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The original item was published from 10/6/2023 10:10:00 AM to 11/5/2023 12:00:02 AM.

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Posted on: October 6, 2023

[ARCHIVED] DLGS Issues LFN 2023-17 on Best Practices Inventory

The Division of Local Government Services (DLGS) has issued Local Finance Notice 2023-17 (LFN 2023-17) updating the Best Practices Inventory in accordance with the FY2024 Appropriations Act.

Municipalities operating on both a State and Calendar Fiscal Year budget cycle must submit their completed Best Practices Inventory to DLGS by end of business on Friday, November 3, 2023. DLGS recommends completing and submitting the Best Practices Inventory promptly to address any technical or content-related issues. Once a Best Practices Inventory is submitted, modifications to answers are prohibited.

There are a total of 67 questions, with 15 new questions added to the 2023 Best Practices Inventory. Of the 67 questions there are a total of 48 scored questions for a total of 42 points. Municipalities must receive a minimum score of 29 to receive their full final aid payment. The

Based on the Best Practices Inventory results, DLGS will determine if a portion of a municipality’s final formula aid payment will be withheld based on the following Inventory scoring criteria: 

  • 29 and above: 100% payment with no withholding.
  • 25-28: 75% payment, 25% of final aid withheld.
  • 21-24: 50% payment, 50% of final aid withheld.
  • 0-20: No payment, 100% of final aid withholding.
  • Failure to submit the best practices inventory will be considered a zero score. 

A new requirement this year, in addition to the Chief Financial Officer and Chief Administrative Officer, the Municipal Clerk must certify the Inventory using the online platform.

The deadline for municipalities appealing their score is Friday, October 27, 2023, and must be email to with the heading of “Best Practices Appeal”. A Best Practice Inventory must be submitted prior to making an appeal.

Please see DLGS Best Practice Inventory Instructions and FAQ Best Practices for more details concerning directions and log-in and access information. If technical assistance is required, please email For questions regarding the best practices inventory please email .

The League strongly recommends reviewing LFN 2023-17 with your municipal and finance professionals.

Contact: Andrew LaFevre, Legislative Analyst,, 609-695-3481, x116.

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