CMFO EXAM QUESTION
BANK QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
True - ANS-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 - ANS-Trust Assessment Fund cash is first pledged to:
quarterly basis - ANS-Municipal Library Levy is paid on a
True - ANS-T/F: budget transfers from Capital Improvement Fund are not permitted
Corrective Action Plan - ANS-Finding/Condition; Recommendation; explanation &
corrective action; implementation date
tax collector - ANS-___________ mails out local assessment bills
Department of Treasury - ANS-Oversight of PERS & PFRS is the
60 days - ANS-Corrective action must be adopted within _________ of receipt of the
audit reports
$1000 - ANS-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 - ANS-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 - ANS-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 - ANS-Finance Disclosure forms are required for Income greater
than________, gifts greater than ______, property within _________
False - ANS-T/F: The Supplemental Debt Statement must be filed between the 1st and
2nd reading of a bond ordinance.
True - ANS-T/F: Three Different Bond ordinances are introduced at a public meeting
only 1 supplemental debt statement is required.
False - ANS-T/F: The anticipated revenue for Receipts from Delinquent Taxes is limited
to the amount of revenue realized in the previous year
False - ANS-T/F: The Annual Debt Statement is due upon introduction of a bond
ordinance.
$750000 - ANS-Federal Single Audit is required if Federal Grant expenditures equals or
exceeds
True - ANS-T/F: The cash management plan can be amended at any time.
Net Debt - ANS-Gross Debt - Deductions =
liquidity - ANS-Security can be converted into cash
Director of DLGS - ANS-Chairperson of the Local Finance Board is
, State of NJ as unclaimed property - ANS-Old escrow accounts escheat to
False - ANS-T/F: Interest on Utility Assessment Debt is appropriated in the Current
Fund
2/3 of governing body - ANS-Budget Transfers need a vote of
False - ANS-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 - ANS-T/F: In regard to use of P-cards, under no circumstances may a transaction
exceed 15% of a municipality bid threshold.
True - ANS-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 - ANS-T/F: Director does not approve budget transfers.
False - ANS-T/F: The unexpended balance of debt service must be cancelled by
resolution.
False - ANS-T/F: Capital Budget must be adopted by a majority of the governing body.
True - ANS-T/F: Municipalities are permitted to negotiate with a vendor, after 2
attempts, responses to bids were too high and no bids were submitted.
True - ANS-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.
BANK QUESTIONS AND
CORRECT ANSWERS
GRADED A+ 2025-2026
True - ANS-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 - ANS-Trust Assessment Fund cash is first pledged to:
quarterly basis - ANS-Municipal Library Levy is paid on a
True - ANS-T/F: budget transfers from Capital Improvement Fund are not permitted
Corrective Action Plan - ANS-Finding/Condition; Recommendation; explanation &
corrective action; implementation date
tax collector - ANS-___________ mails out local assessment bills
Department of Treasury - ANS-Oversight of PERS & PFRS is the
60 days - ANS-Corrective action must be adopted within _________ of receipt of the
audit reports
$1000 - ANS-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 - ANS-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 - ANS-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 - ANS-Finance Disclosure forms are required for Income greater
than________, gifts greater than ______, property within _________
False - ANS-T/F: The Supplemental Debt Statement must be filed between the 1st and
2nd reading of a bond ordinance.
True - ANS-T/F: Three Different Bond ordinances are introduced at a public meeting
only 1 supplemental debt statement is required.
False - ANS-T/F: The anticipated revenue for Receipts from Delinquent Taxes is limited
to the amount of revenue realized in the previous year
False - ANS-T/F: The Annual Debt Statement is due upon introduction of a bond
ordinance.
$750000 - ANS-Federal Single Audit is required if Federal Grant expenditures equals or
exceeds
True - ANS-T/F: The cash management plan can be amended at any time.
Net Debt - ANS-Gross Debt - Deductions =
liquidity - ANS-Security can be converted into cash
Director of DLGS - ANS-Chairperson of the Local Finance Board is
, State of NJ as unclaimed property - ANS-Old escrow accounts escheat to
False - ANS-T/F: Interest on Utility Assessment Debt is appropriated in the Current
Fund
2/3 of governing body - ANS-Budget Transfers need a vote of
False - ANS-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 - ANS-T/F: In regard to use of P-cards, under no circumstances may a transaction
exceed 15% of a municipality bid threshold.
True - ANS-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 - ANS-T/F: Director does not approve budget transfers.
False - ANS-T/F: The unexpended balance of debt service must be cancelled by
resolution.
False - ANS-T/F: Capital Budget must be adopted by a majority of the governing body.
True - ANS-T/F: Municipalities are permitted to negotiate with a vendor, after 2
attempts, responses to bids were too high and no bids were submitted.
True - ANS-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.
