The Division of Local Government Services has issued Local Finance Notice 2024-10 providing a Local Finance Board Regulatory Update on Municipal, County, & Joint Meeting Audits. The notice outlines the various changes made to N.J.A.C. 5:30-6, which codified existing audit procedures and made substantive changes in other areas such as auditor fraud.
Some of the changes include:
- Annual audits may list the most recent available GASB 68 or 75 information concerning pension and post-retirement benefit liabilities instead of waiting for the current version.
- If a solid waste collection district exists, an audit must be included with the annual municipal audit.
- The content and publication requirements for a synopsis of the audit have been codified. The synopsis must include a comparative balance sheet; a comparative statement of revenue, expenses, and surplus changes; and a summary of all comments, findings, and recommendations, including an identification for repeat comments.
- Requires the corrective action plan to include: the reference number assigned by the auditor; the corrective action planned and anticipated completed date; the responsible person’s contact information; and for any audit finding the governing body disagrees, or believes correction action is not required, an explanation with specific reasons.
- Requires each corrective action cited in the corrective action plan to be initiated within six months after the auditor files the annual audit with the local unit.
- Establishes a standard form of a confidential report to notify the Director and the local unit when fraud or illegal acts are discovered.
We suggest you review this Local Finance Notice with your Chief Financial Officer.
Contact: Lori Buckelew, Deputy Executive Director & Director of Government Affairs, lbuckelew@njlm.org, 609-695-3481, x112.