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Principles of Financial Management > Review > Flashcards

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1
Q

5 Years

A

Minimum useful life of a capital item

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2
Q

40 years

A

Maximum useful life for a capital project

max bond maturity

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3
Q

5% down payment

A
  • Needed for bonds and notes authorized
  • a municipality can ask for a waiver from the LFB
  • appropriated in CF, CIP, Emergency
  • req on every bond ord unless you have a self-liquidating utility
  • CIF, Reserve, Emergency, Developers Contribution
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4
Q

TAD 85-1

A

Encumbrance Accounting System is required

every municipality must utilize a minimum purchasing system

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5
Q

TAD 85-2

A

DLGS requires each municipality to maintain a Fixed Assets

accounting system; threshold for fixed assets is $5,000 but can be less

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6
Q

TAD 85-3

A

DLGS requires each municipality to maintain a General Ledger for at least the current fund

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7
Q

NJSA 40A:2

A

Local Bond Law

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8
Q

NJSA 40A:4

A

Local Budget Law

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9
Q

NJSA 40A:5

A

Local Fiscal Affairs Law

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10
Q

NJSA 40A:11

A

Local Public Contracts Law

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11
Q

2%

A

County Debt Limit

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12
Q

3.5%

A

Municipal Debt Limit

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13
Q

Cash Management Plan

A

Designates banks, depositories and investments

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14
Q

$750,000

A

Single Audit required if the total of fed and state grants expended are $750,000or more

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15
Q

GUDPA - Governmental Unit Depository Protection Act

A

insurance plan,certificates June/Dec

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16
Q

February 10th

A

Annual Financial Statement due
Calendar year municipality
8/10 for SFY; 1/26 for County

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17
Q

January 31st

A

Annual Debt Statement Due; SFY 7/31-Gross Debt-deductions = net debt/equalized valuation for the last 3 yrs

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18
Q

Cap Transfers

A

In - Out Yes, In-In yes, Out - In no, Out - out no

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19
Q

26.25%

A

Temp budget - % of the total of all budget appropriations of the preceding year, excluding the appropriations for debt service, CIF and public assistance

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20
Q

$17,500

A

Threshold Pay to Play

Bid Threshold w/o QPA

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21
Q

$40,000

A

Bid threshold with QPA

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22
Q

Temporary Budget

A

26.25% of total of all budget appropriations of the preceding year. first 30 days to adopt or temp appropriations for debt service during the last 10 days of the preceding year

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23
Q

4 levels of local government

A

Municipality, County, special and school

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24
Q

Number of Counties

A

21

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25
Classes of Counties
6
26
Number of municipalities
565
27
Type I School District
Debt is issued by the municipality and included in the | debt percentage
28
Division of Local Government Services DLGS
Provides oversight for municipal finance LFN
29
Largest source of revenue for local government units
Property Taxes
30
Title
40A 40A:2-1
31
Chapter
2 40A:2-1
32
Section
1 40A:2-1
33
Annual Financial Disclosure Statement due
April 30
34
Local Finance Board
7 members; Director of DLGS serves as ex-officio chairperson, ethics, strongest power is supervision of financial affairs of municipalities
35
Municipal Bond Team
Bond Counsel, auditor, CFO, Financial advisor, Administrator
36
Flexible Chart of Accounts
Divided between S/W and O/E; County FCOA has 16 digits Municipal has 13 digits
37
Self Liquidating
Utilities; Revenues = expenditures; 5% down pyment | deficit raised in the CF
38
Local Finance Notice
Keep up to date
39
General Ledger
Official financial permanent record of the municipality
40
Transitional year budget
Calendar yr to fiscal year; Jan-June; fiscal year adjustment bonds
41
Fiscal Year adjustment bonds
Municipality who switched to SFY needed to adopt a transitional year budget - towns were allowed to issue FYABS to finance the 6 months.
42
1%-amendment
add a new item of appropriation more than 1% of the total of appropriations as stated in the approved budget
43
10%-amendment
increase or decrease any of a line item appropriation by more than 10%
44
5%-amendment
increase amt to be raised taxes by more than 5% unless including emergency appropriation
45
Capital budget if population
3 year
46
Capital budget if population > 10,000
6 years
47
Fund
Self-balancing set of accounts
48
20 days
estoppel period
49
10days
estoppel period if fully funded ordinance
50
OCBOA
Other Comprehensive Basis of Accounting Modified Accrual Basis Realize revenues when received in cash and expenditures when they are committed.
51
accounting equation
Assets = liab + Fund Balance
52
Bond Interest Due
Semi-annually
53
Bond Principal due
Annually
54
When notes are due in whole BAN
First day of the fifth month following the close of the 10th fiscal year; 3rd anniversary first installment
55
15% of the bid threshold
Quote threshold
56
Quote threshold with no QPA
$2,625
57
Quote threshold with a QPA
$6,000
58
Prior negative experience
Written notice of disqualification by governing body Hearing before the governing body Governing body can vote to disqualify Disqualification period not to exceed 5 years Do not get a hearing if suspended or disbarred by the state
59
12 months
Duration of a professional service contract
60
30
CEUs needed to renew license
61
48 hours
time to deposit funds
62
6 months
Audit filed within 6 months
63
9 months
Single audit filed within 9 months
64
Dedication by Rider
Fund designed for a special purpose
65
Reserve for uncollected taxes
non spending appropriation-offset the difference between a full 100% collection and the actual collection of taxes
66
cash basis
budget prepared on a cash basis
67
3%
contingent 3% of total budget appropriations for operations
68
Fund Balance (Surplus)
excess of quick assets-legal demands
69
Tax anticipation notes
tax flow deficit - due 120 days after beg of next fiscal | year
70
5 year special emergency
tax maps, revaluation, retirement if exorbitant
71
Section 20 costs
soft costs
72
Job Functions of a CFO
``` Maintain purchasing system maintain fixed asset system implement local finance notices Issue debt prepare supplemental debt statement prepare ordinances (salary ordinance) prepare journal entries reconcile bank accounts make investments of idle funds process payroll develop budget manage debt Insurance management implement and maintain internal controls and policies contract negotiations manage personnel adopt cash management plan Accounts Payable Benefit Administration Budget amendments Financial reporting ```
73
Annual Financial Disclosure Form
Sources of income greater than 2,000;gifts 400; fees/speeches 250; property
74
Corrective Action Plan
Covers all findings and recommendations in the audit report as well as the status of all prior year findings; filed with clerk in 45 days from the date the audit is received by the governing body; needs to be submitted to DLGS no later than 60 days from the receipt of audit Format - Findings/Conditions Recommended Actions-why it occurred Explanation/Corrective Action-procedures to be corrected Implementation Date- no later than 6 months
75
Implement a Local Finance Notice
Read It Interpret It - What is it telling me? Write a memo Follow through and implement

Principles of Financial Management (1 decks)

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