Theory Review Golda Flashcards
(160 cards)
1
Q
An Audit of the fiscal books of a local unit is required to be completed within what period of time according to NJSA 40A:5-4, The Fiscal Affairs Law.
A. Prior to the completion of the fiscal year
B. Prior to completion of the subsequent fiscal year
C. Within Six Months of the end of the fiscal year
D. Within five months of the end of the fiscal year
A
C. Within Six months of the end of the fiscal year
2
Q
The Local Fiscal Affairs Law, NJSA 40A:5-7 requires that a synopsis of audit along with recommendations shall be published by whom within how many days of the receipt of the audit.
A. By the CFO within 30 days
B. By the clerk within 30 days
C. By the CFO within 45 days
D. By the clerk withing 45 days
A
B. Clerk within in 30 days
3
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 Municipal Accountant
4
Q
The statutory responsibility for the filing of the Unaudited Annual Financial Statements is assigned to which local government official by N.J.S.A.40A:5-12:
A
Chief Financial Officer
5
Q
As defined in the “Local Government Ethics Law” specifically, N.J.S.A.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:
A
Planning Board
6
Q
The “Local Fiscal Affairs Law” mandates that the Cash Management Plan be approved annually by the:
A
Governing Body
7
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 the following limitations:
A
- All bonds shall mature withing 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
8
Q
The effective date of a bond ordinance as stipulated by N.J.S.A. 40A:2-18 is what length of time?
A
20 days after the first publication after adoption
9
Q
True or False:
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
10
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
11
Q
The New Jersey Administrative Code 5:30-5.4 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 specify the exact line item appropriation or ordinance to be charged
12
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
All anticipated revenues applicable to expenditures for which appropriations are made
13
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, Receipts from Delinquent Taxes, Amount to be Raised by Taxes
14
Q
Implementation of a dedicated tax program for open space, recreation, farmland and historic preservation trust fund taxing districts are authorized by:
A
Referendum held at a general or special election
15
Q
The Local Budget Law N.J.S.A. 40A:4-41 (c)(l) 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
3 years
16
Q
The limitation of 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 :
A
3.5%
17
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
$17,500
18
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
19
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
Ten years
20
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
Supplemental Debt Statement
21
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
The public health, safety or welfare of the community
22
Q
The minimum number of days for the advertisement for the receipt of bids is
A
10 Days
23
Q
The New Jersey Administrative Code, The Local Public Contract Law Rules, specifically N.J.A.C. 5:30-11 lists the general requirements for all change orders one of those requirements is that:
A
Responsibility for change orders lies with the governing body
24
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
Current Fund Budget
25
The statutory deadline date for the filing of the Unaudited Annual Financial Statement for a State Fiscal Year municipality is:
August 10th
26
What 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?
$100,000
27
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:
The Director of the Division of Local Government Services
28
Which public official is statutorily responsible for the billing of a special assessment Levy?
Tax Collector
29
A New Jersey municipality is prohibited from increasing its' tax levy by what percentage rate before permitted exclusions are added to the tax levy.
Tax Levy = 2%
30
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?
Dedicated Trust Fund
31
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
NONE ALL ARE INSIDE THE CAP
32
True or False
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.
True
33
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
34
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.
Public
35
N.J.S.A. 40A:2-l l 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.
5%
36
The Local Bond Law permits the source of the down payment to be made 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 & c only
e. a, b and c.
A- By Provision in a previously adopted budget or budgets of the local unit for down payment or for capital improvement purposes
B- From Money actually held by the local unit and previously contributed for such purpose other than by the local unit
C. By emergency appropriation.
Answer: ALL of the Above!
37
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?
10 Days
38
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
39
The Local Fiscal Affairs Law, specifically 40A:5-17, grants authority for the approval of claims. The authority is given to:
The governing body
40
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?
5%
41
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?
Prior to the adoption of the budget
42
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?
