Current through Register Vol. 56, No. 6, March 18,
2024
(a) The fiscal year
of the IHC Program shall run from July 1 of each year to June 30 of the
following year.
(b) All funds of
the IHC Program shall be deposited into and disbursements made from the General
Treasury in accordance with procedures established and approved by the
Department of Treasury, Office of Management and Budget.
1. Monies pertaining to the IHC Program shall
be deposited into a dedicated account within the State's General
Fund.
2. Monies may be credited
from the General Fund to IHC bank accounts upon request by the Board through
the Department, which request shall include justification for the request with
supporting documentation, and shall be pursuant to the approval of the Director
of the Division of Budget and Accounting.
(c) Bank checking accounts shall be
established separately in the name of the IHC Program and shall be approved by
the Board.
1. The Board shall authorize
individuals to sign checks on behalf of the Board.
2. All cash and other assets shall be
invested in accordance with the investment policy developed and approved by the
Board as permitted by applicable law.
i. All
investment income earned on administrative assessment funds shall be credited
to the IHC Program and shall be applied to reduce future administrative
assessments of members of IHC Program except as provided in N.J.A.C. 11:20-
2.12(h).
(d)
No disbursements shall be made from IHC bank accounts without the approval of
the Board, except that the Board may authorize the Executive Director to make
disbursements of less than $ 1,000 per disbursement for administrative purposes
as necessary for the efficient administration of the program.
(e) All financial records shall be kept in
accordance with the State's prescribed policies and procedures. The Board shall
maintain the books and records of the IHC Program at a location in New Jersey
in a manner so that financial statements may be prepared to satisfy the Act and
other requirements of New Jersey law.
1. The
receipt and disbursement of cash for the IHC Program shall be recorded as it
occurs.
2. Non-cash transactions
shall be recorded when assets or liabilities should be realized by the IHC
Program in accordance with generally accepted accounting principles.
3. Assets and liabilities of the IHC Program,
other than cash, shall be accounted for and described in itemized
records.
4. The net balance due to
or from the IHC Program shall be calculated for each carrier either when deemed
appropriate by the Board or when requested by the carrier. The Board shall
maintain records of each carrier's financial transactions with the IHC Program
as necessary to ensure compliance with the Act and Plan of Operation, which
records shall include at least the following:
i. Any adjustments as set forth in this
Plan;
ii. Adjustments to the amount
due to or from the IHC Program based upon corrections to carrier
submissions;
iii. Interest charges
due from a carrier for late payment of amounts due to the IHC Program;
and
iv. Other records required by
the Board.
5. The Board
shall maintain a general ledger which shall be used to produce the IHC
Program's financial statements in accordance with generally accepted accounting
principles. The balances in the general ledger shall agree with the
corresponding balances in subsidiary ledger journals.
(f) The Executive Director shall prepare an
annual financial report to be delivered to the Commissioner and each member of
the Board by December 31 of each year. The annual report shall fairly present
the financial condition of the IHC Program for the preceding fiscal year.
1. All accounts shall be reconciled and trial
balances shall be determined monthly.
2. Financial statements in a form approved by
the Board shall be prepared and delivered to each member of the Board and the
Commissioner on a quarterly basis.
