ASSEMBLY, No. 878

 

STATE OF NEW JERSEY

 

Introduced Pending Technical Review by Legislative Counsel

 

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

 

 

By Assemblymen BLEE and LEFEVRE

 

 

An Act concerning the audit period of the Atlantic City Convention Center Authority, amending P.L.1981, c.459 and supplementing Title 52 of the Revised Statutes.

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

    1. Section 14 of P.L.1981, c.459 (C.52:27H-42) is amended to read as follows:

    14. a. As soon as it is practicable after the appointment and qualification of the members of the authority, and annually thereafter, at least 45 days preceding the commencement of the authority's [fiscal] accounting year on [July] January 1 of each year, the authority shall prepare a proposed budget for its operations and activities for the ensuing [fiscal] accounting year.

    b. The budget shall set forth anticipated revenues for the ensuing [fiscal] accounting year and the sources thereof, and appropriations for the same period, which appropriations shall not exceed the anticipated revenues. No revenue from any source shall be anticipated unless it can be reasonably expected to be realized during the [fiscal] accounting year to which the budget applies. Appropriations shall be segregated as salaries and wages, contractual other expenses, and noncontractual other expenses.

    c. An appropriation for "anticipated operating deficit of preceding year" shall appear in each annual budget in the amount by which the liabilities and disbursements of the authority for expenditures in the next preceding [fiscal] accounting year exceed or are likely to exceed receipts and other revenue in that year, subtracting any expenditures provided for by surplus anticipated in the budget.

    d. No proposed budget prepared by the authority pursuant to this section shall be approved by the authority unless it is in compliance with the terms of any contract authorized pursuant to section 9 of this act and has been approved by the New Jersey Sports and Exposition Authority.

(cf: P.L.1991, c.375, s.10)

 

    2. Section 16 of P.L.1981, c.459 (C.52:27H-44) is amended to read as follows:

    16. On or before the last day of the third month following the close of each [fiscal] accounting year, the authority shall make an annual report of its activities for the preceding [fiscal] accounting year to the Governor, the Legislature, and the New Jersey Sports and Exposition Authority. The report shall set forth a complete operating and financial statement covering its operations during the year. The director shall audit the books and accounts of the authority for each [fiscal] accounting year, and a copy of that audit shall be filed with the Governor, the Legislature, and the New Jersey Sports and Exposition Authority.

(cf: P.L. 1991, c.375, s.11)

 

    3. (New section). Notwithstanding the provisions of any law, rule or regulation to the contrary, the authority shall prepare a special transition budget, and a separate audit thereof, for the six month period running from June 30 through December 31 immediately preceding the operative date of sections 1 and 2 of this 1995 amendatory and supplementary act. The report of activities of the authority for the first accounting year beginning on January 1, prepared pursuant to the provisions of section 16 of P.L. 1981, c. 459 (C.52:27H-44) shall include activities from the six month period designated herein.

 

    4. This act shall take effect immediately, but sections 1 and 2 shall remain inoperative until January 1 next following enactment.

 

 

STATEMENT

 

    This bill amends the "Atlantic City Convention Center Authority Act," P.L.1981, c.459 (C.52:27H-29 et seq.) to require that the authority complete its mandatory annual audit on a calendar year basis rather than a fiscal year basis, as is currently the case. This amendment is necessary to coordinate the authority's audit year with the terms of the contract the authority recently entered into with the New Jersey Sports and Exposition Authority for the construction and operation of the Atlantic City Convention Center.

    In conformance with the change in audit periods, the bill also supplements P.L.1981, c.459 to provide for a calendar-year budget cycle. These changes would take effect January 1 next following enactment of the bill, and a six-month transition budget would precede the first calendar-year budget.

 

 

 

Changes the audit period of the Atlantic City Convention Center Authority from a fiscal year basis to a calendar year basis.