Local Government Finance Laws in New Jersey, Exams of Nursing

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CMFO EXAM 2024/2025 WITH 100% ACCURATE SOLUTIONS Every audit required by the Local Fiscal Affairs NJSA 40A5-9 is required to completed by an accountant or auditor who holds and uncanceled license as? - Precise Answer ✔✔Registered Municipal Accountant The statutory responsibility for the filing of the "Unaudited Annual Financial Statements is assigned to which local government official by NJSA 40A:5-12? - Precise Answer ✔✔Chief Financial Officer As defined in the "Local Government Ethics Law" specially, NJSA 40A:9-22.3, 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? - Precise Answer ✔✔Planning Board The "Local Fiscal Affairs Law" mandates that the Cash Management Plan be approved annually by the? - Precise Answer ✔✔Governing Body (majority vote) The "Local Bond Law" specially NJSA 40A:2-26, stipulates that the maturities of all bonds shall be determined by the bond ordinance or by the subsequent resolution and be within the following limitations? - Precise Answer ✔✔1.All bonds shall mature within the period or average period of usefulness; 2. All bonds shall mature in annual installments; 3. The governing body may provide for a single and combined bond issue The effective date of a bond ordinance as stipulated by NJSA 40A:2-18 is what length of time? - Precise Answer ✔✔20 days after 1st publication "after" adoption 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 OR FALSE - Precise Answer ✔✔TRUE An increase in anticipated revenue from a known and recurring source may have what effect on the appropriation for the "Reserve for Uncollected Taxes"? - Precise Answer ✔✔would Decrease the appropriation for the Reserve of Uncollected Taxes NOTE: Higher Revenue = Lower RUT & Lower Revenue = High RUT 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? - Precise Answer ✔✔the resolution specify the exact line item appropriation or Ordinance to be charged The New Jersey Budget Law NJSA40A:4-22 requires that the budget shall consist of a tabulated statement of? - Precise Answer ✔✔all Anticipated Revenues applicable to Expenditures for which appropriations are made The four classifications of revenue described by the "Local Budget Law" NJSA 40A:4-23? - Precise Answer ✔✔Surplus Anticipated, Miscellaneous Revenue, Receipts from Delinquent Taxes, Amount to be Raised by Taxation 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? - Precise Answer ✔✔Referendum held at a General or Special Election Local Budget Law NJSA 40A:4-41 (c)1 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? - Precise Answer ✔✔3 year average The limitation of municipality's debt is regulated by the "Local Bond Law" NJSA 40A:2-6. It states that the limit shall be a percentage of the average of the preceding 3 years equalized assessed valuation . That percentage limit is which of the following? - Precise Answer ✔✔3.5 percent for municipal What is the value threshold established by the "Pay to Play" law, NJSA 19:44A-20.4 at which the contract cannot be awarded by a New Jersey Government entity? - Precise Answer ✔✔$ 17,500 is threshold A bond ordinance adopted by the governing should include authorization to provide for short-term borrowing? According to the Local Bond Law NJSA 40A:2-8 the short term borrowing instruments are known as Bon Anticipation Notes and these notes may not be issued for a period of time exceeding: - Precise Answer ✔✔One (1) year authorized, a sum as a down payment which is no less than what percent of the amount of the obligations? - Precise Answer ✔✔5% The same section of The Local Bond Law permits the source of the down payment to be made available from which of the following? - Precise Answer ✔✔1. by provisions in a previously adopted budget or budgets of the local unit from Down Payment or for Capital Improvement purposes; 2.from moneys actually held by the local unit and previously contributed for such purpose other than by the local unit; 3. emergency appropriation 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? - Precise Answer ✔✔10 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? - Precise Answer ✔✔30 days The Local Fiscal Affairs Law NJSA 40A:5-17 grants authority for the approval of claims. The authority is given to> - Precise Answer ✔✔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? - Precise Answer ✔✔5 % Local Budget Law NJSA 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? - Precise Answer ✔✔Prior to the Adoption of the Budget With how many days of the beginning of the fiscal year shall a governing body adopt temporary appropiations to provide for the period between the beginning of the fiscal year and adoption of the budget? - Precise Answer ✔✔30 days The contents of a bond ordinance are specified by the Local Bond Law NJSA40A:2-12. Which of the following is required? - Precise Answer ✔✔1. the purpose of the obligation; 2. the maximum amount of bonds or notes; 3. that such statement shows that the Gross Debt is INCREASED by the authorization of such obligations A bond ordinance shall be "finally" adopted by what vote of the governing body? - Precise Answer ✔✔affirmative vote of at least 2/3rds of the Full Membership of the Governing Body 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 man years? - Precise Answer ✔✔5 years Local Public Contracts NJSA 40A:11-10 authorizes the governing bodies of two or more contracting units to enter into a joint agreement for the provision of good and services for use by their respective jurisdictions. The agreement shall be entered into by resolution each jurisdiction and shall include which of the following? - Precise Answer ✔✔1. the categories of the Goods & Services; 2. the manner of the advertising for bids; 3. the manner for awarding contracts What is the basic element of internal control in a finance office? - Precise Answer ✔✔1. Prompt deposit of funds; 2. Prohibition against cashing employee checks; 3. Periodic surprise cash counts Statutory expenditures as contained in the budget may include payments to? - Precise Answer ✔✔1. Pensions; 2. Social Security System; 3. Unemployment Compensation and Temporary Disability Funds In New Jersey the budget system followed is know as ? - Precise Answer ✔✔Cash basis 