[Added 8-12-2019 by Ord.
No. 2019-1811]
a. The purpose and intent of these regulations is to abide by the requirements
of N.J.S.A. 52:27D-20.1 and N.J.A.C. 5:30-17.1 et seq., governing
electronic disbursement controls for payroll purposes.
b. Definitions. As used in this chapter, the following terms shall have
the meanings indicated:
APPROVAL OFFICER
Person(s) responsible for authorizing and supervising the
activities of the payroll service.
[Added 8-12-2019 by Ord.
No. 2019-1811]
a. The Borough is authorized to use a payroll service to prepare payment
documentation, take possession of Borough funds, and make such disbursements
itself on behalf of the Borough.
b. The following payroll service providers shall be required to comply
with these regulations:
1. Payroll service providers who use their own customized programming
process to execute disbursements for the Borough;
2. Payroll service providers who use a third-party processor to execute
disbursements for the Borough.
[Added 8-12-2019 by Ord.
No. 2019-1811]
a. The appointment of a payroll service shall be pursuant to the Local
Public Contracts Law, N.J.S.A. 40A:11-1 et seq., and shall require
the contractor to do the following, not by way of limitation: data
collection, agency report preparation, calculation of withholding,
direct deposit of payroll disbursements, and/or transfer of Borough
funds to contractor's account for subsequent disbursement of
payment.
b. Any renewal or extension of a contract under these regulations shall
be by resolution.
c. The Chief Financial Officer is hereby appointed the approval officer
and is responsible for authorizing and supervising the activities
of the payroll service and shall further be charged with the reconciliation
and analysis of all general ledger accounts affected by the activities
of the disbursing organization.
d. If required by the contract between the Borough and the payroll service,
the payroll service is permitted to hold Borough funds pending transmittal
to a payee.
[Added 8-12-2019 by Ord.
No. 2019-1811]
a. A payroll service must meet all of the following requirements:
1. Report any irregularities that may indicate potential fraud, noncompliance
with appropriate laws, dishonesty or gross incompetence on the part
of the approval officer;
2. Report circumstances that could jeopardize its ability to continue
operations or otherwise interrupt the services provided to the Borough.
b. A payroll service must meet the requirements of N.J.A.C. 5:30-17.5,
requiring that the approval officer be assured that the servicer has
its own internal controls and appropriately guard against theft and
other adverse conditions.
c. All contracts entered into pursuant to these regulations and the
laws authorizing the same shall comply with the requirements of N.J.A.C.
5:30-17.6, which sets out a series of mandatory contractual terms
and conditions.
[Added 8-12-2019 by Ord.
No. 2019-1811]
Upon the adoption of these regulations, the Borough Administrator,
with the assistance of the Chief Financial Officer and Borough Attorney,
as necessary, is hereby authorized and directed to enter into a contract
for payroll service in accordance with all local public contracting
laws and N.J.A.C. 5:30-17. Appointment of the payroll service shall
be by separate resolution of the Borough.