[HISTORY: Adopted by the Mayor and Council
of the Borough of Madison 10-16-1991 by Ord. No. 27-91. Amendments noted where applicable.]
GENERAL REFERENCES
Financial Officer — See Ch. 17.
A.
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.
B.
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:
That plan as approved by resolution by the Council of the
Borough of Madison.
The Director of Finance for the Borough of Madison.
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.
A.
The Director of Finance shall report all investments
in accordance with N.J.S.A. 40A:5-15.2.
B.
At a minimum, the Director of Finance shall:
(1)
Keep a record of all investments.
(2)
Have the ability to obtain from our commercial bank,
on a daily basis, the status of the borough's cash in its bank accounts.
(3)
Report investments to the Borough Administrator, Finance
Committee Chairman and the Utilities Committee Chairman on a monthly
basis.
A.
The Director of Finance shall ensure that the borough's
accounting system provides regular information concerning the borough's
cash position and investment performance.
B.
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.
C.
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.
