New Jersey Administrative Code › Title 5 - COMMUNITY AFFAIRS › Chapter 34 - LOCAL PUBLIC AND PUBLIC SCHOOL CONTRACTS LAWS › Subchapter 7 - COOPERATIVE PURCHASING › Section 5:34-7.14 - Joint purchasing systems financial and contractual details, exclusive of boards of education

Current through Register Vol. 56, No. 14, July 15, 2024
(a) The financial and
				contractual details set forth in this section shall apply only to contracting units
				subject to the requirements of the Local Public Contracts Law (40A:11-1 et seq.). Boards of education
				shall be subject to the financial and contractual details set forth in the Public
				School Contracts Law (N.J.S.A. 18A:18A-1.1 et seq.) and the administrative
				requirements contained in N.J.A.C. 6A:23A.
(b) In the case of a joint purchasing system, the
				lead agency shall comply with the certification of funds requirement of N.J.A.C.
				5:30-5 with respect to the full amount of the contract and Division of Local
				Government Services' requirements for Encumbrance Accounting Systems.
(c) The funds of the lead agency applicable to its
				own share of the contract to be awarded shall be charged to regular appropriations
				in its budget.
(d) Prior to handling the
				funds of the other registered members, the lead agency shall request approval of the
				Director for a Dedication by Rider pursuant to
				40A:4-39, entitled "Receipts from
				Other Agencies participating in the (Name of System) joint purchasing system, System
				Identifier ________." In order to meet the statutory requirement that expenditures
				under a Rider may be made only in accordance with the availability of funds, the
				following steps shall be taken:
1. Prior to the
				award of contract, the chief financial officer of each registered member (other than
				the lead agency) shall issue a certificate of available funds, in accordance with
				N.J.A.C. 5:30-5.
2. The contracting
				agent of each registered member, with authorization by resolution of the governing
				body if over the statutory bid limit, shall issue a purchase order to the lead
				agency together with a copy of its certification of available funds.
3. The lead agency shall, in accordance with
				N.J.A.C. 5:30-5, issue its own certificate, covering the full amount of the proposed
				contract including both its own share and those of the registered members. The
				certificate shall be conditional with respect to the amounts due from the registered
				members so that the certificate shall read in part as in the following example:
$ 5,000 From (Lead Agency) appropriation number 207, Road
				  Department, Other Expenses.
$ 2,000 Due from (Name of registered member) pursuant to its
				  purchase order number 70243 and Certification of Available Funds dated _________,
				  (Lead Agency) Dedication by Rider Account Number 7.
$ 1,000 Due from (Name of registered member) per its purchase
				  order Number A-402 and Certification of Available Funds dated _________, (Lead
				  Agency) Dedication by Rider Account Number 7.
$ 8,000 Total Certified.
4. The lead agency shall then award the total
				contract to the successful bidder.
5.
				The lead agency shall not advance funds of its own to cover the purchase on behalf
				of the registered members but shall make payments only upon receipt of the funds.
				Payments to the lead agency shall be made promptly in accordance with an agreed-upon
				schedule, which may include making payment to the lead agency in advance of receipt
				of goods. The voucher providing for the advance payment shall indicate:
"Transfer of funds to (name of lead agency) as cash advance to
				  enable it to purchase the following on behalf of (name of registered member) as Lead
				  Agency in (name of joint purchasing system), System Identifier _______." "(Then list
				  what is to be purchased.)"
6.
				Funds received by the lead agency as advances from registered members shall be:
i. Placed in a separate bank account established
				within the Rider and held in trust for the purpose of permitting the lead agency to
				serve as contracting agent for the awarding of joint purchasing contracts;
ii. Used only for the payment of actual bills to
				the contractors pursuant to the overall joint purchasing agreement; and
iii. Returned immediately to the registered member
				upon any determination that the full amount is not needed for payments as initially
				expected.