Bill Text: NJ A994 | 2024-2025 | Regular Session | Introduced
Bill Title: Creates the "Local Unit Audit Teams" program in Department of the Treasury.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-01-09 - Introduced, Referred to Assembly State and Local Government Committee [A994 Detail]
Download: New_Jersey-2024-A994-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Assemblywoman NANCY F. MUNOZ
District 21 (Middlesex, Morris, Somerset and Union)
SYNOPSIS
Creates "Local Unit Audit Teams" program in Department of Treasury.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act creating the "Local Unit Audit Teams" program in the Department of the Treasury and supplementing Title 52 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is created and established within the Department of the Treasury the "Local Unit Audit Teams" program which shall be administered by the State Treasurer.
b. For the purposes of this act, "local unit" means a school district, county, municipality, or other political subdivision of the State, or agency thereof.
2. The purpose of the "Local Unit Audit Teams" program shall be to provide local units with a comprehensive management review and consulting service administered by the State, at no cost to the local units.
3. The State Treasurer, in consultation with the Commissioners of Community Affairs and Education, shall establish standards for the "Local Unit Audit Teams" program. The State Treasurer shall establish a series of audit teams, each of which shall include, at a minimum, an experienced municipal or school management professional, as appropriate, to be appointed by the State Treasurer, and staff from the Departments of the Treasury, Education, and Community Affairs. All team members shall serve for a term of three years and shall be eligible for reappointment.
4. The "Local Unit Audit Teams" program is entitled to call to its assistance and avail itself of the services of employees of any State, county or municipal department, board, bureau, commission, agency, or school district as it may require and as may be available to it for its purposes. The Department of the Treasury shall supply professional, stenographic, and clerical assistance which is necessary for the program to perform its duties. The program may incur miscellaneous expenses as it may deem necessary, in order to perform its duties, and as may be within the limits of funds appropriated or otherwise made available to it for those purposes.
5. The "Local Unit Audit Teams" program shall review all aspects of local unit operation; identify ways to improve efficiency and reduce costs; document State regulations and mandates which place financial burdens on local units without value-added benefits and suggest, on behalf of local officials, which ones should be modified or eliminated; and identify best practices and innovative ideas that other local units may emulate.
6. In order for a local unit to participate in the "Local Unit Audit Teams" program, a majority of its elected officials, or, in the case of municipalities governed by the provisions of Article 3 or 16A of the "Optional Municipal Charter Law," P.L.1950, c.210 (C.40:69A-31 et seq. and C.40:69A-149.1 et seq.), or by the provisions of laws governing boroughs, R.S.40:86-1 to R.S.40:94-6 inclusive, the mayor and a majority of its elected officials, shall request the assistance of an audit team through a resolution that states that the local unit agrees to make all personnel and records available to the audit team, and agree to a public meeting in which the audit team's findings and recommendations are discussed. This resolution shall be transmitted to the State Treasurer, who shall then assign an audit team to the local unit for the purpose of performing an audit.
7. As part of each audit, the audit team shall interview each elected official in the local unit, as well as any employees, appointees, members of the public, contractors, and other individuals that are deemed appropriate. The audit team shall examine current collective bargaining agreements, audit reports, public offering statements, annual financial statements, operating budgets, personnel policies and other written procedures and policies, the municipal code, contracts for labor, goods, and services, records of the local unit's contracting practices, independent reports and recommendations previously developed for the governmental entities, and any other information the team deems appropriate. The audit team shall physically visit and observe the work procedures and operations throughout the governmental entity to observe employees in the performance of their duties. Following a six to eight week interview and observation process, the audit team shall evaluate its observations, develop alternatives for the local unit, and identify solutions implemented by other local units.
8. The results of each audit team review shall be compiled in a report that is presented to the elected officials of the local unit at a public meeting. The report shall include: identification of best practices; recommendations that will lead to decreased reliance on property taxes; specific insight and guidance to the local unit to ease the implementation of the recommendations presented; and suggestions for review of specific State laws or regulations. The "Local Unit Audit Teams" program shall file annually with the Governor and the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), each of its audit teams' reports, accompanied with any proposed legislation which it may desire to recommend for enactment.
9. The State Treasurer may promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of this act.
10. This act shall take effect on the first day of the seventh month next following enactment, except that sections 3 and 9 shall take effect immediately.
STATEMENT
This bill creates the "Local Unit Audit Teams" program in the Department of the Treasury, to be established by the State Treasurer in consultation with the Commissioners of Education and Community Affairs. The program shall provide local units with a comprehensive management review and consulting service administered by the State, at no cost to the local units. The program will consist of a series of audit teams, each of which shall include, at a minimum, an experienced municipal or school management professional and staff from the Departments of the Treasury, Education, and Community Affairs. All team members shall serve for a term of three years and shall be eligible for reappointment.
Local units may request an audit from one of the audit teams by passing a resolution that states that the local unit agrees to make all personnel and records available to the audit team, and agree to a public meeting in which the audit team's findings and recommendations are discussed. An audit team will then interview all elected officials of the local unit and other parties that it deems appropriate, review the local unit's records, and visit and observe the work procedures and operations throughout the governmental entity to observe employees in the performance of their duties.
After the completion of the audit, the audit team shall prepare a report that shall include: identification of best practices; recommendations that will lead to decreased reliance on property taxes; specific insight and guidance to the individual entity to ease the implementation of the recommendations presented; and suggestions for review of specific state laws or regulations. This report shall be presented to the elected officials of the local unit in a public meeting. The "Local Unit Audit Teams" program shall file annually with the Governor and the Legislature each of its audit teams' reports, accompanied with any proposed legislation which it may desire to recommend for enactment.
This bill is part of a series of initiatives designed to address the issue of high property taxes in New Jersey.
