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CMFO Review Class Questions Flashcards

1
Q

Every audit required by the Local Fiscal Affairs Law N.J.S.A. 40A:5-9 is required to be completed by an accountant or auditor who holds an uncanceled license as:

a. Certified Public Accountant
b. Public School Accountant
c. Registered Municipal Accountant
d. Certified Municipal Finance Officer
e. None of the Above

A

c. Registered Municipal Accountant

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2
Q

The statutory responsibility for filing of the Unaudited Annual Financial Statements is assigned to which local governmental official by N.J.S.A. 40A:5-12:

a. Chief Administrative Officer
b. Chief Financial Officer
c. Registered Municipal Accountant
d. Certified Municipal Clerk
e. None of the Above

A

b. Chief Financial Officer

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3
Q

As defined in the “Local Government Ethics Law” specifically, N.J.S.A. 40A:9-22.3 g, “Local government officer” that serves on a local government agency that approves development applications would refer to a member of which of the following boards:

a. Local Health Board
b. Planning Board
c. Local Affordable Housing Board
d. Local Ehics Board
e. None of the Above

A

b. Planning Board

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4
Q

The “Local Fiscal Affairs Law” mandates that the Cash Management Plan be approved annually by the:

a. Municipal Clerk
b. Chief Financial Officer
c. Local Finance Board
d. Governing Board
e. None of the Above

A

d. Governing Body

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5
Q

The Local Bond Law, specifically N.J.S.A 40A:2-26, stipulates that the maturities of all bonds shall be as determined by the bond ordinance or by subsequent resolution and be within following limitations:

a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
c. The governing body may provide for a single and combined bond issue
d. All of the Above
e. None of the above

A

d. All of the above

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6
Q

The effective date of a bond ordinance as stipulated by N.J.S.A. 40A:2-18 is what length of time?

a. Twenty days after the first publication
b. Twenty days after adoption
c. Twenty days after the first publication after adoption
d. Twenty days after the first publication after introduction
e. None of the above

A

c. Twenty days after the first publication after adoption

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7
Q

All matters not required to be contained in a bond ordinance may be acted on by subsequent resolutions passed by the affirmative votes of a majority of the full membership of the governing body.

a. True
b. False

A

a. True N.J.S.A 40A2:16

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8
Q

An increase in anticipated revenue from a known and recurring source may have what effect on the appropriation for the Reserve for Uncollected Taxes?

a. Would decrease the appropriation for the Reserve for Uncollected Taxes
b. Would increase the appropriation for the Reserve for Uncollected Taxes
c. Would have no effect on the appropriation for the Reserve for Uncollected Taxes

A

a. Would decrease the appropriation for the Reserve for Uncollected Taxes

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9
Q

The New Jersey Administrative Code 5:34-5.2 outlines the procedure for the certification for the availability of funds. It is required that no resolution authorizing the entering into any contract shall be enacted unless it shall recite that such a certificate showing the availability of funds has been provided. In addition it requires:

a. The resolution state the name and address of the vendor
b. The resolution specify the date bids or quotes were received
c. The resolution designate the individual as certifying officer
d. The resolution specify the exact line item appropriation or ordinance to be charged

A

d. The resolution specify the exact line item appropriation or ordinance to be charged

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10
Q

The New Jersey Budget Law, specifically N.J.S.A. 40A:4-22 requires that the budget shall consist of a tabulated statement of:

a. Both the CAP calculations on the tax levy and appropriations
b. All debt calculations, including total principal and interest due on outstanding debt
c. All anticipated revenues applicable to expenditures for which appropriations are made
d. All of the above
e. None of the above

A

c. All anticipated revenues applicable to expenditures for which appropriations are made

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11
Q

The four classifications of revenue described by the Local Budget Law N.J.S.A. 40A:4-23 are which of the following:

a. Surplus Anticipated, Miscellaneous Revenues, Federal/State Revenues, Taxes
b. Surplus Anticipated, Non-Cash Surplus, Miscellaneous Revenues, Taxes
c. Surplus Anticipated, Federal/State Revenues with Off-setting Appropriations, Receipts from Delinquent Taxes and Amount to be Raised by Taxes
d. Surplus Anticipated, Miscellaneous Revenues, Receipts from Delinquent Taxes, Amount to be Raised by Taxes
e. None of the above

