Homma Questions

Question 1

True/False: Due from State of NJ for Senior Citizen Deductions can be anticipated as a revenue in C/F budget as non-cash surplus

Answer 1

True

Question 2

True/False: Trust assessment cash is first pledged to retirement of serial bonds

Answer 2

True

Question 3

True/False: Municipal Library Levy is paid quarterly

Answer 3

True

Question 4

Budget Transfers from CIF are not permitted

Answer 4

True

Question 5

Corrective Action Plan Format

Answer 5

Finding/Condition; Recommendation; Explanation & Corrective Action; Implementation Date

Question 6

Who mails out local tax assessment bills?

Answer 6

Tax Collector

Question 7

Oversight over PERS and PFRS

Answer 7

Department of Treasury

Question 8

Adoption of Corrective Action Plan

Answer 8

60 Days of receipt of audit report

Question 9

Developer Escrow - Greater that $1000

Answer 9

CFO required to provide a monthly statement to developer

Question 10

One Tax Point is Equal to

Answer 10

One ten thousandth of net valuation

Question 11

Duties of LFB

Answer 11

-Defaults on Bonds; Tax Collection Rate less than 70%; Cash Deficit of tax levy in excess of 4% for 2 consecutive years

Question 12

Residents request to inspect vouchers

Answer 12

-must be made available immediately

Question 13

Financial Disclosure Forms

Answer 13

• Income>$2000
• Gifts > $400
• Property within NJ

Question 14

True/False: SDS files between the 1st and 2nd reading of bond ordinance

Answer 14

-False

Question 15

True/False: Three different bond ordinances are introduced at one public meeting only one SDS is required

Answer 15

-True

Question 16

True/False: The anticipated revenue for Receipts from Delinquent Taxes is limited to the revenue realized in previous year.

Answer 16

False - Calculation on AFS Sheet 26

Question 17

True/False: ADS is due upon introduction of bond ordinance

Answer 17

False

Question 18

True/False: The cash management plan can be amended anytime

Answer 18

True

Question 19

True/False: Federal single audit is required if Federal Grant expenditures equals or exceeds $750,000

Answer 19

True

Question 20

Net Debt Equations

Answer 20

Net Debt = Gross Debt - Deductions

Question 21

Securities that can be converted into cash

Answer 21

Liquidity

Question 22

Chairperson of LFB

Answer 22

Director of DLGS

Question 23

Unclaimed, old escrow accounts

Answer 23

Escheat to the state of NJ as unclaimed property

Question 24

True/False: Interest on Utility Assessment Debt is appropriated in the C/F

Answer 24

False - (if just assessment debt then true)

Question 25

Vote required for budget transfers

Answer 25

2/3 majority vote

Question 26

True/False: In regard to use of P-Cards, under no circumstance may a transaction exceed 15% of bid threshold

Answer 26

-False - Can exceed if you have a QPA

Question 27

True/False: Pursuant to Local Budget Law, municipalities permitted to overspend a legal line item appropriation if the overall C/f budget remains in a surplus position

Answer 27

False

Question 28

Excess in Animal Control Fund at year end

Answer 28

Due to C/F and recorded to MRNA

Question 29

Does Director approve budget transfers?

Answer 29

No

Question 30

Public Sale of Bonds

Answer 30

-If over $1,000,000

Question 31

True/False: The unexpended balance of debt service must be cancelled by resolution

Answer 31

False

Question 32

True/False: An emergency note can be issued in anticipation of taxes in a fiscal year

Answer 32

False

Question 33

True/False: Capital Budget must be adopted by a majority of the governing body

Answer 33

False - 2/3 vote

Question 34

True/False: Municipalities are permitted to negotiate with a vendor after 2 attempts, responses to bids were too high, or no bids submitted

Answer 34

True

Question 35

True/False: Trust assessment fund cash is less than the required amount to retire debt service, a required appropriation in C/F budget is necessary to cover the deficit

Answer 35

True

Question 36

The number of miles of roads paved in terms of expenditures would be an example of which type of budgeting

Answer 36

Performance Base Budgeting

Question 37

Which does not have to be included in a bond ordinance

Answer 37

Maturity schedule for bonds

Question 38

Budget transfers in the last two month of calendar year requires which vote?

Answer 38

2/3 of full

Question 39

Which of the following would not be included in specs for banking services?

Answer 39

DLGS approval of specs

Question 40

Which does not create a deferred charge?

Answer 40

Prepaid taxes applied to Taxes Receivable

Question 41

Best Practices on municipal website

Answer 41

- Last 3 years of adopted budgets - Current year proposed municipal budget - most recent financial statements and audit

Question 42

Equalized valuation

Answer 42

Represents true value of all taxable property in municipality

Question 43

Derivatives

Answer 43

Not a permissable investment

Question 44

Budget Transfers during last two months may not be made to:

Answer 44

- Deferred Charges - RUT - Down Payment on Improvements - CIF

Question 45

Period of Usefulness to exceed

Answer 45

40 years

Question 46

DLGS must approve

Answer 46

- Petty Cash Fund - Change in Title or Text - Dedication by Rider - Emergency App in excess of 3% of operating appropriations

Question 47

Borrowing capacity is based on

Answer 47

Net Debt

Question 48

Patrol Cars

Answer 48

-Not Bondable - Recently Changed - now are bondable

Question 49

Can sell bonds privately

Answer 49

-Except if over $1,000,000

Question 50

Eligible Shared Services

Answer 50

- Joint Collection of Taxes - Joint Municipal Court - Joint Solid Waste Collection/Disposal

Question 51

True/False: Dedication by rider must be accounted for in C/F

Answer 51

False

Question 52

True/False: Special Improvement Districts Budget must be approved by governing body

Answer 52

True

Question 53

Budget Message should contain:

Answer 53

-explanation of appropriation and levy CAPs and listing of appropriations split by CAP

Question 54

Correct procedure to adopt budget

Answer 54

- Introduction & Approval - Advertisement - Public Hearing - Amendments - Advertising & Public Hearing on Amendments - Adoption

Question 55

If municipality does not have ethics board

Answer 55

LFB would act as Ethics Board

Question 56

What is the official budget to be adopted

Answer 56

Line Item Budget

Question 57

True/False: Payment of Utility Assessment Bond Principal recorded as an expenditure in the Utility Assessment Trust Fund

Answer 57

True

Question 58

Which is not a proper way to distribute a tax overpayment?

Answer 58

Apply to Amount to be Raised by Taxation

Question 59

True/False: Town Administrator can be enrolled in DCRP as opposed to PERS

Answer 59

True

Question 60

True/False: 2010 CAP eliminated the add-on increases to the RUT

Answer 60

True

Question 61

True/False: Transitional Aid must demonstrate that user fees have been established for discretionary services, so that taxpayers are not subsidizing non-essential programs

Answer 61

True

Question 62

True/False: Unexpended bond proceeds may not be appropriated to fund additional capital improvement projects with a shorter useful life.

Answer 62

True

Question 63

Storm Recovery Trust/Reserve

Answer 63

-Used for salt and sand purchases, snow removal and salary and wages

Question 64

Local Assessment receivable for each parcel of property is whose responsibility

Answer 64

Tax Collector

Question 65

Trust Assessment Cash first pledged to

Answer 65

Retirement of Serial Bonds

Question 66

In what fund is gross utility debt reflected in?

Answer 66

Water Capital Fund

Question 67

Amount of dedicated revenue is not subject to a reasonably accurate estimate in advance

Answer 67

Dedication by Rider

Question 68

Method of accounting transactions is

Answer 68

Modified Accrual Basis