New Jersey Administrative Code › Title 6A - EDUCATION › Chapter 23A - FISCAL ACCOUNTABILITY, EFFICIENCY AND BUDGETING PROCEDURES › Subchapter 1 - PURPOSE, SCOPE, AND DEFINITIONS › Section 6A:23A-1.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The words and terms used in this chapter shall have the
				  following meanings, unless the context clearly indicates otherwise:
"Additional administrative position salary increment" means $
				  5,000 for an additional administrative position held by a superintendent, as
				  set forth in
				  N.J.A.C.
				  6A:23A-3.1(e)2.
"Additional school district salary increment" means $ 15,000
				  for each additional school district served by a single superintendent pursuant
				  to N.J.S.A. 18A:17-24.1.
"Adjusted for inflation" means indexed by the greater of the
				  CPI or 2.5 percent.
"Adjusted tax levy" means the property tax levy for current
				  purposes, excluding any debt pursuant to
				  18A:7F-37.
"Administrative cost" means total administrative costs as
				  reflected in the Taxpayers' Guide to Education Spending and defined in the
				  Uniform Minimum Chart of Accounts for New Jersey Public Schools and by the
				  National Center for Education Statistics (NCES), as referred to at
				  N.J.A.C.
				  6A:23A-16.2(f)1, and other
				  reporting directives published and distributed by the Commissioner pursuant to
				  N.J.S.A.
				  18A:4-14 and N.J.A.C. 6A:23A-16.2.
"Administrator" means as set forth in
				  18A:12-23.
"Annual audit" means the audit conducted pursuant to the
				  provisions of
				  18A:23-1 et seq. and the Federal
				  Single Audit Act of 1984, Public Law 98-502, amended by
				  Public Law
				  104-156, of the district board of education's
				  Comprehensive Annual Financial Report.
"Annual audit program" means the uniform program published
				  and distributed by the Commissioner for preparation of the Comprehensive Annual
				  Financial Report by a district board of education pursuant to
				  N.J.S.A.
				  18A:4-14 and
				  N.J.A.C.
				  6A:23A-16.2(i).
"Annual salary" shall include, but not be limited to, base
				  pay, increments, stipends, or payments for additional positions, annuities,
				  and/or longevity, and the total of per diem payments.
"Authorized membership of the district board of education"
				  means the full membership of the district board of education as established
				  pursuant to Title 18A of the New Jersey Statutes.
"Base budget" means the district board of education's school
				  budget that contains an adjusted tax levy calculated pursuant to the provisions
				  of 18A:7F-38 and 39, State aid,
				  other than preschool education aid, received pursuant to the provisions of
				  18A:7F-43 et seq., miscellaneous
				  revenue estimated pursuant to GAAP, and designated general fund balance; but
				  exclusive of additional spending proposals submitted to the voters or board of
				  school estimate.
"Bilingual education pupil" means a resident pupil enrolled
				  in a program of bilingual education or in an English as a second language
				  program approved by the State Board of Education.
"Board of trustees" means the public agents authorized by the
				  State Board of Education to supervise and control a charter school pursuant to
				  the provisions of
				  18A:36A-1 et seq.
"Business" means any corporation, partnership, firm,
				  enterprise, franchise, trust, association, sole proprietorship, union,
				  political organization, or other legal entity, but shall not include a local
				  public school district or any other public entity.
"Capital maintenance" means as defined in
				  N.J.A.C.
				  6A:26-1.2.
"Capital outlay" means capital outlay as defined in
				  GAAP.
"Capital project" means as defined in
				  6A:26-1.2.
"Capital projects fund" means the governmental fund that
				  accounts for financial resources used to acquire or construct capital
				  facilities (other than those of proprietary funds and fiduciary funds). The
				  source of revenue in this fund includes the sale of bonds, grants received
				  pursuant to
				  18A:7G-15, and other sources as
				  defined in
				  6A:26-4.1. In the case of a
				  charter school, the source of revenue may be a mortgage. Separate accounting is
				  required for each capital project.
"Capital projects fund deficit" means the amount of the sum
				  of expenditures and encumbrances for a capital project that exceeds the total
				  amount of funds authorized for the capital project by the State, district's
				  voters by referendum, the board of school estimate, or the capital projects
				  control board, as applicable.