A

e. Surplus Anticipated, Miscellaneous Revenues, Receipts from Delinquent Taxes, Amount to be Raised by Taxes

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12
Q

Implementation of a dedicated tax program for open space, recreation, farmland and historic preservation trust fund taxing districts are authorized by which of the following:

a. Governing Body Resolution
b. Approval of the Local Finance Board
c. Referendum held at a general or special election
d. All of the Above
e. None of the above

A

c. Referendum held at a general or special election

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13
Q

The Local Budget Law N.J.S.A. 40A:4-41 (c)(1) permits the tax collection rate used to compute the reserve for uncollected taxes to be based on an average when the tax collection rate has been affected by tax refunds or adjustments from successful property tax appeals. The number of years included in the calculation of the average is:

a. Two
b. Three
c. Four
d. All of the Above
e. None of the above

A

b. Three

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14
Q

The limitation of the a municipality’s debt is regulated by the Local Bond Law, specifically N.J.S.A 40A:2-6. It states that the limit shall be a percentage of the average of the preceding three years equalized assessed valuation. That percentage limit is which of the following:

a. Two percent
b. Two and one-half percent
c. Three percent
d. Three and one-half percent
e. One of the above

A

d. Three and one-half percent

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15
Q

What is the value threshold established by the “Pay to Play” law, specifically N.J.S.A. 19:44A:20.4 at which a contract cannot be awarded by a New Jersey government entity.

a. $12,500
b. $15,000
c. $17,500
d. $29,000

A

c. $17,500

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16
Q 
A bond ordinance adopted by the governing body should include authorization to provide for short-term borrowing.  According to the Local Bond Law N.J.S.A 40A:2-8 the short-term borrowing instruments are known as Bond Anticipation Notes and these notes may not be issued for a period of time exceeding:
a. One year
b Three years 
c. Five years 
d. Ten years 
e. None of the above
A

a. One year

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17
Q

N.J.S.A. 40A:2-8 further stipulates that all bond anticipation notes shall mature and be paid not later than which anniversary of the date of the original notes?

a. One year
b. Three years
c. Five years
d. Ten years
e. None of the above

A

d. Ten years

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18
Q

The Local Bond Law N.J.S.A. 40A:2-10 requires that “prior to the passage on first reading of any bond ordinance, or ordinance amending a bond ordinance, except amending as to matters which are not required to be contained in a bond ordinance or which does not increase the total amount of the obligations authorized by such bond ordinance”, the financial officer shall file with the office of the clerk which document.

a. Certification of the availability of funds
b. Annual debt statement
c. Supplemental debt statement
d. Both a and b
e. both a and c

A

c. Supplemental debt statement

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19
Q

The Local Public Contracts Law, specifically N.J.S.A. 40A:11:6 permits contracts to be entered into that exceed the bidding threshold if the situation effects which of the following:

a. Sole source availability
b. The public health, safety or welfare of the community
c. Compliance with specifications by low bidder
d. All of the Above
e. A and b only

A

b. The public health, safety or welfare of the community

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20
Q

The minimum numberof days for the advertisement for the receipt of bids is:

a. Five days
b. Seven days
c. Seven days but less than ten days
d. Ten days
e. None of the above

A

d. Ten days

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21
Q

The New Jersey Administrative Code, The Local Public Contract Law Rules, specifically N.J.A.C. 5:30-11.3(a) lists the general requirements for all change orders one of those requirements is that:

a. All change orders be approved by the Engineer
b. Responsibility for change orders lies with the governing body
c. The total amount of change orders cannot exceed the original contract amount by more than 20%
d. All of the above
e. None of the above

A

b. Responsibility for change orders lies with the governing body

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22
Q

Section 36 of the Local Budget Law requires that any anticipated deficit in expenditures to which dedicated revenues are applicable shall be provided for by an appropriation in the budget. the appropriation of the anticipated deficit would be included in which budget?

a. Dedicated Assessment Budget
b. Trust Fund Budget
c. Utility Budget
d. Current Fund Budget
e. None of the above

