New Jersey Administrative Code
Title 5 - COMMUNITY AFFAIRS
Chapter 30 - LOCAL FINANCE BOARD
Subchapter 9A - ELECTRONIC DISBURSEMENTS AND CLAIMANT CERTIFICATION
Section 5:30-9A.2 - Definitions
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise:
"Authorized procurement card user" means the individual employee of the local unit, local authority, or county college authorized by the chief administrative officer to make transactions using a procurement card and whose name physically appears on the procurement card.
"Automated clearing house (ACH) transfer" means an electronic funds transfer initiated by the local unit, local authority, board of education, or county college authorizing a banking institution to push funds from the entity's bank account(s) into a vendor or claimant's bank account, executed through the automated clearing house (ACH) electronic clearing and settlement system used for financial transactions.
"Board of education" means a board of education as defined by the "Public School Contracts Law," N.J.S.A. 18A:18A-1 et seq. The phrase "board of education" shall include a renaissance school project as defined in the Urban Hope Act (N.J.S.A. 18A:36C-1 et seq.) for purposes of this chapter.
"Charge account" or "charge card" means an account, linked to a credit card issued by a specific vendor to which goods and services may be charged on credit, that must be paid when a statement is issued.
"Chief administrative officer" or "chief executive officer" means the appointed employee who oversees the day-to-day administrative affairs of the local unit, local authority, or county college including, but not limited to, the following titles: business administrator, administrator, township or city manager, executive director, or president. For boards of education, the appointed employee shall be the chief school administrator. In the absence of an appointed chief administrative officer, the person designated by law or the governing body to manage the day-to-day administrative affairs of the entity shall assume the administrative responsibilities set forth in this subchapter.
"Chief financial officer" or "CFO" means the official designated by the governing body to be responsible for the proper administration of the finances of the local unit, local authority, or county college under any statutes and such rules promulgated by any State agency as may pertain to the financial administration of said entities. For boards of education, the appointed employee shall be the school business administrator.
"Claimant certification" or "vendor certification" means a certification pursuant to N.J.S.A. 40A:5-16.a, presented by the person claiming or receiving payment, that a detailed bill of items or demand is correct with regard to all particulars.
"Contract" means the written agreement entered into by a local unit, local authority, or county college and an authorized procurement card user for the purposes authorized in this chapter.
"County college" means county college as defined by the "County College Contracts Law," P.L. 1982, c. 189 (N.J.S.A. 18A:64A-25.1 et seq.).
"Disbursement" means any payment of moneys, including any transfer of funds, by any means.
"Electronic funds transfer" means any method of transferring moneys permitted by this rule that does not involve the physical presentation of a paper check, draft, or similar paper instrument including, but not limited to: wire transfers, e-checks, automated clearing house (ACH) transfers, and transactions initiated by phone or fax.
"Electronic data interchange (EDI)" means technology that provides transaction related details, including invoice number(s), pay dates, and other identifying information as appropriate for each transaction.
"Electronic Funds Transfer and Indemnification Agreement" means a signed legally binding indemnification agreement renewed on an annual basis between a local unit, local authority, board of education, or county college and a banking institution authorized to conduct business in New Jersey, which authorizes that institution to access bank accounts for the purpose of conducting electronic funds transfers through the automated clearing house (ACH) operating system.
"Governing body" means the board, commission, council, administrator, or other body by whatever name it may be known having control of the finances of the local unit, local authority, board of education, or county college. In those entities where a chief executive officer is authorized by law to participate in such control through powers of recommendation, approval, or veto, the term includes such chief executive officer to the extent of such participation.
"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. For purposes of this chapter, internal controls shall include technological safeguards and cybersecurity practices, as well as processes affected by the governing body, management, and other personnel establishing fiscal and operational controls that reduce exposure to risk of misappropriation.
"Issuer" means the financial institution that has issued a procurement card, provides services, billings, and statements in support of a procurement card or receives payments in satisfaction of obligations created from the use of a procurement card. For purposes of these rules, issuer includes intermediary transfer agents who participate in the process of implementing electronic funds transfers on behalf of the local unit, local authority, or county college.
"Local authority" means an entity subject to the Local Authorities Fiscal Control Law, N.J.S.A. 40A:5A-1 et seq.
"Local unit" means a local unit as defined in N.J.S.A. 40A:5-2.
"National Automated Clearing House Association (NACHA) file" means a file, formatted to National Automated Clearing House Association (NACHA) specifications, which contains instructions for transferring funds between accounts.
"Payment documentation" means such documentation, including evidence of approvals and certifications, as is required by N.J.S.A. 40A:5-16.b, 40A:5-17, and 18A:19.1 et seq., and this chapter prior to the legal paying out of moneys.
"Procurement card" or "P-card" means an account or the physical card that represents an account governed by characteristics specific to a procurement card. These characteristics include limits of time, amount, access, and purchase category controlled by the local unit, local authority, or county college in accordance with an agreement with an issuer. While such cards may have the appearance of a credit card, such as Visa<TM>, MasterCard(C), American Express, or Discover, such general-purpose cards do not feature the controls that procurement cards have and as such are not permitted under these rules.
"Procurement card statement" is the detailed billing or portion thereof that lists transactions initiated via procurement card, which statement is sufficient for review and reconciliation and constitutes a part of the payment documentation.
"Program manager" means an individual possessing a Qualified Purchasing Agent certification from the Division of Local Government Services who is responsible for day-to-day oversight and management of procurement card usage.
"Reconciliation of activity" means the process used to determine that all transactions utilizing standard electronic funds transfer technologies are accurate, authorized and allocable to encumbered appropriations.
"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, 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 rules promulgated by the Local Finance Board. No general purpose credit or debit card shall be considered a standard electronic funds transfer technology.
"Supervisory review" means the process performed by an individual in a supervisory capacity to confirm the propriety and accuracy of standard electronic funds transfer technologies use initiated by subordinates.
"Transaction" means any activity that may result in demand for payment.