"Capital reserve account" means the account established by a
				  district board of education pursuant to
				  18A:7G-31 and
				  18A:7F-41 into which monies are
				  deposited to help finance a school district's local share of its long-range
				  facilities plan.
"Chart of accounts" means the Department's prescribed
				  classification structure for the accounting system that permits the
				  standardization of reported financial data whereby analyses may be performed
				  within and between district boards of education and on a nationwide basis using
				  common terminology and classifications established by the NCES.
"Charter school" means a public school that is established in
				  accordance with
				  18A:36A-1 et seq.
"Chief school administrator" means the superintendent,
				  pursuant to
				  N.J.S.A.
				  18A:17-15; the administrative principal,
				  pursuant to
				  N.J.S.A.
				  18A:17-20.5; the State district
				  superintendent, pursuant to
				  N.J.S.A.
				  18A:7A-35 or
				  18A:7A-49 in the case of a school
				  district under full or partial intervention; or the lead person of a charter
				  school, as defined at
				  N.J.A.C.
				  6A:11-1.2.
"Combination pupil" means a resident pupil who is both an
				  at-risk pupil and a bilingual education pupil as defined in
				  18A:7F-45.
"Commissioner" means the Commissioner of Education or his or
				  her designee.
"Comparative Spending Guide" means the annual report of
				  comparative financial statistics of districts compiled and published for
				  general distribution by the Commissioner pursuant to
				  18A:4-30 and available on the
				  Department's website at
http://www.state.nj.us/njded/guide
.
"Comprehensive Annual Financial Report" or "CAFR" means the
				  official annual report of a governmental unit containing the basic financial
				  statements, management discussion and analysis (MD&A) and other required
				  supplementary information and statistical data prepared in accordance with
				  standards established by the Governmental Accounting Standards Board.
"Concentration of at-risk pupils" shall be based on prebudget
				  year pupil data and means, for a school district or a county vocational school
				  district, the number of at-risk pupils counted in resident enrollment, divided
				  by resident enrollment pursuant to
				  N.J.S.A.
				  18A:7F-45.
"County special services school district" or "CSSSD" means
				  any entity established pursuant to
				  18A:46-29 et seq.
"County superintendent roundtable" means the regularly
				  scheduled meetings in each county with the chief school administrators in that
				  county and the executive county superintendent.
"County vocational school district" or "CVSD" means any
				  entity established pursuant to
				  18A:54-1 et seq.
"CPI" means as defined at
				  18A:7F-45 and 18A:7F-5.
"Debt service" means as defined at
				  18A:7G-3 and N.J.A.C.
				  6A:26-1.2.
"Debt service fund" means a governmental fund used to account
				  for the accumulation of resources for, and the payment of, general long-term
				  debt principal and interest.
"Department" means the New Jersey Department of
				  Education.
"Educational services commission" or "ESC" means an
				  educational services commission established pursuant to
				  N.J.S.A.
				  18A:6-52.
"Efficiency standards" means the efficiency standards
				  established for the 2008-2009 school year in Appendix E of the publication, A
				  Formula for Success: All Children, All Communities, dated December 18, 2007,
				  and available on the Department's website at:
http://www.state.nj.us/education/sff/reports/AllChildrenAllCommunities.pdf
.
				  The standards shall be updated periodically through the Educational Adequacy
				  Report according to
				  N.J.S.A.
				  18A:7F-46.
"Emergent circumstance" means a circumstance that must be
				  addressed expeditiously to avoid peril to the health and safety of students
				  and/or staff and/or to avert an operating deficit from the required
				  implementation of the thoroughness standards.
"Emergent condition" means as defined at N.J.A.C.
				  6A:26-1.2.
"Energy costs" mean the cost of electricity, natural gas, and
				  fuel oil.
"Enterprise fund" means a proprietary fund used to report
				  activities for which a fee is charged to external users for goods and services.
				  Activities are required to be reported if the pricing policies of the activity
				  establish fees and charges designed to recover its costs, or if the activity
				  meets other criteria established by Governmental Accounting Standards Board
				  Statement No. 34, paragraph 67.
"Excess costs" means as set forth in
				  N.J.S.A.
				  18A:7G-3.
"Executive county superintendent" means the executive county
				  superintendent or acting executive county superintendent, pursuant to
				  N.J.S.A.