A

d. Current Fund Budget

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23
Q

The statutory deadline date for the filing of the Unaudited Annual financial Statement for a State Fiscal Year municipality is:

a. July 25
b. August 1
c. August 10
d. August 20
e. None of the above

A

c. August 10

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24
Q

Which is the dollar amount threshold that must be exceeded in order for a property owner to file a complaint directly with the New Jersey Tax Court in the appealing of property assessments?

a. $250,000
b. $500,000
c. $750,000
d. $1.000,000
e. None of the above

A

d. $1,000.000

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25
Q

The Local Fiscal Affairs Law permits the establishment of petty cash funds. N.J.S.A. 40A:5-21 describes with whom the authority rests for approval and/or disapproval of the petty cash fund. The person that has said authority, which must be received prior to activation of the petty cash fund is:

a. The Director of the Division of Local Government Services
b. The Municipal Auditor
c. The Chief Financial Officer
d. The Mayor
e. None of the above

A

a. The director of the Division of Local Government Services

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26
Q

Which public official is statutorily responsible for the billing of a special assessment levy?

a. Tax Collector
b. municipal Clerk
c. Tax Assessor
d. Certified Municipal Finance Officer
e. None of the above

A

a. Tax Collector

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27
Q

A New Jersey municipality is prohibited from increasing its’ tax levy by what percentage rate before permitted exclusions are added to the tax levy.

a. 2.5% or the Cost of Living Adjustment whichever is less
b. 3.5% with an adopted CAP rate ordinance
c. 2%
d. 4%

A

c. 2%

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28
Q

The Municipal Public Defenders Law, N.J.S.A. 2B:24-1 et. seq. contains a requirement for the accounting of application fees that are collected. It is required that the funds collected shall be deposited where?

a. Current Fund
b. Dedicated Trust Fund
c. Grant fund
d. Municipal Court Fund
e. None of the above

A

b. Dedicated Trust Fund

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29
Q

Which of the following is an appropriation that would not be subject to limitation as provided by the New Jersey “CAP” Law?

a. Audit Fees
b. Police Salaries and Wages
c. Utilities
d. All of the above
e. None of the above

A

e. None of the above

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30
Q

The Local Government CAP Law 40A:4-45.1 et. seq. addresses the permitted transfer of current year appropriations and reserve year appropriations. The statue prohibits the transfer of funds authorized by N.J.S.A. 40A:4-58 and 40A:4-59 from an appropriation that is not subject to limitation to an appropriation that is subject to limitation.

a. True
b. False

A

a. True

IN to IN, IN to OUT

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31
Q

The Local Government Ethics Law requires the filing of an annual financial disclosure statement. The disclosure statement shall include the name, address and each source of income earned by the local government employee or member of their immediate family in excess of what amount.

a. $400
b. $1,000
c. $1,750
d. $2,000

A

d. $2,000

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32
Q

Although there are exceptions for specific situations, the Local Bond Law, N.J.S.A. 40A:2-27, requires that the sale of bonds shall be sold at which type of sale.

a. Private
b. Public
c. Negotiated
d. None of the above

A

b. Public

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33
Q

N.J.S.A. 40A:2-11 requires that no bond ordinance shall be finally adopted unless it appropriates to the purpose, or ratably to the respective purposes to be financed, in addition to the obligations thereby authorized, a sum as a down payment which is no less than what percent of the amount of the obligations.

a. Two percent
b. Thee percent
c. Four percent
d. Five percent

A

d. Five percent

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34
Q

The same section of The Local Bond Law permits the source of the down payment to be make available from which of the following:

a. By provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes
b. From moneys actually held by the local unit and previously contributed for such purpose other than by the local unit
c. By emergency appropriation
d. a and c only
e. a, b and c

A

e. a, b and c

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35
Q

The Local Budget Law requires that all municipal budgets be advertised in full or in a summary format prior to the date of a public hearing on said budget. The advertisement shall be published at least how many days prior to the date of the public hearing?

a. Seven days
b. Ten days
c. Fourteen days
d. Twenty-eight days

A

B. Ten days

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36
Q

The Local Fiscal Affairs Law requires the Municipal Clerk to publish a synopsis of audit including recommendations in the official newspaper. This must be done within how many days after receipts of the annual audit?

