The Division of Local Government Services has issued Local Finance Notice 2024-07 (LFN 2024-07) providing guidance on 2024 Financial Disclosure Statements. The Local Government Ethics Law , N.J.S.A. 40A:9-22.6.a, requires local government officers to annually file a financial disclosure statement (FDS) on or before April 30 of each year.
Local Government Officials must file the original statement with the municipal clerk, county clerk, or other local government entity representative as appropriate to the circumstances. Additionally, a copy of the statement must be filed with the Local Finance Board (LFB). Since 2014 the DLGS has been using the Local Finance Board’s online filing system.
By March 29 the municipal clerk must update the Local Government Officials roster. Municipal Clerks should review LFN 2024-07 and visit the FDS website for instructions and other resources. Local Government officers are required to file the Financial Disclosure Statement even though the Local Government Ethics law applies to all employees and officers of local government. The law, N.J.S.A. 40A:9-22.3g, defines a local government officer as “any person, whether compensated or not, whether part-time or full-time:
- Elected to any office of local government agency.
- Serving on a local government agency which has the authority to enact ordinances, approve development applications, or grant zoning variances.
- Who is a member of an independent municipal, county, or regional authority; or who is a managerial executive employee of local government agency as defined in rules and regulations adopted by the Director of the Division of Local Government Services but shall not mean any employee of a school district or member of a school board.”
N.J.A.C. 5:35.2.1 lists the positions specifically required to file an FDS. The Attorney General’s Office has issued AO 91-0093 and AO 91-0093 to provide direction and clarification on positions that must file the FDS. If your municipality has appointed a private entity in lieu of a licensed Chief Financial Officer please review Local Finance Notice 2018-03.
LGE representatives must carefully review their LGO rosters in consideration of the guidance provided by legal counsel. Newly elected or appointed LGOs shall be added to the roster and required to file the FDS within 30 days of taking office. If it is determined that some individuals within the local government are not deemed to be local government officers and, therefore, not required to file an FDS, the LGE representative must update the LGO roster and notify those individuals of the determination.
As a reminder, if your municipality or county has a local ethics board, it is responsible for enforcing FDS filing requirements, and all notices, including violation notices, should come from the local ethics board rather than the Local Finance Board.
As a reminder, the Local Finance Board can issue a fine of $100 to $500 against non-filers and the Best Practices Inventory usually has a question whether all elected officials in the municipality have filed their FDS. The League recommends reviewing LFN 2024-07 with your municipal clerk and municipal attorney.
Contact: Andrew LaFevre, Legislative Analyst, alafevre@njlm.org, 609-695-3481, x116.