30 Days
43
The contents of a bond ordinance are specified by the Local Bond Law N.J.S.A. 40A: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. 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
ANSWER IS ALL OF THEM
44
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
45
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
46
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. The categories of goods and services
b. The manner of advertising for bids
c. The manner for awarding contracts
ANSWER ALL OF THE ABOVE
47
Statutory expenditures as contained in the budget may include payments to:
Pensions
Social Security
Unemployment & Temporary Disability
48
In New Jersey the budget system followed is known as:
Cash basis
49
New Jersey Local Finance Notice 92-15 requires that a Corrective Action Plan be prepared in accordance with 0MB 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?
60 Days
50
The Corrective Action Plan should be referenced in which legal notice that is published in the official newspaper?
Synopsis of audit report
51
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.
52
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.
True-
Can also have a cancelation claus
53
An award of a contract, except for professional services, may be awarded for a period of how many consecutive months?
2 years or 24 months
54
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?
60 days for solid waste
55
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?
2 %
56
The Local Bond Law N.J.S.A. 40A: 2-32 limits the amount of premium bid for bonds, which shall not exceed:
$1,000
57
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
58
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 the above may be covered by a blanket bond
All positions listed can be covered by a blanket surety bond
59
Budgets are adopted by what vote of the governing body?
Majority vote of the full membership of the governing body
60
The Local Budget Law permits the transfer of current year appropriations during what time of the fiscal year?
The last 2 months of the year.
61
What vote of the governing body is required to authorize the transfer of funds as permitted by the Local Budget Law?
2/3rds of the full membership of the governing body
62
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
63
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 municipal Utility
64
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?
GUDPA
Governmental Unit Deposit Protection Act
65
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.
True
66
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?
The full amount in the next succeeding fiscal year
67
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
68
As permitted by the New Jersey Budget Law N.J.S.A. 40A:4-50 emergency appropriations may be financed from...
Surplus & Emergence Notes
69
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?
26.25%
70
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
71
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?
3% Contingent
72
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?
over 10,000 people
73
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
74
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
75
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 amount?
10 % but not in excess of $20,000
76
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
77
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?
15% of bid Threshold
78
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:
Fire Flood or other disaster
79
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.
True
80
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:
2.5%
81
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?
The CFO on the AFS
82
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
83
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.
Accounting System
84
The three methods used by a tax assessor to determine values of real property are: sales approach, replacement approach and the income approach.
True
85
"Dedicated revenues" are defined and regulated within the Local Budget Law, specifically N.J.S.A. 40A: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.
True
86
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
87
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 ___.
10%
88
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:
outside the cap Deferred Charges
89
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 (end of first quarter)
90
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
91
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?
25%
92
A point is equal to
1/10,000 of the net valuation taxable
93
The Local Bond Law permits the sale of bonds at one time or in installments
True
94
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 and as of the last days of the preceding fiscal year which document?
Annual Debt
95
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
96
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- This will increase cap base
97
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?
6 months 180 days
98
All debt service, including that of Type I school district is excluded from "CAP" limitations?
True- Debt is outside the CAP
99
The Local Public Contracts Law, specifically N.J.S.A. 40A:11-4.6, 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 of the program's energy conservation measures in an energy savings program.
True -Think Energy Aggrigation
100
The Local Public Contracts Law, specifically N.J.S.A. 40A:1 l-23, prohibits a municipality from receiving bids on which days?
Mondays
Any day directly following a state or federal holiday
101
The Local Budget Law, N.J.S.A. 40A:4-43.1(b) requires any municipality deciding to convert to a State Fiscal Year from a Calendar Fiscal Year to:
Apply to the local finance board
102
When converting to a State Fiscal Year from a Calendar Year, a municipality may do so by:
Ordinance
103
All budgets shall be introduced, approved, amended and adopted by what vote and by which action of the governing body?
By resolution passed by not less than a majority vote of the full membership of the governing body
104
N.J.S.A 40A:4-5 sets the introduction dates for the municipal budget for both a Calendar Year and State Fiscal Year community. The statutory dates are as follows:
Calendar Year – February 10, State Fiscal Year – August 10
105
A municipal governing body has introduced their town budget on Thursday, February 6 and will hold a public hearing on said budget on Thursday, March 6 (a non-leap year). The advertisement giving notice of the public hearing shall not be published later than which date?
