On August 25, 2014 the Local Finance Board issued Local Finance Notice (LFN) 2014-13 Annual Audit Requirements for Local Authorities and Fire Districts.  This LFN is a reminder to Boards of their responsibilities as a governmental entity with regards to the annual audit.  Most importantly you must hire a knowledgeable audit firm.  Your audit must be conducted according to generally accepted auditing standards, Government Auditing Standards, and audit standards adopted by the Local Finance Board and the Department of Community Affairs and its divisions.

 

The audit must be performed by a New Jersey licensed registered municipal accountant (RMA) or certified public accountant (CPA).  The performance standards stated above further require that the auditor must be knowledgeable and competent in these standards and all applicable regulations.  Additionally, the audit firm must be in compliance with the external peer review program established by the State of New Jersey.

 

This LFN requires...

The Government Accounting Standards Board (GASB) has changed the names of fund balance accounts to be more descriptive of the uses of the funds.