N.J. Admin. Code § 5:31-7.8 - Audit reports and financial reporting practices for authorities and special districts

(a) The pronouncements of the Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) shall control with respect to the application of GAAP for authorities and special districts, except that Local Finance Board rules as set forth in the New Jersey Administrative Code, including financial oversight and Division regulatory responsibilities, including review and approval of annual budgets pursuant to statute, shall apply and supersede where applicable.

(b) Financial reporting under GAAP requires general purpose financial statements (GPFS) and/or component unit financial statements (CUFS), as minimum acceptable presentation for governmental financial reporting purposes. The primary reporting entity focus of separately issued GPFS/CUFS should be on financial information aggregated by fund type, account group, and discretely presented component units. Such aggregated financial information presented shall constitute fair presentation in conformity with GAAP. If the governmental organization other than a primary government serves as a nucleus for its own reporting entity when it issues separate financial statements, then the reporting entity's financial statements should present the fund types and account groups as if it were a primary government (including its blended component units, which are, in substance, part of the primary government) and provide an overview of the discretely presented component units.

(c) The following statements shall be included in the GPFS/CUFS, as applicable, for authorities/special districts as necessary for separately issued financial statements to be presented fairly in conformity with GAAP:

1. Combined Balance Sheet--All Fund Types, Account Groups, and Discretely Presented Component Units;

2. Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--All Governmental Fund Types and Discretely Presented Component Units;

3. Combined Statement of Revenues, Expenditures, and Changes in Fund Balances--Budget and Actual--General and Special Revenue Fund Types (and similar governmental fund types of the primary government for which annual budgets have been legally adopted);

4. Combined Statement of Revenues, Expenses, and Changes in Retained Earnings (or Equity)--All Proprietary Fund Types and Discretely Presented Component Units;

5. Combined Statement of Cash Flows--All Proprietary Fund Types and Discretely Presented Component Units;

6. Notes to the financial statements; and

7. Required supplementary information.

(d) Additional or alternative financial reporting presentations or formats, other than those stated in (c) above, may be necessary pursuant to State or Federal requirements or supplementary information on a specific GPFS/CUFS, as requested by the Director of the Division of Local Government Services and/or the Local Finance Board.

Notes

N.J. Admin. Code § 5:31-7.8