February 24 (10 Days prior)
106
A municipal governing body has introduced their town budget on Thursday, February 6 and will hold a public hearing on said budget on Thursday, March 6 (a non-leap year). Would the minimum number of days required between approval and adoption been satisfied as stipulated in the Local Budget Law, N.J.S.A. 40A:4-7?
Yes 28 Days
107
According to N.J.S.A. 4-9, concerning amendments to an introduced budget______ would require a public hearing on said amendment.
10% increase of Appropriations
5% Raised by taxes
1% new item of appropriation
108
The amount to be raised by taxes for school purposes, required to be certified to the governing body of a municipality for inclusion in its budget, shall set forth in a separate section of the budget upon adoption and shall be added to the amount to be raised by taxes by :
School Tax Rate
109
The governing body may be resolution authorize temporary budget appropriations to provide for the period between the beginning of the fiscal year and the adoption of the budget. The resolution shall be adopted within how many days of the beginning of the fiscal year?
30 days
110
Nothing in the Local Budget Law, specifically as stated in N.J.S.A. 40A:4-19, shall prevent or relieve the governing body from making appropriations during the last 10 days of the year preceding the beginning of the fiscal year for all Debt Payment purposes.
True
111
When emergency temporary appropriations are adopted after the introduction and approval of the budget and were not included in the budget as approved, the temporary emergency appropriation shall be included by amendment.
True
112
_______________ is known as, 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 demand liabilities?
Surplus
113
Known as revenue amounts that may reasonably be expected to be realized in cash during the fiscal year from known and regular sources, or from sources reasonably capable of anticipation ...
Miscellaneous Revenues Anticipated
114
Miscellaneous revenues when being anticipated in the municipal budget are regulated by N.J.S.A. 40A:4-26. This section of the statute limits anticipated revenues to the amount:
Actually realized in cash from the same source in the next preceding fiscal year
115
A municipal governing body has determined that a parcel of land is no longer required for public use and so concluded that said parcel be sold at auction. The parcel of land will generate sale proceeds that would benefit town property owners if anticipated in the municipal budget as a revenue. In order for the proceeds to be an anticipated revenue in the budget the obligation to make payment to the municipality must be entered into
Prior to the adoption of the budget
116
When a municipality has a sinking fund cash surplus, such surplus may, upon written application by the sinking fund commission and the approval of the director, be used, in whole or in part, as _____________ according to N.J.S.A. 40A:4-28?
An anticipated miscellaneous revenue in the current fund budget
117
the amount to be raised by taxes as be the amount required to be levied by taxation for support of the municipal budget. It is the difference between the total of all general municipal budget appropriations, including chapter 6 school debt services, and such deferred charges and statutory expenditures for chapter 6 schools as are required to be raised in the municipal budget, less the total of anticipated revenues.
True
Total Appropriations (minus)- Revenues = Amount to be raised by taxation
118
To the extent there is available surplus revenue collected by a municipality for supplying a utility service, which is regulated by the Board of Public Utilities, an amount of this utility surplus may be transferred annually and included in the local municipal budget. This amount of surplus to be utilized may not exceed what percentage of the annual costs of operation of the utility?
5%
119
Dedicated revenues stated in the budget shall be classified according to their respective sources and shall be stated in a separate section of the budget, together with the appropriations to the purposes to which such dedicated revenues are applicable. The total of anticipated revenues must equal the total of appropriations. This definition would describe ....
Trust fund accounts
120
Some examples of trust funds....
Animal Control Fund
Sinking fund for term bonds
A Bequest
Motor Vehicle fines dedicated to road repairs
121
An appropriation for “cash deficit of preceding year” shall be raised how?
In full the immediate successive year of the deficit
122
A capital budget is ...
