of New Jersey
Governor Richard J. Codey
WHEREAS, there are numerous entities in State government that are not directly controlled through the normal administrative infrastructure, including many authorities, commissions, boards and agencies; and
WHEREAS, Executive Order No. 10 (2002) mandates that members of certain boards, commissions, independent authorities and public corporations, as well as the executive or administrative head and assistant heads of such boards, commissions or independent authorities file annual financial disclosure statements; and
WHEREAS, Executive Order No. 122 (2004) directs that all public authorities, agencies and commissions create an audit committee to assist in the oversight of the financial reporting and audit processes of that entity, and that such audit committee follow certain specified procedures in carrying out its duties; and
WHEREAS, Executive Order No. 134 (2004) requires that the State of New Jersey and all of its agencies and independent authorities implement procedures designed to limit or ban campaign contributions by vendors doing business with the State or its authorities; and
WHEREAS, the public deserves to know that each and every entity associated with State government, directly or indirectly, functions with proper internal accounting controls and independent Board oversight so that taxpayer dollars or user fees are properly recorded, managed and disbursed; and
WHEREAS, the ethics reforms heretofore advanced by this administration should apply not only to the direct operations of State government but to each and every entity connected to the State of New Jersey by virtue of its financial or operational relationship to the State;
NOW, THEREFORE, I, RICHARD J. CODEY, Acting Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT:
- For the purpose of this Order, "authority" shall mean any board, commission or agency which is organized in but not of a principal department of State government and any independent authority. Furthermore, for the purpose of this Order, "Executive Director" shall mean the Executive or Administrative Head of an authority.
- The Governor's Authorities Unit, in conjunction with the Executive Commission on Ethical Standards and the Inspector General, shall hold several training sessions for members of all State authorities in government ethics and, where appropriate, proper fiscal practices, including specific training in the requirements of the Federal Sarbanes Oxley Act, as related to their duties as authority members. Such training will include the responsibility of authority members in the employment of authority staff, oversight of procurement and fiscal operations and approval of contracts. As of January 1, 2006 and annually thereafter, the Executive Director of each authority shall certify in writing to the Director of the Governor's Authorities Unit that each member of the authority has completed such training. Such training will be updated annually at the direction of the Director of the Governor's Authorities Unit to include such Federal mandates as directed by Congress and such State mandates as directed by the Office of the Inspector General.
- The Inspector General shall assess the internal controls that are in place at every authority and make recommendations concerning what uniform practices and procedures should be established for all State authorities.
- Within 30 days, the Director of the Governor's Authorities Unit shall provide recommendations concerning whether there are any authorities, boards, commissions or agencies that are not presently covered by the provisions of Executive Order Nos. 10, 122, 134 or this Executive Order, but should be included within its scope. The Director shall further review whether any Executive Director of an authority also serves as a member of the authority, and recommend whether legislative or regulatory changes are necessary to eliminate this service in dual capacities.
- Within 30 days of the date of this Executive Order and annually as of May 15 thereafter, the Executive Director of an authority shall certify in writing to the Director of the Governor's Authorities Unit that all authority members have met the requirements of Executive Order No. 10.
- Within 45 days of the date of this Executive Order and annually as of January 1 thereafter, each Executive Director shall certify in writing to the Director of the Governor's Authorities Unit that the authority has met the requirements of Executive Order No. 122, which includes the requirement that every authority covered by that Executive Order have an Audit Committee that serves independently of the management of the authority in soliciting, procuring and overseeing the function of the independent auditor and ensuring that the relationship with such auditor is the function of the Board and not the management of the authority.
- Within 60 days of this Executive Order and annually as of January 1 thereafter, each Executive Director shall certify in writing to the Director of the Governor's Authorities Unit that the authority has met the requirements of Executive Order No. 134, which includes the requirement that every authority comply with procedures designed to limit or ban campaign contributions by vendors doing business with the State or the authority.
- The failure of any authority member, officer or employee to comply with the provisions of this Executive Order shall constitute good cause for his or her removal from office or employment.
- This Order shall take effect immediately.
GIVEN, under my hand and seal this 15th day
in the Year of Our Lord, Two Thousand
and Five, and of the Independence of the United
States, the Two Hundred and Twenty-Ninth.
/s/ Richard J. Codey
/s/ Paul T. Fader
Chief Counsel to the Governor