N.J. Admin. Code § 5:30-8.2

Current through Register Vol. 56, No. 23, December 2, 2024

Section 5:30-8.2 - Recommended surety bond coverage for chief financial officers

(a) Local units shall provide a fidelity bond with faithful performance coverage for the chief financial officer or other individual holding overall management responsibility for the local unit's finances. If coverage is being provided pursuant to the local unit's blanket fidelity bond, coverage pursuant to the blanket bond for the chief financial officer or other individual holding overall management responsibility for the local unit's finances shall be subject to the application of individual rating criteria and underwriting standards that consider the risk and potential liability presented by the individuals covered by the blanket bond as if the individuals were covered by an individual bond.

(b) As of January 1, 2024, the following schedule shall serve as the minimum basis for the bond amount:

1. The exposure index from which the amount of the bond is calculated, is at least 10 percent of the total revenues of the local unit, including, but not limited to:

i. "Pass through" revenues, such as property tax levies for municipalities;

ii. Current, trust, capital, and utility funds for municipalities or counties;

iii. Grants;

iv. Revenues from payments in lieu of property taxes (PILOTs);

v. All taxes other than property taxes collected by the municipality; and

vi. General and special purposes funds for each enterprise of an authority.

Exposure Index	Minimum Bond Amount
0-25,000	15,000-25,000
25,000-125,000	25,000-50,000
125,000-250,000	50,000-75,000
250,000-500,000	75,000-100,000
500,000-750,000	100,000-125,000
750,000-1,000,000	125,000-150,000
1,000,000-1,375,000	150,000-175,000
1,375,000-1,750,000	175,000-200,000
1,750,000-2,125,000	200,000-225,000
2,125,000-2,500,000	225,000-250,000
2,500,000-3,325,000	250,000-300,000
3,325,000-4,175,000	300,000-350,000
4,175,000-5,000,000	350,000-400,000
5,000,000-6,075,000	400,000-450,000
6,075,000-7,150,000	450,000-500,000
7,150,000-9,275,000	500,000-600,000
9,275,000-11,425,000	600,000-700,000
11,425,000-15,000,000	700,000-800,000
15,000,000-20,000,000	800,000-900,000
20,000,000-25,000,000	900,000-1,000,000
25,000,000-50,000,000	1,000,000-1,250,000
50,000,000-87,500,000	1,250,000-1,500,000
87,500,000-125,000,000	1,500,000-1,750,000

N.J. Admin. Code § 5:30-8.2

Amended by 55 N.J.R. 1690(a), effective 8/7/2023