New Jersey Administrative Code › Title 17 - TREASURY - GENERAL › Chapter 19 - CLASSIFICATION AND PREQUALIFICATION OF FIRMS › Subchapter 2 - CLASSIFICATION OF FIRMS › Section 17:19-2.1 - Statements required from firms requesting classification

Current through Register Vol. 56, No. 14, July 15, 2024
(a)
				Only those firms holding a valid classification in a trade as issued by the
				DPMC shall be eligible to bid for work in that specified trade on a public
				works project, unless otherwise permitted by law. In addition, no bid proposal
				for a public works project shall be accepted unless every subcontractor in
				every trade required by law, the bid advertisement, or the bid documents, to be
				named in the bid proposal holds a valid classification issued by the DPMC in
				the trade for which that subcontractor is named. Said classification and rating
				must be valid on the bid due date for the project.
(b) Each DPMC-27 shall be completed in its
				entirety and all questions must be answered and all requested information must
				be provided. Incomplete submissions will not be processed by the DPMC. All
				financial statements shall conform with generally accepted accounting
				principles and be completed by either a certified public accountant (CPA) or
				public accountant, pursuant to
45:2B-42
et seq., who is
				independent of and not an employee of the firm for which the financial
				statements are being provided. Information required by the DPMC-27 includes:
1. A financial statement, which may be a
				certified audited statement, review statement, or compilation of statements,
				depending upon the aggregate rating being sought by the firm. The firm must
				submit its most recent financial statement, which shall not be more than 12
				months old. The financial statement shall include a cover letter signed by the
				public accountant or CPA who prepared the document. The financial statement
				shall include at a minimum a balance sheet, related statements of income and
				retained earnings and cash flows and notes to financial statements in complete
				detail and shall comprise at least a six-month accounting cycle. The certified
				audited financial statements shall have an unqualified opinion.
i. Submission of a compilation of financial
				statements will limit a firm's maximum aggregate rating to not more than $
				5,000,000.
ii. Submission of a CPA
				review of financial statements will limit a firm's maximum aggregate rating to
				not more than $ 15,000,000.
iii.
				Submission of a CPA's certified audited financial statement will be required
				for aggregate ratings exceeding $ 15,000,000.
iv. Submission of combined or consolidated
				statements is not acceptable, unless complete supplementary (combining or
				consolidating) information is included within the report. This information
				shall be of such detail as to show the financial condition of the particular
				firm seeking classification;
v.
				Where the firm seeking classification is a subsidiary of a parent firm,
				submission of the parent company's 10K report (annual report required by the
				U.S. Securities and Exchange Commission) is permissible, if it contains a
				sufficient separate breakdown of information regarding the financial status and
				condition of the subsidiary firm. If the 10K report does not provide
				information clearly reflecting the financial condition of the subsidiary firm,
				a balance sheet provided by the firm's in-house accountant detailing current
				assets and liabilities will be acceptable, provided that the information is
				certified as both accurate and consistent with the 10K report, by the person
				who has signed the 10K report on behalf of the parent company.