CMFO Exam Question Bank: Finance and Budgeting for Local Governments, Exams of Social Sciences

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CMFO EXAM QUESTION BANK

True - Answers- T/F: Due from State of New Jersey for Senior citizen Deductions can be anticipated as a revenue in the current fund budget as non-cash surplus retirement of serial bonds - Answers- Trust Assessment Fund cash is first pledged to: quarterly basis - Answers- Municipal Library Levy is paid on a True - Answers- T/F: budget transfers from Capital Improvement Fund are not permitted Corrective Action Plan - Answers- Finding/Condition; Recommendation; explanation & corrective action; implementation date tax collector - Answers- ___________ mails out local assessment bills Department of Treasury - Answers- Oversight of PERS & PFRS is the 60 days - Answers- Corrective action must be adopted within _________ of receipt of the audit reports $1000 - Answers- Developer's Escrow monthly chargers greater than ________. The CFO must provide an accounting statement to the developer on a monthly basis. Local Finance Board intervention - Answers- Default on bonds, Tax Collection Rate is less than 70%, Cash Deficit of the tax levy in excess of 4% for 2 consecutive years immediately - Answers- Resident requested to inspect vouchers that were approved for payment at the most recent governing body meeting. Inspection of vouchers must be made available for inspection $2000, $400, NJ - Answers- Finance Disclosure forms are required for Income greater than________, gifts greater than ______, property within _________ $750000 - Answers- Federal Single Audit is required if Federal Grant expenditures equals or exceeds True - Answers- T/F: The cash management plan can be amended at any time. Net Debt - Answers- Gross Debt - Deductions = liquidity - Answers- Security can be converted into cash Director of DLGS - Answers- Chairperson of the Local Finance Board is

State of NJ as unclaimed property - Answers- Old escrow accounts escheat to False - Answers- T/F: Interest on Utility Assessment Debt is appropriated in the Current Fund 2/3 of governing body - Answers- Budget Transfers need a vote of False - Answers- T/F: Pursuant to Local Budget Law municipalities are permitted to overspend a legal line item appropriation if the overall Current Fund Budget remains in a surplus False - Answers- T/F: In regard to use of P-cards, under no circumstances may a transaction exceed 15% of a municipality bid threshold. True - Answers- T/F: Municipalities that carries a statutory excess in Reserve for an Animal Control Fund at year end excess is Due to Current Fund and recorded as MRNA. True - Answers- T/F: Director does not approve budget transfers. False - Answers- T/F: The unexpended balance of debt service must be cancelled by resolution. False - Answers- T/F: Capital Budget must be adopted by a majority of the governing body. True - Answers- T/F: Municipalities are permitted to negotiate with a vendor, after 2 attempts, responses to bids were too high and no bids were submitted. False - Answers- T/F: The Supplemental Debt Statement must be filed between the 1st and 2nd reading of a bond ordinance. True - Answers- T/F: Three Different Bond ordinances are introduced at a public meeting only 1 supplemental debt statement is required. False - Answers- T/F: The anticipated revenue for Receipts from Delinquent Taxes is limited to the amount of revenue realized in the previous year False - Answers- T/F: The Annual Debt Statement is due upon introduction of a bond ordinance. True - Answers- T/F: If Trust Assessment Fund cash is less than the required budgeted amount to retire debt service, a required appropriation in the Current Fund budget is necessary to cover the deficit.