A plan for capital projects
123
N.J.S.A. 40A:4-45.2a authorizes that amounts of revenue generated by an increase in its 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 will result in :
CAP Base increase
124
groups of appropriations are exceptions to the budget “CAP”, or also known as outside “CAP” appropriations
Debt service, capital expenditures, amounts expended to fund a free public library
125
Unless emergency expenditures are eligible for bonding pursuant to the Local Bond Law, said expenditures shall be provided in full by the governing body as a deferred charge in the budget of the next succeeding fiscal year.
True
126
A resolution authorizing the adoption of an emergency appropriation shall be adopted by what vote of the municipal governing body?
2/3 of the full membership of the governing body
127
The governing body of a New Jersey municipality has appointed a purchasing agent holding a Qualified Purchasing Agent certification and authorized a local bidding threshold of $29,000. The purchasing agent wishes to award a professional service agreement for $15,000. Pursuant to N.J.S.A. 40A:11-3b, the contract period may not exceed what length of time?
12 months
128
Contracts awarded by competitive contracting may not be for a term exceeding what length of time, unless there is an authorized exception?
5 years
129
When competitive contracting is authorized by a resolution of the governing body, it is necessary to pass a resolution each time specialized goods or services are desired.
True
130
The methodology used in the evaluation of proposals submitted under the process of competitive contracting must include
Technical criteria
Cost related criteria
Management
131
A local contracting unit has advertised for the same goods or services on two occasions. On one occasion, no bids were received and on one occasion, all bids were rejected because of price. The local contracting unit is now permitted to proceed how?
Negotiate and award contract by a two-thirds affirmative vote of the governing body
132
When preparing specifications for the provision of goods or performance of services, no specifications under the Local Public Contracts Law, N.J.S.A 40A:11-13 may:
Stipulate a residency requirement
Stipulate a standard not directly related to the purpose of the contract being bid
Stipulate the furnishing of any “brand name”
133
A contracting unit may reject all bids for:
The governing body of the contracting unit decides to abandon the project
The governing body of the contracting unit decides to use the State authorized contract
The lowest bid substantially exceeds the contracting unit’s appropriation
134
Local units entering into contracts in excess of $100,000 for the improvement of real property are permitted to withhold a percentage of partial payments if agreed to by the contractor. The maximum amount that may be withheld pursuant to N.J.S.A. 40A:11-16.3 is:
2%
135
When a Local Unit is publicly bidding construction or improvements to real property and the total price will exceed $100,000, the bidder shall furnish a bid guarantee. The amount of said guarantee shall be in the amount of:
10% bur not in excess of $20,000
136
N.J.S.A. 40A:11-23 prescribes the general requirements for the advertisement for the receipt of bids. Per this section, the minimum requirements that must be satisfied are:
The manner of submitting and receiving bids, including the time and place the bids will be received
137
When required by the bid plans and specifications, there is documentation considered as mandatory when submitting the bid proposal. Failure to submit any one of the mandatory items shall be deemed a fatal defect that shall render the bid proposal unresponsive and that cannot be cured by the governing body. What must be included as a mandatory item?
Bid guarantee
Statement of corporate ownership
Document that acknowledges bidders receipt of any notice or revisions
138
A local contract unit has accepted bids. The bids must be
reviewed by the appropriate officials. The length of time to conclude this process is uncertain. The prospective contractors submitted bid guarantees. What is the number of days that the local unit must return said bid guarantees to all but the three apparent lowest responsible bidders?
Ten days, Sundays and Holidays excepted
139
By resolution of the governing body a contracting unit may sell personal property note needed for public use and the sales is by sealed bid or public auction. The threshold for determining if the property, provided it is neither livestock nor perishable goods, is to be sold at public auction is what amount?
15% of the bid threshold
140
All construction contract documents entered into in accordance with the provision of the Local Public Contracts Law shall provide that disputes arising under the contract shall be submitted to a process of resolution pursuant to alternative dispute resolution practices prior to being submitted to a court for adjudication.
