of education shall reserve and designate the excess in the subsequent year's budget.

N.J. Admin. Code § 6A:23A-14.2

Amended by 49 N.J.R. 1038(a), effective 5/1/2017

Amended by 56 N.J.R. 2141(a), effective 11/4/2024