performance based budgeting - Answers- The number miles of roads in terms of expenditures would be an example of maturity schedule for bonds - Answers- Which does not have to be included in the bond ordinance? 2/3 of full membership - Answers- Budget appropriation transfers during the last 2 months of the calendar year requires which of the following votes? DLGS approval of specification - Answers- Which of the following would not be included in specifications for banking services? True - Answers- T/F: Prepaid Taxes applied to Taxes Receivable does not create a deferred charge Items on municipal website for best practices - Answers- 3 years of adopted budgets, proposed budget, most recent AFS equalized valuation - Answers- Represents the true value of all taxable property in the municipality derivatives - Answers- Not a permissible investment False - Answers- T/F: Budget transfers may be made to: Deferred Charges, Reserve for Uncollected Taxes, Down Payment on Improvements and Capital Improvement Fund 40 years - Answers- Period of usefulness may not exceed DLGS - Answers- ____________ must approve: petty cash fund, change in title and text, dedication by rider, and emergency appropriations in excess of 3% of operating appropriations Net debt - Answers- Borrowing capacity is based on Patrol cars - Answers- Not bondable assets $1000000 - Answers- Local government bonds may be sold privately except when the total of bonds is more than eligible shared services - Answers- Joint collection of taxes, joint municipal court, joint solid waste collection/disposal False - Answers- T/F: Dedication by Rider must be accounted for in the current fund governing body - Answers- Special Improvement District budgets must be approved by:

True - Answers- T/F: The budget message should contain explanation of appropriation and levy CAPS and a listing of appropriations split by CAP. Budget Procedure - Answers- Introduction & Approval, Public Advertisement, Public Hearing, Amendments, Advertising & Public Hearing on Amendments, Adoption Local Finance Board - Answers- If a municipality does not have an Ethics board, ________________ would act a the Ethics Board. Line Item Budget - Answers- What is the official budget required to be adopted? Utility Assessment Trust - Answers- Payment of Utility Assessment Bond Principal is recorded as an expenditure in which fund? Apply to Amount to be Raised by taxation - Answers- Which is not a proper way to distribute a tax overpayment? DCRP - Answers- Town Administrator can be enrolled in True - Answers- T/F: 2010 CAP eliminated the add-on increases for the Reserve for Uncollected Taxes. True - Answers- T/F: Transitional aid recipients must demonstrate that user fees have been established for discretionary services, so that taxpayers are not subsidizing nonessential programs. shorter useful life - Answers- Unexpended bond proceeds may not be appropriated to fund additional capital improvement projects with a storm recovery reserve - Answers- Can be used for salt and sand purchases, snow removal and salaries and Water Capital fund - Answers- In what fund is gross utility debt reflected in? dedication by rider - Answers- Amount of dedicated revenues is not subject to a reasonably accurate estimate in advance Modified accrual basis - Answers- Method of accounting for transactions is explanation of tax rate - Answers- Not required to be included in budget message EMMA - Answers- Annual Financial statements must be filed with overtime - Answers- Not part of pensionable salary

True - Answers- T/F: Payroll costs may be found in current fund, utility operating fund, trust fund and general capital fund Registered Municipal Accountant - Answers- Every audit required by the Local Fiscal Affairs Law is required to be completed by an accountant or auditor who holds an uncanceled license as: Chief Financial Officer - Answers- The statutory responsibility for filing of the unaudited Annual Financial Statements is assigned to which local government official Planning Board - Answers- As defined in the Local Government Ethics Law, a Local government officer that serves on a local government agency that approved development applications would refer to a member of governing body - Answers- The Local Fiscal Affairs Law mandates that the Cash Management Plan be approved annually by the: Bond maturities - Answers- within the period or average period of usefulness, all bonds shall mature in annual installments and the governing body may provide for a single and combined bond issue. 20 days after the publication after adoption - Answers- The effective date of a bond ordinance is what length of time? True - Answers- T/F: 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. Decrease - Answers- An increase in anticipated revenue from a known and recurring source may have what effect on the appropriation for the Reserve for Uncollected Taxes? exact line item appropriation or ordinance to be charged - Answers- 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: All anticipated revenues - Answers- The new jersey budget law requires that the budget shall consist of a tabulated statement of 4 Revenues - Answers- Surplus Anticipated, Miscellaneous Revenues, Receipts form delinquent taxes and amount to be raised by taxation referendum - Answers- Implementation of a dedicated tax program for open space, recreations, farmland and historic preservation trust fund taxing districts are authorized by which of the following:

