N.J. Admin. Code § 6A:23A-9.11

Current through Register Vol. 56, No. 21, November 4, 2024

Section 6A:23A-9.11 - Year-end financial procedures for executive county superintendent and State monitor

(a) Within 30 days of receipt of a school district's audited ACFR, the office of the executive county superintendent or State monitor, where one has been appointed in the school district pursuant to N.J.S.A. 18A:7A-55, shall review each school district's and CVSD's I-1, Schedule of Serial Bonds, for compliance with N.J.S.A. 18A:55-3.e.

1. The executive county superintendent or State monitor, as applicable, shall notify each school district and CVSD of any debt that might result in a three percent net present value savings if refinanced and shall document whether the district board of education has passed a resolution to refinance or taken any other action to study the refinancing of such debt; and

2. The executive county superintendent or State monitor, as applicable, shall recommend to the Commissioner the withholding of State aid in an amount equal to the projected savings to be achieved through refinancing if no action has been commenced to study refinancing or refinance such debt.

(b) The office of the executive county superintendent or State monitor, as applicable, shall annually review each school district's and CVSD's audited account payables and encumbrances that are part of the reserve for encumbrances as of June 30 that are in excess of $ 5,000.

1. No earlier than October 15 but no later than December 1 of each year, each school district and CVSD shall submit to the executive county superintendent or State monitor, as applicable, a detailed list for encumbrances and a detailed list for accounts payable that comprise the aggregate amount of the respective balance sheet accounts reflected in the annual independent audit of the most recently completed fiscal year-end. Each list shall indicate for each item:

i. The purchase order number;

ii. The date of purchase order issuance;

iii. The vendor name;

iv. The purchase order amount;

v. A brief description of goods or service, and when available;

vi. The invoice number;

vii. The invoice date;

viii. The invoice amount;

ix. The check number; and

x. The check date.

(c) The executive county superintendent or State monitor, as applicable, may request back-up documentation for some or all of the items to be reviewed at school district offices or delivered to the executive county superintendent's office, if applicable.

(d) The executive county superintendent or State monitor, as applicable, may lower the dollar amount of transactions to be reviewed, if deemed warranted after reviewing transactions in excess of $ 5,000.

(e) Except for construction projects and other long-term contracts, the reserve for encumbrances or unassigned general fund balance created by cancelled encumbrances, as applicable, shall be reclassified to "assigned general fund balance for appropriation in the subsequent school year" in the aggregate amount of the following:

1. Encumbrances reflected in the independent audit report's reserve for encumbrances that are cancelled on or after July 1; or

2. Encumbrances for goods or services that have not been liquidated by September 30 of the fiscal year subsequent to the recently audited fiscal year.

(f) Account payables at year-end shall include amounts only for goods or services that have been received or rendered as evidenced by the invoice date on or before June 30 of the audited fiscal year.

(g) Account payables that do not meet the criteria at (f) above shall be treated as encumbrances in accordance with (e) above. Prior-year accounts payables that were actually encumbrances or unassigned general fund balance created by cancelled accounts payables/encumbrances, as applicable, shall be reclassified to "assigned general fund balance for tax relief in the subsequent school year" in the aggregate amount of accounts payable at June 30 of the audited fiscal year.

N.J. Admin. Code § 6A:23A-9.11

Amended by 49 N.J.R. 1038(a), effective 5/1/2017

Amended by 56 N.J.R. 2141(a), effective 11/4/2024