New Jersey Statutes 40A:5-16.5. Certain government entities authorized to adopt policies for payment of claims electronically; definitions
Terms Used In New Jersey Statutes 40A:5-16.5
- check: means the instrument by which moneys of any local unit are disbursed. See New Jersey Statutes 40A:5-2
- chief financial officer: means , except in the case of a municipality, the director of revenue and finance, comptroller, treasurer, collector or other financial officer of a local unit. See New Jersey Statutes 40A:5-2
- Electronic funds transfer: The transfer of money between accounts by consumer electronic systems-such as automated teller machines (ATMs) and electronic payment of bills-rather than by check or cash. (Wire transfers, checks, drafts, and paper instruments do not fall into this category.) Source: OCC
- Fraud: Intentional deception resulting in injury to another.
- governing body: means the governing body of a county or the commission, council, board or body having control of the finances of a municipality or any other local unit as defined herein. See New Jersey Statutes 40A:5-2
- local finance board: means the Local Finance Board in the Division of Local Government Services in the Department of Community Affairs. See New Jersey Statutes 40A:1-1
- local unit: means any county, municipality, special district or any public body corporate and politic created or established under any law of this State by or on behalf of any one or more counties or municipalities, or any board, commission, department or agency of any of the foregoing having custody of funds, but shall not include a school district. See New Jersey Statutes 40A:5-2
- Oversight: Committee review of the activities of a Federal agency or program.
- State: extends to and includes any State, territory or possession of the United States, the District of Columbia and the Canal Zone. See New Jersey Statutes 1:1-2
b. (1) Any policy adopted pursuant to subsection a. of this section shall explicitly list the forms of standard electronic funds transfer technologies that may be used by that local unit, board of education, or county college.
(2) A policy adopted pursuant to subsection a. of this section shall designate the chief financial officer of the local unit, board of education, or county college as being responsible for the oversight and administration of the disbursement policy and associated systems. The chief financial officer shall document and implement internal controls sufficient to ensure safe and proper use of the system and mitigate the potential for fraud and abuse.
c. As used in this section:
“Chief financial officer” means the official designated by the governing body to be responsible for the proper administration of the finances of the local unit, board of education, or county college under any statutes and such rules and regulations promulgated by any State agency as may pertain to the financial administration of the local unit, board of education, or county college.
“Governing body” means the board, body, or administrator, by whatever name it may be known, having charge of the finances of the local unit, board of education, or county college.
“Internal controls” mean fiscal and operational controls that ensure safe and proper use of a standard electronic funds transfer system and mitigate the potential for fraud and abuse.
“Local unit” means a local unit as defined in N.J.S. 40A:5-2
“Standard electronic funds transfer technologies” mean technologies that facilitate the transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, initiated by means such as, but not limited to, an electronic terminal, telephone, or computer or magnetic tape for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account, and incorporate, at a minimum, internal controls set forth in regulations promulgated by the Local Finance Board.
d. The Local Finance Board, in consultation with the Commissioner of Education and the Secretary of Higher Education, may adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C. 52:14B-1 et seq.), for the purpose of implementing the provisions of this act.
L.2016, c.29, s.1.