3 - Answers- The local budget law 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: 3.5% - Answers- The limitation of a municipality's debt is regulated by the Local Bond Law. It states that the limit shall be a percentage of the average of the preceding three years equalized valuation. That percentage limit is: $17500 - Answers- What is the value threshold established by the "Pay to Play" law, at which a contract cannot be awarded by a NJ government entity? 1 year - Answers- A bond ordinance adopted by the governing body should include authorization to provide for short-term borrowing. According to the Local Bond Law the short term borrowing instruments are known as Bond Anticipation Notes and these notes may not be issued for a period of time exceeding: 10 years - Answers- NJSA 40A:2-8 stipulates that all bond anticipation notes hall mature and be paid not later than which anniversary of the date of the original notes? Supplemental debt statement - Answers- The Local Bond law 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. the public health, safety or welfare of the community - Answers- The Local Public Contracts Law, specifically permits contracts to be entered into that exceed the bidding threshold if the situation effects which of the following: 10 days - Answers- The minimum number of days for the advertisement for the receipt of bids is Responsibility lies with governing body - Answers- The New Jersey Administrative Code, The Local Public Contract Law rules, the general requirements for all change orders one of those requirements is that: Current fund budget - Answers- 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? August 10 - Answers- The statutory deadline for the filing of the unaudited annual financial statement for a state fiscal year municipality is

$1000000 - Answers- 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? the director of DLGS - Answers- The local Fiscal Affairs Law permits the establishment of petty cash funds. The person that has authority to approve/disapprove of the petty cash fund is Tax collector - Answers- Which public official is statutorily responsible for the billing of a special assessment levy 2% - Answers- A NJ municipality is prohibited from increasing its' tax levy by what percentage rate before permitted exclusions are added to the tax levy? Trust Fund - Answers- The Municipal Public Defenders Law contains a requirement for the accounting of application fees that are collected. It is required that the funds collected shall be deposited where? Capital improvements - Answers- Which of the following is an appropriation that would not be subject to limitation as provided by the NJ CAP law? True - Answers- T/F: The Local Government CAP Law addresses the permitted transfer of current year appropriations and reserve year appropriations. The statute prohibits the transfer of funds from an appropriation that is not subject to limitation to an appropriation that is subject to limitation. $2000 - Answers- 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. Public - Answers- Although there are exceptions for specific situations, the Local Bond Law, requires that the sale of bonds shall be sold at which type of sale. 5% - Answers- 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. down payment sources - Answers- Previously adopted budget or budgets for down payment or capital improvement, from moneys actually held by the local unit and previously contributed for such purpose or by emergency appropriation 10 days - Answers- 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 lease how many days prior to the date of the public hearing? 30 days - Answers- 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? the governing body - Answers- The Local Fiscal Affairs law grants authority for the approval of claims. The authority is given to: 5% - Answers- 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? Prior to adoption of the budget - Answers- The Local Budget Law 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? Thirty days - Answers- 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? Purpose, maximum amount of debt, gross debt - Answers- The contents of a bond ordinance are specified by the Local Bond Law. Which are required? 2/3 of full membership - Answers- A bond ordinance shall be finally adopted by what vote of the governing body? 5 - Answers- 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? Categories of goods and services, advertising manner, & contract award manner - Answers- The Local Public Contracts Law authorizes the governing bodies of 2 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? internal control elements - Answers- Prompt deposit of all funds, prohibition against cashing employee's checks, periodic surprise cash counts statutory expenditures - Answers- Pensions, social security systems, & unemployment compensation and temporary disability funds

