40A:5-4. Annual audit required; extensions
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/nj/title-40a/chapter-5/40a-5-4A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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 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.
Amended 1977,c.396,s.1; 1991,c.216; 2025, c.185, s.8.