Riverside Sewerage Authority, NJ Chapter 10 Cash Management Plan

[HISTORY: Adopted by the Riverside Sewerage Authority 2-13-2023 by Res. No. 2023-10. Amendments noted where applicable.]

§ 10-1 Purpose.

This plan is established to comply with the requirements of N.J.S.A. 40A:5-14 and to provide a guide to municipal officials and employees in carrying out their duties concerning the receipt and disbursement of all funds of the Riverside Sewerage Authority.

§ 10-2 Requirements.

The following requirements shall be adhered to:

A. The Authority shall annually, at its Reorganization Meeting, designate the legal depositories for all Authority funds. The resolution may be amended or supplemented from time to time as the Authority deems necessary. Such resolution shall be deemed as part of the Cash Management Plan.

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B. The Authority shall annually establish by resolution adopted at its annual Reorganization Meeting the required signatories of all Authority bank accounts.

C. All Authority funds received by any official or employee shall be either deposited within 48 hours to an interest-bearing account in the name of the Authority or shall be turned over to the Treasurer within 48 hours of receipt.

D. All revenue received by the Treasurer shall be deposited to interest-bearing accounts in the legal depositories.

E. The following funds shall not be required to be maintained in interest-bearing accounts:

(1) Change funds.

(2) Petty cash funds.

(3) Payroll funds.

(4) Trust funds to the extent that deposit of such funds to an interest-bearing account would require by law the payment of interest to the provider of funds.

(5) Checking accounts established for the express purpose of paying bills approved by the Authority. The balances in these funds shall be kept at the minimum required for the operation of the account.

(6) Compensating balances maintained for the purpose of obtaining specific services from financial institutions. Such accounts shall be established only under terms of written agreements approved by the Authority.

F. The Billing/Collections Clerk of the Authority shall deposit all monies into the Riverside Sewerage Authority's account. Since the Authority utilizes a general account for both collection and disbursement, the Billing/Collections Clerk of the Authority shall prepare a monthly report showing a breakdown of all monies collected during the month. Said report should be turned over to the Treasurer of the Authority by the 10th of the following month.

G. The Treasurer shall prepare and submit monthly financial reports to the Authority Members.

H. Disbursements.

(1) No Authority funds shall be disbursed by the Treasurer prior to approval of the Authority except for:

(a) Debt service payments.

(b) Investments.

(c) Payroll turnovers to agencies.

(d) Discount vouchers.

(e) Utilities vouchers.

(f) Landfill charges.

(g) Insurance vouchers.

(2) Debt service payments and discount vouchers must be ratified after payment.

§ 10-3 Responsibilities of Treasurer.

It shall be the responsibility of the Treasurer to analyze the cash flow and to invest funds in legal investments so as to maximize interest earnings. When investing funds in commercial banks, savings banks, savings and loans, etc., the Treasurer shall obtain a minimum of three quotations and shall invest at the institution offering the highest effective rate. The Treasurer shall determine which type of legal investment will best serve the needs of the Authority, and is authorized to place the funds in any such legal investment unless otherwise restricted by the Authority.

§ 10-4 Treasurer to report monthly.

The Treasurer shall report monthly all investment transactions as required by N.J.S.A. 40A:5-15.2 to the Authority.