cash basis - Answers- In NJ the budget system followed is known as 60 days - Answers- NJ Local Finance Notice 92-15 requires that a corrective action plan be prepared in accordance with OMB requirements and submitted to the DLGS no more than how many days from the date the audit is received by the Governing body Synopsis of audit report - Answers- The corrective action plan should be referenced in which legal notice that is published in the official newspaper? bid exceptions - Answers- 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: advertising for bids on 2 occasions and received no bids, rejected bids on 2 occasions because prices were unreasonable, or combination of the two situations True - Answers- T/F: 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. 24 - Answers- An award of a contract, except for professional services, may be awarded for a period of how many consecutive months? 60 - Answers- 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? Private sale - Answers- According to the Local Bond Law, bond anticipation notes may be sold at what type of sale? 2% - Answers- 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? $1000 - Answers- The Local Bond Law limits the amount of premium bid for bonds, which shall not exceed: Majority vote of governing body - Answers- The legal depositories for public moneys are to be authorized by whom according to section 14 of the Local Fiscal Affairs Law? All covered by blanket - Answers- 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? Majority of full - Answers- Budgets are adopted by what vote of the governing body?

Last 2 months - Answers- The Local Budget Law permits the transfer of current year appropriations during what time of the year? 2/3 of full membership - Answers- What vote of the governing body is required to authorize the transfer of funds as permitted by the Local Budget Law Local Finance Board - Answers- 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? Municipal utility - Answers- 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. Governmental Unit Deposit Protection Act - Answers- 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? True - Answers- T/F: The Local Fiscal Affairs Law allows municipalities and counties to invest in government money market mutual funds. Full amount in following year - Answers- Emergency authorizations are regulated by the Local Budget Law. This section requires what amount of regular emergency authorization to be appropriated by the governing body? Encumbrance - Answers- 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. emergency notes or surplus - Answers- As permitted by the NJ Budget Law emergency appropriations may be financed from 26.25% - Answers- The Local Budget Law 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 surplus - Answers- 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 3% - Answers- The Local Budget Law allows an appropriation for contingent expenses in an amount not more than what percentage of the total appropriations for operating purposes?

Over 10,000 - Answers- 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? Voucher - Answers- 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 Equalized value - Answers- 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 10% not in excess of $20000 - Answers- The Local Public Contracts Law authorizes a guarantee to accompany a bid of what amount 60 days - Answers- 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 day? 15% of the bid threshold - Answers- 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 debt limit exceptions - Answers- fire, flood, other disaster, creation of a utility, creation of debt service reserves True - Answers- T/F: Multipurpose bond ordinance obligations may be provided for in a single issue of obligations. 2.5% or the index rate whichever is less - Answers- A statutorily permitted amount to be added to the CAP base is which of the following Chief Financial Officer - Answers- The Local Budget Law authorized the Local Finance Board to adopt rules that permit municipalities to conduct annual local examination of the annual budget. The second phase of the program is qualification. Qualification is determined by whom $5000 - Answers- 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? Accounting system - Answers- 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. True - Answers- T/F: The 3 methods used by a tax assessor to determine values of real property are: sales approach, replacement approach and the income approach True - Answers- T/F: Any anticipate deficit in expenditures to which dedicated revenues are applicable shall be provided for by an appropriation in the operating budget 28 - Answers- The public hearing of the budget shall not be held less than how many days after the approval of the budget in the case of a municipality False - Answers- T/F: 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% 120 days - Answers- TANS may be renewed from time to time, but all such notes and any renewals shall mature in the case of a municipality within how many days after the beginning of the succeeding fiscal year 25% - Answers- The Municipal Public Defenders law requires the DLGS 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 & Review Collection Fund. What %? One-ten thousandth - Answers- A tax point is equal to _______________ of net valuation taxable True - Answers- T/F: The local bond law permits the sale of bonds at one time or in installments Annual Debt Statement - Answers- The Local Bond Law mandates the CFO 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? self-liquidating - Answers- 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 6 months - Answers- The annual audit is required to be completed within how many months of the end of the fiscal year? False - Answers- T/F: 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? True - Answers- T/F: All debt service, including that of Type I school district is excluded from "CAP" limitations? True - Answers- T/F: The Local Public Contracts law, 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. Mondays or Day after Holiday - Answers- The Local Public Contracts Law prohibits a municipality from receiving bids on which days? Deferred charges - Answers- An appropriation transfer as permitted by the Local Budget Law would not permit a transfer from an appropriation for: Separate section of budget - Answers- 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? 45 days - Answers- # of days for governing body to review audit report 3 days - Answers- # of days to advertise a budget amendment 10 days - Answers- # of days to advertise budget hearing True - Answers- T/F: A document filed with DLGS for approval is subject to OPRA once it is filed regardless of approval or denial status. True - Answers- T/F: Bond sale may be advertised electronically. DLGS - Answers- Due from State of NJ:Senior/Vets approval may be anticipated as surplus with prior approval by: Average useful life - Answers- Re-appropriating unused money in an improvement authorization can be done based upon_________________ (old ordinance has less years) Amount to be raised by taxation - Answers- Account debited to record the budget False - Answers- T/F: Passenger cars are bondable. OCBOA - Answers- Accounting basis for municipalities None - Answers- Action needed to lapse debt service

