Review Exam Flashcards by Deborah Cameron

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

Registered Municipal Accountant

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The statutory responsibility for the filing of the Unaudited Annual Financial Statements is assigned to which local government official by NJSA 40A:5-12:

Chief Financial Officer

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As defined in the Local Government Ethics Law specifically, NJSA 40A:9-22.3 g, a “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:

Planning Board

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

Governing Body

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The Local Bond Law, specifically NJSA 40A2-26 stipulates that the maturities of all bonds shall be as determined by the bond ordinance or by subsequent resolution and be within the following limitations:

All bonds shall mature within the period or average period of usefulness
All bonds shall mature in annual installments
The governing body may provide for a single and combined bond issue

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The effective date of a bond ordinance as stipulated by NJSA 40A2-18 is what length of time?

Twenty days after the first publication after adoption

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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.

True

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

Would decrease the appropriation for the RUT

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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:

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

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The New Jersey Budget Law specifically NJSA 40A4-22 requires that the budget shall consist of a tabulated statement of:

All anticipated revenues applicable to expenditures for which appropriations are made

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The four classifications of revenue described by the Local Budget Law NJSA 40A4-23 are which of the following:

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

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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:

Referendum held at a general or special election

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The Local Budget Law NJSA 40A4-41 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:

Three

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The limitation of a municipality’s debt is regulated by the Local Bond Law, specifically NJSA 40A2-6. 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:

3.5%

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What is the value threshold established by the “pay to Play” law, specifically NJSA 19:44A20.4 at which a contract cannot be awarded by a NJ government entity.

$17,500

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A bond ordinance adopted by the governing body should include authorization to provide for short-term borrowing. According to the Local Bond Law NJSA 40A2-8 the short term borrowing instruments are known as Bond Anticipation Notes and these notes may not be issued for a period of time exceeding:

One Year

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NJSA 40A2-8 further stipulates that all bond anticipation notes shall mature and be paid not later than which anniversary of the date of the original notes?

Ten years

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The Local Bond Law NJSA 40A2-10 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.

Supplemental debt statement

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The Local Public Contracts Law, specifically NJSA40A11-6 permits contracts to be entered into that exceed the bidding threshold if the situation effects which of the following:

The public health, safety or welfare of the community

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

Ten days

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The New Jersey Administrative Code, The Local Public Contract Law Rules, specifically NJAC 5:34-4.2 lists the general requirements for all change orders. One of those requirements is that:

Responsibility for change orders lies with the governing body

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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?

Current Fund Budget

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

August 10

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

$1,000,000

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The Local Fiscal Affairs Law permits the establishment of petty cash funds. NJSA 40A5-21 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:

The Director of the DLGS

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

Tax Collector

A NJ municipality is prohibited from increasing its' tax levy by what percentage rate before permitted exclusions are added to the tax levy?

The Municipal Public Defenders Law, NJSA 2B24-1 et seq contains a requirement for the accounting application fees that are collected. It is required that the funds collected shall be deposited where?

Dedicated trust fund

Which of the following is an appropriation that would not be subject to limitation as provided by the NJ "CAP" law?

Audit fees, police salaries and wages, utilities | None of the above

The Local Government CAP Law 40A4-45.1 et seq addresses the permitted transfer of current year appropriations and reserve year appropriations. The statute prohibits the transfer of funds authorized by NJSA 40A4-58 and 40A4-59 from an appropriation that is not subject to limitation to an appropriation that is subject to limitation.

True

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.

$2,000

Although there are exceptions for specific situations, the Local Bond Law, NJSA 40A2-27, requires that the sale of bonds shall be sold at which type of sale.

Public

NJSA 40A2-11 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?

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

* By provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes. * From moneys actually held by the local unit and previously contributed for such purpose other than by the local unit * By emergency appropriations

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?

Ten days

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 receipt of the annual audit?

30 days

The Local Fiscal Affairs Law, specifically 40A5-17 grants authority for the approval of claims. The authority is given to:

The governing body

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?

The Local Budget Law, specifically NJSA 40A4-27 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?

Prior to Adoption of the Budget

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?

Thirty days

The contents of a bond ordinance are specified by the Local Bond Law NJSA 40A2-12. Which of the following is required?

The purpose of the obligation The maximum amount of bonds or notes That such statement shows that the gross debt is increased by the authorization of such obligations (All of the above)

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

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

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?

5 years

The Local Public Contracts Law, specifically NJSA 40A11-10 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?