a. Fourteen days
b. Twenty-one days
c. Thirty days
d. Forty-five days

A

c. Thirty days

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37
Q

The Local Fiscal Affairs Law, specifically 40A:5-17, grants authority for the approval of claims. The authority is given to:

a. The Governing Body
b. The Municipal Manager/Administrator
c. The Chief Financial Officer
d. The Mayor

A

a. The Governing Body

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38
Q

To the extent there is available surplus revenue collected by a municipality supplying a utility service which is regulated by the Board of Public Utilities an amount not to exceed what percentage of the annual costs of operation of the utility may be transferred from the accounts of the municipal utility and included in the local budget as surplus revenue?

a. Two percent
b. Three percent
c. Four percent
d. None of the above

A

d. None of the above

5%

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39
Q

The Local Budget Law, specifically N.J.S.A. 40A:4-27, permits a local unit to anticipate as miscellaneous revenue the total amount of all payments due and payable to the local unit during the fiscal year as a result of the sale of property by the local unit. The obligation to make such payment must be entered into prior to which event?

a. Prior to Introduction of the budget
b. Prior to Adoption of the budget

A

b. Prior to Adoption of the budget

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40
Q

Within how many days of the beginning of the fiscal year shall a governing body adopt temporary appropriations to provide for the period between the beginning of the fiscal year and the adoption of the budget?

a. Thirty days
b. Thirty-three days
c. Thirty-five days
d. None of the above

A

a. Thirty days

N.J.S.A 40A:4-19

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41
Q

The contents of a bond ordinance are specified by the Local Bond Law N.J.S.A. 40 A:2-12. Which of the following is required:

a. The purpose of the obligation
b. The maximum amount of bonds or notes
c. That such statement shows that the gross debt is increased by the authorization of such obligations
d. All of the above
e. None of the above

A

d. All of the above

42
Q

A bond ordinance shall be finally adopted by what vote of the governing body?

a. Affirmative vote of the majority of those present
b. Affirmative vote of the majority of the full membership of the governing body
c. Affirmative vote of at least 2/3rds of those present
d. Affirmative vote of at least 2/3rds of the full membership of the governing body

A

d. Affirmative vote of at least 2/3rds of the full membership of the governing body

N.J.S.A. 40A:2-17 b(2)(2)

43
Q 
The Local Bond Law specifies the minimum period of usefulness for any improvement for which obligations are authorized, said time shall not be less than how many years?
a. Two
b. Five
c. Ten
D. Fifteen
E. None of the above
A

b. Five

N.J.S.A. 40A:2-21

44
Q

The Local Public Contracts Law, specifically N.J.S.A. 40A:11-10, authorizes the governing bodies of two or more contracting units to enter into a joint agreement for the provision of goods and services for use by their respective jurisdictions. The agreement shall be entered into by resolution of each jurisdiction and shall include which of the following?

a. The categories of goods and services
b. The manner of advertising for bids
c. The manner for awarding contracts
d. All of the above

A

d. All of the above

45
Q

What is the basic element of internal control in a finance office?

a. Prompt deposit of all funds
b. Prohibition against cashing employees checks
c. Periodic surprise cash counts
d. a & b only
e. a, b & c

A

e. a, b & c

46
Q

Statutory expenditures as contained in the budget may include payments to:

a. Pensions
b. Social Security System
c. Unemployment compensation and Temporary Disability Funds
d. a & b only
e. a, b & c

A

e. a, b & c

47
Q 
In New Jersey the budget system followed is known as:
a. Modified cash basis
b. Cash basis
c. Accrued basis
d. Modified accrued basis
e None of the above
A

b. Cash basis

Modified accrued basis (accounting basis)

48
Q

New Jersey Local Finance Notice 92-15 requires that a Corrective Action Plan be prepared in accordance with OMB requirements and submitted to the Division of Local Government Services no more that how many days from the date the audit is received by the Governing Body?

a. Thirty days
b. Forty-five days
c. Fifty days
d. Sixty days
e. None of the above

