Which items are NOT permitted to have budget transfers made during the last two months of the year?

In New Jersey municipal finance practice, certain restrictions apply regarding budget transfers during the last two months of the fiscal year. Deferred charges are expenditures that are not allowed to have budget transfers made against them in this timeframe. This is due to their nature, as deferred charges are often associated with costs that are incurred but not yet paid or recognized as an expenditure in the current year. This treatment aims to maintain fiscal responsibility and ensures that the budget reflects the financial position accurately without manipulating funds that are earmarked for future obligations.

Operational expenses, equipment purchases, and employee salaries can still undergo budget transfers during the final two months of the year as they are considered manageable within the existing budgetary context. These categories are more flexible in terms of adjustments because they surface more regularly, and adjustments can accommodate real-time fiscal management needs, ensuring departments function effectively despite potential budget constraints.

Thus, the correct identification of deferred charges as the type of item that cannot have budget transfers during the last two months of the year aligns with the statutory limitations outlined in New Jersey's municipal finance regulations.