Refund or apply them - Answers- Actions allowed for tax overpayments Budget transfers - Answers- Does not need DLGS approval Overtime, snow removal etc - Answers- Allowable expenditures from storm cost trust fund Governing body - Answers- Who approves special improvement district budgets Zero - Answers- Balance of appropriations at year end after closing entries % of net debt - Answers- Borrowing power is based on: Director of DLGS - Answers- Chair of Local Finance Board Maturity schedule - Answers- Not required to be a part of a bond ordinance Explanation of tax rate increase - Answers- Not required to be part of the budget message 30 - Answers- # of continuing education credits needed for license renewal Gross debt - deductions=net debt - Answers- Contents of annual debt statement Trust fund - Answers- Dedication by rider is accounted for where? Dedication by rider - Answers- Revenues that can't be reasonably estimated in advance for a specific purpose MRNA - Answers- Disposition of excess in the animal control fund Tax anticipation notes - Answers- Cash shortfall in the current fund you can issue: Format of Corrective Action Plan - Answers- Finding/condition, recommendation, explanation and corrective action, implementation date GUDPA - Answers- Law that allows a municipality to use a bank as a depository $5000 or reduced by amount that would be contributed - Answers- Limit of health benefit waiver is: Amount received in prior year - Answers- When anticipating miscellaneous revenue in the budget the initial limit is: Yes - Answers- Does a local pay to play policy require an ordinance?

Need to report to EMMA - Answers- Delinquencies in principal or interest, adverse tax opinion, or modification to rights of security holders Maximum maturity of bond - Answers- Average useful life of the ordinance Assets - Answers- Debits at year end Reserves - Answers- Credits at year end Liabilities - Answers- Credits at year end False - Answers- T/F: Overtime is a pensionable item. $17500 - Answers- What is the pay to play threshold? DCRP - Answers- If you fill a position with no prior government experience and are in the DCRP ordinance. Then they are put in what pension plan? Miles of roads paved - Answers- Examples of performance based budgeting Monthly - Answers- Escrow accounts with charges greater than $1000 must be reported how often? EMMA reports - Answers- AFS, audit, ADS, budgets, operating data, occurrence of material events Reported on website - Answers- Budgets, audits, ADS, AFS, SDS Self liquidating revenues - Answers- Fees or other charges, surplus, interest on investments $750000 - Answers- Single audit threshold False - Answers- T/F: Under aggregation rules you can avoid bidding if you spread costs over several years and across vendors. True - Answers- T/F: Local Finance board approval is needed to create an authority. False - Answers- T/F: Use of a procurement card over the quote threshold is never allowed. False - Answers- T/F: Calculation for the receipt from delinquent taxes is based upon prior year cash receipts.

