Requires local budgets to be prepared using generally accepted accounting principles.

A5299

ASSEMBLY, No. 5299

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED JUNE 23, 2026

Sponsored by:

Assemblywoman� VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

SYNOPSIS

���� Requires local budgets to be prepared using generally
accepted accounting principles.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
requiring local budgets to be prepared using generally
accepted accounting principles, amending various sections of statutory law, and
supplementing
chapter 5 of Title 40A of the New Jersey Statutes
.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� (New section)� The Local
Finance Board shall prescribe a uniform system of double entry bookkeeping
which is consistent with the generally accepted accounting principles
established by the Governmental Accounting Standards Board for use in all local
units and require the maintenance and use of the same.

���� 2.� R.S.40:5-2 is amended to
read as follows:

���� 40:5-2.� Any county or
municipality may make a voluntary contribution of not more than $125,000
annually to any duly incorporated first aid and emergency or volunteer
ambulance or rescue squad association of the county, or of any municipality
therein, rendering service generally throughout the county, or any of the
municipalities thereof.� In addition, if any such associations experience
extraordinary need, the county or municipality may contribute an additional
amount of not more than $70,000 annually; provided, however, that the need for
such additional funds is established by the association and is directly related
to the performance of said association's duties.� Whenever the total annual
county or municipal contribution to an association exceeds $70,000, the chief
financial officer of the county or municipality shall receive an audit
performed by a certified public accountant
[
or
a registered municipal accountant
]

of each association's financial records for the current year which shall
certify to the governing body of the county or municipality that such records
are being maintained in accordance with
[
sound
]

generally
accepted
accounting principles.

���� Any county or municipality may
appropriate such additional sums as it may deem necessary for the purchase of
first aid, ambulance, rescue or other emergency vehicles, equipment, supplies
and materials for use by these associations, the title to which shall remain
with the county or municipality, provided that the funds are controlled and
disbursed by the county or municipality.

���� In the case of a joint
purchase made by the governing bodies of two or more local units pursuant to
the provisions of the "Consolidated Municipal Services Act,"
P.L.1952, c.72 (C.40:48B-1 et seq.), the title to the purchase shall be held by
the joint meeting formed by the contracting governing bodies.

(cf: P.L.2022, c.12, s.1)

���� 3.� Section 1 of P.L.1952,
c.303 (C.40:11A‑6.1) is amended to read as follows:

���� It shall be the duty of every�
"parking authority,"� created pursuant to the act to which this act
is a supplement, to cause an annual audit of the accounts of the authority to
be made and filed with the authority, and for this purpose the authority shall
employ a registered municipal accountant of New Jersey or a certified public
accountant of New Jersey.� The audit shall be completed and filed with the
authority within four months after the close of the fiscal year� of the
authority and a certified duplicate copy thereof shall be filed with the
Director of the Division of Local Government
Services
in the Department
of
[
the
Treasury
]

Community Affairs
within five days after the original report is filed
with the authority.

(cf: P.L.1952, c.303, s.1)

���� 4.� Section 1 of P.L.1952,
c.301 (C.40:14A-7.1) is amended to read as follows:

���� It shall be the duty of every
"sewerage authority," created pursuant to the act to which this act
is a supplement, to cause an annual audit of the accounts of the authority to
be made and filed with the authority, and for this purpose the authority shall
employ
[
a
registered municipal accountant of New� Jersey or
]
a certified public accountant of
New Jersey. �The audit shall be completed and filed with the authority within
four months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed with the Director of the Division of
Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
within five days after the original report is filed with the
authority.

(cf: P.L.1952, c.301, s.1)

���� 5.� Section 66 of P.L.1957,
c.183 (C.40:14B-66) is amended to read as follows:

���� Each municipal authority shall
cause an annual audit of its accounts to be made, and for this purpose it shall
employ
[
a
registered municipal accountant of� New Jersey or
]
a certified public accountant of
New Jersey. �The audit shall be completed and filed with the municipal
authority within
[
4
]

four

months after the close of the fiscal year of the municipal authority and a
certified duplicate copy thereof shall be filed with the Director of the
Division of Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
within
[
5
]

five

days after the original report is filed with the municipal authority.

