The Division of Local Government Services (DLGS) has issued Local Finance Notice 2024-13 (LFN 2024-13) updating the Best Practice Inventory following the FY2025 Appropriations Act. The 2024 Best Practice Inventory evaluates each municipality’s adherence to various laws and gauges how they implement fiscal and operational best practices.
Municipalities operating on both a State and Calander Fiscal Year budget cycle must submit their completed best practices inventory to DLGS by the end of business on Friday, October 25, 2024. DLGS recommends completing and submitting the best practices inventory promptly to address any technical or content-related issues. Once a best practices inventory is submitted, modifications to answers are prohibited.
The 2024 Inventory consists of 69 questions divided into three scoring categories: Core Competencies (41 questions), Best Practices (11 questions), and Unscored Survey (17 questions). To streamline data collection, 12 of the Unscored Survey questions are further divided into multiple subparts. This year, the Division has added 11 new scored questions. Municipalities must achieve a minimum score of 35 on the Inventory to qualify for their full Final Aid payment and based on the best practices inventory results, DLGS will decide if a portion of a municipality’s final formula aid payment will be withheld based on the following scoring criteria:
- 0-26: 100% payment with no withholding.
- 31-34: 75% payment, 25% of final aid withheld.
- 27-30: 50% payment, 50% of final aid withheld.
- 0-26: No payment, 100% withholding.
- Failure to submit the best practices inventory will be considered a zero score.
The deadline for municipalities scoring appeals is Friday, October 25, 2024, and must be emailed to bestpractices@dca.nj.gov with the heading “Best Practices Appeal”. For more information on the FY2024 State aid to municipalities please review LFN 2024-12 and LFN 2024-13.
Please see DLGS Best Practice Inventory Instructions and FAQ Best Practices for more details concerning directions and log-in and access information. If technical assistance is required, please email Matthew.Gallello@dca.nj.gov . For questions regarding the best practices inventory please email bestpractices@dca.nj.gov .
The League strongly recommends reviewing LFN 2024-13 with your municipal management and finance professionals.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.