Prior to introduction of budget - Answers- The alternate RUT resolution must be passed when? Prior to new investment vehicle - Answers- When can a cash management plan be amended? 30 days - Answers- # of days a new hire has to file annual financial disclosure statement 3rd issue - Answers- First legal installment of BAN due 45 days - Answers- # of days after receipt of audit that resolution must be passed stating that governing body members reviewed the audit report Quarterly - Answers- How often do you prepare and submit the internet report of contributions? Quarterly - Answers- How often must the municipality remit the payment to the library Prior to end of the year - Answers- In order to cancel appropriations by resolution when must the resolution be passed Prior to introduction of ordinance - Answers- Supplemental debt statement must be filed when? Majority of full governing body - Answers- Vote needed for capital budget 2/3 of full membership - Answers- Vote required for budget transfers Current fund - Answers- Where interest on investments from general capital is realized Capital improvement fund - Answers- Improvement authorization fully funded from capital improvement fund that is cancelled money is returned where? DLGS & county tax board - Answers- Where is the adopted budget filed? Retirement of debt - Answers- Where is trust assessment revenue first pledged? Utility operating fund - Answers- Where do you budget utility trust assessment principal? Balance sheet accounts - Answers- Accounts that are not closed at year end All funds - Answers- Payroll costs may be charged to what funds? Derivatives - Answers- An investment that is not permitted

False - Answers- T/F: Applying prepaid taxes creates a deferred charge. False - Answers- T/F: Amounts appropriated for accumulated absences may be used for other purposes $10000000 - Answers- Proposed contracts in excess of what amount need prior approval by office of state comptroller $2000000 - Answers- Proposed contracts in excess of what amount need to be reported to office of state comptroller standard questionnaire - Answers- Application for these items: Issuance of refunding bonds and notes related to tax appeals or emergency, waiver of 5% down payment, debt with non conforming maturity schedules, requires the completion of what? True - Answers- T/F: As a best practice, local units that have outstanding debt should file their Annual Debt statement on EMMA. Apply to local finance board - Answers- The local budget law requires any municipality deciding to convert to a state fiscal year from a calendar fiscal year to: Ordinance - Answers- When converting to a state fiscal year calendar from a calendar year a municipality may do so by: Resolution by majority of full membership - Answers- All budgets shall be introduced approved amended and adopted by what vote and by which action of the governing body February 10 - Answers- Calendar year budget must be introduced by and Annual financial statement is due False - Answers- T/F: Concerning amendments to an introduced budget. A increase or decrease to any item of appropriation by more than 5% would require a public hearing on said amendment School tax rate - Answers- The amount to be raised by taxation 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 which of the following False - Answers- T/F: Nothing in the Local Budget Law, 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 capital improvement fund purposes.

True - Answers- T/F: 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. Miscellaneous revenues anticipated - Answers- 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. Actually realized in prior year - Answers- Miscellaneous revenues when being anticipated in the municipal budget are limited to the amount: Anticipated revenue in current fund budget - Answers- 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 what? True - Answers- T/F: 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 service, and such deferred charges and statutory expenditures for chapter 6 schools as re required to be raided in the municipal budget, less the total of anticipated revenues. Dedicated revenue examples - Answers- Animal control fund, sinking fund for term bonds, a bequest, motor vehicle fines dedicated to road repairs In full in next year - Answers- An appropriation for cash deficit of preceding year shall be raised how? Increase the CAP base - Answers- 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 which of the following. Debt service, capital expenditures, library - Answers- Appropriations are exceptions to the budget CAP True - Answers- T/F: Unless emergency expenditures are eligible for bonding said expenditures shall be provided in full by the governing body asa deferred charge in the budget of the next succeeding fiscal year. 2/3 of full membership - Answers- A resolution authorizing the adoption of an emergency appropriation shall be adopted by what vote 12 months - Answers- Max time for professional service contracts False - Answers- T/F: The governing body may reject the lowest bidder if the governing body is made aware of prior negative experience with any local contracting unit in NJ.

