[HISTORY: Adopted by the Mayor and Council of the Borough of Madison 10-16-1991 by Ord. No. 27-91. Amendments noted where applicable.]
Financial Officer — See Ch. 17.
It is in the best interest of the Borough of Madison to earn additional revenue through the investment and prudent management of its cash receipts. Chapter 8 of the Laws of 1983, approved January 18, 1983, is an Act concerning the Local Fiscal Affairs Law and amends N.J.S.A. 40A:5-2 and N.J.S.A. 40A:5-14, and this law requires that each local unit shall adopt a cash management plan.
The following shall constitute the Cash Management Plan for the Borough of Madison, which shall deposit and manage its funds pursuant to this plan.
As used in this chapter, the following terms shall have the meanings indicated:
- CASH MANAGEMENT PLAN
- That plan as approved by resolution by the Council of the Borough of Madison.
- DIRECTOR OF FINANCE
- The Director of Finance for the Borough of Madison.
- FISCAL YEAR
- The twelve-month period ending December 31.
At least once each fiscal year at its organization meeting, the Council shall, by resolution, designate the depositories for the Borough of Madison in accordance with N.J.S.A. 40A:5-14.
The Cash Management Plan shall be subject to the annual audit conducted pursuant to N.J.S.A. 40A:5-14.
The Council, at its organization meeting, shall pass a resolution designating the borough's official(s) who shall make and be responsible for municipal deposits and investments.
The Director of Finance shall invest, at his discretion, in any investment instruments as approved by the State of New Jersey, Department of Community Affairs, Division of Local Government Services, and in accordance with N.J.S.A. 40A:5-15.1
The Director of Finance shall report all investments in accordance with N.J.S.A. 40A:5-15.2.
At a minimum, the Director of Finance shall:
Keep a record of all investments.
Have the ability to obtain from our commercial bank, on a daily basis, the status of the borough's cash in its bank accounts.
Report investments to the Borough Administrator, Finance Committee Chairman and the Utilities Committee Chairman on a monthly basis.
The Director of Finance shall ensure that the borough's accounting system provides regular information concerning the borough's cash position and investment performance.
All moneys shall be turned over to the Director of Finance or his staff members and deposited in accordance with N.J.S.A. 40A:5-15.
The Director of Finance is authorized and directed to invest surplus funds of the borough as the availability of the funds permit. In addition, it shall be the responsibility of the Director of Finance to minimize the possibility of idle cash by depositing the borough's moneys in interest-bearing accounts wherever practical and in the best interest of the Borough of Madison.