NJ CMFO Statutes Exam Review || 100% Errorless Answers.
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an
accountant or auditor who holds an uncanceled license as: correct answers Registered Municipal
Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a
State Fiscal Year from Calendar Fiscal Year must apply to correct answers Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year
calendar from a calendar year a municipality may do so by the following correct answers
Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced,
approved, amended and adopted by what vote & by which action of the governing body? correct
answers By resolution passed by not less than a majority of the full membership of the governing
body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal
and calendar year municipalities is as follows: correct answers Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after
approval and at least how many days before the public hearing? correct answers 10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be
held no earlier than how many days for a county and municipality? correct answers 18 and 28
Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to
any item of appropriation by more than what percent would require a public hearing on said
amendment? correct answers Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; 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 is called what rate? correct
answers School Tax Rate
Local Budget Law 40A:4-19 temporary budget; The governing body may by 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? correct answers Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is
prevented from making appropriations during the last 10 days of the year preceding a new fiscal
year for CIF purposes. What appropriation is allowed? correct answers Debt Service Only
, One tax point is equal to correct answers One ten-thousandth of the net valuation
Request to review vouchers must be released when correct answers Immediately
Financial Disclosure Forms should list the following correct answers Income greater than $2000,
Gifts greater than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental
Debt Statements do you need? correct answers One
Which debt statement is due upon introduction of a bond ordinance correct answers
Supplemental Debt Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount?
correct answers $750,000
When can the cash management plan be amended? correct answers Any time
Gross Debt - Deductions equals correct answers Net Debt
The Chairperson of the Local Finance Board holds what other title? correct answers Director of
the Division Local Government Services
Old Escrow Accounts escheat as unclaimed property to whom? correct answers State of NJ
Interest on Utility Assessment Debt is appropriated in which budget? correct answers Utility
Operating Budget
Vote required by the governing body for budget transfers? correct answers 2/3 Majority of Full
Membership
A municipality carries a statutory excess in Reserve for an Animal Control Fund at year end;
Excess is due to what fund and recorded as what kind of revenue? correct answers Excess is due
to Current Fund and recorded as MRNA
The number of miles of roads paved in terms of expenditures would be an example of which type
of budgeting? correct answers Performance Based Budgeting
A bond detail that does not need to be included in the bond ordinance? correct answers Bond
Maturity Schedule
The statutory responsibility for filing the Unaudited Annual Financial Statements is assigned to
which local government official? correct answers The CFO
Every audit required by the Local Fiscal Affairs 40A:5-9 is required be completed by an
accountant or auditor who holds an uncanceled license as: correct answers Registered Municipal
Accountant
Local Budget Law, N.J.S.A. 40A: 4-3.1 (b) requires any municipality deciding to convert to a
State Fiscal Year from Calendar Fiscal Year must apply to correct answers Local Finance Board
Local Budget Law 40A:4-3.2 Adoption of State fiscal year; when converting to a state fiscal year
calendar from a calendar year a municipality may do so by the following correct answers
Ordinance
Local Budget Law 40A:4-4 Procedures for budget adoption; All budgets shall be introduced,
approved, amended and adopted by what vote & by which action of the governing body? correct
answers By resolution passed by not less than a majority of the full membership of the governing
body
Local Budget Law 40A:4-5 Introduction and Approval; Statutory introduction dates for fiscal
and calendar year municipalities is as follows: correct answers Calendar year- February 10
State Fiscal Year - August 10
Local Budget Law 40A:4-6 Advertisement of budget; Every budget shall be advertised after
approval and at least how many days before the public hearing? correct answers 10
Local Budget Law 40A:4-7 Time of public hearing; Public hearing post budget approval shall be
held no earlier than how many days for a county and municipality? correct answers 18 and 28
Local Budget Law 40A:4-9 Ammendment to an introduced budget; an increase or decrease to
any item of appropriation by more than what percent would require a public hearing on said
amendment? correct answers Ten Percent
Local Budget Law 40A:4-13 Inclusion of amount required for school purposes; 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 is called what rate? correct
answers School Tax Rate
Local Budget Law 40A:4-19 temporary budget; The governing body may by 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? correct answers Thirty Days
Local Budget Law 40A:4-20 emergency temporary appropriations; the governing body is
prevented from making appropriations during the last 10 days of the year preceding a new fiscal
year for CIF purposes. What appropriation is allowed? correct answers Debt Service Only
, One tax point is equal to correct answers One ten-thousandth of the net valuation
Request to review vouchers must be released when correct answers Immediately
Financial Disclosure Forms should list the following correct answers Income greater than $2000,
Gifts greater than $400, property in NJ only
Three different bond ordinances are introduced at the same meeting. How many Supplemental
Debt Statements do you need? correct answers One
Which debt statement is due upon introduction of a bond ordinance correct answers
Supplemental Debt Statement
Federal Single Audit is required if Federal Grant expenditures equal or exceed what amount?
correct answers $750,000
When can the cash management plan be amended? correct answers Any time
Gross Debt - Deductions equals correct answers Net Debt
The Chairperson of the Local Finance Board holds what other title? correct answers Director of
the Division Local Government Services
Old Escrow Accounts escheat as unclaimed property to whom? correct answers State of NJ
Interest on Utility Assessment Debt is appropriated in which budget? correct answers Utility
Operating Budget
Vote required by the governing body for budget transfers? correct answers 2/3 Majority of Full
Membership
A municipality carries a statutory excess in Reserve for an Animal Control Fund at year end;
Excess is due to what fund and recorded as what kind of revenue? correct answers Excess is due
to Current Fund and recorded as MRNA
The number of miles of roads paved in terms of expenditures would be an example of which type
of budgeting? correct answers Performance Based Budgeting
A bond detail that does not need to be included in the bond ordinance? correct answers Bond
Maturity Schedule
The statutory responsibility for filing the Unaudited Annual Financial Statements is assigned to
which local government official? correct answers The CFO