				  18A:7-1 et seq.
"Executive county superintendent roundtable" means the
				  regularly scheduled meetings in each county with the chief school
				  administrators in that county and the executive county superintendent.
"Fiduciary funds" means the funds used to account for assets
				  held by a district board of education in a trustee capacity or agency capacity
				  for others and, therefore, cannot be used to support the district board of
				  education's own programs.
"Fund" means a fiscal and accounting entity with a
				  self-balancing set of accounts recording cash and other financial resources,
				  together with all related liabilities and residual equities or balances, and
				  changes therein, which are segregated for the purpose of carrying on specific
				  activities or attaining certain objectives in accordance with special
				  regulations, restrictions, or limitations.
"GAAP" means the generally accepted accounting principles
				  that are uniform minimum standards of and guidelines to financial accounting
				  and reporting that are generally recognized as essential to effective
				  management control and financial reporting, and are promulgated and published
				  by the Governmental Accounting Standards Board as prescribed by the State Board
				  pursuant to N.J.S.A. 18A:4-14.
"General fund" means a governmental fund that accounts for
				  all financial resources of the district board of education or charter school
				  board of trustees, except those required to be accounted for in another
				  fund.
"Health care costs" mean the costs of medical and
				  prescription drug insurance consistent with benefits provided by the School
				  Employees' Health Benefits Program.
"High school" means a public school that is not a charter
				  school and that may grant a State-endorsed diploma to students, pursuant to
				  N.J.S.A.
				  18A:7C-4.
"High school salary increment" means $ 5,000 for a school
				  district served that includes a high school.
"Household income" means income as defined in
				  7 CFR
				  245.2 and
				  245.6
				  or any subsequent superseding Federal law or regulation pursuant to N.J.S.A.
				  18A:7F-45.
"Immediate family member" means the person's spouse, partner
				  in a civil union as defined in
				  37:1-33, domestic partner as
				  defined in
				  26:8A-3, or dependent child,
				  residing in the same household.
"Individualized education program" or "IEP" means as defined
				  in N.J.A.C. 6A:14-1.3.
"Insurance" means coverage for general liability, automobile
				  liability, school board liability, errors and omissions, property loss or
				  damage, and workers compensation.
"Internal control" means a process, effected by an entity's
				  management, designed to provide reasonable assurance regarding the achievement
				  of objectives in the following categories:
1. Effectiveness and efficiency of operations;
2. Reliability of financial reporting; and
3. Compliance with applicable laws and regulations.
"Job description" means a written specification of the
				  function of a position, duties and responsibilities, the extent and limits of
				  authority, and work relationships within and outside the school and school
				  district.
"Lease purchase payment" means as defined at N.J.A.C.
				  6A:26-1.2.
"Line item account" means the lowest (most specific) level of
				  detail in the appropriations/expenditure classification.
"Local public school district" or "school district" means any
				  local or regional school district established pursuant to N.J.S.A. 18A:8 or
				  18A:13, or a school district under full State intervention pursuant to
				  18A:7A-34, but not including a
				  charter school established pursuant to
				  18A:36A-1 et seq. unless
				  specified otherwise.
"Local share" means as calculated pursuant to
				  18A:7F-52 for purposes of
				  18A:7F-43 et seq. and for
				  purposes of a school facilities project as defined at
				  6A:26-1.2 and pursuant to N.J.S.A.
				  18A:7G-3.
"Long-range facilities plan" or "LRFP" means the plan
				  required to be submitted to the Commissioner by a district board of education
				  pursuant to
				  18A:7G-4 and N.J.A.C.
				  6A:26-2.
