New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 30 - LOCAL FINANCE BOARD › Subchapter 5 - CERTIFICATIONS OF AVAILABILITY OF FUNDS, AND ACCOUNTING SYSTEM REQUIREMENTS FOR LOCAL UNITS › Section 5:30-5.4 - Procedure

Current through Register Vol. 56, No. 14, July 15, 2024
(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.