N.J. Admin. Code § 5:34-7.14

Current through Register Vol. 56, No. 21, November 4, 2024

Section 5:34-7.14 - Joint purchasing systems financial and contractual details, exclusive of boards of education

(a) The financial and contractual details set forth in this section shall apply only to contracting units subject to the requirements of the Local Public Contracts Law (40A:11-1 et seq.). Boards of education shall be subject to the financial and contractual details set forth in the Public School Contracts Law (N.J.S.A. 18A:18A-1.1 et seq.) and the administrative requirements contained in N.J.A.C. 6A:23A.

(b) In the case of a joint purchasing system, the lead agency shall comply with the certification of funds requirement of N.J.A.C. 5:30-5 with respect to the full amount of the contract and Division of Local Government Services' requirements for Encumbrance Accounting Systems.

(c) The funds of the lead agency applicable to its own share of the contract to be awarded shall be charged to regular appropriations in its budget.

(d) Prior to handling the funds of the other registered members, the lead agency shall request approval of the Director for a Dedication by Rider pursuant to 40A:4-39, entitled "Receipts from Other Agencies participating in the (Name of System) joint purchasing system, System Identifier ________." In order to meet the statutory requirement that expenditures under a Rider may be made only in accordance with the availability of funds, the following steps shall be taken:

1. Prior to the award of contract, the chief financial officer of each registered member (other than the lead agency) shall issue a certificate of available funds, in accordance with N.J.A.C. 5:30-5.

2. The contracting agent of each registered member, with authorization by resolution of the governing body if over the statutory bid limit, shall issue a purchase order to the lead agency together with a copy of its certification of available funds.

3. The lead agency shall, in accordance with N.J.A.C. 5:30-5, issue its own certificate, covering the full amount of the proposed contract including both its own share and those of the registered members. The certificate shall be conditional with respect to the amounts due from the registered members so that the certificate shall read in part as in the following example:

$ 5,000 From (Lead Agency) appropriation number 207, Road Department, Other Expenses.

$ 2,000 Due from (Name of registered member) pursuant to its purchase order number 70243 and Certification of Available Funds dated _________, (Lead Agency) Dedication by Rider Account Number 7.

$ 1,000 Due from (Name of registered member) per its purchase order Number A-402 and Certification of Available Funds dated _________, (Lead Agency) Dedication by Rider Account Number 7.

$ 8,000 Total Certified.

4. The lead agency shall then award the total contract to the successful bidder.

5. The lead agency shall not advance funds of its own to cover the purchase on behalf of the registered members but shall make payments only upon receipt of the funds. Payments to the lead agency shall be made promptly in accordance with an agreed-upon schedule, which may include making payment to the lead agency in advance of receipt of goods. The voucher providing for the advance payment shall indicate:

"Transfer of funds to (name of lead agency) as cash advance to enable it to purchase the following on behalf of (name of registered member) as Lead Agency in (name of joint purchasing system), System Identifier _______." "(Then list what is to be purchased.)"

6. Funds received by the lead agency as advances from registered members shall be:

i. Placed in a separate bank account established within the Rider and held in trust for the purpose of permitting the lead agency to serve as contracting agent for the awarding of joint purchasing contracts;

ii. Used only for the payment of actual bills to the contractors pursuant to the overall joint purchasing agreement; and

iii. Returned immediately to the registered member upon any determination that the full amount is not needed for payments as initially expected.

N.J. Admin. Code § 5:34-7.14

Amended by R.1995 d.633, effective 12/4/1995.
See: 27 N.J.R. 3259(a), 27 N.J.R. 4885(b).
Amended by R.2000 d.485, effective 12/4/2000.
See: 32 N.J.R. 3237(a), 32 N.J.R. 4300(a).
Changed N.J.A.C. references throughout; added a new (a); recodified former (a) through (c) as (b) through (d); and in the new (d), substituted references system identifiers for references to ID numbers throughout.
Amended by R.2013 d.123, effective 9/13/2013.
See: 45 N.J.R. 1205(a), 45 N.J.R. 2203(a).
In (a), updated the N.J.A.C. reference.