CMFO Exam – Practice UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Every Audit Required by the Local Fiscal Affairs Law is required to be completed by: - CORRECT
ANSWER An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - CORRECT ANSWER CFO
A local government officer that serves on the agency that approves development applications refers to
a member of which board? - CORRECT ANSWER Planning Board
Cash management plan must be approved annual by the: - CORRECT ANSWER Governing
Body
The local bond law stipulates that the maturities of all bonds shall be as determined by the local bond
ordinance or by subsequent resolution and be within the following limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - CORRECT ANSWER d. All of the above
The effective date of a bond ordinance - CORRECT ANSWER 20 days after first publication
after adoption
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
- CORRECT ANSWER True
,An increase in anticipated revenue from a known and recurring source will have what effect on the
appropriation for the RUT - CORRECT ANSWER Would decrease the appropriation for the
RUT
T/F - The exact line item appropriation or ordinance must be shown on the resolution with the
certification of funds in order to enter a contract - CORRECT ANSWER True
The NJ Budget Law requires that the budget shall consist of a tabulated statement of:
a. Both the CAP calculations on the tax levy and appropriations
b. All debt calculations, including total principal and interest due on outstanding debt
c. All anticipated revenues applicable to expenditures for which appropriations are made
d. All of the above
e. None of the above - CORRECT ANSWER c. All anticipated revenues applicable to
expenditures for which appropriations are made
Four classifications of revenue - CORRECT ANSWER Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: - CORRECT ANSWER
Referendum held at general or special election
Alternate calculation for the RUT - CORRECT ANSWER Average of the prior three years
collection rates - allowable with a resolution of the governing body
Debt limit - CORRECT ANSWER 3.5% prior three years average equalized assessed valuation
Pay to play threshold - CORRECT ANSWER $17,500
How long can a BAN be issued for - CORRECT ANSWER 1 year
, When must BANs fully mature - CORRECT ANSWER 1st day of the 5th month following the
close of the 10th fiscal year
Who is responsible for change orders? - CORRECT ANSWER Governing Body
Any deficit in expenditures to which dedicated revenues are applicable shall be provided for by an
appropriation in which budget? - CORRECT ANSWER Current Fund
Threshold for Tax Court appeal - CORRECT ANSWER $1,000,000
Who has the authority to approve the establishment of a petty cash fund? - CORRECT ANSWER
The Director of the DLGS
Who is responsible to bill the special assessment levy - CORRECT ANSWER Tax Collector
Levy Cap - CORRECT ANSWER 2%
The municipal public defenders law contains a requirement for the accounting of application fees that
are collected. It is required that the funds collected should be deposited where? - CORRECT
ANSWER Dedicated trust fund
Which of the following is an appropriation that would not be subject to limitation as provided by the
NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
e. None of the above - CORRECT ANSWER e. None of the above
T/F - The Local Government CAP law prohibits the transfer of funds authorized from an
appropriation that is not subject to limitation to an appropriation that is subject to limitation -
CORRECT ANSWER True
ACTUAL QUESTIONS AND CORRECT
ANSWERS
Every Audit Required by the Local Fiscal Affairs Law is required to be completed by: - CORRECT
ANSWER An RMA (Registered Municipal Accountant)
The statutory responsibility for filing the AFS is assigned to: - CORRECT ANSWER CFO
A local government officer that serves on the agency that approves development applications refers to
a member of which board? - CORRECT ANSWER Planning Board
Cash management plan must be approved annual by the: - CORRECT ANSWER Governing
Body
The local bond law stipulates that the maturities of all bonds shall be as determined by the local bond
ordinance or by subsequent resolution and be within the following limitations:
a. All bonds shall mature within the period or average period of usefulness
b. All bonds shall mature in annual installments
c. The governing body may provide for a single and combined bond issue
d. All of the above
e. None of the above - CORRECT ANSWER d. All of the above
The effective date of a bond ordinance - CORRECT ANSWER 20 days after first publication
after adoption
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
- CORRECT ANSWER True
,An increase in anticipated revenue from a known and recurring source will have what effect on the
appropriation for the RUT - CORRECT ANSWER Would decrease the appropriation for the
RUT
T/F - The exact line item appropriation or ordinance must be shown on the resolution with the
certification of funds in order to enter a contract - CORRECT ANSWER True
The NJ Budget Law requires that the budget shall consist of a tabulated statement of:
a. Both the CAP calculations on the tax levy and appropriations
b. All debt calculations, including total principal and interest due on outstanding debt
c. All anticipated revenues applicable to expenditures for which appropriations are made
d. All of the above
e. None of the above - CORRECT ANSWER c. All anticipated revenues applicable to
expenditures for which appropriations are made
Four classifications of revenue - CORRECT ANSWER Surplus Anticipated
Miscellaneous Revenues
Receipts from Delinquents
Amount to be Raised
Implementation of a dedicatied tax program for open space is authorized by: - CORRECT ANSWER
Referendum held at general or special election
Alternate calculation for the RUT - CORRECT ANSWER Average of the prior three years
collection rates - allowable with a resolution of the governing body
Debt limit - CORRECT ANSWER 3.5% prior three years average equalized assessed valuation
Pay to play threshold - CORRECT ANSWER $17,500
How long can a BAN be issued for - CORRECT ANSWER 1 year
, When must BANs fully mature - CORRECT ANSWER 1st day of the 5th month following the
close of the 10th fiscal year
Who is responsible for change orders? - CORRECT ANSWER Governing Body
Any deficit in expenditures to which dedicated revenues are applicable shall be provided for by an
appropriation in which budget? - CORRECT ANSWER Current Fund
Threshold for Tax Court appeal - CORRECT ANSWER $1,000,000
Who has the authority to approve the establishment of a petty cash fund? - CORRECT ANSWER
The Director of the DLGS
Who is responsible to bill the special assessment levy - CORRECT ANSWER Tax Collector
Levy Cap - CORRECT ANSWER 2%
The municipal public defenders law contains a requirement for the accounting of application fees that
are collected. It is required that the funds collected should be deposited where? - CORRECT
ANSWER Dedicated trust fund
Which of the following is an appropriation that would not be subject to limitation as provided by the
NJ CAP law?
a. Audit Fees
b. Police S&W
c. Utilities
d. All of the above
e. None of the above - CORRECT ANSWER e. None of the above
T/F - The Local Government CAP law prohibits the transfer of funds authorized from an
appropriation that is not subject to limitation to an appropriation that is subject to limitation -
CORRECT ANSWER True