(cf: P.L.1957, c.183, s.66)

���� 6.� Section 11 of P.L.1962,
c.134 (C.40:33-13.13) is amended to read as follows:

���� The treasurer of the board of
trustees shall receive and hold, in behalf of the board, all funds of the
library and shall pay out or transfer such funds, as directed by resolution of
the board of trustees, by check signed by
[
him
]

the
treasurer
and countersigned by the president of the board of trustees or
other trustee or trustees designated by the board of trustees.� The treasurer
shall give adequate bond or bonds, conditioned for the faithful performance and
discharge of his duties, payable to the board of trustees and to the
participating counties, in an amount or amounts required by the board of
trustees.� All accounts and financial transactions of the regional library
shall be audited annually by a registered municipal accountant of New Jersey
and filed with the Director of the Division of Local Government
Services in
the Department of Community Affairs
on or before May 31.

(cf: P.L.1962, c.134, s.11)

���� 7.� Section 12 of P.L.1946,
c.276 (C.40:37-95.12) is amended to read as follows:

���� The commission shall at all
times keep or cause to be kept full and accurate accounts of its receipts and
expenditures, and of its resources and liabilities, and shall prepare or cause
to be prepared detailed annual statements thereof, and shall employ the
services of the Division of Local Government
[
of
]

Services
in
the
[
State
]
Department of

[
Taxation
and Finance
]

Community Affairs
or of a competent
[
registered
municipal
]

certified public
accountant of New Jersey to audit, annually, the books,
accounts and statements of the commission, and shall cause copies of
[
said
]

the
annual
audits, when completed, to be preserved as part of its permanent records and
shall transmit certified copies of
[
such
]

the

audits to the board of
[
chosen�
freeholders
]

county commissioners
of
[
said
]

the

county.

(cf: P.L.1946, c.276, s.12)

���� 8.� Section 45 of P.L.1960,
c.183 (C.40:37A-88) is amended to read as follows:

���� Each authority shall cause an
annual audit of its accounts to be made, and for this purpose it shall employ
[
a registered
municipal accountant of New Jersey or
]

a certified public accountant of New Jersey.� The audit shall be completed and
filed with the authority within
[
4
]

four

months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed in the office of the Division of Local
Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
and in the office of the treasurer of the county within
[
5
]

five

days after the original report is filed with the authority.

(cf: P.L.1960, c.183, s.45)

���� 9.� Section 44 of P.L.1967,
c.136 (C.40:37B-44) is amended to read as follows:

���� Each authority shall cause an
annual audit of its accounts to be made and for this purpose it shall employ
[
a registered
municipal accountant of New Jersey or
]

a certified public accountant of New Jersey.� The audit shall be completed and
filed with the authority within
[
4
]

four

months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed in the office of the Division of Local
Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
and in the office of the treasurer of the county, within
[
5
]

five

days after the original report is filed with the authority.

(cf: P.L.1967, c.136, s.44)

���� 10.� Section 18 of P.L.1973,
c.376 (C.40:37C-18) is amended to read as follows:

���� It shall be the duty of every
authority created pursuant to this act to cause an annual audit of the accounts
of the authority to be made and filed with the authority, and for this purpose
the authority shall employ
[
a
registered municipal accountant of New Jersey or
]
a certified public accountant of
New Jersey.� The audit shall be completed and filed with the authority within
[
4
]

four

months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed with the Director of the Division of
Local Government Services in the Department of Community Affairs within
[
5
]
five

days after the original report is filed with the authority.� Every authority
created pursuant to this act shall file a certified copy of every bond
resolution with the Director of the Division of Local Government Services in
the Department of Community Affairs and in addition shall file a certified copy
of all bond proceedings with the director.

(cf: P.L.1973, c.376, s.18)

���� 11.� R.S.40:62-2 is amended to
read as follows:

���� Any municipality engaged in
the business of operating any light, heat or power plant or works or engaged in
the business of transportation, shall, with respect to such business and the
property and plant used by it:�

���� a. keep its books, records and
accounts in the same manner as provided by statute for keeping other books,
records and accounts of a municipality, and file with the Board of Public
Utility Commissioners a copy of its Annual Report of Audit by a
[
registered
municipal
]

certified public
accountant if the municipality provides light, heat or
power only within the limits of the municipality;

���� b.� keep its books, records
and accounts and make reports to the board in a� manner and form and to the
same extent as the board shall from time to time require of other public
utilities in similar businesses in all other situations;

���� c.� comply with all rules,
regulations and recommendations as to reasonable standards and service to the
same extent as the board shall from time to time require of other public
utilities engaged in other similar businesses.� The Board of Public Utility Commissioners
shall have power and authority to enforce the provisions of this section.