True
141
The New Jersey Administrative Code (N.J.A.C 5:34-3.2(a)) requires that all leases and service agreements authorized by the Local Public Contracts Law shall be subject to competitive bidding if the amount of the lease exceeds the bid threshold for what period of time:
During the duration of a multi-year lease
142
Two or more contracting units may join together to form what type of system for the provision and performance of goods and services?
Cooperative/Joint purchasing agreement
143
The Local Bond Law, specifically N.J.S.A. 40A:2-4, authorizes a local unit to pay any and all bonds and notes issued by it. The limit is:
unlimited
144
In the case of a municipality, the Local Bond Law N.J.S.A. 40A:2-6 sets the debt limit at an amount not to exceed what percentage of the average of the preceding three years equalized assessed valuation:
3.5%
145
A local unit, in anticipation of the issuance of bonds, may borrow money and issue notes if the bond ordinance or subsequent resolution so provides. Such notes shall be designated as a “bond anticipation note” and all such notes shall mature and be paid not later than the first day of the fifth month following the close of which fiscal year?
10th
146
This statement must be filed in the Office of the Clerk by the financial officer prior to the passage on first reading of any bond ordinance, or ordinance amending a bond ordinance, except if the ordinance does not increase the total amount of the obligations authorized. Said statement is known as:
Supplemental Debt Statement
147
The Local Bond Law, N.J.S.A. 40A:2-10, requires a down payment to be appropriated for the purpose authorized in the respective bond ordinance. Said down payment shall not be less than 5% of the amount of the obligations authorized. The down payment must be made available prior to final adoption of the bond ordinance and the source of the down payment may be from moneys previously contributed for such purposes as included in the bond ordinance.
True
148
According to the Local Bond Law N.J.S.A. 40A:2-12, a bond ordinance shall contain, in substance ...
an authorization for the issuance of obligations
an authorization for the assumption by the local unit of the obligations of an authority to be dissolved
a determination of the period of usefulness
149
The maximum number of annual installments in which obligations for special assessments may be paid cannot exceed how many years?
20 Years
150
A bond ordinance may be introduced by title and approved by a majority vote of the full membership of the governing body
True
151
The Local Bond Law, specifically 40A:2-20, permits the inclusion of expenses associated with the purpose of a capital project. Some of those expenses are architect’s fees, accounting, engineering and inspection costs. In addition, it is permitted to include the interest on obligations until the end of the fiscal year in the year of issue.
True
152
When a governing body has concluded that the limitations as to maturities as stipulated by N.J.S.A. 40A:2-26 will adversely affect the financial position of the local unit. The limitation causing the adverse condition, is that no annual installment for debt service shall exceed by more than what percentage the smallest prior installment?
100 %
153
a permitted exception for permitting bonds to be sold at a private sale?
If all or part of an authorized issue is $1,000,000 or less
If sold to the local School District
If no bids were received at the public offering and the private sale is within 30 days after the advertised date for public bidding
154
Bidders for the sale of bonds shall be required to deposit a certified or cashier’s or treasurer’s check for what amount?
Equal to but not less than 2% of the bonds
155
The Local Bond Law prohibits the issuance of certain agreements from being authorized as it relates to the issuance or sale of obligations. One such prohibited agreement addresses the restriction on the deposit of any moneys received from such sale.
True
156
The local unit official charged with the legal responsibility of filing the Annual Debt Statement is whom?
CFO
157
Any municipal public utility shall be deemed to be what type of purpose if the cash receipts from fees, rents or other charges in a fiscal year are sufficient to meet operating and maintenance costs and interest and debt redemption charges payable or accruing in such year without recourse to general taxation?
Self Liquidating
158
The Local Bond Law N.J.S.A. 40A:2-52, authorizes refunding bonds and requires
Refunding ordinance, no supplemental debt statement and no down payment
159
An audit of the fiscal books of a local unit is required to be completed within what period of time according to NJSA 40A:5-4, The Fiscal Affairs Law.
Within six months of the end of the fiscal year
160