"Maximum salary amount" for superintendents means $ 147,794
				  for any school district(s) with a total enrollment of 749 or less based on the
				  enrollment figures in the Application for State School Aid (ASSA) filed by the
				  district(s) on the prior October 15; $ 169,689 for any district(s) with a total
				  enrollment of 750 to 2,999 based on the enrollment figures in the ASSA filed by
				  the district(s) on the prior October 15; $ 191,584 for any school district(s)
				  with a total enrollment greater than 3,000 based on the enrollment figures in
				  the ASSA filed by the district(s) on the prior October 15. Upon the expiration
				  of a contract in effect on July 1, 2016, a superintendent reappointed for a
				  subsequent term with the same school district may receive an annual salary that
				  exceeds the maximum salary amount by up to two percent in the first year of the
				  renewal contract, followed by annual increases of up to two percent in each of
				  the remaining years of the renewal contract and any contract thereafter. If the
				  contract in effect on July 1, 2016, is not the superintendent's initial
				  contract with that school district, the superintendent can renegotiate at any
				  time after May 1, 2017 and may receive an annual salary moving forward that
				  exceeds the maximum salary amount by up to two percent in the first year of the
				  renewal contract, followed by annual increases of up to two percent in each of
				  the remaining years of the renewal contract and any contract thereafter.
				  However, the superintendent shall not receive any retroactive or back pay as
				  part of that renegotiation. For any school district(s) with a total enrollment
				  of 10,000 or more based on the enrollment figures in the ASSA filed by the
				  school district(s) on the prior October 15, the Commissioner, upon written
				  application by the district board(s) of education and on a case-by-case basis,
				  may approve a waiver of the maximum salary amount. The eligible district
				  board(s) of education may only submit one waiver request during the term of a
				  contract; requests for a renegotiated waiver during the term of a contract are
				  prohibited.
"Member of immediate family" means the spouse, civil union
				  partner pursuant to N.J.S.A. 37:1-33, domestic partner pursuant to
				  26:8A-1 et seq. or dependent child
				  of the individual residing in the same household.
"National Center for Education Statistics" or "NCES" means
				  the organization that publishes the Federal accounting manual, Financial
				  Accounting for Local and State School Systems, that contains the financial
				  accounting terminology and classifications required by
				  18A:4-14 for use in the chart of
				  accounts prescribed by the Commissioner with the approval of the State Board of
				  Education.
"Net budget" means the sum of the school district's general
				  fund tax levy, State aid payable pursuant to the provisions of
				  18A:7F-43 et seq. other than
				  preschool education aid, miscellaneous revenue estimated pursuant to GAAP, and
				  designated general fund balance.
"New Jersey Quality Single Accountability Continuum" or
				  "NJQSAC" means the New Jersey Quality Single Accountability Continuum for
				  evaluating local public school district performance established pursuant to
				  18A:7A-3 et seq.
"New Jersey Student Learning Standards" or "NJSLS" means as
				  defined in
				  N.J.A.C.
				  6A:8-1.3.
"New school facility" means any new school facility, or new
				  addition to an existing school facility characterized by an increase in the
				  gross square footage of the facility, used wholly or in part for educational
				  purposes by a district board of education, but excludes stadiums, grandstands,
				  garages, facilities used for non-instructional and non-educational purposes,
				  and any facility used solely for administration. It also excludes renovations
				  to existing space that do not increase the gross square footage of the
				  facility.
"Non-discretionary fixed costs" means fixed costs incurred by
				  a school district in its operation that are outside the control of the district
				  board of education.
"OFAC" means the Office of Fiscal Accountability and
				  Compliance within the New Jersey Department of Education.
"Other capital project" means as defined at N.J.A.C.
				  6A:26-1.2.
"Permanent fund" means a fund used to report resources that
				  are legally restricted to the extent that only earnings, and not principal, may
				  be used for purposes that support the reporting district board of education's
				  programs.
"Prebudget year," as defined by
				  N.J.S.A.
				  18A:7F-45, means the school fiscal year
				  preceding the year in which the school budget is implemented.
"Prebudget year adjusted tax levy" means the adjusted tax
				  levy of the prebudget year less separate question(s) unless explicitly approved
				  to be permanent.
"Presumptive efficient spending level" means the State median
				  cost per pupil of the prebudget year as reflected in the Taxpayers' Guide to
				  Education Spending by indicator for the applicable operating type and
				  enrollment range adjusted by the increase in CPI, or the efficiency standards
				  established pursuant to
				  N.J.S.A.
				  18A:7F-46 and used in the calculation of the
				  adequacy budget pursuant to the provisions of
				  N.J.S.A.
				  18A:7F-51, whichever is more appropriate and
				  comparable for the particular spending category under review as determined by
				  the Commissioner.
"Proposed budget" means the budget required pursuant to
				  N.J.S.A.
				  18A:7F-5.c.
