N.J. Admin. Code § 6A:23A-5.5

Current through Register Vol. 56, No. 11, June 3, 2024

Section 6A:23A-5.5 - Expenditure and internal control auditing

(a) Pursuant to a phase-in schedule to be determined by the Commissioner, a school district or CVSD board of education that receives 50 percent or more of its general fund budget in State aid during the 2008-2009 school year shall engage an independent certified public accountant or independent certified public accounting firm, other than the accountant or firm that performs the annual audit pursuant to N.J.S.A. 18A:23-1 et seq., to conduct a valid sampling of expenditures made during the most recently completed school year that the school district received 50 percent or more of its general fund budget in State aid. The purpose of the audit is to determine the educational value and/or reasonableness of expenditures and to conduct a sampling of internal controls sufficient to determine the adequacy of the school district's internal control structure. In establishing the phase-in schedule for the audits, the Commissioner shall take into account the time period that has elapsed since any other expenditure and/or comprehensive internal control audit beyond the CAFR has been conducted in the school district, the school district's performance on the fiscal management section of the most recent NJQSAC evaluation, and any other factors the Commissioner determines are relevant.

(b) A district board of education or CVSD board of education that receives 50 percent or more of its general fund budget in State aid in any school year subsequent to 2008-2009 shall engage an independent certified public accountant or independent certified public accounting firm, other than the accountant or firm that performs the annual audit pursuant to N.J.S.A. 18A:23-1 et seq., to conduct a valid sampling of expenditures made during the school year in which it received 50 percent or more of its general fund budget in State aid to determine the educational value and/or reasonableness of said expenditures and to conduct a sampling of internal controls sufficient to determine the adequacy of the school district's internal control structure.

(c) For a school district receiving between 50 and 75 percent of its general fund budget in State aid in the seventh year following the audit required by (a) above, an audit shall be conducted once every seven years:

(d) For a school district receiving greater than 75 percent of its general fund budget in State aid in the fourth year following the audit required by (a) above, an audit shall be conducted once every four years.

(e) The cost of the audit required under this section shall be considered to be outside the calculation of the per pupil administrative cost limit pursuant to N.J.S.A. 18A:7F-5.

N.J. Admin. Code § 6A:23A-5.5

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