False - Answers- T/F: Competitive contracting may be used for all types of goods and services. True - Answers- T/F: When competitive contracting is authorize by a resolution of the governing body, it is necessary to pass a resolution each time specialized goods or services are desired. Technical, cost related, management - Answers- Criteria used in the evaluation of proposals submitted under the process. Of competitive contracting Negotiate and award by 2/3 vote of governing body - Answers- On 1 occasion no bids were received and on 1 occasion all bids were rejected because of price. The local contracting unit is now permitted to True - Answers- T/F: When in excess off bid threshold, and after documented effort by the contracting agent to secure competitive quotations, a contract for extraordinary unspecifiable services may be awarded upon a determination in writing by the contracting unit that the solicitation of competitive quotations are impracticable. Any such contract shall be awarded by resolution of the governing body. Electrical, structural steel,and plumbing work - Answers- Plans may be separated into separate plans and specifications may be prepared for: 2% - Answers- Local units entering into contracts in excess of $100000 for the improvement of real property are permitted to withhold a % of partial payments if agreed to by the contractor. 10% not in excess of $20000 - Answers- Bid guarantee for construction projects in excess of $ Manner of submitting bids, time and place - Answers- Bid advertisement must include Fatal defect documents - Answers- Bid guarantee, statement of corporate ownership, document acknowledge bidders receipt of any notice of revisions 15% of the bid threshold - Answers- Threshold for determining if the personal property is to be sold at public auction True - Answers- T/F: All construction contract documents entered into in accordance with the provisions 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.

Duration of multi year lease - Answers- All leases and service agreements authorized shall be subject to competitive bidding if the amount of the lease exceeds the bid threshold for what period of time False - Answers- T/F: A change order would not be permitted to change the # of units or items originally advertised and contracted for even though unit prices were sought in the original specifications. False - Answers- T/F: The assertion that a service can only be provided by a single contractor shall be sufficient to justify avoidance of competitive bidding as an extraordinary unspecificable service. Cooperative/joint purchasing agreement - Answers- 2 or more contracting units may join together to form what type of site for the provision and performance of goods and services Unlimited - Answers- The limit of bonds and notes that may be paid 3.5% - Answers- Debt limit Bond ordinance contents - Answers- Authorization for the issuance of obligations, authorization for the assumption by the local unit of the obligations of an authority to be dissolved, a determination of the period of usefulness 20 years - Answers- The maximum # of annual installments in which obligations for special assessments may be paid cannot exceed how many years? Majority vote of full - Answers- A bond ordinance may be introduced by title and approved by what vote True - Answers- T/F: Local Bond Law permits the inclusion of expenses for architect's fees, accounting, engineering, and inspection costs and interest o obligations until the end of the fiscal year of the issue 100% - Answers- No annual installment for debt service shall exceed by more than what % the smallest prior installment Bond private sale permitted - Answers- If all or part of an authorized issue is $ or less, if sold to the local school district, if no bids were received at the public offering and he private sale is within 30 days after the advertised date for public hearing False - Answers- T/F: The requirement per NJSA 4A:2-31 regarding the contents for the notice of sale. Of bonds are; the terms and conditions of such public sale only. True - Answers- T/F: The Local Bond Law prohibits the issuance of certain agreements from being authorized as it relate to the issuance or sale of obligations. One such

prohibited agreement addresses the restriction on the deposit of any money's received from such sale. Capital budget - Answers- Plan for capital projects Refunding Bond Requirements - Answers- Refunding ordinance, no supplemental debt statement and no down payment 6 months - Answers- Audit must performed within _________ of end of the fiscal year True - Answers- T/F: Local FiscalAffairs Law has audit services as an exception to public bidding. $10 - Answers- The Local Fiscal law permits a governing body to authorize an employee to issue tax refunds automatically if the amount is less than: June 30 - Answers- Tax anticipation notes shall mature in the case of county no later than: April 30 - Answers- The financial disclosure statements required by the local ethics law are to be submitted no later than Monthly - Answers- The local fiscal affairs law requires that a local unit adopt a cash management plan an it further requires reporting by he CFO to the governing body of investment activities how often?