Municipal audit and Annual Financial Statement (AFS)
Two yearly checkups on a town's finances: the Annual Financial Statement (AFS) the town files with the state, and the annual audit done by an auditor.
New Jersey example
Under a 2025 law (P.L.2025, c.185), calendar-year towns must file the AFS with the state by March 10 and finish the annual audit by August 31. The audit goes to the state through its FAST system within five days of being filed with the town, and the governing body has 45 days to certify that it reviewed the audit.
Official source
This is a plain-English summary. Rules and dollar amounts change, so check the official source or a professional before you file or sign anything.