"Proprietary funds" means the funds used to account for
				  district board of education activities where the reporting focus is on the
				  determination of operating income, financial position, and cash flow.
				  Proprietary funds include enterprise and internal service funds.
"Regional school district" means a limited- or all-purpose
				  public school district established on a regional basis pursuant to
				  N.J.S.A.
				  18A:13-1 et seq.
"Relative" means an individual's spouse, civil union partner
				  pursuant to
				  N.J.S.A.
				  37:1-33, domestic partner as defined in
				  N.J.S.A.
				  26:8A-3, or the parent, child, sibling, aunt,
				  uncle, niece, nephew, grandparent, grandchild, son-in-law, daughter-in-law,
				  stepparent, stepchild, stepbrother, stepsister, half-brother, or half-sister of
				  the individual or of the individual's spouse, civil union partner, or domestic
				  partner, whether the relative is related to the individual or the individual's
				  spouse, civil union partner, or domestic partner by blood, marriage, or
				  adoption.
"Required maintenance" means as defined in N.J.A.C.
				  6A:26-1.2.
"School business administrator" or "SBA" means the school
				  business administrator appointed pursuant to
				  N.J.S.A.
				  18A:17-14.1 or any other title used for the
				  chief financial officer of the school district, such as assistant
				  superintendent for business or assistant superintendent for finance, and
				  requiring the school business administrator endorsement pursuant to
				  N.J.A.C.
				  6A:9B-11.3(d).
"School district" means any local or regional school district
				  established pursuant to chapter 8 or chapter 13 of Title 18A of the New Jersey
				  Statutes or a school district under full State intervention pursuant to
				  N.J.S.A. 18A:7A-34, but not including a charter school established pursuant to
				  18A:36A-1 et seq. unless
				  specified otherwise.
"School district vehicle" means a vehicle purchased, leased,
				  lease-purchased, or acquired without cost by gift, donation, or other method by
				  the school district regardless of funding source.
"School Employees' Health Benefit Program" or "SEHBP" means
				  the School Employees' Health Benefit Program pursuant to
				  52:14-17.4 6.1 et seq., which
				  shall be the successor plan to the SHBP for school employees.
"School facilities project" means as defined in
				  N.J.A.C.
				  6A:26-1.2 and pursuant to
				  N.J.S.A.
				  18A:7G-3.
"School report card" means the school report card prepared
				  and disseminated to parents and other interested taxpayers within each local
				  school district pursuant to
				  18A:7E-2.
" Sending-receiving relationship" means an agreement between
				  two district boards of education, one of which does not have the facilities to
				  educate in-district an entire grade(s) or provide an entire program(s), and as
				  an alternative sends such students to a district board of education having such
				  accommodations and pays tuition, pursuant to
				  N.J.S.A.
				  18A:38-8 et seq.
"Shared service" means any educational or administrative
				  service required to be performed by a district board of education in which the
				  school district, with district board of education approval, is able and willing
				  to share in the costs and benefits of that service with another district board
				  of education, municipality, or other governmental unit, as authorized by the
				  Uniform Shared Services and Consolidation Act at
				  N.J.S.A.
				  40A:65-1 et seq., and in compliance with
				  existing school laws at N.J.S.A. 18A, but does not include sending-receiving
				  relationships.
"Special revenue fund" means the governmental fund that
				  accounts for the proceeds of specific revenue sources (other than trusts, or
				  revenues for major capital projects) that are legally restricted to
				  expenditures for specified purposes.
"Spending growth limitation" means the annual rate of growth
				  permitted in the net budget of a school district, county vocational school
				  district or county special services school district as measured between the net
				  budget of the prebudget year and the net budget of the budget year as
				  calculated pursuant to
				  18A:7F-5(d) 
				  (authorization for spending growth limitation adjustments) and
				  18A:7F-5a (authorization for cap
				  banking).
"Standard operating procedures" or "SOPs" mean procedures
				  that cover all business functions and are detailed with specific steps and
				  instructions; are realistic based on the employment structure and business
				  system; tie with job descriptions; and are supported by management.
"State support" means as defined at N.J.A.C.
				  6A:26-1.2.
"Student activity fund" means a fund used to account for
				  monies derived from athletic events or other activities of pupil organizations
				  and to account for the accumulation of money to pay for student group
				  activities.
