New Jersey Department of Community Affairs
Division of Local Government Services
LOCAL FINANCE NOTICE
JAMES E. MCGREEVEY
SUSAN BASS LEVIN
JOSEPH P. MONZO
101 South Broad Street P.O. Box 803 Trenton, New Jersey 08625-0803
Adoption of New Division Rules
The Local Finance Board recently amended and adopted new rules in N.J.A.C. 5:30 that affect all municipalities
and counties (local units).
Key elements of the new rule are the codification of fixed asset accounting and the requirement to maintain a
general ledger accounting system; two of the Technical Accounting Directives (TAD) that were issued in 1986.
A third TAD on encumbrance accounting was adopted several years ago and was amended in this adoption.
The Division is simultaneously issuing a separate Local Finance Notice detailing the requirements of
maintaining a general ledger accounting system.
The substantive changes to N.J.A.C. 5:30 are in the following sections:
Waives Local Finance Board appearance for certain applications
Revises forms for Capital Budget amendments
Requires encumbrance accounting for all funds
Codifies TAD for Fixed Asset Accounting
Codifies TAD for General Ledger
Expands criteria for municipal local budget examination
Removes requirement to refusing property tax overpayments
This Notice reviews these changes. Municipal Clerks and Chief Financial Officers should share this Notice