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? - Precise Answer ✔✔60 days The Corrective Action Plan (CAP) should be referenced in which legal notice that is published in the official newspaper? - Precise Answer ✔✔Synopsis of audit report 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 aware are? - Precise Answer ✔✔1. the contracting unit had Advertised for bids on Two occasions and on both occasions received no bids; 2. the Governing Body had rejected bids on Two occasions because prices were determined unreasonable: 3. on One occasion there were no bids and on another occasion prices were determined Unreasonable Subsection 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 or FALSE - Precise Answer ✔✔TRUE An award of a contract, except for professional services may be awarded for a period of how many consecutive months? - Precise Answer ✔✔Professional Services= 12 months; Others would = 24 months All advertisements for bid on contract 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? - Precise Answer ✔✔60 days According to the Local Bond Law NJSA 40A:2-28, bond anticipation note may be sold at what type of sale? - Precise Answer ✔✔Private sale (because of wording "May be") 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? - Precise Answer ✔✔2% of the bonds Local Bond Law NJSA 40A:2-32 limits the amount of premium bide for bonds shall not exceed? - Precise Answer ✔✔$ 1,000 The legal depositories for public monies are to be authorized by whom according to section 14 of Local Fiscal Affairs Law? - Precise Answer ✔✔Majority Vote of the Full Membership of the Governing Body Local Fiscal Affairs Law affairs 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? - Precise Answer ✔✔Tax Collector; Treasurer; Tax Assessor; Municipal Court Judge; Budgets are adopted by what vote of the governing body? - Precise Answer ✔✔Majority Vote of the Full Membership of the Governing Body The sale or other disposition of personal property is guided by the Local Public Contract Laws NJSA 40A:1-36. 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? - Precise Answer ✔✔15 % of the authorized bid threshold Local Bond Law NJSA 40A:2-7 permits adoption of a bond ordinance in excess of the statutory debt limit for which of the following? - Precise Answer ✔✔Fire, Flood other disaster Multipurpose bond ordinances are permitted by the Local Bond Law NJSA 40A:2-13. Multipurpose bond ordinance obligations may be provided for a single issue of obligations? TRUE or FALSE - Precise Answer ✔✔TRUE Local Government CAP Laws NJSA 40A:4-45.2 places limitation of increases of municipal budget appropriations. A statutorily permitted amount to be added to the CAP base is? - Precise Answer ✔✔2.5% or the Index Rate, whichever is Less Local Budget Law NJSA 40A:4-78(b) authorized the Local Finance Board to adopt rules that permit municipalities to conduct annual local examination of the annual budget. This phase of the process is determination of eligibility by the DLGS. The second phase is program qualification. Qualification is determined by whom? - Precise Answer ✔✔Chief Financial Officer Technical Accounting Directive (TAD) requiring the accounting for fixed assets sets the threshold for "nonexpendable, tangible personal property" at what amount for both municipalities and counties? - Precise Answer ✔✔$ 5,000 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? - Precise Answer ✔✔Accounting System Three methods used by a tax assessor to determine values of real property are: Sales approach, Replacement approach and Income approach? TRUE or FALSE - Precise Answer ✔✔TRUE "Dedicated Revenues" are defined and regulated within the Local Budget Law NJSA 40A:4-36. This section requires any anticipated deficit in expenditure to which dedicated revenues are applicable shall be provided for by an appropriation in the operating budget? TRUE or FALSE - Precise Answer ✔✔TRUE 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? - Precise Answer ✔✔28 days The process for the requirements mandating a public hearing for the amending of an approved budget are provided by NJSA 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 1%? TRUE or FALSE - Precise Answer ✔✔FALSE, correct answer 10% An appropriation transfer as permitted by the Local Budget Law NJSA 40A:4-58 would not permit a transfer from an appropriation for: - Precise Answer ✔✔Deferred Charges The issuance of "Tax Anticipation Notes" are permitted, but also limited as to amount and maturity by the Local Budge 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. - Precise Answer ✔✔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 judge? - Precise Answer ✔✔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 Criminal Disposition and Review Collection Fund. What is the percentage? - Precise Answer ✔✔25% A tax point is equal to which of the following? - Precise Answer ✔✔One-tenth thousandth of net valuation taxable The Local Bond Law permits the sales of bonds at one time or in installments? TRUE or FALSE - Precise Answer ✔✔TRUE The Local Bond Law NJSA 40A:2-40 mandates the CFO of each local unit, that before the end of the 1st month of each fiscal year, the office of the Clerk and of the Director, under oath and as of the last days of the preceding fiscal year which document from the following? - Precise Answer ✔✔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? - Precise Answer ✔✔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 40A:5-4? - Precise Answer ✔✔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 country tax rate to the apportionment valuation of new construction or improvements has no effect on the CAP base either? TRUE or FALSE - Precise Answer ✔✔FALSE, correct answer: value adds to CAP base All debt service, including that of Type 1 school district is excluded from "CAP" limitations? TRUE or FALSE - Precise Answer ✔✔TRUE The Local Public Contracts Law NJSA 40A:11-4.6 permits the implantation of an energy savings improvement program will be sufficient to cover the cost of the program's energy conservation measures in an energy savings program? - Precise Answer ✔✔TRUE Local Public Contracts Law NJSA 40A11-23 prohibits a municipality from receiving bids on which days? - Precise Answer ✔✔Monday's & Any day following a State or Federal Holiday