New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 30 - LOCAL FINANCE BOARD › Subchapter 9A - ELECTRONIC DISBURSEMENTS AND CLAIMANT CERTIFICATION › Section 5:30-9A.2 - Definitions

Current through Register Vol. 56, No. 14, July 15, 2024
The following words and terms, when used in this chapter, shall
				  have the following meanings, unless the context clearly indicates otherwise:
"Authorized procurement card user" means the individual employee
				  of the local unit, local authority, or county college authorized by the chief
				  administrative officer to make transactions using a procurement card and whose name
				  physically appears on the procurement card.
"Automated clearing house (ACH) transfer" means an electronic
				  funds transfer initiated by the local unit, local authority, board of education, or
				  county college authorizing a banking institution to push funds from the entity's
				  bank account(s) into a vendor or claimant's bank account, executed through the
				  automated clearing house (ACH) electronic clearing and settlement system used for
				  financial transactions.
"Board of education" means a board of education as defined by the
				  "Public School Contracts Law,"
N.J.S.A.
				  18A:18A-1
et seq. The phrase "board of
				  education" shall include a renaissance school project as defined in the Urban Hope
				  Act (
N.J.S.A. 18A:36C-1
et seq.)
				  for purposes of this chapter.
"Charge account" or "charge card" means an account, linked to a
				  credit card issued by a specific vendor to which goods and services may be charged
				  on credit, that must be paid when a statement is issued.
"Chief administrative officer" or "chief executive officer" means
				  the appointed employee who oversees the day-to-day administrative affairs of the
				  local unit, local authority, or county college including, but not limited to, the
				  following titles: business administrator, administrator, township or city manager,
				  executive director, or president. For boards of education, the appointed employee
				  shall be the chief school administrator. In the absence of an appointed chief
				  administrative officer, the person designated by law or the governing body to manage
				  the day-to-day administrative affairs of the entity shall assume the administrative
				  responsibilities set forth in this subchapter.
"Chief financial officer" or "CFO" means the official designated
				  by the governing body to be responsible for the proper administration of the
				  finances of the local unit, local authority, or county college under any statutes
				  and such rules promulgated by any State agency as may pertain to the financial
				  administration of said entities. For boards of education, the appointed employee
				  shall be the school business administrator.
"Claimant certification" or "vendor certification" means a
				  certification pursuant to
N.J.S.A.
				  40A:5-16
.a, presented by the person
				  claiming or receiving payment, that a detailed bill of items or demand is correct
				  with regard to all particulars.
"Contract" means the written agreement entered into by a local
				  unit, local authority, or county college and an authorized procurement card user for
				  the purposes authorized in this chapter.
"County college" means county college as defined by the "County
				  College Contracts Law," P.L. 1982, c. 189 (
N.J.S.A.
				  18A:64A-25
.1 et seq.).
"Disbursement" means any payment of moneys, including any transfer
				  of funds, by any means.
"Electronic funds transfer" means any method of transferring
				  moneys permitted by this rule that does not involve the physical presentation of a
				  paper check, draft, or similar paper instrument including, but not limited to: wire
				  transfers, e-checks, automated clearing house (ACH) transfers, and transactions
				  initiated by phone or fax.
"Electronic data interchange (EDI)" means technology that provides
				  transaction related details, including invoice number(s), pay dates, and other
				  identifying information as appropriate for each transaction.
"Electronic Funds Transfer and Indemnification Agreement" means a
				  signed legally binding indemnification agreement renewed on an annual basis between
				  a local unit, local authority, board of education, or county college and a banking
				  institution authorized to conduct business in New Jersey, which authorizes that
				  institution to access bank accounts for the purpose of conducting electronic funds
				  transfers through the automated clearing house (ACH) operating system.
"Governing body" means the board, commission, council,
				  administrator, or other body by whatever name it may be known having control of the
				  finances of the local unit, local authority, board of education, or county college.
				  In those entities where a chief executive officer is authorized by law to
				  participate in such control through powers of recommendation, approval, or veto, the
				  term includes such chief executive officer to the extent of such
				  participation.
"Internal controls" mean fiscal and operational controls that
				  ensure safe and proper use of a standard electronic funds transfer system and
				  mitigate the potential for fraud and abuse. For purposes of this chapter, internal
				  controls shall include technological safeguards and cybersecurity practices, as well
				  as processes affected by the governing body, management, and other personnel
				  establishing fiscal and operational controls that reduce exposure to risk of
				  misappropriation.
"Issuer" means the financial institution that has issued a
				  procurement card, provides services, billings, and statements in support of a
				  procurement card or receives payments in satisfaction of obligations created from
				  the use of a procurement card. For purposes of these rules, issuer includes
				  intermediary transfer agents who participate in the process of implementing
				  electronic funds transfers on behalf of the local unit, local authority, or county
				  college.
"Local authority" means an entity subject to the Local Authorities
				  Fiscal Control Law,
N.J.S.A.
				  40A:5A-1
et seq.
"Local unit" means a local unit as defined in
N.J.S.A. 40A:5-2
.
"National Automated Clearing House Association (NACHA) file" means
				  a file, formatted to National Automated Clearing House Association (NACHA)
				  specifications, which contains instructions for transferring funds between
				  accounts.
"Payment documentation" means such documentation, including
				  evidence of approvals and certifications, as is required by
N.J.S.A.
				  40A:5-16
.b, 40A:5-17, and 18A:19.1 et
				  seq., and this chapter prior to the legal paying out of moneys.
"Procurement card" or "P-card" means an account or the physical
				  card that represents an account governed by characteristics specific to a
				  procurement card. These characteristics include limits of time, amount, access, and
				  purchase category controlled by the local unit, local authority, or county college
				  in accordance with an agreement with an issuer. While such cards may have the
				  appearance of a credit card, such as Visa<TM>, MasterCard(C), American
				  Express, or Discover, such general-purpose cards do not feature the controls that
				  procurement cards have and as such are not permitted under these rules.
"Procurement card statement" is the detailed billing or portion
				  thereof that lists transactions initiated via procurement card, which statement is
				  sufficient for review and reconciliation and constitutes a part of the payment
				  documentation.
"Program manager" means an individual possessing a Qualified
				  Purchasing Agent certification from the Division of Local Government Services who is
				  responsible for day-to-day oversight and management of procurement card
				  usage.
"Reconciliation of activity" means the process used to determine
				  that all transactions utilizing standard electronic funds transfer technologies are
				  accurate, authorized and allocable to encumbered appropriations.
"Standard electronic funds transfer technologies" mean
				  technologies that facilitate the transfer of funds, other than a transaction
				  originated by check, draft, or similar paper instrument, initiated by means such as,
				  but not limited to, an electronic terminal, telephone, computer or magnetic tape for
				  the purpose of ordering, instructing, or authorizing a financial institution to
				  debit or credit an account, and incorporate, at a minimum, internal controls set
				  forth in rules promulgated by the Local Finance Board. No general purpose credit or
				  debit card shall be considered a standard electronic funds transfer
				  technology.
"Supervisory review" means the process performed by an individual
				  in a supervisory capacity to confirm the propriety and accuracy of standard
				  electronic funds transfer technologies use initiated by subordinates.
"Transaction" means any activity that may result in demand for
				  payment.