A

d. Sixty days

49
Q

The Corrective Action Plan should be referenced in which legal notice that is published in the official newspaper?

a. Annual Reorganization Notice
b. Synopsis of audit report
c. Award of professional service contract
d. Hearing on budget

A

b. Synopsis of audit report

50
Q

The Local Public Contracts Law provides exceptions to the requirement of public advertisement for the award of agreements. Circumstances that would allow for the negotiation of a contract award are:

a. The contracting unit has advertised for bids on two occasions and on both occasions received no bids.
b. The governing body has rejected bids on two occasions because prices were determined unreasonable.
c. On one occasion there were no bids and on another occasion prices were determined unreasonable.
d. All of the above

A

d. All of the above

N.J.S.A. 40A:11-5(3)

51
Q

Subsection (d) of N.J.A.C. 5:34-3.3 requires multi-year lease agreements, unless excepted by statute, to contain clause making the agreement subject to the availability and appropriation annually of sufficient funds.

a. True
b. False

A

a. True

52
Q

An award of a contract, except for professional services, may be awarded for a period of how many consecutive months?

a. Remaining months fiscal year
b. Twelve months
c. Eighteen months
d. Twenty months
e. None of the above

A

e. None of the above

N.J.S.A. 40A:11-15 24 months

53
Q

All advertisements for bids on contracts for the collection and disposal of municipal solid waste shall be published not less than how many days prior to the receipt of said bids?

a. Ten
b. Thirty
c. Forty-five
d. Sixty

A

d. Sixty

N.J.S.A. 40A:11-23(a)

54
Q

According to the Local Bond Law N.J.S.A 40A:2-28, bond anticipation notes may be sold at what type of sale?

a. Public Sale
b. Private Sale

A

b. Private Sales

55
Q

When selling bonds, all bidders shall be required to deposit a certified or cashier’s check equal to not less than what percentage of the bonds?

a. One percent
b. Two percent
c. Three percent
d. Five percent
e. None of the above

A

b. Two percent

N.J.S.A. 40A:2-32

56
Q

The Local Bond Law N.J.S.A. 40A:2-32 limits the amount of premium bid for bonds, which shall not exceed:

a. One percent
b. No Limit
c. $1,000
d. $2,000
e. None of the above

A

c. $1,000

57
Q

The legal depositories for public moneys are to be authorized by whom according to section 14 of the Local Fiscal Affairs Law?

a. Majority vote of the full membership of the governing body
b. The Chief Financial Officer
c. The Local Finance Board
d. The New Jersey Department of Banking

A

a. Majority vote of the full membership of the governing body

58
Q

The Local Fiscal Affairs Law requires certain employees to be bonded. According to Section 34.1 employees may be covered by a blanket bond except for which of the following positions?

a. Tax Collector and Treasurer
b. Tax Collector and Tax Assessor
c. Treasurer and Municipal Court Judge
d. Municipal Court Judge and Tax Collector
e. All of above may be covered by a blanket bond

A

e. All of above may be covered by a blanket bond

59
Q

Budgets are adopted by what vote of the governing body?

a. Two-thirds of full membership of governing body
b. Majority vote of those present
c. Majority vote of the full membership of the governing body
e. None of the above

A

c. Majority vote of the full membership of the governing body

N.J.S.A. 40 A:4-10

60
Q

The Local Budget Law permits the transfer of current year appropriations during what time of the fiscal year?

a. During last three months of fiscal year
b. During first two months of fiscal year
c. During last month of fiscal year
e. None of the above

A

e. None of the above

N.J.S.A 40 A:58
First 3 months, appropriation reserves
Last 2 months, appropriations

61
Q

What vote of the governing body is required to authorize the transfer of funds as permitted by the Local Budget Law?

a. Majority vote of the full membership of the governing body
b. Two-thirds vote of the full membership of the governing body
c. Majority vote of those present
d. Two-thirds vote of those present

A

b. Two-thirds vote of the full membership of the governing body

N.J.S.A. 40A:4-58-59.

