New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 8 - FINANCIAL ADMINISTRATION
Section 5:30-8.2 - Recommended surety bond coverage for chief financial officers

Universal Citation: NJ Admin Code 5:30-8.2

Current through Register Vol. 56, No. 6, March 18, 2024

(a) Local units shall provide a fidelity bond with faithful performance coverage for the chief financial officer or other individual holding overall management responsibility for the local unit's finances. If coverage is being provided pursuant to the local unit's blanket fidelity bond, coverage pursuant to the blanket bond for the chief financial officer or other individual holding overall management responsibility for the local unit's finances shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond.

(b) As of January 1, 2024, the following schedule shall serve as the minimum basis for the bond amount:

1. The exposure index from which the amount of the bond is calculated, is at least 10 percent of the total revenues of the local unit, including, but not limited to:
i. "Pass through" revenues, such as property tax levies for municipalities;

ii. Current, trust, capital, and utility funds for municipalities or counties;

iii. Grants;

iv. Revenues from payments in lieu of property taxes (PILOTs);

v. All taxes other than property taxes collected by the municipality; and

vi. General and special purposes funds for each enterprise of an authority.

Exposure IndexMinimum Bond Amount
0-25,000 15,000-25,000
25,000-125,000 25,000-50,000
125,000-250,000 50,000-75,000
250,000-500,000 75,000-100,000
500,000-750,000 100,000-125,000
750,000-1,000,000 125,000-150,000
1,000,000-1,375,000 150,000-175,000
1,375,000-1,750,000 175,000-200,000
1,750,000-2,125,000 200,000-225,000
2,125,000-2,500,000 225,000-250,000
2,500,000-3,325,000 250,000-300,000
3,325,000-4,175,000 300,000-350,000
4,175,000-5,000,000 350,000-400,000
5,000,000-6,075,000 400,000-450,000
6,075,000-7,150,000 450,000-500,000
7,150,000-9,275,000 500,000-600,000
9,275,000-11,425,000 600,000-700,000
11,425,000-15,000,000 700,000-800,000
15,000,000-20,000,000 800,000-900,000
20,000,000-25,000,000 900,000-1,000,000
25,000,000-50,000,000 1,000,000-1,250,000
50,000,000-87,500,000 1,250,000-1,500,000
87,500,000-125,000,000 1,500,000-1,750,000

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