The categories of goods and services The manner of advertising for bids The manner for awarding contracts

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

Prompt deposit of all funds Prohibition against cashing employees checks Periodic surprise cash counts (All of the above)

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

Pensions Social Security Unemployment Compensation & Temp Disability Funds

In New Jersey the budget system followed is known as:

Cash basis

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 than how many days from the date the audit is received by the governing body?

60 days

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

Synopsis of audit report

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:

* The contracting unit has advertised for bids on two occasions and on both occasions received no bids. * The governing body has rejected bids on two occasions because prices were determined unreasonable. * On one occasion there were no bids and on another occasion prices were determined unreasonable.

Subsection (d) of NJAC 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

True

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

24 months

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?

According to the Local Bond Law NJSA 40A2-28, bond anticipation notes may be sold at what type of sale?

Private

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

The Local Bond Law NJSA 40A2-32 limits the amount of premium bid for bonds, which shall not exceed:

$1,000

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

Majority vote of the full membership of the governing body

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?

Tax Collector, Treasurer, Assessor, Municipal Court Judge All of the above can be covered by a blanket bond

Budgets are adopted by what vote of the governing body?

Majority vote of the full membership of the governing body

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

Last two months

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

Two thirds vote of the full membership of the governing body

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?

Local Finance Board

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 the responsibility of the elected governing body and its management.

A municipal utility

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

Governmental Unit Deposit Protection Act

The Local Fiscal Affairs Law, NJSA 40A5-15.1 allows municipalities and counties to invest in government money market mutual funds.

True

Emergency authorizations are regulated by the Local Budget Law NJSA 40A4-47. This section requires what amount of regular emergency authorizations to be appropriated by the governing body?

The full amount in the next succeeding fiscal year

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.

Encumbrance

As permitted y the NJ Budget Law NJSA 40A4-50 emergency appropriations may be financed from:

Surplus | Emergency notes

The Local Budget Law NJSA40A4-19 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 the exception of statutory exclusions. The maximum percentage is what amount?

26.25%

The following definition applies to what according to the Local Budget Law NJSA 40A4-24. 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.

Surplus

The Local Budget Law NJSA 40A4-32 allows an appropriation for contingent expenses in an amount not more than what percentage of the total appropriations for operating purposes?

The Capital Improvement Program is either a 3 year or 6 year plan and schedule for capital projects showing projected costs and revenue sources. What is the population threshold that would require adoption of a 6 year plan?

Over 10,000

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

A voucher

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.

Equalized value

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 amounts?

10% of the bid not to exceed $20,000

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?

60 days

The sale or other disposition of personal property is guided by The Local Public Contracts Law NJSA 40A11-36. 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?

15% of the authorized bid threshold

The Local Bond Law NJSA 40A2-7 permits adoption of a bond ordinance in excess of the statutory debt limit for which of the following:

Fire, flood, other disaster

Multipurpose bond ordinances are permitted by the Local Bond Law NJSA 40A2-13. Multipurpose bond ordinance obligations may be provided for in a single issue of obligations.

True

The Local Government CAP Law NJSA 40A4-45.2 places limitation of increases of municipal budget appropriations. A statutorily permitted amount to be added to the CAP base is:

2.5% or the index rate, whichever is less

The Local Budget Law NJSA 40A4-78b 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?

Chief Financial Officer

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?

$5,000

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.

Accounting System

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

True

"Dedicated Revenues" are defined and regulated within the Local Budget Law NJSA 40A4-36. 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.

True

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?

28 days

The process for the requirements mandating a public hearing for the amending of an approved budget are provided by NJSA 40A4-9. 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%.

False....10%

An appropriation transfer as permitted by the Local Budget Law NJSA 40A4-58 would not permit a transfer from an appropriation for:

Deferred charges

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 renewals thereof shall mature in the case of a municipality within how many days after the beginning of the succeeding fiscal year.

120 days

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?

In a separate section of the budget

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 NJ Criminal Disposition and Review Collection Fund. What is the percentage?

25%

A tax point is equal to:

One-ten thousandth of net valuation taxable

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

True

The Local Bond Law NJSA 40A2-40 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 the Director, under oath and as of the last days of the preceding fiscal year which document:

Annual Debt Statement

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:

Self-Liquidating

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 NJSA 40A5-4?

6 months

The amount 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?

False

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

True

The Local Public Contracts Law NJSA 40A11-4.6 permits the implementation of an 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.

True

The Local Public Contracts Law NJSA 40A11-23 prohibits a municipality from receiving bids on which days?

Mondays or any day directly following a State or Federal Holiday

Review Exam Flashcards

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