62
Q

Which Board is empowered to promulgate rules and regulations for the interpretation and administration of state laws within the jurisdiction of the Division of Local Government Services?

a. Local Treasury Management Team
b. Local Finance Board
c. State Building Commission
d. Board of Public Utilities
e. None of the above

A

b. Local Finance Board

63
Q

Which of the following is described as: An agency created to perform a specific function or functions within a municipal county or region. By law this agency is required to be self-liquidating. Their budgets and operations are responsibility of the elected governing body and its management.

a. A municipal utility
b. A special district
c. An authority
d. A non-profit agency

A

a. A municipal utility

64
Q

Every financial institution permitted to be a depository of public funds is reviewed annually by the State of New Jersey Department of Banking, and recertified as to their eligibility to act as a depository of public funds. What law requires this certification?

a. Notification of Eligibility Act
b. Governmental Unit deposit Protection Act
c. Federal Deposit Insurance Corporation Act
d. Cash Management Act
e. U.S. Banking and Securities Act

A

b. Governmental Unit deposit Protection Act

65
Q

The Local Fiscal Affairs Law, N.J.S.A. 40A:5-15.1 allows municipalities and counties to invest in government money market mutual funds.

a. True
b. False

A

a. True

66
Q

Emergency authorizations are regulated by the Local Budget Law, N.J.S.A. 40A:4-47. This section requires what amount of regular emergency authorization to be appropriated by the governing body?

a. One-third of the emergency amount in the next three budgets
b. One-fifth of the emergency amount in the next five budgets
c. The full amount in the next succeeding fiscal year
d. None of the above

A

c. The full amount in the next succeeding fiscal year

67
Q

Which of the following terms is described as: An obligation of funds by a local unit arising from the issuance of a numerically controlled purchase order or contract. Said commitment of funds reduces the amount that remains available for spending.

a. Encumbrance
b. Adjusting Journal Entry
c. Certification of Funds
d. None of the above

A

a. Encumbrance

68
Q

As permitted by the New Jersey Budget Law N.J.S.A. 40A:4-50 emergency appropriations may be financed from which of the following?

a. Bond Anticipation Notes
b. Surplus
c. Emergency notes
d. a and c only
e. b and c only

A

e. b and c only

69
Q

The Local Budget Law, specifically N.J.S.A. 40A:4-19, permits temporary budget appropriations. Although, total temporary appropriations may not exceed a certain percentage of the total of the appropriations made for all purposes in the budget for the preceding year, with exception of statutory exclusions. The maximum percentage is what amount?

a. Five percent
b. twenty-five percent
c. Twenty-five and one-quarter percent
d. Twenty-six percent
e. None of the above

A

e. None of the above

26 1/4

70
Q

The following definition applies to what according to the Local budget Law N.J.S.A. 40A:4-24. In the current section of accounts shall consist of the excess of quick assets such as cash, investments, State or other public aid receivable and deferred charges over legal and demand liabilities.

a. Amount to be raised by taxation
b. Surplus
c. Reserve for Uncollected Taxes
d. Non-cash surplus
e. None of the above

A

b. Surplus

71
Q

The Local Budget Law N.J.S.A. 40A:4-32 allows an appropriation for contingent expenses in an amount not more than what percentage of the total appropriations for operating purposes?

a. One percent
b. Two percent
c. Three percent
d. Four percent
e. Five percent

A

c. Three percent

72
Q

The Capital Improvement Program is either a three-year or six-year plan and schedule for capital projects showing projected costs and revenue sources. What is the population threshold that would require adoption of a six-year plan?

a. Under 10,000
b. Over 10,000
c. Under 20,000
d. Over 20,000
e. None of the above

A

b. Over 10,000

73
Q

A payment process requires a purchase order system to have a particular document as par of the purchase order and this same document is the basis of payment. The document is:

a. A voucher
b. A receiving slip
c. An invoice
d. A billing statement

A

a. A voucher

74
Q

Which term below is described as: This value is calculated for each municipality by the state Division of Taxation. It is intended to represent, as nearly as possible, the true value of all of the taxable property within a municipality. The process relies heavily on an analysis of sales of property in the municipality.