"Subsistence" means lodging, meals, and incidental expenses
				  associated with traveling.
"Superintendent" means the superintendent of schools
				  appointed pursuant to
				  N.J.S.A.
				  18A:17-15, the administrative principal
				  appointed pursuant to
				  N.J.S.A.
				  18A:17-20.5, or the State district
				  superintendent appointed pursuant to
				  N.J.S.A.
				  18A:7A-35 or
				  18A:7A-49 in a school district
				  under full or partial State intervention.
"Surplus" means the amount of undesignated, unreserved fund
				  balance as of July 1 of each year.
"T&E" means the thorough and efficient system of free
				  public schools for the instruction of all children in the State between the
				  ages of five and 18 years as required by the State Constitution and defined by
				  the New Jersey Student Learning Standards and efficiency standards established
				  pursuant to
				  18A:7F-46.
"Taxpayers' Guide to Education Spending" or "TGES" means the
				  annual report of comparative financial statistics of school districts compiled
				  and published for general distribution by the Commissioner, pursuant to
				  N.J.S.A.
				  18A:4-30, and available on the Department's
				  website.
"Thoroughness standards" means the New Jersey Student
				  Learning Standards as approved by the State Board pursuant to
				  N.J.S.A.
				  18A:7F-46.a.
"Travel expenditures" means those costs paid by the school
				  district using local, State, or Federal funds, whether directly by the school
				  district or by employee reimbursement, for travel by school district employees
				  and district board of education members to the following five types of travel
				  events:
1. "Training and seminars" means all regularly scheduled,
				  formal residential or non-residential training functions, conducted at a hotel,
				  motel, convention center, residential facility, or at any educational
				  institution or facility;
2. "Conventions and conferences" means general programs,
				  sponsored by professional associations on a regular basis, which address
				  subjects of particular interest to a school district or are convened to conduct
				  association business. The primary purpose of employee attendance at conferences
				  and conventions is the development of new skills and knowledge or the
				  reinforcement of those skills and knowledge in a particular field related to
				  school district operations. These are distinct from formal staff training and
				  seminars, although some training may take place at such events;
3. "School district sponsored events" means conferences,
				  conventions, receptions, or special meetings, where the school district plans,
				  develops, implements, and coordinates the event and is the event's primary
				  financial backer. School district employees are actively involved in working
				  the event and other employees may attend as participants;
4. "Regular school district business travel" means all
				  regular official business travel, including attendance at meetings,
				  conferences, and any other gatherings that are not covered by the definitions
				  included in paragraphs 1, 2, and 3 above. Regular school district business
				  travel also includes attendance at regularly scheduled in-State county meetings
				  and Department-sponsored or association-sponsored events provided free of
				  charge and regularly scheduled in-State professional development activities
				  with a registration fee that does not exceed $ 150.00 per employee or district
				  board of education member. Beginning in 2009-2010, the $ 150.00 limit per
				  employee or district board of education member may be adjusted by inflation;
				  and
5. "Retreats" means meetings with school district employees
				  and district board of education members, at which organizational goals and
				  objectives are discussed.
"Underbudgeted revenue" means any general fund revenue
				  realized that exceeds the amount included in the original school district
				  budget certified for taxes.
"Unrestricted State aid" means State aid as defined in
				  18A:7F-37.
"Unused spending authority" means the amount pursuant to
				  N.J.S.A.
				  18A:7F-5a of the difference between the net
				  budget of a school district, county vocational school district or county
				  special services school district, and the permitted net budget as authorized
				  pursuant to
				  18A:7F-5(d).
"Unused tax authority" means the amount of the difference
				  between the maximum allowable amount to be raised by taxation for the current
				  school budget year and the actual amount to be raised by taxation for the
				  current school budget year, pursuant to
				  N.J.S.A.
				  18A:7F-39.
"Weighted resident enrollment" means the differentials in
				  costs based on the efficiency standards established pursuant to
				  N.J.S.A.
				  18A:7F-46.a of providing education at the
				  kindergarten, elementary (grades one through five), middle school (grades six
				  through eight), and high school levels (grades nine through 12), which are
				  determined by dividing the elementary cost per pupil into each category. The
				  weights are applied to resident enrollment in each category pursuant to
				  N.J.S.A.
				  18A:7F-50.