(cf: P.L.1973, c.277, s.1)

���� 12.� Section 1 of P.L.1952,
c.304 (C.40:66A-7.1) is amended to read as follows:

���� 1.� It shall be the duty of
every "incinerator or environmental services authority," created
pursuant to the act to which this act is a supplement, to cause an annual audit
of the accounts of the authority to be made and filed with the authority, and
for this purpose the authority shall employ
[
a
registered municipal accountant of New Jersey or
]
a certified public accountant of
New Jersey.� The audit shall be completed and filed with the authority within
four months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed with the Director of the Division of
Local Government Services in the Department of Community Affairs within five
days after the original report is filed with the authority.

(cf: P.L.2012, c.31, s.8)

���� 13.� Section 7.1 of P.L.1968,
c.249 (C.40:66A-39) is amended to read as follows:

���� It shall be the duty of every
"solid waste management authority," created pursuant to this act, to
cause an annual audit of the accounts of the authority� to be made and filed
with the authority, and for this purpose the authority shall employ
[
a registered
municipal accountant of New Jersey or
]

a certified public accountant of New Jersey.� The audit shall be completed and
filed with the authority within
[
4
]

four

months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed with the Director of the Division of
Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
within 10 days after the original report is filed with the
authority.

(cf: P.L.1968, c.249, s.7.1)

���� 14.� Section 23 of P.L.1967,
c.184 (C.40:68-49) is amended to read as follows:

���� It shall be the duty of every
Beach Erosion Control Commission created pursuant to this act to cause an
annual audit of the accounts of the commission to be made and filed with the
commission, and for this purpose the commission shall employ
[
a registered
municipal accountant of New Jersey or
]

a certified public accountant of New Jersey.� The audit shall be completed and
filed with the commission within
[
4
]

four

months after the close of the fiscal year of the commission and a certified
duplicate copy thereof shall be filed with the Director of the Division of
Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
and the municipal clerk of the municipality in which the district
is situate within
[
5
]

five

days after the original report is filed with the commission.

(cf: P.L.1967, c.184, s.23)

���� 15.� Section 1 of P.L.1952,
c.305 (C.40:68A-7.1) is amended to read as follows:

���� It shall be the duty of every
"port authority," created pursuant to the act to which this act is a
supplement, to cause an annual audit of the accounts of the authority to be
made and filed with the authority, and for this purpose the authority shall
employ
[
a
registered municipal accountant of New Jersey or
]
a certified public accountant of
New Jersey.� The audit shall be completed and filed with the authority within
four months after the close of the fiscal year of the authority and a certified
duplicate copy thereof shall be filed with the� Director of the Division of
Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
within five days after the original report is filed with the
authority.

(cf: P.L.1952, c.305, s.1)

���� 16.� Section 38 of P.L.1960,
c.192 (C.40:68A-66) is amended to read as follows:

���� Each municipal port authority
shall cause an annual audit of its accounts to be made, and for this purpose it
shall employ
[
a
registered municipal accountant of New Jersey or
]
a certified public accountant of
New Jersey.� The audit shall be completed and filed with the municipal port
authority within
[
4
]

four

months after the close of the fiscal year of the municipal port authority and a
certified duplicate copy thereof shall be filed in the office of the Division
of Local Government
Services
in the Department of
[
the Treasury
]

Community
Affairs
and in the office of the chief� financial officer of the local unit
within
[
5
]

five

days after the original report is filed with the municipal port authority.

(cf: P.L.1960, c.192, s.38)

���� 17.� N.J.S.40A:5-4 is amended
to read as follows:

���� 40A:5-4.���� The governing
body of every local unit shall cause an annual audit of its books, accounts,
and financial transactions to be made and completed no later than the last day
of the eighth month after the close of� the fiscal year of the local unit.� The
governing body of every local unit may, by resolution, petition the Director of
the Division of Local Government Services in the Department of Community
Affairs for an extension to complete and file the annual audit with the
division. �Upon good cause being shown, the director may grant an extension
upon whatever terms or conditions the director may deem reasonable.� The
determination of the director in the granting of an extension is final.� The
local unit shall be responsible for any necessary investigation and corrective
action on audit findings pursuant to this section.

