18A:3B-53.4 Secretary of Higher Education, State monitor, direct oversight, authority; conditions.
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4. a. Notwithstanding any other provision of law to the contrary, the secretary shall have the authority to appoint a State monitor and additional staff as necessary, to provide direct oversight of a public institution of higher education's fiscal and governance operations if the institution meets the following criteria:
(1)the fiscal monitoring report or comprehensive audit submitted pursuant to sections 2 and 3 of this act includes a finding of financial instability of the institution, as determined by the secretary;
(2)the institution receives an adverse or a disclaimer opinion by its independent auditor in the annual audit submitted pursuant to section 6 of P.L.2009, c.308 (C.18A:3B-51); or
(3)the institution meets any two of the following criteria:
(a)the institution ends the fiscal year with a deficit balance as calculated for budgetary purposes in the general fund, special revenue fund, or capital projects fund, with the exception of a capital projects fund deficit caused by the issuance of bond anticipation notes;
(b)the institution fails to develop and implement a plan acceptable to the secretary, or the secretary's designee, to address a deficit balance in the general fund, special revenue fund, or capital projects fund, with the exception of a capital projects fund deficit caused by the issuance of bond anticipation notes;
(c)the institution receives a qualified opinion by its annual auditor in the annual audit submitted pursuant to section 6 of P.L.2009, c.308 (C.18A:3B-51) or the fiscal monitoring report submitted pursuant to section 2 of this act;
(d)the institution receives an adverse, disclaimer, or qualified opinion by its independent auditor under the single audit section for State or federal awards in the annual audit submitted pursuant to section 6 of P.L.2009, c.308 (C.18A:3B-51) or the fiscal monitoring report submitted pursuant to section 2 of this act;
(e)the institution receives any audit findings by its independent auditor identified as material weaknesses in internal controls in the annual audit submitted pursuant to section 6 of P.L.2009, c.308 (C.18A:3B-51);
(f)the institution fails to implement a plan from the prior fiscal year which causes any findings from the independent auditor to be repeated;
(g)the institution fails to submit the annual audit required by section 6 of P.L.2009, c.308 (C.18A:3B-51) or the fiscal monitoring report required by section 2 of this act; or
(h)the institution fails to comply with the timely training of governing board members as required by section 17 of P.L.2009, c.308 (C.18A:3B-62) or any other State laws or regulations.
b. A State monitor appointed pursuant to subsection a. of this section shall be qualified by training and expertise necessary for the position and shall possess:
(1)a minimum of five years of appropriate experience in an executive-level management position; or
(2)a minimum of five years of appropriate experience and applicable credentials and certifications relating to financial management.
L.2023, c.115, s.4.