What must municipalities do in order to comply with NJSA 40A:5?

To comply with NJSA 40A:5, municipalities are required to submit annual audits. This statutory requirement ensures financial accountability and transparency in municipal operations. Annual audits are essential for reviewing the financial statements of the municipality, which helps to identify any discrepancies or irregularities in financial practices. This oversight is crucial for maintaining public trust and ensuring that taxpayer funds are managed responsibly.

The requirement for annual audits also aligns with broader principles of good governance and fiscal responsibility, as they help municipalities assess their financial health and make informed decisions regarding budgeting and spending. Regular audits serve as a mechanism for monitoring compliance with laws and regulations related to financial management, enhancing overall accountability within the municipal system.

The other options do not relate directly to the requirements set forth in NJSA 40A:5. While conducting special assessments, serving eviction notices, and creating a capital budget are activities that may fall within different areas of municipal management and operations, they are not tied specifically to the auditing requirements mandated by this statute. Therefore, the submission of annual audits stands out as the correct choice concerning compliance with NJSA 40A:5.