a. Assessed value
b. Market value
c. Equalized value
d. Appraised value

A

c. Equalized value

75
Q

The Local Public Contracts Law authorizes a guarantee to accompany a bid. The guarantee is payable to the contracting unit. When a bid award is made the bidder will furnish any performance bond or other security as a guarantee or indemnification. The Guarantee shall be in which of the following amount(s)?

a. Five percent of the bid
b. Ten percent of the bid
c. Not in excess of $10,000
d. Not in excess of $20,000
e. Both b and d

A

e. Both b and d

76
Q

Without taking action to authorize an exception, a contracting unit shall award the contract or reject all bids within such time as specified in the invitation to bid, but in no case more than how many days?

a. Thirty days
b. Forty-five days
c. Fifty days
d. Ninety days
e. None of the above

A

e. None of the above

60 days

77
Q

The sale or other disposition of personal property is guided by The Local Public Contracts Law, specifically N.J.S.A. 40A:11-36. With exceptions considered, the sale must be authorized by governing body action and the property sold at public sale if the value of the property is in excess of what amount?

a. 5% of the authorized bid threshold
b. 10% of the authorized bid threshold
c. 15% of the authorized bid threshold
d. 20% of the authorized bid threshold

A

c. 15% of the authorized bid threshold

78
Q

The Local Bond Law N.J.S.A. 40A:2-7 permits adoption of a bond ordinance in excess of the statutory debt limit for which of the following:

a. Fire, Flood, other disaster
b. Creation of a utility
c. Creation of debt service reserves
d. All of the above
e. None of the above

A

a. Fire, Flood, other disaster

79
Q

Multipurpose bond ordinances are permitted by the Local Bond Law N.J.S.A. 40A:2-13. Multipurpose bond ordinance obligations may be provided for in a single issue of obligations.

a. True
b. False

A

a. True

80
Q

The Local Government CAP Law N.J.S.A. 40A:4-45.2 places limitation of increases of municipal budget appropriations. A statutorily permitted amount to be added to the CAP base is which of the following:

a. The index rate
b. Two percent or the index rate, whichever is less
c. Two and one-half percent or index rate, whichever is less
d. None of the above

A

c. Two and one-half percent or index rate, whichever is less

81
Q

The Local Budget Law N.J.S.A. 40A:4-78(b) authorized the Local finance Board to adopt rules that permit municipalities to conduct annual local examination of the annual budget. The first phase of the process is determination of eligibility by the Division of Local Government Services. The second phase is program qualification. Qualification is determined by whom?

a. Chief Financial Officer
b. governing Body
c. Municipal Auditor
d. Municipal Manager
e. None of the above

A

a. Chief Financial Officer

82
Q

Technical Accounting Directive requiring the accounting for fixed assets sets the threshold for “nonexpendable, tangible personal property” at what amount for both municipalities and counties?

a. $1,000
b. $2,000
c. $3,000
d. $4,000
e. $5,000

A

e. $5,000

83
Q 
Which of the terms below describes: The total structure of records and procedures which discover, record, classify and report information on the financial position and operations of a governmental unit or any of its funds, balanced account groups and organizational components.
a. General Ledger
b. Accounting system
c. Accrual basis for accounting
d. Budget document
e Internal control
A

b. Accounting System

84
Q

The three methods used by a tax assessor to determine values of real property are: sales approach, replacement approach and the income approach.

a. True
b. False

A

a. True

85
Q

“Dedicated revenues” are defined and regulated within the Local Budget Law, specifically N.J.S.A. 40 A:4-36. This section requires any anticipated deficit in expenditures to which dedicated revenues are applicable shall be provided for by an appropriation in the operating budget.

a. True
b. False

A

a. True

86
Q

The Local Budget Law requires a public hearing on the municipal budget. The public hearing shall not be held less than how many days after the approval of the budget in the case of a municipality?

a. Ten
b. Fourteen
c. Twenty
d. Thirty
e. None of the above

A

e. None of the above

N.J.S.A. 40A:4-7 28 days

87
Q

The process for the requirements mandating a public hearing for the amending of an approved budget are provided by N.J.S.A. 40A:4-9. One of the criterion requiring a public hearing would be if the budget amendment increases or decreases any item or appropriation by more than 1%.

