New Jersey Statutes 40A:5-16.2. Payment of advance to nonprofit organization or agency with which local unit has service contract; resolution; conditions
Terms Used In New Jersey Statutes 40A:5-16.2
- Contract: A legal written agreement that becomes binding when signed.
- 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 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
a. The source of the funds to be advanced is a Federal grant allowing the local unit to receive funds in advance of disbursement and requiring that any interest earned on said funds be returned to the Federal Government;
b. The governing body has determined, by resolution, that the advance is necessary in order to prevent undue hardship to said contractor in achieving the objectives of the Federal grant;
c. The amount of the advance to any given contractor does not exceed an amount equal to the total amount of the contract divided by the number of months in the term of the contract, and provided further that the total disbursements of the local unit to the contractor, including the amount of the advance outstanding, shall not, at any time, exceed the total cash receipts of the local unit under the Federal grant up to that time; and,
d. The resolution authorizing the advance includes a schedule for the depletion of the advance, in accordance with sound accounting practice, indicating that the advance will be entirely depleted by the termination date of the contract.
L.1978, c. 114, s. 1, eff. Sept. 11, 1978.