���� The governing body of every
local unit shall employ a
[
registered
municipal
]

certified public
accountant of New Jersey to prepare its annual audit or
it shall enter into an agreement with the Director of the Division of Local
Government Services for an annual audit to be made by qualified employees of
the division.� The director shall establish a fee based upon the time spent and
other expenses incurred by qualified employees of the division when conducting
the annual audit for a local unit.� The local unit shall, upon request for
payment for audit services, forward a check to the director, payable to the
State Treasurer.

���� If one or more governing body
members or other responsible officials of the local unit fail or refuse to
comply with this section and has received an order from the director to do so,
the individual or individuals who willfully fail or refuse to comply shall each
be subject to a personal penalty of $100 for each day after the date fixed for
final action that failure or refusal to comply continues.� The amount of the
penalty may be recovered by the director in the name of the State as a personal
debt of the individual and shall be paid, upon receipt, into the State
Treasury.

(cf: P.L.2025, c.185, s.8)

���� 18.� N.J.S.40A:5-6 is amended
to read as follows:

���� Every
[
such
registered municipal
]

certified public
accountant shall file the original report of
[
his
]

the

audit and recommendations with the clerk and shall, within
[
5
]

five

days thereafter, file a certified duplicate copy thereof, over
[
his
]

the
certified public accountant�s
signature, in the office of the director.

(cf: N.J.S.40A:5‑6)

���� 19.� N.J.S.40A:5-7 is amended
to read as follows:

���� A synopsis of all audits,
together with the recommendations made by the
[
registered
municipal
]

certified public
accountant, shall be prepared and published by the
clerk of the local unit at least once in the official newspaper of the local
unit, if there be one, or if there be none, in a newspaper published in the
local unit
, and published on the public entity�s official Internet website
pursuant to P.L.2025, c.72 (C.35:3-1 et al.)
.� If there is no newspaper
published within the local unit, it shall be published in a newspaper having a
general circulation in the local unit.

���� If the clerk fails to have
such publication made within 30 days after receipt of the report of audit and
recommendations,
[
he
]

the clerk

shall be subject to a fine of $10
[
.00
]
payable to
the local unit for each day after the expiration of the 30 days that such
publication fails to appear.

(cf: N.J.S.40A:5-7)

���� 20.� N.J.S.40A:5-9 is amended
to read as follows:

���� Every audit required under
this chapter shall be completed by an accountant or auditor who holds
[
an uncanceled
license
]

a certificate
as a
[
registered
municipal
]

certified public
accountant of New Jersey.�
[
Such
]

The
license shall be
issued annually by the New Jersey State Board of Public Accountants, shall be
dated September 1 and run until August 31 of the following year, unless sooner
canceled or revoked by the said State� Board of Public Accountants.

���� Every report of audit shall be
signed by the
[
registered
municipal
]

certified public
accountant making the audit, or in charge thereof, who
shall be the person authorized by the local unit to make the audit.� In case
any license shall be revoked, such revocation shall not be construed to affect
any agreement which may be made by any local unit with any other registered
municipal accountant, even though such accountant shall have been associated
with the person whose license has been revoked.

(cf: N.J.S.40A:5-9)

���� 21.� N.J.S.40A:5-10 is amended
to read as follows:

���� Upon proof that any
[
registered
municipal
]

certified public
accountant shall have knowingly omitted to report any
error, omission, irregularity, violation of law or discrepancy found in the
books or accounts, or shall have issued false reports of the audit of any local
unit, or of such a nature as not to comply with the requirements of the
director, or if such
[
registered
municipal
]

certified public
accountant shall fail to file such report and
recommendations as herein directed, or neglect or refuse to carry out any
agreement for audit,
[
his
]

the

registration license may be canceled by the State Board of
[
Public
Accountants
]

Accountancy
.� It shall be the duty of the director to notify the State
Board of
[
Public
Accountants
]

Accountancy
of any matters coming to
[
his
]

the
director�s
attention relative to any of the foregoing.� Upon cancellation
or refusal of a license, a person aggrieved thereby shall have the right to a
review by the Superior Court in a proceeding in lieu of prerogative writ.