a. True
b. False

A

B. False

  • New item of appropriation in excess of 1% of the total appropriations
  • increase or decrease any appropriation by more than 10%
88
Q

An appropriation transfer as permitted by the Local Budget Law, specifically N.J.S.A. 40A:4-58 would not permit a transfer from an appropriation for:

a. Legal expenses
b. Public Works Salaries & Wages
c. Deferred Charges
d. All of the above
e. None of the above

A

c. Deferred charges

89
Q

The issuance of Tax Anticipation Notes are permitted, but also limited as to amount and maturity, by the Local Budget Law. TANS may be renewed from time to time, but all such notes and any renewal thereof shall mature in the case of a municipality within how many days after the beginning of the succeeding fiscal year.

a. Ninety days
b. One-hundred twenty days
c. One-hundred eighty days
d. None of the above

A

b. One-hundred twenty days

N.J.S.A. 40A:4-67

90
Q

The anticipated revenues from the operation of any utility or enterprise owned or operated by a local unit and the appropriations to be made therefore shall be set forth how in a municipal budget?

a. In a separate section of the budget
b. In the dedicated revenue section of the budget
c. Within the current fund budget section
d. In a completely separate budget from other operations

A

a. In a separate section of the budget

N.J.S.A. 40A:4-3.3

91
Q

The Municipal Public Defenders Law requires the Division of Local Government Services as part of their budget review to determine if the amount of money in a dedicated trust fund exceeded by what percentage the amount expended for providing public defender services during the preceding year. The excess of that percentage shall be remitted by the municipality to the New Jersey Criminal Disposition and Review Collection Fund. What is the Percentage?

a. 10%
b. 15%
c. 20%
d. 25%

A

d. 25%

92
Q

A tax point is equal to which of the following:

a. One-tenth of net valuation taxable
b. One-hundredth of net valuation taxable
c. One-thousand of net valuation taxable
d. One-ten thousandth of net valuation taxable

A

d. One-ten thousandth of net valuation taxable

0. 0001

93
Q

The Local Bond Law permits the sale of bonds at one time or in installments.

a. True
b. False

A

a. True

94
Q 
The Local Bond Law N.J.S.A. 40A:2-40 mandates the Chief Financial Officer of each local unit, that before the end of the first month of each fiscal year, the officer shall make and file in the office of the clerk and of the Director, under oath as of the last days of the preceding fiscal year which document from the following?
a. Annual Debt Statement
b. Unaudited Annual Financial Statement
c. Cash Flow Statement
d Supplemental Debt Statement
A

a. Annual Debt Statement

95
Q

According to section 45 of the Local Bond law, any municipal public utility that has cash receipts in a fiscal year sufficient to meet operation and debt charges without recourse to general taxation is considered to be:

a. Self-sufficient
b. Self-regulated
c. Self-liquidating
d. None of the above

A

c. Self-liquidating

96
Q

the Annual Audit is required to be completed within how many months of the end of the fiscal year according to the Local Fiscal Affairs Law, N.J.S.A. 40A:5-4?

a. Four months
b. Five months
c. Six months
d. Seven months

A

c. Six months

97
Q

The amount of revenue of revenue generated by an increase in a municipalities’ valuations based solely on applying the preceding year’s local purposes tax rate of the municipality to the assessed value of new construction or improvements, or on applying the preceding year’s county tax rate to the apportionment valuation of new construction or improvements has no effect on the CAP base of either?

a. True
b. False

A

b. False

98
Q

All debt service, including that of Type I school district is excluded from “CAP” limitations?

a. True
b. False

A

a. True

99
Q

The Local Public Contracts Law, specifically N.J.S.A. 40A:11-4.6, permits the implementation of a energy savings improvement program if it is determined that the savings generated from reduced energy use from the program will be sufficient to cover the cost of the program’s energy conservation measures in an energy savings program.

a. True
b. False

A

a. True

100
Q

The Local Public Contracts Law, specifically N.J.S.A. 40A:11-23, prohibits a municipality from receiving bids on which days?

a. Tuesdays
b. Mondays
c. Wednesdays
d. Any day directly following a State or Federal Holiday
e. Both b and d

A

e. Both b and d

CMFO Review Exam (5 decks)

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