Electronic Payment of Bills
As you may be aware the DLGS in 2018 released a Local Finance Notice, LFN 2018-13, Adoption of New Regulations on Electronic Transfer and Claimant Certification, which allows, upon governing body approval of related policies and procedures, specific officers and employees of a municipality, county or fire district or authority the ability to pay bills electronically. Local units may use the following in paying claims electronically – Automated Clearing House (ACH) transactions, wire transfers and e-checks. Automatic debits from bank accounts are not permitted. The LFN provides additional guidance on the policies and procedures including the officers and employees of the local unit who are responsible for ensuring that adequate controls are in place and being adhered to and who is permitted to initiate and authorization the electronic funds transfer depending on the type of local unit.
Claimant Certification on Vouchers
N.J.A.C. 5:30-9A.6/5:31-4.1 allows for claimant certification to be made by a vendor/claimant using the following: signature stamp, facsimile signature as well as electronic signature in addition to the usual manual signature.
Additionally, N.J.A.C. 5:30-9A.69C) provides local units the ability to not require claimant certifications under certain circumstances. A local unit may elect to not require claimant certification for transactions where a local unit makes payment through standard EFT technologies. A local unit may also approve a policy through resolution or ordinance, as appropriate, to not require claimant certification where the vendor or claimant does not provide such certification as part of its normal course of business. We see this commonly with the various utilities.
We may be working remotely but please know we are available to answer any questions you may have on the above or other matters. Do not hesitate to contact us via phone or email and we will respond to you within 24 hours or sooner.
For additional information, please click here to access the Local Finance Notice in its entirety.