(cf: N.J.S.40A:5-10)

���� 22.� Section 15 of P.L.1983,
c.313 (C.40A:5A-15) is amended to read as follows:

���� Notwithstanding the provisions
of N.J.S.40A:5-1 et seq., each authority shall cause an annual audit of its
accounts to be made, and for this purpose it shall contract with the Division
of Local Government Services or employ a
[
registered
municipal accountant of New Jersey or
]

a certified public accountant of New Jersey.� The audit shall be completed and
filed with the authority no later than the last day of the eighth month after
the close of the fiscal year of the authority.� A certified duplicate copy thereof
shall be filed with the governing body of each local unit having created the
authority and with the director within five days after the original report is
filed with the authority.� The Local Finance Board shall, by rule or
regulation, prescribe the accounting principles and policies, auditing
procedures, and financial reporting practices applicable to authorities and
authority audits conducted pursuant to this section.� The rules and regulations
may include or be similar to any provisions of the "Local Fiscal Affairs
Law" (N.J.S.40A:5-1 et seq.) which the Local Finance Board shall deem to
be practicable or necessary.

(cf: P.L.2025, c.185, s.10)

���� 23.� Section 2 of P.L.1993,
c.87 (C.40A:9-28.2) is amended to read as follows:

���� 2. �a.� The director shall
hold examinations annually, and at such times as
[
he
]

the director
may
determine appropriate for certification of county finance officers.� An
applicant for examination shall present to the director written application on
forms provided by the Division of Local Government Services, showing that the
applicant holds a certified municipal finance officer certificate issued by the
Division of Local Government Services pursuant to P.L.1971, c.413
(C.40A:9-140.1 et seq.), or:�

���� (1)� is not less than 21 years
of age;

���� (2)� is a citizen of the
United States;

���� (3)� is of good moral
character;

���� (4)� has obtained a
certificate or diploma issued after at least four years of study in an approved
secondary school or has received an academic education considered and accepted
by the
[
Commissioner
of
]

Secretary
of Higher
Education of this State as fully equivalent;�

���� (5)� has graduated from a
four-year course at
[
a
college
]

an institution of higher education
of recognized standing with a major
course of study in business administration, accounting or equivalent subject;
and�

���� (6)� has two years of
experience as a county finance officer.

���� b.� An applicant who does not
possess the
[
college
]

higher
education
degree required under subsection a. of this section may qualify
to take the examination by furnishing proof of four years of full-time
experience in a position in a county government as a county finance officer.�
An applicant who does not possess four years of full-time experience in such a
position may substitute one year of
[
college
]

higher

education for one year of experience, up to a maximum of two years of
[
college
]

higher

education.� For the purpose of this section, one full year of
[
college
]

higher

education is equal to 30
[
college
]

higher
education
credits.�

���� c.� Every applicant shall
furnish proof that
[
he
]

the
applicant
has received certificates indicating satisfactory completion of
complete training in the following courses:�

���� (1)� municipal finance
administration;

���� (2)� municipal current fund
accounting I;

���� (3)� municipal current fund
accounting II;

���� (4)� municipal capital and
trust fund accounting;

���� (5)� municipal budget
preparation and control;

���� (6)� county fiscal operations;

���� (7)� principles of financial
management; and

���� (8)� preparation of annual
financial statements;

all as provided by the Division of
Local Government Services or Rutgers, The State University, with the approval
of the Division of Local Government Services.�

���� d.� Each completed application
form shall be accompanied by a fee in the amount of $50, payable to the State
Treasurer and shall be filed with the director at least 30 days prior to the
date of examination. Examinations shall be written, or both written and oral,
and shall be of such character as fairly to test and determine the ability of
the person tested to perform the duties of chief financial officer.�

���� e.� Upon finding by the
director that the applicant has successfully completed the examination, a
county finance officer certificate shall be issued to the applicant, upon the
payment of a fee of $50 to the order of the Treasurer of the State of New Jersey.�

���� f.� Notwithstanding the
qualifications established in this section, a county finance officer
certificate shall be issued to any person who shall make application as
required in this section, pay a fee of $50 to the order of the Treasurer of the
State of New Jersey, and:�

���� (1)� is licensed as a
[
registered
municipal
]

certified public
accountant in the State of New Jersey and who shall
furnish proof that he has received a certificate indicating satisfactory
completion or instruction of training courses in principles of financial
management, and county fiscal operations, as described herein; or�

���� (2)� is a certified municipal
finance officer in the State of New Jersey and within one year of the date of
enactment of P.L.1993, c.87 (C.40A:9-28.1 et al.) furnishes proof that
[
he
]

the
applicant
has five years of experience as a county finance officer; or�

���� (3)� is a certified municipal
finance officer in the State of New Jersey and furnishes evidence that
[
he
]

the
applicant
successfully took and passed the examination for such
certification as provided under section 2 of P.L.1971, c.413 (C.40A:9-140.2)
and that
[
he
]

the
applicant
has received a certificate indicating satisfactory completion of
training courses in preparation of annual financial statements, and county
fiscal operations as described herein; or�

���� (4)� who has been serving as a
county finance officer for five years, and who shall make application as
required in this section within six months of the effective date of this act,
and who shall furnish proof of service as described herein; however, the
certificate shall be marked as restricted to the county employing the county
finance officer.� A county finance officer holding a restricted� certificate
shall then be subject to all provisions affecting other certificate holders
under this act, including, but not limited to renewal and continuing
education.�

(cf: P.L.1993, c.87, s.2)�

���� 24.� Section 4 of P.L.1971,
c.413 (C.40A:9-140.4) is amended to read as follows:

���� Notwithstanding the
qualifications established in section 2 of this act, a municipal finance
officer certificate shall be issued to any person who
[
is licensed as
a registered municipal accountant in the State of New Jersey who
]
shall make
application as required in section 2 of this act, and who shall furnish proof
that
[
he
]

the
applicant
has received a certificate indicating satisfactory completion or
instruction of a training course in principles of financial management, as
provided by the Division of Local Government Services or Rutgers, The State
University, with the approval of the Division of Local Government Services of
the State, upon payment of a fee of $50 to the order of the Treasurer of the
State of New Jersey.

(cf: P.L.1991, c.175, s.4)

���� 25.� Section 11 of P.L.1983,
c.372 (C.40A:10-46) is amended to read as follows:

���� The insurance fund
commissioners or the executive board thereof, as the case may be, shall cause
an annual audit to be conducted by an independent certified public accountant
[
or a
registered municipal accountant
]

in accordance with the rules and regulations promulgated by the Commissioner of

Banking and
Insurance pursuant to section 14 of this act.� Copies of
every audit shall be submitted to the Commissioner of Insurance and the
Commissioner of the Department of Community Affairs within 30 working days of
its completion.

(cf: P.L.1983, c.372, s.11)

���� 26.� (New section)� a.� The
Division of Local Government Services in the Department of Community Affairs
shall provide technical assistance and advice as shall be necessary to enable
local units to comply with the provisions of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).

���� b.� The Department of
Community Affairs, as part of its annual budget request to the Legislature,
shall request monies sufficient to provide grants to local units, in a form and
manner determined by the department, for reimbursement of costs incurred by a
local unit in the implementation of the provisions of P.L.��� , c.��� (pending
before the Legislature as this bill).�

���� 27.� The Commissioner of
Community Affairs, pursuant to the "Administrative Procedures Act,"
P.L.1968, c.410 (C.52:14B-1 et.seq.), shall update and adopt rules and
regulations as necessary for the implementation of this act.�

���� 28. �This act shall take
effect beginning with the local budget year commencing on or after January 1,
2030 except that the Division of Local Government Services may take advance
action as necessary to implement the provisions of this act.�

STATEMENT

���� This bill� requires that
counties and municipalities adopt generally accepted accounting principles (GAAP)
accounting standards.� Under N.J.S.18A:4‑14, school districts are
required to adhere to these standards.� In addition, local authorities and
special districts are required to follow GAAP accounting standards under
N.J.A.C.5:31‑7.2 and 7.3, respectively.� Similarly, the State follows
these standards in the preparation of its financial statements.

���� The bill eliminates the
position of registered municipal accountant in favor of a certified public
accountant which professionals are trained on GAAP accounting.�

���� The Division of Local
Government Services in the Department of Community Affairs is required by the
bill to provide technical assistance and advice as shall be necessary to enable
local units to comply with the provisions of the bill.� The department is also
required to, as part of its annual budget request to the Legislature, request
monies sufficient to provide grants to local units, in a form and manner
determined by the department, for reimbursement of costs incurred by a local
unit in the implementation of the provisions of the bill.� The bill also makes
technical statutory updates.

���� The bill is to take effect
take effect beginning with the local budget year commencing on or after January
1, 2030 except that the Division of Local Government Services may take advance
action as necessary to implement the provisions of the bill.