The Local Fiscal Affairs Law mandates that a Cash Management plan be approved annually by which entity?

The Local Fiscal Affairs Law mandates that a Cash Management plan be approved annually by which entity?

• A. The Town Clerk
• B. The Mayor
• C. The Governing Body
• D. The Chief Financial Officer

Answer: (C)

The Local Fiscal Affairs Law in New Jersey requires the establishment of a Cash Management Plan to ensure effective management of municipal funds. According to the law, it is the responsibility of the governing body to review and approve this plan annually. The involvement of the governing body is crucial as it represents the collective decision-making authority within the municipality, ensuring that the financial practices align with the overall fiscal policies and objectives. This oversight helps promote transparency and accountability in the management of public funds. In this context, while roles such as the Town Clerk, Mayor, or Chief Financial Officer are significant within municipal finance operations, their authority does not extend to the formal approval of the Cash Management Plan, which remains the purview of the governing body. This helps ensure that cash management practices are aligned with both local priorities and regulatory requirements. Therefore, the correct answer is the governing body.

The Local Fiscal Affairs Law in New Jersey requires the establishment of a Cash Management Plan to ensure effective management of municipal funds. According to the law, it is the responsibility of the governing body to review and approve this plan annually. The involvement of the governing body is crucial as it represents the collective decision-making authority within the municipality, ensuring that the financial practices align with the overall fiscal policies and objectives. This oversight helps promote transparency and accountability in the management of public funds.

In this context, while roles such as the Town Clerk, Mayor, or Chief Financial Officer are significant within municipal finance operations, their authority does not extend to the formal approval of the Cash Management Plan, which remains the purview of the governing body. This helps ensure that cash management practices are aligned with both local priorities and regulatory requirements. Therefore, the correct answer is the governing body.